The Advantages of Diverse Business

These days diversity is held as a key component of what makes a business good — as it should be. It’s considered a business standard, but did you know there are proven economic benefits to a diverse workplace? Beyond the societal benefits of diversifying workspaces, studies have shown that diverse businesses can perform better and are 35% more likely to generate greater financial returns.

This is due to a slurry of reasons. When you hire diversely, you’re employing diverse backgrounds and ways of thinking. This creates more creative, better problem-solving, and smarter decision-making teams. When employees have a wider range of experiences and knowledge to draw from, it allows for broader and newer ideas to emerge. Creativity is often born from such melting pots, as well as forward-thinking. That’s why diverse teams make better decisions 87% of the time than non-diverse teams. It’s harder to make mistakes, especially with marketing, if you have a multitude of voices that can chime in and make sure everything will be received well.

Having a diverse team also means being able to better access diverse markets. One study found that diverse teams are 70% more likely to break into more markets. Trying to tap into new markets can be awkward and challenging from the outside, but if you already have members of that age, culture, or gender within your company you can more efficiently and effectively access those markets. Our economy only grows increasingly global, and the only way to keep up with it is to embrace it.

Diverse companies also have the very significant benefit of higher employee retention. These companies tend to foster confidence and be more open-minded and creative. Workers are more likely to be loyal and driven when they feel valued and uplifted by their employers. A company that embraces diversity overall tends to have a better reputation and even is more likely to get applicants since a third of job seekers say they won't apply to a company that isn’t diverse.

In the end, diverse hiring is a tide that lifts all ships. Even if there weren’t such clear economic benefits, marginalized groups gaining access to historically hegemonic areas is an important step forward in creating a more equitable economy. The more diverse we become, the higher we can all reach.

Published by WOW (Work Onward) By Hannah Drake / December 2, 2022