How Will Diversity Affect Your Bottom Line?

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In the United States, diversity is all around us with individuals who vary in gender, age, religion, race, ethnicity, cultural background, sexual orientation, languages, education, and abilities. These individuals serve as both employees and customers, so diversity should translate into our work life.

Working for a company that cares about diversity and inclusion used to be a bonus that was often reserved for a few forward-thinking corporations. Thankfully, times have changed and now many companies, small and large, are taking diversity and inclusion into consideration when hiring staff, choosing vendors, and creating their business plan. Today, more companies are making an effort to ensure that their corporate culture reflects the diverse environment in which we live.

Building a business that centers around diversity is not only socially responsible, but also has a positive impact on the business’ bottom line. In fact, a study conducted last year by the Boston Consulting Group found that “increasing the diversity of leadership teams leads to more and better innovation and improved financial performance.” This study covered a variety of industries and company sizes across Austria, Brazil, China, France, Germany, India, Switzerland, and the US. The six dimensions of diversity that were explored at the management level were gender, age, nation of origin, career path, industry background, and education. The results of this study found that “in both developing and developed economies, companies with above-average diversity on their leadership teams report a greater payoff from innovation and higher EBIT (earnings before interest and taxes) margins.”

According to TalentLyft, workplace diversity has positive results in companies in more than one way. The following workplace diversity statistics reflect the impact that diversity can have on an organization:

While many companies have made significant financial investments with diversity initiatives, smaller organizations may struggle with diversity programs due to inadequate resources. The organization’s leadership not being fully involved, a lack of understanding for program needs, or a lack of expertise within the company usually contribute to an organization’s inability to develop an appropriate strategy for program implementation and evaluation.

Developing a strategy to blend diversity into a company’s corporate culture is an extremely important step in organizational change management. The strategy should combine all aspects of diversity initiatives and goals, so that the change is felt from the moment each person interacts with the company, as either a client or employee. To do this successfully, all departments and employees must be on board, which begins with a commitment from leadership. This need is highlighted in an article by Inc. Magazine, stating that an organization’s leaders must proactively engage with employees and set the example for diversity initiatives with behaviors, policies, and the necessary resources

Having guidance through this process is important, as creating a culture of diversity is not a simple task. A-G Associates has guided several clients through organizational change initiatives from culture change to new programs or service offerings. A-G offers a range of services that can help any organization with the process of becoming more diverse and implementing changes that support a new workplace culture. If you are interested in learning more about how we can help, please contact Chris Gonzalez at cgonzalez@a-gassociates.com. You can also visit our website at http://www.a-gassociates.com/.

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