Why Diversity is Crucial to the Success and Growth of Your Small Business

[This article was written by Craig Middleton.]

In the business world of today, companies able to harness the multi-faceted work skills, personalities of different people are the most successful. A business that has a diverse workforce will experience a wide variety of benefits. Doing this enables a company to grow and expand at an even faster pace. Clients and customers who value diversity will find the company a more attractive place to do business.

Diversity

This is considered a way of valuing and appreciating the differences between people. It is a way a company can benefit from these differences. It is this diversity that can provide a workplace environment where people are driven to succeed by using their different perspectives, backgrounds, and perceptions.

Unconscious Bias

A business must accept everyone has an unconscious bias. They are based on an individual’s personal experiences as well as how they view the world around them. When a workforce stops tiptoeing around the issue and deals with unconscious bias, it is something that can be reduced. Diversity involves a commitment to using technology to eliminate biased language in job listing as well as inclusion training and more. A voice must be given to underrepresented colleagues. Available opportunities of an organization must be open to all.

Extend Marketplace

A company with significant diversity in its workforce is able to provide their goods or services to a larger number of clients and customers. It could make the company more attractive to different demographic groups. When a company has individuals who are bilingual, it could open up an entirely new market for them.

Brand Promotion

A company with a diverse workforce will be able to better brand their business in a positive way. It will be helpful with the different demographics it serves. People are more likely to purchase goods and services from a company with workers who they feel a connection.

Teamwork And Morale

When a company is dedicated to diversity, it improves employee teamwork as well as morale. Doing this will make each employee at a company feel valued. They will know they are accepted regardless of their age, gender, cultural or racial differences with others and more. A company’s employees will be better able to work together toward a common goal. When diversity is properly managed in a company, it will combine the experiences and talents of different employees into a cohesive workforce.

Cost-Effective

It is important for companies to realize how diversity is able to be cost-effective and increase revenue. There is a long-term value when diversity initiatives are embraced. The results of a McKinsey study showed companies who have made a significant investment in embracing diversity in their workplace are more than 34 percent more likely to have financial success above their industry’s national medians. Another study was performed by Deloitte. It revealed a very diverse company had as much as a 2.2 times more cash flow per worker over a three-year period when compared to companies who did not commit to having a diverse workforce.

Hiring Incentive Strategies

Many small businesses utilize incentive strategies to achieve an acceptable level of diversity. During the process of hiring for different positions, current employees will be asked to provide referrals. This is effective when employees are rewarded in some way for providing a referral that results in a qualified person being hired. Other small businesses have had success in reaching out to different organizations in their local community to find candidates. This could include community churches, clubs, business groups and more. When searching for workers in another state, it may be necessary to use the internet.

It is important for the management of a company to realize the benefits of having a diverse workforce. Doing this should be part of the mission statement for a business. Those responsible for recruiting qualified employees must be aware of this goal. It should never be viewed as a quota system. Diversity needs to be viewed as making an effort to seek the best candidates with diverse backgrounds.