Benefits of Cultural Diversity and Inclusion in the Workplace

More and more successful businesses are sincerely devoting their attention to the topic of diversity and inclusion in the workplace. Even though social justice is typically the key motivator behind these efforts, companies have many reasons for devoting their attention to this topic. As we know now, diversity and inclusion are not only a source of competitive advantage but also a key enabler of growth.

Before we move forward with elaborating the benefits, let’s address what do diversity and inclusion represent. Cultural diversity in the workplace is present when businesses are open to bringing on board workers with different backgrounds such as gender, age, race, religion, and ability, etc. Inclusion is the intentional act of opening the doors to diversity and establishing a working climate where people with the various background can contribute and advance. Employees with diverse backgrounds have a unique view of the world, problems, and ways of solving them and these singular perspectives benefit the company in multiple ways.

A diverse workplace inspires creativity and innovation

Einstein said: “If you always do what you always did, you will always get what you always got.” It makes perfect sense that if you want to create something new, you have to do something different than what you have done so far. Who is better than a group of people with diverse cultures, nationalities, and perspectives to produce an original solution? In a world where so much has been discovered and created, innovative solutions breed company’s success.

Make sure your essay is 100% unique

Our experts will write for you an essay on any topic, with any deadline and requirements from scratch

127 our experts are available
right now

Get custom essay

Cultural sensitivity contributes to a higher-grade, targeted marketing

Workforce rich in diversity will give a more thorough understanding of the customers, as customers themselves are also diverse. Furthermore, cross-cultural understanding leads to a more adequate and effective marketing strategy and materials. If you think about it, communication is essential for success and companies are investing much effort on strategizing about it. However, communication varies remarkably across cultures. Having diverse employees with local market knowledge can establish a significant advantage when it comes to marketing strategy.

Culturally diverse teams show an increase in productivity and performance

Diversity and inclusion in the workplace reinforce not only creativity but also productivity since the two are intimately connected. The diversity of the workforce goes hand in hand with differences of opinion and perspectives. This can cause the brainstorming process to generate more unique solutions. When employees feel included and secure it enables them to take chances on out-of-the-box thinking and their productivity increases. When inclusivity is a priority employee from any backgrounds feels confident in their ability and strive to achieve their best. The higher the team spirit, the more productive employees are.

Reducing fear and helping the employees feel included goes a long way. People tend to try to fit in and are cautious about bearing risks, especially in a homogeneous culture. Diversity and inclusion help reduce the fear of rejection and lower the barriers to voice their ideas. Deloitte study found that “employees report better business performance in terms of ability to innovate (83% uplift)” when they feel included. Feeling highly included leads to being more engaged in one’s work since those employees are inspired to show up and do their best at work.

Financial performance – diversity and inclusivity can increase the profit

Data from numerous studies show that diversity and inclusion are connected to the increase in profit. McKinsey studies have found that gender, ethical and cultural diversity are connected to profitability. Another McKinsey study found that “companies with diverse executive boards enjoy significantly higher earnings and returns on equity.” They reported 53% higher returns on equity for companies ranking in the top quartile of cultural diversity compared to the bottom quartile. Their findings build a compelling case for putting more focus on diversity and inclusion in the workplace.

Top talent feels welcome and is welcome to stay

What makes a company great are its people. Therefore, companies that encourage diversity and embraces inclusivity invite a broader range of candidates. Having a wider choice of candidates when filling the vacancies increases the chances of finding the exceptional ones. Employees with progressive views want to work in forward-looking environments which accept workers with all backgrounds and promote equality. Possessing such talent breeds novel ideas and new knowledge. Employees get to learn from each other and grow. A happy employee is a loyal one. An inclusive workplace with a diverse and inclusive culture not only brings in new but helps retain the top talent long term.

Cultivate cultural diversity and inclusion in the workplace

Cultural diversity and inclusion in the workplace have many possible benefits, like gaining more profit and a competitive edge by increasing creativity, innovation, and providing new marketing strategies. Moreover, such companies gain from each employee’s growth. Through their complex interactions, employees learn from each other and bring refreshing perspectives and ideas to the table.

Each one of them has a unique skill set and strengths to contribute positively. Together, through feedback and by bouncing ideas off each other they can generate ingenious concepts and solutions and contribute significantly more. As Stephen Covey said: “Strength lies in differences, not similarities.”

If you want to find out more about your key strengths, take the High 5 Test. It’s a free test designed to help you discover more precisely what you are naturally good at. Learn more about your unique potentials, so you can better grasp what you are undoubtedly bringing to a culturally diverse team and how to best use those assets.

Tags: importance of workplace diversity, cultural diversity and inclusion, benefits of workplace diversity, profit and diversity, employee retention and diversity, inclusion in the workplace, why diversity is good for business, diversity as a competitive advantage.