5 Ways Diversity Can Increase Your Revenue

Implementing D&I programs will fuel innovation, growth, and your bottom line

In today’s volatile business environment, organizations that leverage the unique differences of their workforce are the ones that will thrive. But in order to get there, leaders must truly understand the people powering their business and make diversity and inclusion (D&I) top business priorities. 
 

There are many benefits of workplace diversity but before we review them, it’s important to understand what workplace diversity is. A diverse workforce comes about when a company intentionally recruits a wide range of diverse individuals to create a more fully developed, well-rounded team. Remember, true diversity doesn’t only focus on inherent qualities like age, gender, race, and physical ability. It also incorporates acquired diversity, such as life experiences, personality type, thinking style, background, and circumstance. 

When companies achieve this level of inclusion, they benefit in multiple ways. Morale is higher and your culture becomes a welcoming atmosphere of acceptance and belonging. In this environment, your teams can more easily move the company toward success while effectively meeting the needs of customers. And for those focused on the numbers, diversity does increase revenue. 

Case in point: Sodexo is one of several companies doing diversity really well. Its diversity mission is simple: “gender balance is our business.” They found that when there is an optimal gender balance within an organization, employee engagement increases by 4 percentage points, gross profit increases by 23 percent, and brand image strengthens by 5 percentage points. Impressive. 

5 Ways Inclusion Intersects with Profitability

Companies with an inclusive culture that hires staff members with differing backgrounds see a significant increase in profit. Studies continue to show that diverse businesses see 2.3 times higher profits per employee and that higher levels of ethnic diversity can increase revenue by as much as 15 percent. While demographics may not seem to directly relate to revenue, here are 5 ways inclusion intersects with profitability.

1. Diversity Entices Top Candidates

Job seeking is a highly competitive market. Top candidates are vying for the same positions, and companies must present the best offer to land their choice of employee. Businesses that tout a diverse culture attract a larger pool of job applicants. More than 77% of candidates assess company culture when considering a job offer. Therefore, diverse companies have better odds of enticing top candidates.

Businesses that hire superior workers add skills, experience, and expertise that strengthen their team. With more qualified workers on staff, diverse companies position themselves to surpass the success of their competition.

2. Different Perspectives Bring Innovation

By hiring staff with different backgrounds and experiences, companies increase their intellectual capital. People approach a problem from different perspectives, each bringing fresh ideas and considerations for a creative brainstorming process. By building on the differing ideas of their team, companies can develop innovative products and services to meet customer needs and set themselves apart from the competition.

Likewise, employees with diverse experience may have encountered a past situation that provides insight on how to respond to a similar issue present day. By relying on their unique experiences, these team members can streamline the problem-solving process and find a solution more efficiently. This can increase productivity and help the business continue to earn revenue.

3. A Diverse Team Relates to a Diverse Audience

A company’s audience is a diverse group with at least one thing in common. They’re interested in that business’s products and services.

To build a rapport with your audience, you need to have relatable team members that your audience can identify with and trust. Diversity in the workplace means you have more people to make personal connections with your customers. From their concerns and needs to their frustrations and personal experiences, customers want to feel understood and valued. A diverse team is more likely to achieve that end.

Additionally, a diverse staff increases opportunities for reaching more demographics than previously considered. Their own experiences can raise awareness of potential target markets and product opportunities the company may have overlooked. By increasing customer engagement, and ultimately satisfaction, diversity impacts profitability.

4. Diversity Drives Innovation

A diverse workforce fosters innovation and better products and services. Workplace diversity fosters an environment where all ideas are valued and heard (even those that may seem “over the top”). When varied backgrounds and perspectives are represented and empowered by their leaders, all employees can feel at ease sharing ideas and honest opinions. The benefits of this are massive.

For example, three years ago Mattel executives decided to launch a new line of dolls that target Black girls. The execs wanted to ensure that the introduction of the new dolls was culturally sensitive. Senior leadership reached out to Mattel’s African-American Employee Resource Group to advise and guide Mattel’s marketing team through the launch of the doll. Thanks to this proactive collaboration, the product is one of the company’s best-selling, minority-focused brands.

5. Diversity Attracts Investors 

Environmental, Social, and Corporate Governance is a determining factor in which company investors want to support. With customer bases becoming more diverse, investors want to work with companies that value inclusion in the workplace. As a result, investors seek out businesses that are actively promoting diversity in their corporate culture.

A more diverse workforce positions companies favorably with investors who want to support an inclusive environment. These people will help to grow the business and increase revenue.

How to Support Diversity in the Workplace

While workplace diversity yields numerous benefits, it can be difficult to motivate a company to embrace fundamental change.

In making the shift to an inclusive workplace environment, you might face challenges such as:
 

• Language Barriers: Hiring people from different cultures can bring language barriers, leading to communication issues.
• Disagreement on Approach: With so many different backgrounds and experiences, employees may have a hard time agreeing on the best way to tackle a task together.
• Resentment: People may feel that coworkers receive preferential treatment based solely on their demographics and not on their performance.

Because diversification can positively impact your team and your bottom line, it’s worth the effort to shift the culture in your workplace. While there are multiple ways to support diversity at your company, here are two effective ways to combat challenges.

1. Conduct Company-wide Training

Educate your staff about unconscious bias to promote self-awareness and foster an inclusive and accepting corporate culture. Incorporate bilingual software or translation materials into educational opportunities to break down any language barriers. Remind employees that differences are benefits to the company, and not something to feel hostile towards.

2. Leave Final Decisions to Upper Management 

Encourage all staff members to contribute their ideas to develop a solution. If they’re unable to reach an agreement, they can present their suggestions to upper management, who can make the final decision on how to proceed. This minimizes disagreement and fosters an environment of teamwork.

Implementing diversity and inclusion programs wholly will not only help you attract and retain top talent, it will also fuel innovation, growth, and your bottom line. For these reasons, D&I must become part of your company mission, be embedded in your corporate values, and made a top strategic priority. 

Morag Lucey is the Chief Executive Officer for Televerde, the preferred global revenue creation partner supporting marketing, sales and customer success for B2B businesses around the world. Visit https://televerde.com/ Connect Morag Lucey