Embracing Diversity: The Key to Thriving Businesses
Unlocking the Benefits of Embracing Diversity and the Competitive Edge it Provides
Over recent months, we have seen a surge in requests to collect far more demographic data than ever before when conducting employee engagement surveys. Notably this increase in demographic data is very much around protected characteristics and our clients are wanting us to delve deep into this data to look at the difference experience of employees and their engagement levels across these groups.
In addition, we are seeing clients also look to understanding, from their people, how diverse they ‘really’ are as an organisation and how represented difference groups are across organisations. The question is why? Why, now, are organisations looking to go so deep into this area?
In short, there are many reasons one of the main ones is that a diverse workforce brings a multitude of perspectives, experiences, and ideas to the table. Research by McKinsey & Company indicates that diverse companies are 33% more likely to outperform their competitors in terms of financial performance. This advantage stems from the ability of diverse teams to think critically, solve complex problems, and generate unique solutions that reflect the diverse needs of their customer base.
Furthermore, diversity in the workforce enhances a company’s ability to understand and connect with a broader range of customers. As markets become increasingly globalised and multicultural, organisations that mirror the diversity of their customers are better positioned to build trust, establish meaningful connections, and tailor products and services to meet a wider range of needs. According to a study by the Center for Talent Innovation, diverse and inclusive teams are 70% more likely to capture new markets.
The benefits of diversity extend beyond financial gains and arguably, these are even more important. A diverse workforce fosters a more inclusive and supportive work environment, which leads to higher employee satisfaction and engagement. When employees feel valued and respected, they are more motivated to contribute their best efforts, resulting in increased productivity and a lower turnover rate. A study conducted by Deloitte found that organisations with an inclusive culture experience a 22% reduction in turnover.
Embracing diversity
Moreover, embracing diversity in the workforce strengthens an organisation’s reputation and brand image. In an era where social responsibility and ethical practices are paramount, customers, investors, and stakeholders place great importance on a company’s commitment to diversity and inclusion. By championing diversity, businesses not only attract top talent but also build a positive brand perception that resonates with a wider audience. A survey conducted by Glassdoor revealed that 67% of job seekers consider a diverse workforce as an important factor when evaluating potential employers.
To truly reap the benefits of embracing diversity, organisations must create an inclusive culture that goes beyond mere representation. It requires fostering an environment where diverse perspectives are respected, different ideas are encouraged, and biases are challenged. Implementing diversity and inclusion training programs, establishing mentorship initiatives, and promoting diverse leadership are some of the strategies organisations can employ to cultivate an inclusive workplace.
In short, embracing diversity in the workforce is not just a moral imperative; it is a strategic advantage for businesses in today’s rapidly evolving world. The financial, operational, and cultural benefits of diversity cannot be ignored. Organisations that are embracing diversity not only outperform their competitors but also foster innovation, enhance customer relationships, and create an inclusive work environment. By prioritising diversity, businesses can unlock their full potential and thrive in an increasingly interconnected global marketplace.
To find out how diverse and inclusive your organisation truly is, drop us a call and we can talk through how our survey research can help you understand how powerful embracing diversity is and unlock the potential within your organisation. Alternatively, if you have any further queries relating to how we can deliver employee insights through our employee engagement surveys, pulse surveys, 360 feedback surveys and other staff surveys, then contact our team.
References:
McKinsey & Company. (2018). Delivering through diversity. https://www.mckinsey.com/business-functions/organization/our-insights/delivering-through-diversity
Center for Talent Innovation. (2013). The power of diversity. https://www.talentinnovation.org/_private/assets/Power_of_Diversity_v1_2013.pdf
Deloitte. (2017). Diversity and inclusion: The reality gap. https://www2.deloitte.com/content/dam/Deloitte/us/Documents/about-deloitte/us-about-deloitte-inclusion-study-ausgender-deloitte-university-march-2017.pdf
Glassdoor. (2014). Why diversity matters to your company’s success. https://www.glassdoor.com/research/studies/diversity-inclusion-company-success/