Why does diversity in the workplace matters?

“Strength lies in differences, not in similarities” – Stephen R. Covey.

The characteristic of diversity is a diversified collection of anything or individuals that together form a whole. Diversity is fundamental to our daily lives. We may acquire and practice several talents, like as empathy, emotional intelligence, and understanding, through diversity.

Diversity means different things to different people. Diversity in the workplace refers to the variety of different perspectives represented on a team. It includes many experiences including gender, socioeconomic background, religion, education, ethnicity, etc… Innovation is generated by diversity, and innovation in turn fosters business success. Diversity is a sound business strategy rather than just a trendy HR concept.

In an organization, diversity plays an important role because every individual should have an equal opportunity, or any other treatment based on the qualities that make them unique. Some examples of all the different levels of diversity at work are cross-functional representation, racial and gender diversity, socioeconomic status, educational background, and work experience. When diversity is properly managed, leaders can get better ideas, identify blind spots, develop new approaches, and create better solutions. This would result in innovation, performance, and growth in an organization.

Regretfully, instances of discrimination are typically what highlight these problems and encourage organizations to enhance their DEI (Diversity, Equity, and Inclusion) Programs. Several organizations have used unconscious bias training as a result of the Black Lives Matter movement. Without structural and institutional change, diversity training could just be a box-ticking exercise. A company's strong policies, strategies, and practices should be implemented across the board to complement any diversity training, as unconscious biases are just one way that discrimination and prejudice can develop.

 

Diversity benefits the workplace in the following manner:

·        Decreased group thinking.

·        Improve creativity and innovation.

·        Improved decision making.

·        Expanded market reach.

·        Increased employee engagement and retention.

It helps provide insight into the needs and motivations of all your clients and a broader customer base. However, achieving this in the real business world has become more difficult than expected. Accepting diversity is a very important concept. Ultimately, businesses that can adjust to shifting demographics and value individual and intellectual diversity are probably going to be the ones that prosper in the dynamic and highly competitive business world.

 

Diversity, according to McKinsey & Co., increases profitability. Research is used to support the idea that greater diversity translates into higher earnings. The variety of viewpoints and experiences inside an organization will increase dramatically if we build a workforce that encompasses a wide range of personal, cultural, regional, ethnic, racial, and religious dimensions of life. Diversity leads to inspiration, ideas, creativity, and innovation. Effective performance and organizational productivity are therefore important results.

Gallup gives 03 overarching requirements for sustaining a diverse and inclusive organizational culture. The requirements are: Treat employees with respect, Value employees for their strengths and  If you are a leader, do what is right.

More diverse businesses may attract top talent, enhance satisfaction with work, and customer focus, make better decisions, and create a beneficial cycle of feedback with growing profits.

 

key benefits of workplace diversity

Greater variety translates into a wider range of perspectives and experiences. Studies consistently demonstrate that companies that prioritize diversity perform better than their counterparts.

·     60% of participants stated that having a diverse sales team had improved their teams' performance.

·  There is a +25% chance that companies in the top quartile for gender diversity will outperform their competitors financially.

·    Businesses with the highest quartile of ethnic diversity are +36% likely to outperform financially.

·       Diverse businesses generate 2.5 times more cash flow per worker.

·       Teams that are inclusive are almost 35% more productive.

·        87% of the time, diverse teams produce superior judgments.

 

References

https://community.thriveglobal.com/why-does-diversity-equity-and-inclusion-matter-in-the-workplace/

Discovery, R. 2023. Why Workplace Diversity Is So Important, And Why It’s So Hard To Achieve. Available at: https://www.forbes.com/sites/rsmdiscovery/2018/08/22/why-workplace-diversity-is-so-important-and-why-its-so-hard-to-achieve/?sh=541079ee3096

Why Diversity Matters and How You Can Create a More Inclusive Workplace. [no date]. Available at: https://corporatetraining.usf.edu/blog/why-diversity-matters-and-how-you-can-create-a-more-inclusive-workplace

https://online.york.ac.uk/workplace-diversity-and-why-it-matters/