McKinsey's research highlights the fact that companies with greater diversity within their teams are 35% more inclined to achieve enhanced financial results.
Another research conducted by Deloitte stated that companies with diverse cultures and teams enjoy 2.3 times higher cash flows per employee. Similarly, a survey by Gartner points out that inclusive teams improve team performance by up to 30 per cent in high-diversity environments.
But what is diversity and inclusion in a workplace? Diversity and inclusion entails an organisation's policies, initiatives and practices that ensure individuals from different social and cultural backgrounds are accepted and included in the workplace.
Diversity refers to differences in political beliefs, race, culture, sexual orientation, religion, socio-economic status, and gender identity. On the other hand, inclusion means fostering a healthy work environment where everyone feels engaged, valued, respected, and treated equally in the company's work culture. Today, in this blog, we shall discuss the role of diversity and inclusion in building a strong workforce!
Companies known for their diversity and inclusion efforts build a positive reputation in the job market. A leading study claimed that 67% of workers give importance to organisations that have a diverse workforce when seeking employment. An organisation can enhance its chances of expanding the talent pool by onboarding candidates from diverse backgrounds such as ethnicity, age, and others. By hiring diverse candidates, an organisation will attract better-qualified applicants who can add more value to the role.
Inclusive workplaces make employees from all backgrounds feel valued and included. Employees are found to work more efficiently when they feel that they belong to the organisation. Additionally, an inclusive environment generates a sense of psychological stability. With the help of this ability, employees are enabled to freely express their opinions and offer suggestions without worrying about the repercussions. This feeling of inclusion builds a solid foundation of trust between employees and the organisation, inspiring the former to travel the extra mile for the latter.
As diverse teams bring together people with different perspectives and experiences, it leads to holistic discussions and better decision-making and collaboration. An online decision-making company conducted a survey encompassing 600 business decisions with a team strength of 200 employees. The result of the survey was that the diverse teams witnessed a 60 per cent improvement in their decision-making process. Diverse teams can approach problems from multiple perspectives based on their unique skills and experiences. This problem-solving approach often leads to more effective and innovative solutions for complex business challenges.
When faced with complex business challenges, a diverse team is more likely to generate a wider range of creative solutions. By proposing such solutions, these employees can make sound decisions, thereby leading to profitable outcomes. Therefore, by understanding and catering to a wider range of market segments, a diverse workforce can improve customer satisfaction, loyalty, and market share, ultimately boosting profitability. This is backed by data from the Harvard Business Review claiming that companies practising diversity and inclusion report 19 per cent higher revenue.
In conclusion, diversity and inclusion are fundamental drivers of success in today's workplaces. A diverse workforce broadens the talent pool, attracting a wider range of qualified candidates. Additionally, inclusive workplaces encourage greater levels of employee involvement and trust, which boosts loyalty and productivity in the organisation. Diversity and inclusion are crucial elements for creating a resilient and effective workforce in today's cutthroat business environment, which fosters business growth and long-term success.