Updated: May 26, 2020
New York — Diversity in the workplace is not a new concept, but it is a growing one. For years now, companies including some of the world’s largest employers, have vowed to become more diverse in their hiring efforts. It looks like they’re on to something. If we’re to believe data from recent studies, then we must accept the facts: the more diverse an organization is, the more revenue it generates.
And that’s not just a cool thing to say anymore. Boston Consulting Group (BCG), a leading consulting firm specializing in working with organizations to achieve sustainable advantage, has confirmed that diversity does indeed increase a company’s bottom line.
According to BCG’s findings, “Companies that have more diverse management teams have 19% higher revenue due to innovation.” That’s a pretty solid revenue gain over less diverse, comparable organizations.
But the real question that we’re all thinking is, “why”? Why does implementing diversity into an organization’s infrastructure have such a potential to boost its bottom line?
Perhaps the answer is more clear than suspected. However, let’s make one thing clear: When we talk about hiring diverse individuals, we’re not just talking about diversity based on race or religion. Diversity comes in many different shapes, sizes, colors, and backgrounds. Even your family members are diverse in what they like to eat, what their hobbies are, and how they think.
The same is true for any workplace.
In an environment where money is made and services or products are sold, diversity is key to sustaining revenue growth. For the sake of problem-solving, innovation, and planning, hiring diversely boosts your organizations’ ability to find answers and solve problems. When you have a group of diverse minds contributing to ideation, creativity, and planning, people tend to deliver results outside of the traditional box. This diversity can single-handedly lead to ideas and innovations which may not have been considered.
So, how can you implement these practices into your workplace hiring efforts?
Thankfully, BCG have given us some ideas as a result of their study. Let’s check them out.
How To Increase Diversity In the Workplace
Increase the diversity of leadership. This can lead to more innovative practices and better ideas which can help improve financial performance. In fact, Earnings Before Interest & Taxes (EBIT) margins were 9 percentage points higher than companies with below average diversity on their management teams.
Focus on creating teams that have more than one area of diversity. For instance, your sales management team. When hiring, try and focus on greater diversity rather than specific diversities like race or religion.
Place an emphasis on digital technology. When you do, you open your doors to even stronger correlation between diversity and innovation.
Whether you’re a tech startup looking to build upon your success, or a retail organization looking for ways to increase your diversity, start small. But start somewhere. When hiring or appointing hiring managers, make sure they’re aware of your desire to create more diversity in the workplace. When everyone’s on board, the transition to a diverse workplace can be fun and inspiring for all. The end result can be a more profitable organization and a happier work environment.