The Value of Diversity in the Professional World
“Our ability to reach unity in diversity will be the beauty and the test of our civilization.“
– Mahatma Gandhi
Diversity has been very in vogue in recent years – but this doesn’t mean it’s only a buzzword or a checkbox. Far from it. Diversity is a moral and philosophical imperative that upholds principles of equality, justice, and shared humanity, enriching our cultural and social experiences.
Pursuing and promoting diversity across orgs and teams is the right thing to do, period. However, (unfortunately!), in the professional world, moral imperatives alone are rarely sufficient. Businesses must demonstrate a tangible return on investment (ROI) to justify their diversity strategies.
With this in mind: there’s a common misconception that diversity is an airy, feel-good concept without tangible benefits. This blog aims to dispel that myth.
Sundar Pichai, CEO of Google, wisely noted, “a mix of voices leads to better discussions, decisions, and outcomes for everyone.” The data supports this view, showing that team diversity drives superior results.
Team Diversity Attracts the Best
Today, the competition for talent is fiercer than ever due to demographic shifts, increased mobility, and pandemic-related factors. And today’s workforce is more varied and committed to inclusion than ever before.
Gen Z, now surpassing Boomers in the full-time workforce, is the most racially diverse U.S. generation, with 48% identifying as non-white. This generation values inclusion highly, with 80% of Black, Hispanic, and LGBTQ job seekers and employees considering an inclusive workforce crucial when evaluating companies and job offers. 83% of Gen Z candidates state that a company’s commitment to diversity and inclusion is vital when choosing an employer.
This emphasis on inclusion isn’t just about recruitment; it’s also about retention. Deloitte finds that 69% of Millennial and Gen Z workers are likely to stay five or more years with a company that has an inclusive workforce. This underscores the importance of a varied environment as a factor in employee loyalty and satisfaction, highlighting how a commitment to inclusion can translate into long-term employee retention.
Replacing an employee can cost businesses one-half to two times the employee’s annual salary due to hiring costs, training fees, and lost productivity. Therefore, prioritizing team diversity becomes a strategic business decision. Be more diverse, and you will have to replace far fewer employees.
Research from Glassdoor reveals that inclusive companies enjoy 2.3 times higher cash flow per employee over a three-year period compared to their less inclusive counterparts. In short: for companies aiming to attract and retain the best talent, fostering an inclusive workforce is not only a moral imperative but also a practical approach to driving business success and ensuring a robust bottom line.
Team Diversity Makes People the Best Versions of Themselves
Diversity helps attract and retain the best people. And then, once you have the best talent in the door, an inclusive environment enables your team to do their best work. Here’s how:
- Enhanced problem-solving abilities: Varied perspectives lead to more creative and innovative solutions to complex problems. Research from Boston Consulting Group (BCG) shows that companies with diverse management teams achieve 19% higher revenue due to innovation.
- Enhanced critical thinking skills: Diverse settings encourage individuals to critically evaluate their own beliefs and assumptions, challenging groupthink and leading to deeper insights and more robust decision-making processes. According to Forbes, this critical thinking boost can significantly improve organizational outcomes.
- Higher revenue due to innovation: Companies with varied management teams achieve 19% higher revenue due to innovation, indicating that diverse perspectives not only promote creativity but also translate directly into financial performance.
- Outperformance of gender-varied teams: Gender-varied and inclusive teams have outperformed less inclusive teams by 50% on average, showcasing the competitive advantage that inclusivity brings to team performance.
- Financial target achievement: 75% of organizations with varied teams surpass their financial targets, proving that inclusion aligns with strategic financial goals and is essential for business success.
- Ethnic variety and executive performance: Companies with the most ethnically varied executive teams are 33% more likely to outperform their peers, highlighting the critical role of varied perspectives at the highest levels of management.
- Superior decision-making: Decisions made and implemented by diverse teams yield 60% superior results, as these teams are more effective and impactful in their decision-making processes
- Increased engagement and retention: Organizations that promote and support DEI are 2.6 times more likely to increase employee engagement and improve retention, among many other benefits (AWS), reflecting the broad spectrum of advantages that varied perspectives bring to organizational health.
In short, inclusive teams significantly outperform less diverse ones, with benefits including higher revenue, better decision-making, and improved employee engagement and retention. By fostering diversity, organizations not only hire the best people – they then get the very best out of them once those people come in the door.
Embracing Team Diversity is Non-Negotiable
At AceUp, we believe that embracing team diversity is not just a moral imperative but a critical and obvious driver of business success.
Our partnership with Paradigm for Parity underscores our unwavering commitment to promoting a diverse, equitable, and inclusive workplace, providing us with invaluable resources and data-driven insights to enhance our strategies and foster a culture where every individual feels valued and empowered.
Our coaching programs aim to provide equitable access to leadership development, ensuring that all voices are heard and talents nurtured. By promoting diversity, equity, and inclusion, we are not only creating a fairer workplace but also driving business success and growth. Embracing team diversity at AceUp is a non-negotiable commitment that underpins our values and propels us toward greater innovation and business excellence. For more details, visit our blog post on the partnership with Paradigm for Parity.
Looking to boost your diversity goals, or better communicate your diversity initiatives to stakeholders? We can help. Get in touch.