Diversity should always be a high priority for human resources teams, regardless of company size
Employees and prospective hires are placing an emphasis on the need for organizational diversity in the workplace. As such, diversity is now a board and CEO-level priority. From delivering business results to bolstering talent acquisition, here are some reasons why mobility and HR leaders alike should be prioritizing diversity.
The importance of diversity in the modern workplace
Talent acquisition and retention
In a 2014 study from Glassdoor, 67% of active and passive job seekers stated a diverse workforce is a top factor when researching companies and evaluating job offers. Minority groups place an even greater emphasis on diversity. According to the same survey, 72% of women, 89% of African Americans, 80% of Asians and 70% of Latinos consider workforce diversity important.
These results indicate that today’s workforce won’t be swayed by higher compensation and an attractive perk package. The results are similar for current employees, as 57% believe their company should be doing more to increase diversity.
Organizational diversity helps deliver business results
A diverse workforce also helps companies increase productivity to meet key business objectives. McKinsey analyzed 1,000 companies in a 2018 study and found that the most ethnically diverse companies are 35% more likely to outperform their peers in profitability and long-term value creation.
The report’s authors found companies performed best when they embraced diversity in absolute representation and celebrated a variety of ethnicities and cultures within the workplace. By embracing diversity, companies are attracting employees who are excited to go into the office everyday. As a result, they are more productive.
How to build organizational diversity
There are several variables that go into building a diversity at an organization. It’s not a one-size-fits-all approach. The strategies and practices that work at a small startup may not resonate at larger, more established companies.
Microsoft developed some tips organizations can consider if they’re seeking to build diversity, including:
- Creating a diverse leadership panel
- Listening to employees
- Creating a hiring roadmap
- Observing employee cultural variances
- Educating leadership on diversity
- Providing the necessary resources to HR teams
Diversity builds better corporate cultures and can lead to more creative and profitable business units. In this new decade, diversity will be top of mind for c-suite and board-level executives.
To discover more important takeaways on organizational diversity and the role global talent can play as companies build their strategies, download the latest report from Envoy INSIGHTS,The Global Talent Imperative