Working in a diverse environment can have many positive effects on employees and leaders; yet these outcomes aren’t always so obvious.
A diverse company is better equipped to attract top talent, to have a more positive customer experience, to increase employee satisfaction, and to lead to better decision-making among staff. Below are the positive effects of great diversity that aren’t always obvious – but have long-term benefits.
According to McKinsey & Company, gender diversity correlates with financial success. In the company’s 2017 diversity report, it was reported that top-quartile companies on executive-level gender diversity worldwide had a 21 percent likelihood of outperforming their fourth-quartile industry peers. There are similar outcomes for culturally-diverse companies as well. More diversity can mean significant financial returns.
A workplace that is rich and vast in culture can be appealing to candidates who are looking for a forward-thinking organization. Different backgrounds can mean different skill sets that will work together to create a stronger business unit.
Various studies show that employees tend to be happier when working in a diverse and inclusive workspace. Staff can share different life experiences and participate in social events that build camaraderie and contribute toward employee happiness at work.
Healthier Community Relations
A diverse workforce is more likely to engage in the community around them, and more volunteerism leads to more work/life satisfaction. With a culturally-diverse workplace, it is more likely that there will be people on staff who have ties to the local community.
Decreased Turnover and Increased Retention
A diverse workplace with engaged, satisfied employees will have less turnover. Employees are more likely to remain at a company where they are happy and feel like part of a team. According to Gallup, inclusive cultures have 22 percent lower turnover rates due to increased morale, opportunity and equality.
Top companies know how important diversity is – not just for the satisfaction of their employees but also for their own bottom line. Building an inclusive culture should be a top priority for organizations in 2018 and beyond, so be sure to remember these positive effects of diversity when looking at your own hiring strategies.