The benefits of diversity in the workplace

January 11, 2022

Workplace diversity refers to a company or organization that intentionally employs a workforce of diverse individuals with a wide range of characteristics and talents. In terms of characteristics, this can include any distinct gender, race, ethnicity, age, religion, education or other aspects that diversify the workforce.

This idea of recruiting and utilizing unique employees is progressively important in today's business sphere. It's imperative for organizations to positively evolve toward a more open and accepting environment while understanding the host of benefits they can expect to see by implementing this diversity.

New perspectives
Employing a wide range of unique employees often means a variety of perspectives can be brought to the table. It's not unusual for a workplace of common minds to quickly become an "echo chamber" where ideas are amplified or reinforced without alternate thoughts to consider. This could spell long-term trouble for your business.

Greater innovation
Increased creativity and improved decision-making are difficult to accomplish in a workplace of similar ideas and backgrounds. According to Apollo Technical, research shows diverse teams making collective decisions outperformed individual decision-makers 87% of the time. The opportunity to draw from different minds and experiences can bring an invaluable level of innovation to the company moving forward.

Increased revenue
An important benefit of an assorted workforce is the tendency of these teams to see higher profits. A report from MarketWatch found the increased innovation in diverse companies results in 19% higher revenue. As diversity continues to make organizations more profitable and successful, it's clear a varied workforce pays off in the long run. 

Improved employee performance
With a plethora of cultures, backgrounds and ways of thinking represented, employees are less likely to feel pressure to conform. This increases the chance of workers feeling the relief and support to be themselves, which — in turn — results in happier and more productive employees. Not only are these workers more engaged, but the reduced fear of rejection often leads to employees delivering their best work.

Boosted brand reputation
A workforce from all walks of life is a good reflection of your company and its values. Not only does it show a willingness to evolve with a more open world, but it also might be vital for recruiting potential talent. A report from P2P supports this by finding brands with better reputations have higher retention rates and attract better talent in general. Employees prefer companies with positive ethics and morals and tend to thrive in these environments, as well.

According to Forbes, 50% of workers want their company to commit more energy toward promoting diversity. While implementing diversity in the workplace is essential to attract and retain talent, it requires a high level of effort from organizational leaders to ensure it's executed correctly and the organization is properly managed moving forward. It's up to employers and managers to appropriately employ this assortment of workers so the organization can evolve confidently and reap the benefits of a diverse workforce.