The Importance of Diversity in the Workplace
With every passing year, America grows more diverse. In fact, more than 67% of job applicants and 57% of employees expressed that they value diversity and inclusion in the workplace. It’s no wonder, too, because diverse companies perform better.
When our workforce doesn’t reflect our population’s ever-growing diversity, it’s not only a moral issue, but a business issue as well.
Diversity is important to applicants, employees, and consumers, and in 2019, that diversity includes a large umbrella of categories. Whether it’s inclusion of race, ethnicity, gender identity and expression, or sexual orientation, businesses benefit from embracing different experiences, lives, and self-definitions.
Here are five facts about the benefits of diversity in the workplace that may surprise you:
1. Diverse companies have a 2.3x higher cash flow per employee over a three-year period than non-diverse companies.
Business owners care about the bottom line. How can they not? They do, after all, have a business to run. Still, 41% of businesses say they’re “too busy” to increase diversity in the workplace, regardless of the fact that diverse companies bring in more money.
2. 80% of employees say they value inclusive policies in the workplace.
72% of employees also indicated that they would leave their job to work for a company that is more inclusive. In fact, 40% of LGBTQ+ employees have been harassed at work for their gender identity or sexual orientation. Of these, 41% have left their job because of this behavior. Additionally, inclusive environments improve employee mental health, regardless of demographics.
3. 87% of customers would rather patronize businesses that hire people with disabilities.
Despite this, the employment ratio for people with disabilities in 2018 was only 19.1%, compared to 66% for people without a disability.
4. Ethnically diverse companies are 35% more likely to increase revenue, and gender diverse companies are 15% more likely to increase revenue.
Still, women only hold 38% of managerial positions. Additionally, in a study of over 19.6 million employees, only 9% of men of color and only 4% of women of color held C-level positions, compared to 68% of white men and 19% of white women.
5. Racially diverse teams outperform non-diverse teams by 35%.
Despite this, 97% of executive boards don’t represent the overall demographics of the United States. Since executive boards make important decisions for the company, it only makes sense to have the strongest team com-position possible.
Do you need help creating a diverse team for your business? Join us at the Diversity, Equity and Inclusion Summit Friday, November 1 at the JW Marriott or learn more about our Diversity and Inclusion Resources. For questions, please contact Ken James, Director of Inclusion, at (616) 771-0320.