As one of the key workplace trends of 2020, diversity is a concept that we hear a lot about these days, but apart from the ethical, anti-discriminatory reasons for hiring equally and fairly, how does diversity really benefit your company? It is common to associate diversity primarily with attributes such as race and gender, but it is also inclusive of many other traits, including age, disability status, religion, level of education, and even life experiences. Here are five of the top benefits of actively seeking to build a diverse workplace:

Understand Your Customers Better

Our world is becoming increasingly connected through the advent of technology, the internet and social media, and as a result, businesses have the potential to reach a much wider target market that ever before.

Having a diverse range of employees in your company is therefore a great advantage as it provides more opportunities to connect with new consumers and understand what they are looking for. In fact, a study conducted by the Harvard Business Review ¹ shows that companies with diversity are 70% more likely to capture new markets.

Increase Innovation and Creativity

Creativity and innovation are invaluable to the continued growth and success of a company, and these attributes are boosted through diversity. People with varied experiences, backgrounds and perspectives on the world are much more likely to come up with new opportunities or out-of-the-box solutions to problems.

Improve Your Reputation

Companies with higher levels of diversity are considered to be more inclusive and socially responsible. This can translate to opportunities for new business partners, customers and markets who will view your company as trustworthy and relevant to consumers from various backgrounds.

Boost Employee Performance

Research from Deloitte shows that there is a direct link between workplace diversity and employment engagement ². Building an inclusive culture helps employees to feel supported and comfortable at work, which boosts productivity and reduces turnover.

Additionally, increased diversity can lead to increased profits. A study by McKinsey ³ shows that companies with higher ethnic and racial diversity at management level were 35% more likely to have higher financial returns, while those with higher gender diversity were 15% more likely.

Attract Talents, Skills and Experiences

Approximately 64% of potential candidates research a company online before they apply for a position ⁴, and an estimated one in three of these will not apply for a job at a company that lacks diversity. Creating an inclusive culture will therefore attract a greater number of talented and ambitious people to your company and keep them there.

References
1.) hbr.org/how-diversity-can-drive-innovation
2.) deloitte.com/deloitte-au-hc-diversity-inclusion-soup
3.) mckinsey.com/why-diversity-matters
4.) forbes.com/3-benefits-of-diversity-in-the-workplace