Login with Facebook
Close

Everything you need to know about workplace diversity

Due to globalization and the resulting demographic change, the term diversity in the world of work has become increasingly important in recent years. Our society is becoming more and more diverse, which affects ways of life as well as working methods. Issues such as feminism, immigration, gender identity, and the gender pay gap in companies are increasingly the focus of politics and social discussions.

Success factor diversity management

The term diversity has many forms, including personal characteristics such as gender, sexual orientation, age and identity, ethnic origin or nationality, the level of education and knowledge as well as experience, world view or religion. Especially nowadays, in a global and dynamic work environment, the "Diversity Management" - which deals with the personal and social Diversity within organizations and which aims at the constructive use of a heterogeneous workforce - is becoming increasingly important. This is primarily due to the fact that companies are increasingly international and thus the interaction between employees with different cultural,

This knowledge and skills, which a diverse workforce brings with it, can be an important success factor for companies. The study "Diversity in the Workplace" by John Morgan and Felix Várdy, American Economic Review, shows that heterogeneous teams increase companies' economic performance and increase their innovative ability and customer focus.

How Diversity affects the world of work

Diversity is not only important from an ethical perspective, but it can also give companies decisive competitive advantages to lead. Above all, a company's creativity and innovative ability can be increased by a team consisting of employees from different countries of origin. This can be attributed to the fact that such cooperation involves culturally specific knowledge and has a significant impact on the results - for example, people of different nationalities solve problems in different ways and are also often more willing to take risks. In particular, employees' different perspectives and skills can further develop, restructure, and improve established processes within a company. This process is essential to promote a company's competitiveness in the market and to keep it from standing still.

McKinsey's "Delivering through Diversity" study, which has shown a statistical connection between Diversity in organizations and above-average economic performance, also confirms the increased productivity through heterogeneous teams. As a result, employees need to have relevant attitudes and skills to interact effectively with colleagues as well as stakeholders from different cultural and social backgrounds.

Increased net sales due to gender diversity

But not only cultural diversity but also gender-specific Diversity is a decisive success factor for companies. Women are often underrepresented, especially at management levels. It is particularly important here to incorporate different ways of thinking and skills. Scientific studies such as "The Credit Suisse Gender 3000: the Reward for Change" and "When Gender Diversity Makes Firms More Productive" by Harvard Business Review show that companies that have increased their share of female management positions have been able to increase their net sales and are more innovative and acted more customer-oriented.

It becomes clear that anchoring and promoting Diversity within corporate culture has become an important strategic issue for management. It enables companies to remain competitive, innovative, and open to a dynamic market environment, which, in turn, is critical to successful digital transformation is.

Diversity as part of the corporate culture

A company's success often depends on its ability to exploit the potential and the advantages that diversity brings optimally. Companies also benefit from this when it comes to recruiting and retaining staff when Diversity and inclusion are an integral part of the corporate culture. This means that they should be promoted in the form of initiatives and lived as a basic attitude in everyday work. They can lead to employees being happier and more motivated and thus delivering better results. Mutual and comprehensive understanding and employees' ability to take a different perspective are essential for successful and effective cooperation, especially within diverse working groups.

Six good reasons to adopt Diversity at work

The impact of Diversity at work has been the subject of numerous research studies. Since the vast majority of them have not been validated, their conclusions may well be contested. Nevertheless, taken as a whole and supported by case studies, this work seems convincing to us.

In order to explain the interest of Diversity at work, we started from the traditional service-profit chain model, to transform it into a diversity-profit chain. This model describes how diversified management influences the main organizational factors.

Leadership

According to a study carried out in 2004, how knowledge heterogeneity influences managerial performance and innovativeness when a Management presents a high level of diversity in terms of culture and ethnic origins, the company generally records better performances. A similar dynamic can be found in the 2009 meta-analysis, which reveals that the diversified teams are more innovative and are better able to meet deadlines and allocated budgets.

