According to the Department of Labor (DOL), embracing diversity and appreciating individual differences will benefit companies by increasing innovative problem solving. Here are four important times when business leaders will realize the benefits of employment-based diversity programs.
When the Company Realizes a Higher ROI
The U.S. Office of Personnel Management (OPM) states that inclusion and diversity policies eventually result in higher quality work and thus better return on investment (ROI) on labor expenses and HR investments. The most expensive budget item in any company will be labor, which includes recruitment, selection, training, development and salaries and benefits. Employees are the most important resource and investment, so companies can maximize ROI and increase competitive advantages through acquiring and retaining the best talent. In order to document the connection between labor costs and diversity rates, companies should rely on statistical reports and analysis.
When Productivity Increases
In an increasingly competitive economy, talent management is a competitive asset that will make or break the bottom line. Diverse recruitment results in a more qualified workforce, which will directly impact productivity. The broader the candidate pool of potential employees, they more likely that the company will acquire the best in the labor market. A diverse workforce will helps businesses avoid potential turnover costs because businesses that create inclusive workplaces enjoy higher levels of employee satisfaction and engagement. Companies that ignore individuality will experience higher turnover rates because they may end up creating subtly hostile work environments that devalues diversity.
When the Companies Enjoys a Bigger Market Share
Workforce diversity will help the company to capture a greater share of their target consumer market. By bringing together unique individuals from different backgrounds, companies can more effectively promote products and services to consumers from different backgrounds. This is especially true when it comes to face-to-face sales, target marketing campaigns and customer service support. As a result, successful corporations pay close attention to the connection between store locations and demographics of local communities. For example, a company with a sales team of diverse people will better establish relationships with members of the community.
When Productivity Increases
Diversity fosters a more creative workforce because there are many employees who each have unique backgrounds, experiences and qualifications who can work together to collectively problem-solve. Therefore, many companies purposefully form special teams of diverse individuals to tackle new or chronic problems. Similarly, diversity is a driver of entrepreneurialism because business people who think outside the box are able to recognize and capitalize on new industry and customer trends.
Finally, when customers and the public openly recognizes and appreciates diversity initiatives, the company will enjoy a better business reputation. Consequently, this is why many PR professionals strive to inform the press about their company’s successful workforce diversity efforts.