Benefits of Diversity in the Workplace
If you’re at the point on your entrepreneurial journey where you are hiring team members for the first time or you are looking to enhance the team that you already have, there are a few important factors that you need to take into consideration, not least of which is diversity in the workplace.
Like sustainability, diversity has become a buzzword in recent years and diversity washing. Diversity washing means that “businesses hiring members of minority groups in roles that have no real function beyond building fake trust in communities to make more money” is as much of a scourge as greenwashing. Don’t be one of those entrepreneurs who say they want to change the status quo but never actually do anything about it. Keep reading to learn why diversity should be one of your key priorities when building a team.
Diversity Breeds Innovation
People who have been brought up in a similar environment, surrounded by similar people and ideas, are likely to think in a similar way. When new ways of thinking are thrown into the mix, it’s usually a recipe for enhanced innovation. Furthermore, if your team doesn’t understand your target market properly, you can’t expect your product or service to effectively solve their problems. So, the greater degree of diversity within your team, the wider your net of influence is likely to be.
Diversity Improves Profit Margins
The benefits of diversity can be seen in the numbers! The business world today is characterized by high levels of competitiveness. This means that in order to thrive, companies need to do whatever they can to stand out. According to a study conducted by McKinsey and Company, ”companies in the top quartile for gender diversity on their executive teams were 15 percent more likely to experience above-average profitability than companies in the fourth quartile.”
Diversity Attracts Talent
Attracting top talent isn’t easy, particularly with the Great Resignation well underway. Among other factors like flexibility and pay increase, upholding values of diversity and inclusion (and making that known to potential candidates) is likely to draw talented individuals to your company, and help you to retain them for longer. According to Glassdoor Diversity Hiring Survey, 76% of job seekers take workforce diversity into account when evaluating a job offer.
How Work-From-Home Policies Enhance Diversity
Over the past few years, accelerated by the COVID-19 pandemic, many companies have changed their policies in order to accommodate remote work. This has had a positive impact on diversity in the workplace. According to the World Economic Forum, Spotify has increased women in leadership positions in their company from 25% to 42% between 2019 and 2021. While Meta has doubled its number of black and Hispanic staff over a similar time period.
Other Strategies for Enhancing Diversity In Your Business
If you’ve come to the realization that you need to get serious about enhancing diversity in your business, it’s important to keep in mind that you need to invest some time and energy into doing it properly. Don’t just think that by hiring more women or people of color, your job is done.
Different cultures, work styles, and the presence of negative biases can hinder progress within your organization. You can combat these challenges in a number of ways. For example, by educating your team on inclusive business practices, creating space for open dialogue, making your policies more inclusive, providing mentorship opportunities, and conducting pay equity reviews to ensure you are not contributing to the wage gap issue.
Next Steps Towards Diversity In Business
There is no quick fix for enhancing diversity. It is a slow and steady process that takes continued effort on behalf of those who hold leadership positions. But, as we hope you have already internalized from reading this blog post, it is well worth it!