Better Decision-Making and Problem-Solving
A University of Michigan study found groups of diverse problem solvers can outperform groups of higher-ability problem solvers. Diverse groups have more varied backgrounds and skills than homogeneous groups. This diversity of background and skills aids in a team’s overall ability to problem-solve.
Diversity can also help improve decision-making by cutting down on groupthink. Groupthink occurs when a group makes a faulty decision because group pressures lead to a weakening of mental efficiency and moral judgment. This type of faulty decision-making is more likely to occur within a homogeneous group.
Increased Creativity and Innovation
Similar to the previous benefit, diversity increases creativity and innovation by boosting and varying the experiences and points-of-view in the group. A 2018 study in the Harvard Business Review found a diverse workplace can truly unleash their employee’s innovation potential. This finding reinforced a similar conclusion from a recent North Carolina State University study.
According to this study, a diverse workforce performs better at developing innovative products and services. The research found a causal link between diversity and innovation. A causal link means there’s a direct cause and effect relationship between diversity and innovation.
Attract and Retain Top Talent
Most employees desire a workplace that values diversity and inclusion, according to a 2018 Randstad survey. Per the study, 78 percent of employees say a workplace where people are treated equally is important to them. Unfortunately, the survey also found more companies aren’t meeting expectations than are. Fifty-two and 56 percent of male and female workers, respectively, believe their employers could do more to promote equality and diversity.
Decrease Absenteeism
A study by researchers at the University of Konstanz in Germany found workers who are dissimilar to the rest of their teams, are almost twice as likely to call out of work. According to this study, dissimilar employees, particularly when female or old, are on average, more absent over time. The antidote to this problem is an increased emphasis on diversity and inclusion. This emphasis, per the researchers, should start at the beginning. A robust on boarding process that includes diversity and inclusion training can have a significant influence on employee retention.
Happier Employees
According to a 2019 survey by Wrike, 58 percent of U.S. workers would take a pay cut to accept a job that made them happier.
Similarly, the survey found 91 percent of happy employees said they’re “very productive” at work. And, these happy employees are 30 percent more likely to say their office diversity is “above average” than unhappy employees. Per the report, happy employees thrive in a diverse work environment. So, institute a diversity and inclusion program to make your employees happier and more productive.
Greater Productivity
A diverse and inclusive workplace increases the chances your employees are happier, which simultaneously boosts the likelihood these employees are productive.
Gender diverse companies are 15 percent more likely to outperform those that aren’t. Similarly, ethnically diverse firms are 35 percent more likely to outperform those that aren’t. And, per the previously mentioned study from North Carolina State University, employee performance and engagement are highest when employees feel they can be themselves and have a diverse group of coworkers with whom they can brainstorm.
Higher Revenues
The final advantage of increased diversity and inclusion is higher revenues for your business. According to a study by the Harvard Business Review, employees with 2-D diversity are 45 percent more likely to report their firm’s market share grew over the previous year. Additionally, employees with 2-D diversity are 70 percent more likely to report their company captured a new market from a year earlier.
Because a focus on diversity and inclusion has such wide-ranging effects on everything from productivity to absenteeism, there’s a real chance a greater emphasis on these issues will result in a significant boost to your bottom line. Per a study by McKinsey & Company, between 2008 and 2010, the EBIT margins at the most diverse businesses, on average, were 14 percent higher than those of the least diverse companies.
This article was written by Tony Jeanetta – June 27, 2019 – The Olson Group, located in Omaha, Nebraska