Published on Nov 10, 2022
Last month, (October) we celebrated Diwali, the beautiful festival of lights celebrated by Hindus, Sikhs, and Jains. It got us thinking about diversity in the workplace and how nothing is more important for your company's success.
I worked for a company for a short amount of time that was around 90% straight white men; the productivity levels were low due to their long lunch breaks of going down the pub. As a young woman not interested in football, the conversation didn't go past 'hello' at the dreaded work events.
Another woman left just before, putting their staff turnover rate at a higher percentage than their competitors. Events such as these are examples of the damaging effect lack of diversity can have on a business.
Since then, I have taken it upon myself to research a company's values and stance on inclusivity extensively. It's not just about the people who work for you or the clients you serve; it's about how those people come together to create a meaningful workplace culture. Let's look further at how diversity can affect your business.
A Fresh Point of View
Innovative thinking comes from having a variety of perspectives on the table in any given conversation or decision-making process—and it's easy to see how this would help companies innovate. But what about hiring? How does diversity improve hiring results?
Can Diversity Improve Your Recruitment?
A study conducted by McKinsey found that companies with more gender and ethnic diversity at the top outperformed their peers with less diverse leadership teams by 45% in revenue growth over three years.
Additionally, another study showed that when there was a better gender balance at senior management levels, employees showed greater trust in their leaders and were more likely to stay at their jobs for extended periods.
There's a lot of evidence that hiring people from underrepresented groups can improve your business's bottom line. One study found that companies with more women on their boards saw better returns on equity than companies with fewer female board members.
Can Diversity Improve Your Retention?
Studies show that companies with diverse workforces have lower turnover rates than those who don't. (I should know, I experienced it!) By retaining your employees, you'll spend less money recruiting new talent and training new hires, which makes diversity incredibly cost-effective for companies who want to keep their workforce fully staffed while still growing and expanding as needed.
It's clear that diversity and inclusion aren't just the best things you can do for your team; It's the best thing you can do for your business. When employees feel inclusivity in their workplace, they have higher productivity. They are more likely to take on extra work or stay later, knowing their management and co-workers support them. This support and understanding lead to higher retention, better mental health (resulting in less sick leave), and profitability for your business.
Published on Nov 10, 2022 by Sophie Elise