Business

Ways Diversity and Inclusion Are Good for Business

Diversity is all the ways that make us different from the next person. Whether it’s gender, sexual orientation, age, ethnicity, religion, disability, background, etc., incorporating these differences into the workplace can not only help to improve the function of the organization and address a client’s needs, but it can also foster better awareness and understanding. When your company works to embrace these differences, inclusion is born, and it can rapidly change how you do your business as well as your bottom line. 

In this blog, let’s look at all the ways that diversity and inclusion are good for business.

  • Diversity allows you to reach a global customer base

Globalization, or the way organizations and businesses begin to operate on an international scale, has altered the way that we do business. It now allows you to reach a global customer base across continents and in different cultures and time zones. If you have a team member that can speak a local language, address client needs, and grow an authentic relationship, that’s an enormous asset. 

In fact, one Harvard Business Review study found that the entire team better understands the user when just one member of the team has traits in common with them. For instance, when a team member shares a client’s ethnicity, they’re 152 percent more likely to understand the client. 

  • Diversity helps you achieve higher returns

One McKinsey report found that companies in the top quartile for racial and ethnic diversity are 35 percent more likely to have better financial returns than their non-D&I industry competitors. Additionally, companies in the top quartile for gender diversity are 15 percent more likely to improve their financial returns. If for no other reason, it makes sense to boost your diversity for your bottom line! 

  • Diversity contributes new ideas and perspectives

When you hire people from similar backgrounds and education profiles, they’re likely to provide similar ideas and perspectives. Unfortunately, this isn’t always good for a company that wants to be a leader in its industry. You want your employees to be innovative, creative, and disruptive in their thought processes, ideas, and perspectives.  

Deloitte has provided research indicating that diversity and inclusion increase innovation by about 20 percent. A diverse workforce can ensure that products and services resonate with their clientele. Additionally, they have the added benefit of having an inside perspective and knowing whether their practices are respectful of their customers’ cultures. 

Overall, this makes employees more confident and creative as they disrupt and innovate in global markets. 

  • Diversity provides new hiring practices to attract top talent

Some organizational hiring practices unintentionally exclude applicants, which is costly to employees due to retention and turnover issues. By integrating diversity and inclusion into your recruitment process, you’ll have larger and more varied candidate pools and increase employee satisfaction once at your company. A majority of job seeks today look for companies with a commitment to diversity, equity, and inclusion, which is something to keep in mind! 

Final thoughts

Diversity and inclusion are important factors in every business and organization today. Not only do they improve the quality of the working environment for staff, but they also enhance the bottom line. Consider creating a diversity calendar to remind you and your employees the importance of diversity. Start looking at how you can begin to focus on diversity in your daily practices!

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