Even with the popularity of diversity-driven initiatives at work, and the continued focus of diversity & inclusion (D&I) at organizations that’s reported in the media, it’s more than just a buzzword. It’s an essential element to a successful company.
Multiple studies show that a diverse company is a successful company. In a recent study, Credit Suisse found that large businesses with women on the board outperformed male-only boards, with higher return on equity, lower debt to equity ratios and higher average net income growth. McKinsey & Company’s 2017 diversity report said companies in the top quartile for ethnic and cultural diversity were 33 percent more likely to experience above-average profitability than companies in the fourth quartile.
Diversity isn’t just a trendy thing to implement to look cool; it has a huge impact on companies and their employees. Some non-financial benefits include:
- Diverse companies attract a higher-achieving workforce
- A diverse workplace allows for a wider range of skills and talents
- Employees of diverse companies have higher rates of satisfaction
- Diversity improves community relations
- Diverse organizations have decreased turnover and increased retention
So how can you improve your company diversity to gain some of these benefits? Develop a hiring strategy to ensure that a wide range of candidates will apply, no matter their race, religion, gender, culture, disability, or sexual orientation. Look over your job ads and remove any alienating language. Work to make your workforce resemble the community that you operate in. And, of course, provide proper diversity training to employees and senior executives alike to enhance your D&I efforts.