Employee engagement

As a study by Gallup shows, Diversity generates greater satisfaction among employees. 60% of people working for a culturally diverse company said they felt involved in their position. The contrast with less diversified companies is clear: only 11% of employees feel some involvement.

In terms of economic profitability and customer satisfaction, employee involvement plays a major role. In the Service Management 3.0: Linking Employee and Customer Engagement study, we reported on the correlation between employee engagement, customer satisfaction, and profits. Likewise, the employees involved are more productive, and companies with a strong commitment record higher profits.

This is how Aon Hewitt came to the following conclusion: companies with a high engagement rate generate a return for shareholders 22% higher than the average. A separate study conducted in 2012 showed that companies with a high level of involvement were 4.2 times more likely to generate profits than their competitors.

Employee sick leave and retention

Diversity would generate a higher retention rate and fewer sick leaves. In this regard, our study, entitled Diversity in Outsourcing, reveals that the number of sick leaves and the turnover of managers are twice higher among employees born in Denmark than among those from other countries. In general, we found that the loyalty rate was higher within diverse teams.

Attracting talent

Diversity at work is an attraction for talent. A Danish study carried out by Stepstone in 2013 reveals that 60% of new generation applicants are attracted to companies with diverse profiles. For these candidates, it is "important," even "very important," that the workplace is open to everyone, regardless of nationality, religion, sexual orientation, gender, or disability.

Products

The Harvard Business Review has published a study explaining how Diversity in Management stimulates innovation and promotes market growth. Other studies also show that the more diverse the company's workforce, the more the company has access to new perspectives: new patents, solving complex problems, innovation, etc.

Services and clients

Diversity gives rise to a better vision of the market and thus makes it possible to adapt the services to the target audience. In return, a more precise vision of the market is synonymous with higher profits. In 2014, Gallup conducted a survey of 800 divisions of two large service companies and found that the divisions with a diverse workforce earned 19% more than the others. Again, this confirms that a diversified management results in a more customer-oriented approach.

Conclusion

The impact of Diversity is felt at all levels of a business. In a diverse environment, employees feel more involved, and their retention rate increases while the number of sick leaves decreases. The context attracts more talent, the services provided are of better quality, and the customer experience is optimized.

Even if Diversity should in no case be envisaged as a single solution for improving performance, the results are nonetheless undeniable: in a companyWorkplace diversity, diversified management tilts the balance of financial results on the bright side.

Author: Vicki Lezama


Need a custom
essay?

We will write it for you.
Order now

Free Essay Examples

Free essays:

