How workforce diversity puts your organization at a competitive advantage

Diversity in the?workforce?has grown in importance over the years and this trend shows no signs of stopping. Not only is?diversity?and inclusion progressively significant to the?workforce, it also provides multifarious benefits that can ultimately put your organization at a competitive advantage.

What is?diversity?in the workplace?

In terms of business,?diversity?refers to the inclusion and acceptance of employees from all walks of life. This includes understanding, acknowledging and valuing employees' differences in regards to race, age, gender, sexual orientation, religion and more. As companies progressively strive for?diversity?and inclusion, it's significant to consider how these changes can give your business a competitive edge along the way.

Advantages that a diversified?workforce?can provide include:

Creativity and innovation

Hiring and including employees with different backgrounds and experiences inevitably breeds creativity and innovation. When similar workers come together to solve problems or complete tasks, it's likely to create an echo chamber of identical ideas and a lack of novelty. On the other hand, a diverse?workforce?brings unique perspectives to the table, as well as new solutions to different problems.

Improved loyalty and retention

Organizations that aim to foster a diverse and inclusive culture create an environment of comfort for employees. Workers that feel free to be themselves will be more satisfied and engaged at work, which often leads to stronger feelings of loyalty to their organization. In turn, this loyalty translates to long-term retention.

A greater appeal to a wide range of markets

According to a report from Zenefits, diverse teams are 70% more likely to?capture new markets. This wide reach is often due to novel ideas and increased innovation enabling a connection to a more diverse consumer base. As markets evolve, the importance of reaching a broader audience is essential for operational success.

Higher productivity

Diverse teams have also been found to be better at decision-making throughout collaboration. Not only is this significant to increase efficiency and engagement, but overall productivity as well. In fact, an article from CIO found these companies see a?20% higher productivity than their competition.

Access to a wider pool of talent

Ensuring?diversity?and inclusion are at the forefront of your organization's culture can give you access to an expanded talent pool that might not have been available to you before. As organizations scale, utilizing these workers brings unique skills to the company and continues to attract diverse talent along the way.

Businesses that employ people from varied backgrounds can expect to see increased innovation, lower turnover rates, and even improved morale and company reputation. As a result of the numerous advantages provided by a more diverse?workforce, this leads to a?19% higher revenue, the Boston Consulting Group reports. After understanding the true impact of a diverse and inclusive workplace on any organization's operational efficiency and success, it's imperative for managers and business leaders to employ these ideas moving forward.