Representation and diversity in the workplace are more relevant than ever. A 2020 study from McKinsey states that companies that have continued to implement diversity and inclusion initiatives have a better likelihood of consistent financial outperformance no matter the economic climate. Any company that wants to succeed in a modern and progressive business landscape stands to gain from a team that represents a range of races, religions, ages, ethnicities, genders, and the like. Here are some top reasons why representation in the workplace matters:
Creates a more unified and compassionate team
Diversity in a company’s workforce as well as upper management positions fosters representation in various levels of that company. When we can see elements of our social identity reflected in others we can better relate to, and understand, how they perceive the world. Having diversity in multi hierarchical levels of an organization nurtures a deeper compassion that transcends job titles.
Helps to better understand your audience
Unless your target market has a hyper-focus on certain demographics, then it’s more than likely that your customer base is also diverse. Companies representing these demographics can help offer a better understanding of their needs and pain points. With an array of perspectives, organizations can take steps to improve their existing offers and develop new ones.
Develops more Innovative Ideas
With a wide variety of talent, companies also gain access to more innovative ideas, perspectives, and solutions. A study by the Boston Consulting Group (BCG) has found that companies with more diverse management teams have 19% higher revenue due to innovation than their less diverse counterparts. When a company puts importance on representation, they can leverage these differences into strengths that can help everyone achieve their goal.
Can expand your customer base
Clients and customers are more likely to do business with brands where they see themselves represented. Not only will having more diversity in an organization help to better understand a larger audience, as explained above, it will also attract a larger more diverse customer base.
Nova works with clients to audit and evolve their existing recruiting and hiring and retention efforts, and our clients see the impact in the continued diversification of their organizations. Your Talent team likely has limited capacity and, like most organizations, is probably up to their ears in open reqs at the moment. Get in touch to learn how Nova can support their efforts and create more capacity.