Benefits of Building a Diverse Workforce

While most people will agree there are multiple advantages to having an inclusive and respectful atmosphere in the workplace, too many organizations still struggle to implement effective diversity plans. However, despite the challenges, it’s clear that numerous benefits come with a diverse workforce, and this rings especially true when we consider Executives and Boards.

It has been demonstrated that companies which embrace diversity?don’t just have improved productivity and efficiency, but they also have an easier hiring process given that talented candidates are far more likely to be attracted to work at a diverse company.

All types of candidates are drawn to organizations that are known for their positive approach to diversity in the workplace, including those who come from underrepresented groups.

Here, we look at five benefits that a more diverse approach to the workplace can bring to an organisation:

Improved Reputation

All companies must have a compelling reputation to appeal to various stakeholders including customers and employees. When a company has a diverse workforce, it has the strongest chance of winning top talent to join its team which improves the brand image and allows the company’s reputation to improve.

A Wider Talent Pool

If companies broaden their search for candidates to a more diverse workforce, then a bigger pool of talent naturally unfolds.

More Productive

If a company has a diverse workforce, its employees come with a wider array of experiences and backgrounds. As a result, more innovative ideas?can be generated to resolve issues the company faces.

Improved Performance

Diverse workforces perform better. If all employees come from a similar area, educational background, and culture, the chances of contributing original ideas are low which results in “me too” ideas and less contrarian thought.

When there is a diverse workforce made up from various backgrounds and demographics, new ideas and perspectives come into play, increasing performance and innovation.

More Engaged Employees

When there is an inclusive and respectful atmosphere in the workplace, workers feel more engaged and loyal. As a result, they’re happier in their roles and are less likely to find work elsewhere. This reduces staff turnover, keeping talent inside the company and decreasing costs.

These five benefits make it clear that promoting a more diverse workforce is essential. All companies can reap the advantages that an inclusive and respectful environment can bring as well as the innovation and creativity that a broad diversity of workers on its teams can add to the organization.

Why a Diverse Leadership Team is Superior for Building a Diverse Workforce

Being part of a diverse leadership team is not just a tick box exercise; it comes with genuine benefits. Having a diverse leadership team means that company employees feel that they relate to their managers. This not only builds confidence but enables people to seek growth and new opportunities as they feel that they are part of the team.

A diverse leadership team also speaks volumes to stakeholders who are keen to see improvements in how the company is represented. Having a wealth of cultural experience in a management team makes a company far more impactful within local communities and is more appealing to candidates.

As well as the soft benefits that comes from hiring a diverse management team, there are also some excellent financial rewards too. For example, a 2018 study by?Harvard Business Review?found that

“Venture capital firms that increased their proportion of female partner hires by 10% saw, on average, a 1.5% spike in overall fund returns each year and had 9.7% more profitable exits (an impressive figure given that only 28.8% of all VC investments have a profitable exit).”

In addition, teams that are diverse are more likely to reach different groups of people and have different ideas about opportunities that are put forth, helping a company to diversify its offerings and make more money as a result.

How We Can Help

If you are committed to diverse leadership rather than just a diverse candidate pool, working with a company like us can help. Not only do we employ shortlisting tools that help us seek value and fit, but we are also committed to finding individuals who will support your company while promoting equality and diversity.

Rather than supporting the idea that diversity in leadership roles is impossible due to underrepresentation, we are here to help you find the leader you need. Leaders who can support your company to make quantifiable progress and help deliver on your key strategic goals. Connect with us today?to find out more.

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