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What the “Diversity Effect” Has to do with Business Success

Posted by Kelly Robinson

15-Jul-2015 12:00:00

“Recruiting and retaining a diverse, inclusive group of employees lets your company reflect the world around you and makes your team better able to develop fresh ideas that will meet the needs of the whole marketplace.” - Kim Abreu (@colornoun), Recruiting Trends Analyst, Glassdoor

diversity

 

Aside from the growing attention to the EEOC regulations to diversity initiatives in the recruitment space, the desire for organizations to become as diverse as the communities around them stems from a deeper source. Diversity of background, culture and ethnicity (to name a few) bring a whole new dynamic to the business table.

Diversity in the workplace improves the public opinion of the company and gives them a strategic advantage over other talent competitors in the marketplace. With a higher level of creativity due to the expansive thought process, business leaders have the tools they need to better understand the unique requirements of a diverse marketplace.

 

Drive innovation to expand performance

Have you ever wondered why companies like Google, Apple or Netflix seem to perform so well from a business perspective? They are innovators. But the real question isn’t why they perform so well, but rather what drives their innovation. Sylvia Ann Hewlett, Melinda Marshall and Laura Sherbin defined this difference as a two-dimensionally diverse company. These organizations have leaders that have 3 inherent and 3 acquired diversity traits. 

Employees who work for these companies are 45% more likely to report a growth in market share over the previous year and 70% more likely to report that the firm captured a new market. So, above the need to hit governmental regulations of employee and candidate diversity, hiring employees from various backgrounds is beneficial to businesses in their individual marketplaces as well.

 

broadbeantwitter-01 What drives innovation of companies like Google, Apple, and Netflix? Find out here:

 

 

Increase creativity through a diversified backgrounds

Developing a heterogeneous culture means employees produce new ways of problem-solving and are more apt to fostering industry innovation. Roy Y. J. Chua, Harvard Business School Professor, said:

“...Cultivating a culturally diverse social network [in the workplace] helps improve creative problem solving in a multicultural context because it promotes a flow of novel ideas and concepts from cultures other than one’s own. New ideas from other cultures can serve as raw materials for recombination or stimulate new thoughts.” 

Create groups or teams of employees from various schools of thought or who have contributed to varied projects. These teams will generate new ideas by supplying their opinions to a culturally and professionally diverse brainstorming cloud.

 

broadbeantwitter-01 Let new ideas flow by embracing diversity and generating more creativity. 

 

Easier recruitment and lower turnover

The best and the brightest of your field don’t adhere to a particular ethnicity, creed or even educational background, so why would you default to the homogeneity of the current staff? It makes little business sense and in recruitment terms as well. Sourcing candidates from the local talent fields or from a stagnant job board simply won’t produce the candidate pool you need to choose the best cultural and functional fit. It is a driving factor when candidates are offered jobs as well. Over two-thirds of active and passive job seekers said diversity in the workplace is important when they evaluate companies and job offers.

Create an inclusive community to reduce turnover. The inclusivity will reduce the number of employees who choose to leave due to cultural mismatches during the recruitment process. Without an inclusive diverse workforce, those who don’t feel they “fit in” are more likely to leave to find a company they are more suited for. 

Focus on diversity as more than another regulation to adhere to. It can be a tool for business growth as well as drive employee performance. Through diverse creativity, employees are able to formulate innovative ideas by collaborating together. When employees work well together in an inclusive diverse workforce, amazing things happen when the diversity effect takes hold of your business.

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Topics: Diversity