How does Cultural Diversity Add to a Company’s Success?
Diversity, equality, and inclusion. Three words have quickly found themselves at the top of almost every companies’ priority list. Diversity helps bring different perspectives, drives innovation, and creates a sense of belonging within workplaces. It’s a topic that is finally gaining the attention it deserves.
We have previously covered topics such as the importance of diversity training in a workplace and workplace diversity and how we can tackle unconscious bias. Today we would like to touch upon the topic of cultural diversity and the impact it has on the company’s progress.
What is cultural diversity and why is it important?
Cultural diversity can be defined as, “The existence of a variety of cultural or ethnic groups within a society”, but when applied to a work group it refers to the varying backgrounds, values, traditions, and beliefs of employees based on their race, gender, religion, ethnicity, sexual orientation, health differences or age.
Importance of workplace diversity
We listed a few stats as to why cultural diversity is crucial to your company.
67% of job seekers consider workplace diversity an important factor when considering employment opportunities, and more than 50% of current employees want their workplace to do more to increase diversity. (Glassdoor)
Only 40% of women feel confident in taking part in the decision-making process in the organisation compared to men (70%), which leads to lower retention rates within these companies (Culture Amp)
Companies with a higher-than-average diversity had 19% high innovation revenues (Harvard Business Review). More diversity brings more innovations, which means a greater potential growth for the company.
These are just a few statistics to provide a glimpse into the level of success they can achieve by creating a more inclusive culture and a diverse atmosphere for their employees.
Benefits surrounding cultural diversity in a workplace
Improved recruitment process:
As mentioned in the statistics above, workplace diversity is considered a crucial factor by a large portion of the talent pool while applying for jobs.
A more inclusive company, who not only states it for the sake of saying it, but rather has a proven track record or highlights their efforts and strategies for creating a diverse work environment, might attract more talent towards the organisation.
Diversity as a topic is something many people stand strongly behind and is probably a crucial factor they would like to associate themselves with even from a work perspective.
So put efforts into sharing your vision when it comes to diversity, let the talent market know they are welcome in your organisation.
Greater room for innovation:
Innovation comes from previous experiences and strong ideas. So, having a group of employees from different backgrounds brings varying perspectives and distinct experiences to the table that could render extremely useful.
The more ideas you collect, the wider range of services/products you can create to cater to a larger number of people in the market.
Ability to develop skillsets:
Having a group of individuals with different skillsets, talents, and strengths in one group can help the team as a whole to learn from each other and develop new sets of skills.
Learning from your peers is one of the most effective ways to learn and has proven successful in the past. A workplace that provides everyone with an equal opportunity to contribute, can only generate more effective ideas that would, in turn, lead to company-wide success.
Improved employee engagement and retention:
An inclusive work environment will make your employees feel more appreciated, valued, and comfortable. Which will lead to earning their loyalty. If your employees feel safe and respected, they will tend to stick around with the company.
All that everyone wants is an equal opportunity and that they’re not left out based on any factor outside their skills. Once they feel this kind of security, you will also see a greater engagement rate.
The more research you conduct, the more effective your implementation process will be. Having employees from various backgrounds can only boost the atmosphere and the growth of the company.
It is refreshing to see the efforts being put in by employers across the industry to create an inclusive workplace. If your company has not yet created any substantial strategies around workplace diversity, it’s time to jump on board and get planning!
A focus on diversity and inclusion provides an organisation with a competitive advantage, that can lead to high levels of success.
If you require more insight into this particular topic and what is being said in the market, do get in touch with us at firstname.lastname@example.org and we would be happy to share our knowledge.