Diversity. We continue to see and hear this word in the corporate world but what does it really mean? Why is it so important? And importantly, how do we attract, build and retain diverse teams? In this blog post, we will look at the benefits of diversity in teams and how you can create a more diverse workplace for your organisation. 

There is no doubt that a diverse team can lead to greater success and there is much evidence to back up this thinking across all sorts of teams, with the workplace being no exception. When different cultures and backgrounds are brought together, a broader range of perspectives and ideas are brought to the table, and innovative new ideas are born. It is different experiences, and viewpoints that lead to more comprehensive and well-rounded discussions and decision-making. This can be especially valuable in problem-solving and coming up with creative and effective solutions. 

Diversity also helps to create a more inclusive and welcoming environment for all employees, leading to increased employee satisfaction and retention. In addition, diversity in the workplace can also lead to increased profitability and success for a company. A study by McKinsey found that companies in the top quartile for ethnic and racial diversity are 35% more likely to have financial returns above their industry median. 

Now, when most people think of diversity, they think of things like race, gender, age, and sexual orientation and businesses would certainly be amiss not to give consideration to how they can attract and retain diverse teams in this regard. However, diversity is so much more than these few groups. It also includes things like socio-economic background, religion, education, and even cognitive diversity and personality type. The key is to ensure that your team has a good mix of all of these diverse factors, across all areas and levels of your organisation in order to reap the benefits. 

Unfortunately, there can still be a tendency to opt for the 'safe' path of hiring people who are just like each other, especially if they are deemed as high performers. We often see examples of this when a leader moves to a new organisation but looks to re-recruit a number of old colleagues to get their old ‘crew’ back together. There is a natural comfort in this but just be mindful that if it is at the cost of lack of innovation, then it could be a one-way ticket to 'stagnant street'. 

Cognitive diversity brings forth a variety of thought processes and perspectives among group members, which also leads to improved outcomes. This includes left brain thinkers and right brain thinkers – it’s the way we interpret information, our outlook on life, how we react to issues, and how we make choices. Introducing cognitive diversity in the workplace can be an invaluable asset; it produces creative problem-solving abilities, increased creativity levels within teams, as well as innovative ideas that would not have been conceived before. Furthermore, diverse teams are more likely to be able to adapt and change because these different perspectives lead to different ways of thinking, which in turn helps a team to be more flexible and adaptable in the face of change. 

A successful team is comprised of an assortment of dynamic personalities that promote openness, collaboration and trust. Leaders have the power to build a psychologically safe atmosphere in their workplace by a number of ways: 

• allow freedom for employees to speak up without fear of repercussions 
• set the tone of your workplace with humility and trust 
• recruit people who reflect an innovative spirit and add to the culture and not just fit it 
• make sure everyone's voice is heard by practicing active listening in meetings 
• ensure a culture that acknowledges mistakes are inevitable, but ultimately leads to learning opportunities for everyone involved 
• put safeguards in place to guard against discrimination and harassment of any kind 

In addition to the benefits of improved innovation, problem-solving, creativity, and so on, another reason for workplace diversity, equity, and inclusion is a mentally healthier work environment.  

When a team is diverse, it sends a message that everyone is valued and welcomed, regardless of their background or identity. Research by BCG found that inclusiveness is vital to the well-being of employees. In inclusive workplaces, 81% of employees said they were happy. This figure is three times higher compared to companies where employees don’t feel included. Additionally, employees who work in a culture that supports DE&I report feeling less stress and anxiety while claiming they have a healthier work-life balance.  

This naturally leads to increased employee satisfaction and ultimately retention, as employees feel more comfortable and supported in their work environment. A study by Glassdoor found that 57% of job seekers consider diversity to be an important factor in their job search. Diverse teams tend to have better morale because when people feel like they are valued and their voices are being heard, they are more likely to be engaged and motivated thereby driving productivity and ultimately financial performance as a result. 

However, achieving diversity in the workplace is not always easy but there are a number of steps that companies can take to create and attract diverse teams. One strategy is to focus on diverse hiring practices. This can include seeking out candidates from a variety of backgrounds and actively recruiting from underrepresented groups. It can also involve implementing diversity training for hiring managers and implementing policies that promote diversity, such as offering flexible work schedules and promoting work-life balance. 

It is also important not only for your leadership to model inclusive behaviour and actively promote diversity in all aspects of the company, but to be diverse in itself to best represent diversity in the company. A study by Forbes found that companies with diverse boards of directors outperform those without by 53%. In addition, a study by Deloitte found that companies with diverse leadership teams are 70% more likely to report capturing a new market. These statistics show the significant impact that diversity can have on a company's success. 

By utilising social media and networking events that target various groups, you can start to cultivate a more diverse candidate pool. As an employer with an established commitment to diversity, equity and inclusion (DE&I) in the workplace, you will be able to access a larger talent pool than ever before! Make sure your efforts don't go unnoticed - let potential candidates know they are welcome in your space. 

A willingness to hire different demographic groups can help you assemble a team with superior knowledge, skillsets, and experiences. Moreover, a solid DE&I initiative tells prospective employees they can progress within your company, making them more willing to apply for positions in your organisation and stay once they’re hired.   



Brand reputation: 

Publicly claiming diversity, equity, and inclusion in the workplace also improves your reputation. A powerful statement of commitment to DE&I can instil trust among wider communities and enhance customer bonds. Moreover, you can develop targeted products and services using the expertise of a diverse workforce. These can help you resonate with various customer groups, cultivating loyalty and positive brand experiences.  

Furthermore, offer diversity training to your team on a regular basis. This will help ensure that everyone is aware of the different backgrounds and perspectives within your organisation, as well as how to value and understand them. The chemistry of human interaction is now seen as critical component of innovation. 

Naturally, you need to also make sure you are offering competitive salaries and benefits that will attract diverse candidates. Studies have found that people of colour tend to be paid less than their white counterparts, so it is important to ensure everyone receives equal pay for the same work. 

Finally, make sure that you are measuring progress. This can be done by setting goals, collecting data, and conducting surveys. By doing these things, you can ensure that your company is making progress and achieving the goals you have set for it. Creating a diverse team is not always easy, but it is worth it. 

In conclusion, diversity in the workplace is crucial for a variety of reasons as we have explored. It leads to more innovative and effective solutions, creates a more inclusive and welcoming environment for all employees, and can lead to increased profitability and success. By focusing on diverse hiring practices and promoting a culture of diversity and inclusion, companies can create and attract diverse teams. Simply, the importance of diversity in the workplace cannot be overstated. 

We’d love to hear about what diversity and inclusion looks like for your business – how have you benefited from diversity in your teams and what do you do to attract and retain a diverse talent pool?