All you need to know about Neuroendocrinology
All you need to know about Big data management
All you need to know about digital special effects
All you need to know Technical Writing?
Basics the Game Theory in Cryptoeconomics
Business innovation ideas for making money
Biosensors for cancer diagnosis
Business Analysis: Pricing strategies and Demand Curve
Cognitive Computing- How does Cognitive Computing work?
Consciousness: characteristics and peculiarities
Conservation Economics
Cybersecurity in business: challenges, risks, and practices
Demographic trends and how they affect Economic Growth
Dance as an art form and entertainment
Discrimination Economics
Determinants of Wages
Everything you need to know about short-term memory
Economic and Policy Impacts of Demographics
Ethics: an essay on the understanding of evil
Emotions: what are they? Theories explained
Factors of Demographic Data Collection
Factors Affecting Purchasing Behavior
Financial Statement Analysis
Factors Influencing Interest and Exchange Rates
Government's Intervention in The Labor Market
Guide on the Pathways of the nervous system
Game theory in microeconomics
Globalization: definition, causes, social impact and risks
How Relativism Promotes Pluralism and Tolerance
How to use the audience’s feedback to write a news report
History of silent cinema
How news report can be strengthened through multimedia
Introduction to Population Problems
Imperfect Information and Asymmetric Information
Imperfect Information in Insurance
Introduction to Labor Markets
Journalism: What is News?
Journalism: Broadcast media and Television Presenters
Journalism: Sources of News
Journalism and Law
Key Determinants of National Income
Key Factors That Affect Pricing Decisions
Kinetic models in biology and Related fields
Know about the different forms of traditional African dances
Latest technology trends
Latest dance trends
Magnetoencephalography (MEG)
Microeconomic Analysis to the Demand for Labor
Neuromuscular disorders
National Economies, Fluctuation, and Responses to Fluctuations
Neurotransmitters: what they are and different types
Nanomedicines to target tumors
Objections to utilitarianism
Organizational motivation and its effects
Overcoming Hiring Challenges for Nonprofit Organization
Population Demographics
Recurrent neural networks (RNN) for speech detection
Russian School of Mathematics
Research and Development
Risk Sharing in Insurance and Asset Markets
Stochastic optimization methods in deep learning?
Structure of the nervous system
Structure of a Corporation
Schizoaffective disorder: how to live better with it
The climate change denial
The techniques of basic cinematography
The Endosymbiotic Theory
The Role of Internal Audit in Corporate Risk Management
Unions
Unemployment
Utilitarianism Vs. Kantianism
Understanding Auctions and Auction Theory: Part 2
Various theoretical perspectives of sociology
Virtual reality, what it is and how it works
What are the linear models in machine learning?
What is Convolutional Neural Network
4 Facts about Origin of Mathematics!
5 techniques to create an animation
10 emerging technologies according to World Economic Forum
10 strategies to maximize corporate profits
3d Model Of Building
6 Medical Technologies that revolutionized the healthcare in 2020
All you need to know about the ACA Code of ethics
Architecture and Democracy: An Introduction
Architecture and Democracy: Democratic Values
Architecture and Democracy: Democratic Procedures
All You Need to Know About a Synthesis Essay
An essential guide to understanding Film Theory
Application of Artificial Intelligence in Cyber Security
Applications of electrical engineering
Augmented reality: what it is, how it works, examples
Advantages And Disadvantages Of Social Networking
All you need to know about Cryptography
Applications of astrophysical science
All you need to know about architecture engineering
Applications of geological engineering
Artificial intelligence and medicine: an increasingly close relationship
An insight into Computational Biology
ACA code of conduct
A Rose for Emily
Applications of Mathematics in daily life
Architecture mistakes to avoid
All you need to know about Toxicology
All you need to know about Holistic Medicine
All you need to know about linguistics
An introduction to Linguistics and its subfields
All you need to know about Anxiety disorder
All you need to know about Drones
A Brief Insight into Political Science
Assumptions related to feminism
All you need to know about Byzantine emperors
All you need to know about labour economics
An insight into xenobots -the first-ever robots
An ultimate guide about Biomaterials
A Comprehensive Introduction to the Mona Lisa
Analysis methods of Transport through biological membranes
An ultimate guide about biochemical reactions
Analysis of brain signals
Artificial Gene Synthesis
Application to synthetic biology of CAD methods
All you need to know about metabolic pathways
Applications of BIOMEMS
All you need to know about the epidemiology
Asian vs. western leadership styles
All you need to know about Smart prosthesis
Analysis of Economy: Output of Goods and Services (GNP), and GDP on Economic success
