5 ways diversity makes your team stronger•
Diversity isn’t just about collecting different faces and personalities and ticking boxes. When it comes to business, diversity is a huge asset for any company. Diverse teams tend to be stronger, higher performing and more cohesive than less diverse ones.
But don’t just take our word for it! According to the latest McKinsey report on diversity in the workplace, companies in the top quartile for gender or racial and ethnic diversity are more likely to have above average financial returns, when compared to the national industry average. What’s more, they found that companies in the bottom quartile, i.e. less diverse companies are statistically less likely to achieve above-average returns! The bottom line, according to their results, is that diversity is a competitive differentiator that is shifting market share toward more diverse companies. So, diversity is, and will continue to be, a big deal for companies nationwide.
Here are 5 reasons why diversity is so important for strengthening teams and boosting performance!
Diverse teams… focus on facts
There are a number of studies that show that more diverse teams focus more on facts and are therefore more objective when it comes to assessing business decisions.
One such study, which was conducted in both Texas and Singapore, involved putting financially literate people into either ethnically diverse or homogenous teams and asking them to price stocks. The results showed that those who were part of the diverse teams were 58% more likely to price stocks correctly, whereas those in homogenous groups were more prone to errors. This was credited to the fact that the more diverse teams scrutinized the facts and each other’s assumptions thoroughly and processed all of the information more carefully.
Looking for a new, inclusive employer? Check out our ranking of the Top 10 Companies for Gender Equality in the U.S.!
Have broader ideas
Many companies have entrenched ways of thinking that can limit their capacity to think outside the box. Diversifying a team means bringing in people with a range of backgrounds, approaches and cultures, which means that you’re more able to encourage a diversity of thought. When everyone brings their own unique perspective to the problem, you increase the odds that one of those solutions will be a hit. And, in today’s fast-paced business environment, you increase the responsiveness of the team, making the company better equipped for dealing with change.
Build a stronger brand
The company website might talk the talk when it comes to diversity, with lots of different faces reflected in its branding. But, walking the walk, is the important thing. A company that is truly diverse and inclusive will likely have a far wider reach than one that is less diverse, since it’s more flexible and better equipped to address the needs of far more consumers. Here at kununu we’re helping you to take a look behind the company website, with reviews written by real employees. Go and compare the company websites with their diversity scores, as awarded by our users.
Want to know how to find a truly inclusive employer? Check out our tips!
Generate more profits
If a company can reach more consumers, then it can increase profits. According to an international study undertaken by BCG, increasing the diversity of the leadership team can increase profits by 19%! This is because more diverse leadership leads to more and better innovation, thanks to the broader ideas and stronger brand built by more diverse teams.
Stay together longer
Cohesiveness is really important when it comes to any team. And, it’s even more important when it comes to retaining team members in today’s job market. When a team is more diverse, employees are more likely to stay longer. Diversity is especially important to millennials, as they’re the most diverse generation in US history, with 44% representing different minority groups. So, diversifying teams is not just the best way to future-proof the company, but also the best way to create a team that is innovative, high-performing and cohesive.
Tell us about diversity at your company? Do you feel supported, welcomed and included in your team? Let us know in your review anonymous employer review at kununu.us and help others to find more diverse employers.