Intersection of Inclusion and Profitability: How Diversity Increases Revenue
Workplace diversity is when a company actively seeks employees with varying characteristics for a more fully developed, well-rounded team. Diversity doesn’t just focus on inherent qualities like age, gender, race, and physical ability. It also incorporates acquired diversity, like life experiences, values, and problem solving ability.
This sort of inclusion benefits companies in multiple ways. It boosts morale and fosters a welcoming atmosphere of acceptance. It develops a varied staff that can more wholly move the company toward success while effectively meeting the needs of their customers. Most important to the company’s bottom line, diversity increases revenue.
4 Ways Inclusion Intersects with Profitability
Companies with an inclusive culture who hire staff members with differing backgrounds see a significant increase in profit. Diverse businesses see 2.3 times higher profits per employee. While demographics may not seem to directly relate to revenue, here are 4 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 employee. Businesses who 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 who 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
Building a customer relationship leads to a positive customer experience. This is important for brand identity, customer loyalty, and sales growth. 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 staff 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 to potential target markets and product opportunities the company has been overlooking. By increasing customer satisfaction, diversity impacts profitability.
4. Diversity Attracts Investors
Environmental, Social, and Corporate Governance (ESG) is a determining factor in which company investors want to support. With customer bases becoming more diverse, investors want to work with companies who value inclusion in the workplace. As a result, investors seek out businesses who are actively promoting diversity in their corporate culture.
A more diverse workforce positions companies favorably with investors and customers 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 staff 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.
Televerde Knows Where to Find Results
A diverse workforce is better able to market to a diverse audience. Televerde can help you develop an effective demand generation marketing strategy to meet the needs of your target audience. A global sales and marketing services company, Televerde provides the tools you need for lead generation and pipeline boost.