Diversity in the workplace is a hot topic in the HR industry. Employers are giving diversity, equality, and inclusion (DEI) programs a higher priority than ever and allocating resources to ensure that their teams are prepared for success. Focusing on DEI is the right thing to do as a person, for humanity, as well as the wise thing to do for your hospitality business.
In this article, we’ll review the tangible and intangible benefits of workplace diversity, the challenges that come with it, and what you can do to get started on related initiatives today.
What is diversity in the workplace?
Diversity in the workplace refers to a company purposefully hiring a staff made up of people with a variety of traits, including gender, religion, race, age, ethnicity, sexual orientation, education, and other qualities.
There are numerous advantages to diversity in the workplace, both within and externally. But that doesn’t imply that putting diversity efforts into practice at work doesn’t provide its own set of difficulties. In the parts below, we’ll go over both sides of the argument.
The Benefits of Diversity in the Workplace
1. New Approaches
You may bring a wide range of fresh perspectives to the table by hiring people from other cultures, nations, and backgrounds. Benefits like improved problem-solving and more productivity may result from this. Consider it like a scavenger hunt: will sending the entire squad on the same route increase your chances of success? Or will a team that intentionally divides up allow you to acquire knowledge more quickly?
Some recruiting managers may find it unsettling to consider bringing fresh viewpoints to the organization. People could worry about unpleasant situations or the introduction of unfavorable ideas. But don’t worry—studies have shown that diverse teams’ decision-making skills improve by 60%.
2. Larger Talent Pool
Employees no longer just want a well-paying 9 to 5 job. They are seeking an environment in which they may develop, feel valued, and face challenges. Because of this, a business that values diversity will draw a larger spectrum of applicants seeking a progressive workplace. Additionally, the Millennial and Gen Z generations are the most homogeneous in history, while just 56% of the 87 million millennials in the country and 72% of the 76 million members of the baby boomer generation are white, respectively. In a similar vein, a 2020 Glassdoor poll discovered that 76% of workers and job seekers agree that a diverse staff is crucial when assessing businesses and job offers. Therefore, varied businesses are more likely to draw the greatest talent.
On the other hand, a business that actively pursues diverse people will have access to a larger talent pool. Even while you should always be picky when it comes to hiring, being overly particular about qualities that don’t matter can drastically reduce the pool of candidates you can even consider. To identify quality hires, it is important to embrace variety in the background, thought, ethnicity, and other aspects.
3. More creativity
Diversity in the workplace encourages innovation. When you consider it, the connection makes sense. If a group of people is homogeneous, then it is likely that everything about them, including their mental processes, life experiences, and problem-solving techniques, will be similar. Additionally, sameness does not produce original solutions. On the other hand, a diverse workforce will provide special perspectives that may result in intellectual breakthroughs.
The same rationale underlies why crucial strategy meetings are held offsite by businesses, as well as how a change of scenery can spur creative problem-solving. Fresh ideas are known to be inspired by novel situations and locations. According to a recent study, businesses that demonstrate a strong commitment to diversity tend to be substantially more inventive.
4. Better employee performance
Inclusion and diversity go hand in hand. Employees are more likely to feel at ease being themselves in a work setting when they witness representation of a range of ethnicities, backgrounds, and thought processes. Employees who are happier and more productive as a result.
However, studies have shown that the drive to fit in within a strong, homogenous culture can suppress natural cognitive variety. Employees are more prone to fear rejection and perform subpar work if they don’t feel free to be themselves at work.
5. More Profits
Numerous studies have demonstrated that diverse teams just perform better and generate more revenue. Those in the top quartile for ethnic and racial diversity in management were 35% more likely to generate financial returns above their industry mean, according to a 2015 McKinsey analysis on 366 public companies. Additionally, individuals who scored in the highest percentile for gender diversity were 15% more likely to generate returns that were higher than the average for the sector. Another McKinsey study discovered that U.S. public corporations with diverse executive boards outperform those with homogeneous boards in terms of return on equity by 95%. The Boston Consulting Group discovered in yet another study that diversifying leadership teams boosts financial performance. Diversity clearly pays off.
Diversity in the workplace is a necessity for all businesses; with benefits for both employers and employees. Join the conversation – get in touch today!
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