Imagine a world that has a singular approach to any situation. With all the reactions and approaches being the same, there would be no scope for improvement. The only reason mankind has brought about so much change in this world is because of its curiosity and those diverse innate natures.
There is a lot of research that shows the positive impact increased workforce diversity has on an organisation’s growth. There’s one by McKinsey & Company (Why diversity matters; 2015), which found that more diverse organisations are better able to win top talent and improve their customer orientation, employee satisfaction and decision-making, and all that leads to a virtuous cycle of increasing returns. This, in turn, suggests other kinds of diversity—for example, in age, sexual orientation and experience (such as a global mindset and cultural fluency)—which are likely to bring some level of competitive advantage for companies that can attract and retain diverse talent.
In fact, the McKinsey & Company research notes that, in the US, there is a linear relationship between racial and ethnic diversity and better financial performance—for every 10% increase in racial and ethnic diversity on the senior-executive team, earnings before interest and taxes rise 0.8%.
The global war for talent is at an all-time high, with many challenging and meaningful opportunities for the people. Having a diverse workforce is an effective way to attract, engage and retain talent. With respect to talent attraction and branding specifically, workforce diversity speaks volumes about organisational policies and practices. Research has proven than the millennial workforce prefers to work in places that are more diverse in nature. A diverse workforce will have increased levels of adaptability by nature. This enables organisations to deal with highly volatile and uncertain times that exist today and will continue in the future.
Innovation is the buzzword for all organisations. In this fast-paced, technology-driven world, having varied perspectives that are derived from diverse experience and backgrounds is crucial to development of ideas and innovation.
The author is vice-president & head of HR & Communications, ADP, the human capital management solution provider