Better Financial Results
According to McKinsey’s new research, organisations with diverse people that comprise of different ethnicity, backgrounds and viewpoints perform better financially and outperforming their competitors in the process. Organisations with more culturally and ethnically diverse workforce were 43% more likely to see above average profits, which shows the important correlation between diversity and performance.
Creative and Innovative Thinking
Hiring employees with different cultural backgrounds can not only bring about an increase in productivity, it also increases the organisation’s competitive advantages. This is because individuals from diverse backgrounds offer different set of skills, talents and experiences. A workplace where multiple voices, personalities and perspectives bouncing off one another can give rise to out-of-the-box thinking, resulting in a variety of solutions on how to achieve a common goal and/or solve problems. By collaborating and brainstorming ideas on a daily basis, your employees will gain new skill sets and experiences, which will result with more well-rounded employees, as well as expanding your company’s talent pool in the process.
Attract Candidates and Retain Employees
Organisations that embraces a diverse workforce has a better chance to accumulate top talents and retain skilled employees. According to a Glassdoor research, two thirds of job seekers indicate diversity as one of the most important criteria when evaluating potential workplaces and job offers. In a competitive global job market, where companies fight over the best and talented employees, demonstrating that your organisation is invested in fostering a multicultural work environment can make you stand out to the right job seekers. Prioritizing diversity and making it as a part of your company’s recruiting process will broaden your talent pool of prospective employees. Besides, hiring from a diverse talent pool will also help you keep your skilled employees on board, improving retention and reducing the costs associated with employee turnover.
Better Products and Services = Satisfied Clients
When your company is home to a diverse group of individuals from different backgrounds, your company can effectively market to a wide range of consumers.
Having a diverse workplace gives a plethora of ideas on creating consumer solutions. A broader and diverse talent pool will help your organisation to have the competitive advantage of adaptability, which will result in faster and more effective planning, development and execution. You will be able to develop, adapt and customize the best possible solution(s) that will help and satisfy your clients. Furthermore, an organisation with cultural and cognitive diversity is quicker to spot a gap in the market.
Last but not the least, the benefit and the result of having a diverse workplace is the positive reputation that your company will receive, not only from satisfied clients and current employees, but also from job seekers. Candidates (especially Millennials) are drawn to organisations with diverse workforces because evidently an organisation that embraces a diverse workforce do not practice employment discrimination. Thus, your company will gain a reputation of being a good employer.
Today’s labor pool has dramatically changed. Top talent is no longer represented by a homogeneous group, available talent is now represented by people from a vast array of backgrounds and life experiences. Organisations that choose to retain homogeneous workforce will likely find themselves increasingly ineffective not only in their internal – but most importantly in their external communications.
If you want your company to be competitive on an international scale, embracing cultural diversity in the workplace is integral.