As entrepreneurs prepare to expand their business, a key component of achieving success is having the right team in place. When it comes to building the right team, the case for diversity and inclusion in the workplace has only grown stronger over the last few years. The benefits of having a truly diverse workforce remain unmatched. Yet, there remains much progress to be made when it comes to the issue. For instance, veterans face rising unemployment rates and the recurring issue of underemployment. Similarly, workers with disabilities now account for just 8.5 per cent of the workforce under 65. For the businesses willing to invest in diversity, the benefits can be wide-ranging and long-lasting- well beyond their bottom line.
Enjoy Higher Business Returns In The Long Run
Having a diverse workforce is better for your profits. Companies with a diverse team not only enjoy 35 per cent higher profits, but research has also shown that their cash flows are 2.3 times higher. A key contributing factor to this is the ability of the company to tap into the varied talent and capture new markets. In fact, in a report published by the Harvard Business Review, it was revealed that diverse businesses were 70 per cent more likely to capture new markets and be at the forefront of innovation. The higher productivity levels for employees also help to get the company to a better financial place-illustrating the strong link between diversity and financial performance. In the end, you can not only boost your revenues but harness greater innovation and enjoy higher EBIT margins in the long run.
Capitalize On Rising Brand Credentials In The Marketplace
Customer perception and company branding are crucial in the marketplace today- particularly since customers have an increasing number of choices. They are also becoming much more vocal about what is important to them when choosing where to shop and that includes companies that illustrate a commitment to corporate social responsibility and equality.
This is proven by data released by Top Design Firms where 64 per cent of consumers were more likely to immediately purchase a product from a company that embodied diversity. Put simply, diversity matters to society, and today’s consumers want to see those values reflected in the companies they choose to support. There is little excuse for companies not to drive inclusion these days too, especially in the light of releases such as Diversio and other AI-driven platforms helping businesses become more diverse. With it, companies are now able to gain insight into their diversity shortcomings and explore potential solutions to it.
Witness Improved Employee Performance And Retention Rates
Fostering diversity in your business is not just good for your financial performance, it is great for improving your employee retention rates. A business that promotes diversity is likely to experience lower employee turnover rates, which in turn lowers labour and recruitment costs for the business. Employee performance is likely to skyrocket too. Happier and more motivated employees are likely to be more committed to your business and work hard to deliver in their roles.
These are just a few of the benefits you can reap from cultivating a diverse business. With the perks of diversity in business piling up, there is no question on whether it should be a priority for your business- or any business right now.