Importance Of Workplace Diversity: 10 Reasons Why It Benefits Organizations
Understanding the importance of workplace diversity is a game-changer phenomenon. Allowing the differences of each individual such as sex, race, language, age, ethnicity, culture, background, or sexual orientation to prevail in the workplace gives them a creative space to contribute in line with unique experiences.
The importance of workplace diversity is also felt in the financial sphere. It elevates the productivity level of employees and generates greater output, making it a key factor for companies looking to succeed in this increasingly globalized and competitive world.
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10 Reasons Why Workplace Diversity is Important
Workplace diversity bears many benefits, and some of these have been highlighted by the following points:
- Increased Employee Engagement
The rate at which employees put forth their employees significantly increases if they feel they are heard and are cared for. Inclusion refers to including the employees regardless of their differences and automatically translates into an engagement.
- Heightened Productivity
Low employee morale is a silent killer of workplace productivity. Fostering cultural diversity in the workplace ensures that employees work better as a team. This enhances their productivity and leads to better results. Culturally diverse organizations also contribute to higher employee morale and boost their collective confidence. Thus, an increase in the level of productivity becomes a reason why workplace diversity is important.
- Leads to Innovation
The competition in this globalized world is cut-throat. To stand out, we need creative and innovative ideas. But these will not come to you if you do not broaden the collective workforce diversity level. A study has suggested that companies with a diverse culture have 19 percent higher innovation revenue than those that do not culminate a diverse work culture.
The Harvard Business Review found a statistically significant relationship between diversity and innovation outcomes. Cultural diversity ensures that there is ample creativity and a better arena for innovation.
- Decrease in Employee Turnover
Why would an employee want to leave a company that respects and cares for his/her identity and gives more importance to their work than any personal matter? This increases their loyalty towards the company and makes sure they stay, considerably reducing the employee turnover.
Making the workers feel valued in an organization is a foremost step towards decreasing the level of turnover that ultimately saves the company its recruiting cost, valuable assets and from a bad reputation. A reduced turnover is also good for the organization’s reputation while hiring, making it a sought-after workplace.
- Gives Way to Different Viewpoints
The importance of workplace diversity is felt because it brings forth new perspectives that are invaluable and can be game-changers. People will bring forth varied opinions and viewpoints for a single piece of product because of their vast and different backgrounds. This will only make that product more enriched and consumer-oriented. The more varied the perspectives, the more innovative the strategies.
- Fosters a Problem-Solving Mindset
Because of the different perspectives of your teams, individuals can come together, utilizing their different perspectives to bring diverse solutions to the table and this is yet another reason where the importance of workplace diversity is realized. This means decisions can be made quicker, making for an extremely competitive business in today's marketplace. It has been proven that teams tackle complex problems faster when they are more cognitively diverse.
- Improves Reputation
Another reason for the importance of workplace diversity is that businesses today understand the importance of diversity. Hiring practices are more diverse, with departments being more open to hiring people from diverse backgrounds. Although some time ago this might have been a formality to look good on the surface, organizations are now actively seeking individuals from a variety of communities in terms of race, gender, ethics, etc.
- A better understanding of customers
Working with a diverse clientele requires a diverse team. By hiring people from all walks of life, you can connect with and learn about a wider range of international clients. A study shows teams that include a member that shares a client’s ethnicity are 152% more likely to understand that client than another team, increasing the odds of success.
- Increased Finances
Is it possible to link a company’s finances and its workforce diversity? Yes, it is and has been proven by studies from both McKinsey & Company and Boston Consulting Group. These studies reveal that financial performance improves as organizations become more inclusive, thanks to the improved productivity levels. Also, less turnover plays a role here as both recruiting costs and compromised candidates are avoided.
- A Decline in Conflicts
Workplace conflicts are unavoidable. When there is a lack of acceptance or respect between employees, disputes tend to occur. However, embodying a culture of mutual respect in a workspace significantly reduces the chance of a conflict occurring. For this, you must foster a space that takes cultural awareness seriously. By practicing open communication in conjunction with truly accepting and supporting diversity within the workplace, conflict can be reduced or avoided entirely.
Ways to Cultivate Workplace Diversity
Companies who are intentional about hiring, retaining and developing diverse talent are 35% more likely to outperform their competitors. So, it is only fair we learn how to foster a more diverse workforce.
- Objective Criteria
The potential for bias or partiality is minimized with objective criteria. Gather s a team to openly discuss these criteria and co-develop collaborative action plans to avoid unconscious bias to the greatest extent possible.
- Offer Incentives and Recognition
While it is important that you offer your employees incentives and praise for their work and constructive feedback, it is equally essential that you treat them personally. This will make them feel truly cared for and appreciated for their real self. Awards will not only boost their morale but also cultivate a sense of belonging in employees.
- Bring in Psychological Safety
It is essential to ensure that your actions or words do not hinder anyone’s psychological safety as its key in bringing in place a positive work environment. The output generated by a healthy mind will outperform the one that is in an unsound condition. Hence, to make the most out of the diversity in your organization and to bear the aforementioned benefit of diversity, it is imperative to pay heed to psychological safety.
- Code of Conduct
A company’s policies and practices should be available to all workers at all times. The code of conduct should be updated regularly and outline a company’s approach to diversity and non-discrimination. Be it, supervisors or co-workers, no one should feel they have the freedom to discriminate on any grounds. There should be an in-office committee in place to ensure this is executed properly.
- Communication is Key
Authentic communication in a workplace will let the employees be free in voicing their opinions on the issues they are facing and ways to foster a better-diversified space. Employees should be able to communicate their ideas across for making diversity successful and important. But mere words won’t be enough to bring about change, what is more, essential is execution.
A diverse workplace is a happy workplace because it is open to people of all cultures and backgrounds and ensures that their voices are heard is good to work at. The more varied the perspectives, the more innovative the strategies. Choose diversity over disparity!