The Business Case for Diversity

We always hear about how it is essential for businesses to diversify or the need for a shift in diversifying the workplace, but what does this really entail? One of my biggest pet-peeves of social media and workplace trends are that they tell us to all do something, but never tell us why. Hot take here, but that may be why there is so much division and pushback when something new is implemented. When the why of something isn’t explained, how are people supposed to get behind a change?

All this to say, here’s my take on a business case for diversity and why it is essential to a workspace.

For starters and most obviously, would you really want to work with a copy paste group of colleagues? Where you all come from the same background, took the same thing in school, partake in the same activities, listen to the same music… well hold on that one I do appreciate someone who appreciates my music, but you know what I mean! BORING!! There would be no room to learn from one another about work, interacting with different types of people (because surprise- the world is big and everyone is unique), and about life in general. This may sound silly, but this copy-paste team of employees is a lot more common than you think. If a business chooses to hire employees with the same academic credentials and co-op experiences, they have ultimately just made their team of six, a team of one.

Let’s dive into this more specifically. By now if you’ve read my articles, we all know my love of numbered lists… so here’s another one demonstrating my business case for diversity and WHY it matters.

1. Innovation Through Diversity of Thought

If there was a problem that stumped this copy-paste team in the workspace and they all had the same background training and education, no one would be able to solve the problem! Diversifying your team is making room for innovation. A wide range of perspectives and experiences allows for a problem to be approached in several different ways. Research by the Boston Consulting Group (BCG) found that having a diverse team is more innovative for a company as they generate 19% higher revenue from new products and services. With more options comes more room to address all the possible problems that may arise and UX perspectives to give a user the best experience possible as well as become leaders in their market.

2. Leadership and Representation

Your role models are often people who have come from similar backgrounds to you and their experiences and success resonate with you as you strive for the same outcomes, they have achieved… or so I’d assume. Well in a workplace without leadership and positions of power filled by a diverse range of individuals, how would the employees who do not see someone similar to them in one of these positions feel about their chances of attaining that level of accreditation. According to a survey done by Glassdoor, 76% of employees and job seekers consider diversity and inclusion in the workspace as an important factor when considering job offers. Allowing there to be representation in leadership creates an environment for trust and respect to be built within a team as well. If a team feels supported, respected, and SEEN by their employer, they will be more transparent and dedicated to their work.

3. Peak Performance

I’m making a gym reference for this one, but hear me out…

When someone has a fitness goal that they work diligently and consistently on over an extended period, they begin to see their positive results. The fulfilment they get from seeing their success and the way they feel when their results are recognized by others, keeps the individual motivated to continue working hard as there is proof in it paying off. The individual who feels recognized continues to work hard as their achievements are seen.

This is the same with employee performance if diversity is prioritized in the workplace. Employees with diverse backgrounds within a workspace whose hard work is recognized by their boss, team, etc., leads to increased engagement and motivation. The worst feeling would be to have a visible/non-visible difference from the majority of your team and have your successes treated differently because of that. According to research done by McKinsey & Company, it was found that companies in the top quartile for ethnic and racial diversity in their executive teams are 33% more likely to have above-average profitability.

4. Opportunity for Expansion

The world market should not be approached through the individual lens of one country’s thoughts and strategies. To increase the number of customers and market share nationally and internationally, there needs to be a broad range of ideas, strategies, and approaches that take into account the various customers and their backgrounds. A study done by Nielsen found that companies that are ethnically and racially diverse are more likely to have a higher market share. Having a diverse team allows you to connect with a broader range of customers as there would be more opportunities to tap into different markets which results in expansion.

At the end of the day the most important reason for diversity to be prioritized in the workplace is that all people, regardless of their background, religion, ethnicity, etc. deserve to in work environments they are qualified for, that recognize and celebrate their accomplishments and differences, and give them a space to grow and succeed.