A Guide to Pricing Strategies
An Overview Of Economic Studies
Analysis of Fiscal and Monetary Policies
Analysis of Business Cycles
Analysis of Consumption and Investment
A Look into Regression Analysis
Analysis of Household's Consumption and Savings Behavior
All you need to know about Capital Budgeting
All you need to know about risk management
Art looted in wartime.
Appropriate use of Data in Economics
All you need to know about reaction kinetics?
A historical overview of Financial Crises
All you need to know about management discipline?
An insight into the error-correction models
All you need to know about Data visualization
All you need to know about Work-family balance
All you need to know Technical Writing?
All you need to know about digital special effects
All you need to know about Big data management
All you need to know about Neuroendocrinology
How to Write a Personal Essay
Housing Needs in America
How to Write a Description Essay
How to Create an Excellent Scholarship Essay?
How to write a cause and effect essay
How to Hire the Best Essay Writing Service Provider?
How to Write a College Application Essay?
How to get the most out of your English lectures
How to write Expository Essay
How to succeed in your psychology class?
How to Write an Academic Essay in the Shortest Time?
History of Journalism
How Different Sectors are Using Artificial intelligence (AI)
How to write an informative essay
How to deliver persuasive essays?
How to Give a Convincing Presentation
How to write an essay on leadership?
Historical Art Still Around Today
Humanoid robot: what it is, how it works and price
History of Chemistry
Healthcare Advanced Computer Power: Robotics, Medical Imaging, and More
Healthcare AI: Game Changers for Medical Decision-Making and Remote Patient Monitoring
How to understand different types of English
How to Cope with Chronic Pain
How African American choreographers and dancers have influenced American dance
How mobile robot can do in logistics or in production
How To Become a Successful Entrepreneur
History of the Philosophy of Feminism
How is the climate changing?
How to Track Your Content Marketing ROI
How to Gun control In the USA?
Historical and contemporary role of labour in the modern world
How breast cancers are classified?
How the cells of our body communicate?
How the Lymphatic System Works?
How Digestive System Works
How to complete your capstone projects effectively?
How to write a research project
Healthcare technologies that help patients with better self-management
How to choose the topic of the senior capstone project
How to make your business survive at economic crisis
How can immigrants blend in the American society?
How does the economics of war affect society?
Hate speech on social media.
How to Build an Economic Model
How to start a healthcare startup?
How can financial illiteracy harm you?
How cancer is developed - Cancer biology
How to define the Enterprise Value
How to conduct economic research?
How women can manage sexual harassment
How to use quotes in your news reports?
How news report can be strengthened through multimedia
History of silent cinema
How to use the audience’s feedback to write a news report
How Relativism Promotes Pluralism and Tolerance
Introduction to Urban Studies
Importance of dance in education
InMoov: how to build an open source humanoid robot
Importance of KYC verification to making the Blockchain secure
Importance of Rhythm
Importance of dance student evaluation
I/O control methods -types and explanations
Identity theft: what to do?
Introduction to Utilitarianism
Importance of 3d Modelling in Architecture
Importance of online journalism
Image processing in medical diagnosis
Introduction to USA Politics
Introduction to Comparative Politics
International Relations as a Major in Political Science
Importance of modern trade policy
Introduction to Journalism
Introduction to Writing a TV Script
Introduction of Microfabrication techniques
Introduction to Microeconomics
Interaction of Consumer and Firm Choices in Markets
Importance of corporate sustainability
Issues in International Monetary Macroeconomics
Introduction to Statistics and Data for Economics
Introduction to Data and Probability for Economics
Introduction to the Game Theory
Introduction to Econometrics
Introduction to Economic Information
Introduction to Market Equilibrium
Introduction to Economic Models and Application
Introduction to Empirical Research
Introduction to Econometric Data
Importance of Critical Thinking, Principles, and Goals
Introduction to Identification and Causal inferences
Introduction to Econometric Application
Intermediaries and Government in Financial Crisis
Importance and seven principles of quality management
Illiteracy in the USA
Introduction to Economics of Law
Introduction to Coase Theorem
Introduction to Social Choice and Incarceration
Intellectual Property and Product Liability
Investment in Human Capital
Introduction to Labor Markets
Imperfect Information in Insurance
Imperfect Information and Asymmetric Information
Introduction to Population Problems
The Looming Energy Crisis in America
Top benefits of performance-based engineering
