Diversity and inclusivity in business and the workplace is becoming of increasing concern to business owners.
As a business owner, what can you do to keep up and ensure that your team is diverse enough? Why is diversity such a vital driving force to ensure business success? According to Alphabet’s Sundar Pichai, “A more diverse mix of voices will lead to better discussions, decisions, and outcomes for everyone involved.”
The variety of people coming from different cultures and backgrounds helps promote a healthy balance in the business. After all, with varied backgrounds come wide-ranging perspectives, ideas, insights and opinions. This diversity helps foster an effective, inclusive, and racially sensitive business approach.
We have rounded up five reasons why diversity is a critical factor in business success.
- Greater Productivity
Diverse, fair and resilient businesses positively increase work productivity by having a more diverse pool of people who exchange different ideas, opinions and insights. The ensuing teamwork and cooperation help boost work efficiency and effectiveness.
In fact, according to research, team diversity can boost productivity by between $729 and $1590 per employee per year. In general, diversity in business helps you get a better understanding of your customer needs and wants and how you can find ways to fulfill them.
- Boost Creativity and Innovation
Having a group of people coming from various backgrounds and cultures will help you come up with different ideas and inventions. After all, a more diverse group is more likely to develop new and unfamiliar concepts and insights, allowing for more creative and unconventional ways to present and solve problems.
In addition, diverse businesses make bolder and better business choices and decisions, gaining a more competitive advantage than their counterparts.
- Increase in Revenue
Aside from boosting productivity and innovation, which positively impact revenues, consumers are now more discerning when it comes to the brands they frequent. In general, inclusive and diverse businesses are found to flourish and thrive because more people want to use their products or services, and support their brand.
- Better Customer Connection
Working with individuals from diverse groups ensures your business can help you reach a broader market. As an inclusive business, you provide room for growth and improvement to your company and workforce to better connect with your customers.
- Improve Employee Satisfaction
Working in a healthy environment that promotes inclusivity and diversity significantly improves employee happiness and satisfaction. In addition, valuable employees are less likely to leave and find other opportunities once they appreciate the value of working with people from different walks of life. They will also feel more appreciated and respected.
The issue of diversity and inclusion has never been so front and centre. As a result, more businesses can significantly benefit from diverse and inclusive business initiatives.