3 Benefits of a Diverse Workplace

With more than 338 million residents, the United States is home to the worlds 3rd-largest population and is full of people of different races, genders, sexual orientations, cultural backgrounds, and education levels — no two people are alike.  

Yet when it comes to workplace hiring, only 8% of top executives at the 50 most valuable public companies were Black and eight of these companies had zero Black executives. Candidates with “distinctively Black” names are 2.1% less likely to be contacted by a potential employer. Men are twice as likely to be hired as women. The list goes on and race-based discrimination isn’t new, but every year, the U.S. becomes even more diverse. And considering that 3 in 4 workers prefer diverse companies and 48% of our youngest generation are racial or ethnic minorities, it’s time for a change. 

From Microsoft to Target to Wells Fargo, many Fortune 500 companies already see the value of a more diverse workforce. Here are three of the biggest benefits to creating a more diverse team for your business. 

1. Innovation

Echo chambers are never a good thing and have been the downfall of many a promising company. People that are similar tend to think similarly, resulting in a workplace that will agree on things more times than not. While in theory that might sound amazing, it can be challenging to come up with new and innovative ideas when everyone thinks the same way. 

People with different experiences and backgrounds offer new ways to approach business. Dissenting opinions and constructive criticism may not be fun to hear, but are essential for teams to grow and improve. A workplace that is more diverse means a team that is more adept at solving problems, working through processes, and generating new ideas. (In fact, companies that welcome diversity and inclusivity are 1.7x more innovative!) 

2. Happiness

A diverse and inclusive culture at a business boosts the overall happiness of the team. People who feel that their workplace is inclusive are 3 times happier than those who don’t. Workers feel more comfortable and accepted, which makes them more likely to stay longer.  

Employee happiness has been shown to have many benefits, including increased productivity, improved collaboration skills, and a lower rate of absence. It’s no secret that a happy workplace is a better one, and diversity is an important piece of that puzzle.

3. Profits and Revenue

Diversity also affects your bottom line. Companies with gender diversity on their executive team have been found to outperform other companies by 21%. Businesses with diverse management teams have increased revenue by 19%. Companies with more racial and ethnic diversity outperform their respective industry medians by 35%. 

While it may take some effort to change your existing practices and (often unintentional) hiring biases, it’s worth it. Coming up with fresh new ideas, keeping employees happy, and improving your bottom line are important goals for just about every business.