The presence of a global community has expanded our societal horizons while bringing on a sense of interconnectivity unlike ever before. Companies are able to attract talent from a variety of backgrounds unique to each individual’s social location. Millennial and closely trailing Gen Z workforce populations are demanding a workplace culture that reflects dimensions of differences within a diverse population. We have entered an era where cultural diversity has become a normative value across various industries. Let’s take a look at what cultural diversity is and how embracing it can benefit your business.
What Does Culture and Diversity in the Workplace Mean?
Cultural diversity in the workplace means that people from diverse cultural and ethnic backgrounds can be found across company departments (laterally) at all levels (hierarchically). Representation of people from different races, ethnicities, socioeconomic backgrounds, genders, sexual orientations, religions, and other socially ascribed attributes must be present and celebrated. Work culture diversity achieves reaching your businesses’ goals and objectives through the promotion of an inclusive workplace environment that emphasizes tolerance. In order for a successful diversity and inclusion company culture to thrive, a workplace must subscribe not only to this idea in theory but in its commitment to continuous practice and evaluation of diversity and inclusion (D&I) initiatives.
Why Does Workplace Culture and Diversity Matter?
Operating from a diversity, equity, and inclusion (DEI) framework to ensure that your corporate culture is mindful of DEI issues matters. All stakeholders benefit from this practice.
- Thriving Environment. When underrepresented workforce populations become empowered, a thriving environment is created. Profitability increases, innovation flourishes, employee retention improves, customer loyalty is reinforced, and client outreach expands. You can also broaden your appeal to prospective employee lead candidates globally. This can be accomplished by implementing D&I initiatives as part of a differentiated continuous learning process. A workplace with a good diversity culture celebrates and promotes people within the DEI framework to make an impact through mentorship and engagement.
- Collaborative Problem-Solving: New Solutions for a Changing World. Furthermore, cultural diversity brings unique perspectives to the table. This allows for better collaboration to tackle challenges your business faces in an increasingly competitive market. Implementing cultural diversity and inclusion initiatives cultivates emotional intelligence skills among your employees, which facilitates communication with better tolerance and understanding. As a result, new perspectives are able to come together to bring new ways of thinking to solve the unique challenges that you will face currently and ahead.
- DEI Work Comes with Return on Investment (ROI). Doing DEI work right can be challenging and make you wonder if it is worth doing. Investing in your employees is investing in your business. There is a direct correlation between corporate cultural diversity and growth in revenue. Research has found that “companies in the top-quartile for ethnic/cultural diversity on executive teams were 33% more likely to have industry-leading profitability.” Conversely, a negative correlation for companies lacking in cultural diversity is true as “companies in the bottom quartile for both gender and ethnic/cultural diversity [are] 29% less likely to achieve above-average profitability” compared to companies that practice cultural diversity. Clearly, all stakeholders within a company culture that practices diversity and inclusion benefit from the positive externalities of better collaboration, innovation, and creativity.
Beyond an ethical or moral imperative, there is a real cost-benefit consequence to promoting a diversity and inclusion company culture. While progress won’t be linear, it is becoming more evident each day that there are a multitude of benefits for companies who commit to a culture of diversity and inclusion.
Promoting cultural diversity at the workplace can present its own set of unique challenges. Scalable implementation of effective DEI initiatives in a way that is immediately tangible requires a modern solution for businesses.
This post was written by Diversio, they are an exhibitor on the HRTech247 Diversity & Inclusion floor of the Technology Hall. You can visit their virtual space here