Diversity, equity and inclusion are more than just buzzwords. Increasingly, they have come to define company cultures and impact business success.
- Diverse companies’ employees are more likely to be engaged and productive and to stick around.
- Customers like working with diverse and inclusive companies, especially if they or the people they care about are part of a diverse group.
- A diverse workplace attracts a stronger and larger pool of candidates to open positions.
Ultimately, businesses of all sizes tend to perform better when they achieve a mix of ages, races, cultures, genders, socioeconomic backgrounds and physical abilities in their workplaces.
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Why a Diverse Workforce is Important
When considering a potential employer, a diverse workplace is deeply important, particularly to Gen Z candidates, who represent the second-largest group in the workforce (after millennials). In one recent survey, 87% of Gen Z respondents said workplace DEI is very important to them. For companies that want to compete for the next generation of workers, representing diversity matters.
Consumers also are shifting their focus to working with more- inclusive companies, tending to buy more from brands with a demonstrated commitment to diversity. Organizations with diverse staff teams will outpace competitors, in part because of their ability to connect more meaningfully with consumers of different cultures, lifestyles and backgrounds.
Eight Other Benefits of Prioritizing Diversity in the Workplace
Creativity Is at the Forefront
Putting people from different backgrounds, ethnicities, genders and cultures together in a cohesive space generates unique and disparate ideas. This naturally enhances workplace creativity and ingenuity as employees are challenged to think in new and more creative ways.
Problem-Solving Comes More Easily
When a workplace lacks diversity, employees tend to act and think similarly. They may even try the same approaches repeatedly with little result. People who bring other life and cultural experiences to the conversation pave the way to faster problem-solving.
Productivity Goes Up
Diverse teams are often more productive than teams whose members all have the same worldview. And, of course, productivity leads to profitability. To maximize a company’s potential, owners and managers should seek to hire, train and retain employees who represent varying backgrounds, cultures, ethnicities and experiences.
Company Reputation Gets a Boost
Companies that employ a diverse range of individuals are usually seen as more responsible, socially relevant, and “human.” This improved brand position opens doors to new customers, partners, vendors and talent
Employee Turnover Goes Down
Diversity encourages a supportive workplace where individuals are valued and feel included. Retention rates go up because those positive interactions lead to happier employees who are proud of and want to stay with the company.
Top Talent Takes an Interest
Companies that prioritize diversity, equity and inclusion attract qualified, high-performing candidates who are looking not only for a place to establish or build their careers but also for ways to make meaningful contributions in the workplace.
Co-Worker Connections Get Stronger
Social connections are highly important to employee well-being. Strong connections at work reduce stress, increase loyalty and make people want to come to work. When diverse employees have the right tools, resources and management support, they are empowered to develop trusting relationships with colleagues that benefit both workers and the company.
New Ideas and Innovation Benefit the Business
Hiring people from an expansive array of backgrounds invites different value systems and life experiences into the workplace. Nurturing this diversity as a core value yields a collegial environment that positively influences learning, innovation and impact, giving diverse companies a competitive edge in their marketplaces
Diversity, equity and inclusion have become workplace must-haves in virtually all companies and industries. By cultivating a diverse and inclusive culture, companies are equipped to thrive.
If your small or mid-sized company needs to build a more diverse employee base, contact Axcet HR Solutions. We can help you create an inclusive company culture that stimulates business success.