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7 Benefits of Diversity in the Workplace

equality and diversity in the workplace planning

In this article, we will run you through the major benefits of diversity in the workplace, as well as how to expertly manage it in your organisation today. 

Key Facts

  • There are four types of diversity in the workplace, each of which encompasses its own unique characteristics.

  • Increased diversity in the workplace helps employees think more creatively and increases productivity. 

  • Improving inclusivity requires constant work on company policies and acknowledging and overcoming personal biases.

What Are the Benefits of Diversity in the Workplace?

Practising inclusivity in the workplace can produce several significant advantages for your employees and your business alike. 

1. Better Problem-Solving and Decision-Making 

The more viewpoints represented on a project can result in a greater variety of creative solutions. Harvard Business Review found that a team with multiple perspectives is better able to make decisions more quickly and more efficiently. 

2. Higher Employee Engagement

Deloitte Australia interviewed 1,550 employees from three businesses about their perspectives on diversity and inclusion. The research showed that a majority of employees felt more included in an organisation that supports diversity. As a result, they were more engaged with their work and produced higher quality results. 

3. Higher Profits

Research by McKinsey & Company conducted in 2018 discovered that companies with more gender-diverse workforces are 21% more likely to have above-average profits. It increases to 33% with more ethnic and cultural diversity.  

4. Increased Productivity and Innovation

Many high performers are more likely to seek out companies that value diversity in their workforce. Inviting a wider range of viewpoints promotes faster and more creative problem-solving while drawing in more ambitious employees. 

5. Higher Employee Retention 

Supporting inclusiveness helps employees feel more accepted and valued within the workplace. In turn, they’re more engaged with their work and their workplace, creating a sense of belonging that makes them less likely to seek other employment.

6. Improved Brand Reputation

Promoting diversity and inclusiveness within your organisation makes it more reputable to the public. Acting as a socially-conscious brand can attract top talent to your company, resulting in more customers and potential business partners. 

7. Larger Hiring Pool

A focus on diversity draws more potential employees to your business from a wide variety of personal and professional backgrounds. This larger talent pool can increase your chance of finding high-quality employees for your business. 

The Four Types of Diversity in the Workplace

Diversity in the workplace can mean many things. Each characteristic, which brings its own value and advantages, can be sorted into four broad categories:

  • Internal Diversity: These are traits that someone is born with that are difficult or impossible to change. Race, ethnicity, sexual orientation and age fall under this category. 

  • External Diversity: These are traits that are more heavily influenced by a person’s environment and can change over time. Traits in this category include appearance, education, hobbies, habits and life experiences. 

  • Organisational Diversity: These are different traits assigned to employees by a larger organisation. These characteristics include role within the company, pay, union membership and seniority. 

  • World View Diversity: These are traits that determine how a person views and interacts with the world. Establishing an employee's worldview is simpler because these are often determined by traits from the other categories. Characteristics in this category include political leanings, religious beliefs and moral compasses. 

How Does Change Management Work In Your Organization?

If you are looking for a better, more seamless, way of making change stick, you’ve found it. Our free change management guidelines download is made with your organization in mind. Download it, for free, today.

Tips to Properly Manage Diversity in the Workplace

As you examine ways to effectively manage diversity in the workplace, keep these tips in mind…

Don’t Think of Diversity as a Buzzword

Make sure your efforts to promote diversity are sincere. 

Establishing programmes and initiatives to increase inclusivity is a good start, but they can become superficial and temporary if not managed properly. 

Benefiting from diversity means enacting meaningful change in how your business treats its employees from top to bottom. Your workforce will likely see through anything less. 

Revamp Your Hiring Process

To invite a more diverse range of people into your workforce, make sure your hiring process actively seeks them out. 

It’s common to hire people that share traits similiar to your own, but you can quite easily mandate a more diverse selection of employees before hiring someone. 

Additionally, assess how you determine if someone is good for your company and revamp the criteria. For example, reach out to job boards or organisations which cater to amplifying opportunities for diverse communities.

Expand Your Hiring Pool

Reach out to organisations that already promote diversity and establish a pipeline for new, talented employees. The more of these connections you have, the more hiring choices you’ll have available. Equality organisations are a good place to start. 

Establish Inclusive Policies

Take the time to re-examine your company policies to ensure that they’re inclusive to every employee. For example, make sure that parental leave also applies to LGBTQ+ employees.

Additionally, establishing a zero-tolerance policy for offensive humour, stereotypes or slurs can help your employees feel comfortable coming to the workplace. Clearly outline the consequences of that behaviour and encourage a safe reporting system so those confronted with this kind of behaviour can share it without fear of retribution. 

Lead by Example

Demonstrate the inclusive behaviour you want to see in your company. 

Most people have blind spots when it comes to their own behaviours, and, as the leader of your organisation, your employees may be too intimidated to address them. 

Open yourself to criticism and work to identify your biases and correct them. Modelling inclusive behaviour can encourage others in your company to follow suit. 

Frequently Asked Questions About Diversity in the Workplace

What Are the Benefits of Diversity in the Workplace?

Diversity can provide several benefits to your workplace, including the potential to increase productivity and revenue. 

What Is the Key Benefit of Diversity in the Workplace?

Supporting diversity leads to a large variety of perspectives within the workplace. Each unique point of view helps devise more creative ideas faster, increasing overall productivity and sales. 

What Are the 4 Types of Diversity in the Workplace?

The four types of diversity are:

  • Internal Diversity: Traits we are born with.

  • External Diversity: Traitsacquired over time.

  • Organisational Diversity: Traits assigned by a larger organisation.

  • World View Diversity: Traits made from the other three categories.

What Are Some Good Diversity Management Tips?

Creating diversity within your company takes time because meaningful change happens from top to bottom. Broadening your hiring practices, adopting a zero-tolerance policy for offensive comments and personally demonstrating inclusivity are a few strategies you can use. 

Find More Diverse Hires for Your Business

The bigger your company gets, the more challenging it becomes to control every aspect of it. But equality and diversity are two factors that you can have a more direct hand in. 

With Personio’s HR management software, you can cast a wider net by posting wide-ranging job adverts and displaying your dedication to diversity on a tailor-made careers page. Book a free demo and find out how Personio can help you today.

Disclaimer

We would like to inform you that the contents of our website (including any legal contributions) are for non-binding informational purposes only and does not in any way constitute legal advice. The content of this information cannot and is not intended to replace individual and binding legal advice from e.g. a lawyer that addresses your specific situation. In this respect, all information provided is without guarantee of correctness, completeness and up-to-dateness.

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