Businesses today are beginning to realize the benefits of workplace inclusivity. Employees who identify with marginalized groups are less likely to feel disenfranchised, more productive, and more satisfied on the job.
With statistics showing that diverse workplaces perform better financially than homogeneous ones, business leaders follow strategies that allow all people to feel welcomed in their workplace.
Below are nine ways that workplace diversity and inclusion can boost business profits.
1. More diverse ideas equal better business.
Businesses across the globe recognize the value of diverse workplaces in allowing for more innovative solutions to problems. Employees in inclusive environments are more likely to develop new ideas that better the company, increasing profits and stimulating growth.
For example, a study from the University of Michigan found that students at diverse universities were more likely to solve complex problems and develop creative ideas because they were exposed to a broader range of perspectives. It supports the idea that incorporating more perspectives into problem-solving leads to better results.
2. People perform better when they feel welcome.
Aside from the idea that diverse people produce better results, individuals perform better when welcomed and supported by their co-workers. Employees who identify with marginalized groups are less likely to feel disenfranchised in the workplace, increasing their productivity and job satisfaction.
When people feel welcome, they are more productive, less stressed, and happier when interacting with other employees. Such feelings translate into a more effective, unified workforce committed to the company’s success.
3. More diverse employees equal more diverse customers.
A diverse workforce helps businesses attract further interest from diverse consumers who increasingly reject homogeneous products and services. Companies that cater to marginalized groups when hiring or marketing their products will find it easier to attract more diverse customers.
Diverse customer bases are especially beneficial for companies that target niche markets because they have less competition from other businesses that might be exclusionary in their approach.
4. Diverse recruitment leads to greater financial stability.
Businesses that prioritize diversity and inclusion in their recruitment process are more likely to have a more diverse workforce, which has its benefits. A diverse workforce can help companies avoid financial instability brought on by economic hardships.
Homogeneous employees are significantly less effective than diverse workers when avoiding financial risks and planning for the future. Moreover, experts advise that companies with a highly diverse workforce are better equipped to avoid pitfalls that could lead to bankruptcy or layoffs in times of economic hardship.
5. Inclusive work environments equal better workplace retention.
Especially in high unemployment, businesses need to keep their employees satisfied and hopeful about the future rather than seeing them leave. A more diverse workforce lowers this risk because employees who identify with marginalized groups are less likely to feel disenfranchised or unsatisfied on the job.
Regardless of race or gender, employees who feel like they belong and are supported in the workplace are less likely to leave. A Center for Talent Innovation study shows that most workers believe their organizations should be doing more to ensure that all employees feel included.
On top of it, a more inclusive corporate culture helps retain top performers. Employees who most actively contribute to the business’s success are also more likely to stay in an organization that respects their contributions and acknowledges their unique value.
6. Inclusive cultures help avoid litigation.
Billions of dollars have flown out of company pockets in settlements from workplace discrimination cases in the United States alone. A more diverse workforce helps avoid legal trouble in the workplace by encouraging a culture of inclusivity and equal opportunity.
Companies that prioritize diversity and inclusion in their hiring practices also show a better track record in avoiding litigation over workplace issues. It’s especially true for industries that employ workers from marginalized groups, such as women or people belonging to racial minorities.
7. Valuing inclusivity improves public perception.
Companies that prioritize diversity and inclusion can gain an advantage over their competitors simply by publicizing these practices. The positive association increases customer trust. This in turn leads to more sales since customers are more likely to patronize companies inclusive of marginalized groups.
Consumers are increasingly interested in supporting brands they believe have ethical values and are making sincere efforts to impact society positively. Companies can attract more consumers who demand fair corporate practices by prioritizing diversity and inclusion.
8. Inclusive marketing campaigns attract a broader audience.
Businesses that embrace a more diverse workforce have a much greater chance of producing marketing materials that appeal to larger audiences. Inclusive advertisements and promotions can help companies reach new demographics, boosting profits by enlarging the customer base.
Inclusivity-focused advertising campaigns are especially beneficial to companies that sell products and services targeted at marginalized groups. For example, businesses focused on the Black community might benefit from marketing to LGBTQ individuals with inclusive messaging.
9. Inclusivity provides access to a broader talent pool.
Lastly, inclusive workplaces attract a more diverse workforce that can increase the talent pool available for employers. It means that employers have access to a much larger talent pool to select from when hiring new employees.
A more diverse workforce helps companies maintain a competitive advantage over others by being better equipped to handle changes in market demands. A business that can meet these challenges will have an easier time flourishing during times of economic turmoil.
Several corporate inclusivity practices should be implemented to ensure that all employees feel included. These include:
- making an effort to hire from underrepresented groups;
- continuing to make diversity a priority when it comes to hiring; and
- creating an inclusive environment in the workplace.
These practices will increase profit margins. They will create a healthier space for employees to feel included while adding to the overall success of their business.
Many people are more willing to work for employers who value diversity and inclusion in today’s society. It’s because there are hundreds of other companies out there that are actively working towards creating a more inclusive culture in their workplace.
With this being said, businesses of all sizes need to prioritize diversity and inclusivity to attract the best talent available. By understanding how essential diversity and inclusion are in a workplace, companies can avoid falling behind in a competitive market.