The first thing that probably comes to mind when you think about a diverse workforce is race and gender. You may think of age as well. But diversity stretches across a variety of demographic, ethnic, cultural, and even behavioral characteristics. Having people with a variety of backgrounds and personal characteristics can make for a rich melting pot that benefits your business.
What are the benefits of having a diverse team? The Harvard Business Review says diverse teams are smarter. A McKinsey study of more than 360 public companies found those that were diverse ended up 35% more profitable over their industry average. As diversity increased, so did profits. While we may know instinctively that diversity matters, in fact, there’s plenty of data that shows diverse teams are more profitable
e than those that aren’t. What are some of the other benefits of diverse teams for your organization?
Diversity Creates Innovation
In addition to simply being the right thing to do, diversity in business has a number of benefits that affect the bottom line of an organization.
Boston Consulting Group reports that diversity of people means a diversity of ideas, approaches, and a stronger problem-solving capability. This leads to greater innovation that gives companies a competitive edge. When people work together and have different experiences, backgrounds, and styles of working, creativity is boosted in positive ways. Weaknesses are complemented by strengths in the individuals working on a team. It is this give and take of ideas that make companies stronger.
Diversity Improves Decision-Making
One study showed that diversity and inclusion at all levels of the organization can improve decision-making. Diverse teams make better business decisions up to 87% of the time and these decisions happen twice as fast with half the meetings. The study also showed that the decisions that were made and implemented by the diverse team delivered better results 60% of the time. It’s obvious that diversity improves employee performance, in part because an inclusive team can feel confident in their ability to achieve their goals. Team successes can lead to more confidence and higher morale.
Diversity Widens Your Talent Pool
The more people of all colors, shapes, and backgrounds that you hire, the better. Companies that embrace diversity will bring on a wider variety of top candidates to fill hiring vacancies. Diverse organizations are viewed as progressive and better to work at than the alternative. According to one study, 47% of the millennial generation look at diversity and inclusion when seeking out and considering new employers. Given that millennials have replaced baby boomers as the top demographic in the workforce today, companies seeking to attract top talent should consider diversity and inclusion as a key driver to bring on more qualified staff. This can also contribute to your ability to retain staff longer
At PrideStaff, we recognize the importance of your efforts to diversify your staff. We can help with your diversity and inclusion efforts by finding you a very qualified and diverse labor pool to build your business. Talk with our team to find out how we can help.