The More Languages You Know, The More Times You Are a Man
Things to consider while writing an Argumentative Essay
Top Ways to Improve Your Academic Writing Skills
Tips to Excel in Creative Writing
The origins of films in the early 19th century
Top career options in Architecture
The Elevator Pitch
Top finance trends 2020
The basic Structure and functionality of robots
The Way to Success
The election system of the President in the United States of America
Two-party System in United States of America
Top trends in urban design
The history and theory of African American filmmaking
Top benefits of creative writing
Tinnitus Guide: Common Symptoms and Treatment Options
The language of dance
The digital image processing management
Top famous politicians of the World
Top methods of political science!
The history of the feminist movement
The blood flow in cardiovascular system - Biofluid Mechanics
The best of Leonardo Da Vinci
The Structure and Function of Macromolecules
The structure of cell: a research on the bricks of the human body!
Tissue and organ construction: Adhesion and recognition between cells
The kinetics of the transformation processes
The Modeling of Biological Systems
Tips for writing a great thesis statement
The Defense mechanisms against infections
The impact of the technological innovations in medicine
Top journalism trends to know about
The relation between mass media & politics
Theranostics: Diagnosis and Care through Nanoparticles
The practical Applications of X-rays
The applications of Ultrasound in medicine
Transfer mechanisms of genetic information in Bacteria
The regulation of cellular metabolism in the diagnosis
The Principles of MRI Contrast agents
The technical basis of optical coherence imaging
The New Media: Emerging Trends
The Structure of Interest Rates and the Yield Curve
Technological perspectives and reflections of neural engineering
Types of bioreactors and their applications
The Role of Government Policy in Improving Economic Outcomes
Types of corporate responsibility
The Role of IMF in International Monetary Macroeconomics
Tools for investment decision making
The concept of Organizational Culture and its applications
The Conduct of Monetary and Fiscal Policy
The Basics of Financial Accelerator Models
Tips for labeling medical devices- Medical Entrepreneurship
The different medical imaging techniques
The Economics of Uncertainty – Introduction
Theories of Public Policy
The Game Theory in Social Media
The political theory of Thomas Hobbes
The Use of Law on Economics and Vice Versa
The Role of Internal Audit in Corporate Risk Management
The Endosymbiotic Theory
The techniques of basic cinematography
The climate change denial
What is a Definition Essay?
What are diagnostic essays?
What is the relation between art structural engineering?
What is a Narrative Essay
What are robotics and intelligence systems?
What are the benefits of studying health sciences?
What is artificial intelligence and why it matters?
What is comparative Literature?
Why study neuroscience
What is Wi-Fi and how does it works
What is French history famous for?
What are Humanistic Studies?
What is covered in Biophysics?
What is modern journalism?
What is Virtualization? Benefits & Applications
What are modern public relations?
What is plasma physics?
What is teacher preparation?
What is rapid prototyping for 3D printing?
What is contemporary European Politics?
Why should you learn American Ballet?
What is engineering physics?
What is the purpose of African American Literature?
Ways to learn the Rhythm
What is digital art used for?
What are Enzymes and how do they work
Who is the father of political science?
Why Study Political Science - Job?
What is the Philosophy of Feminism?
What is a quantum computer?
Ways B2B Startups Streamline Their Conversion Strategies
Why do biomedical signals need processing?
What are the long term effects of climate change?
Why study labour relations
What is Holoprosencephaly?
What is antisocial disorder?
What are the important principles of evolution?
What is the cytoplasm and its function?
What is biopolymers?
What Makes a Good Leader
Women empowerment in modern generation
What is the history of political thought?
What is Gene recombination
What is synthetic biology
What is business cost analysis?
What is Inflation
What are the consequences of unemployment?
What is lithotripsy and its types?
What is transition elastography?
What is the purpose of deep brain stimulation?
What is a Brain-Computer Interface (BCI)
What is neuroethics?
What is Market and Supply and Demand
What is optogenetics?
What are the techniques to record brain activity?
What happens if the interest rate increases?
What is immunotherapy?
What is the economic role of the financial market?
What are the factors behind illegal immigration?
What is the lymphocyte activation?
What is financial market and its types?
What is the structure of financial markets?
What are the methods of measuring business performance?
What is the Credit market?
What is business ethics and code of ethics
What are the Causes of financial instability?
What is MBA with Concentrations
What is regenerative medicine?
What is Population ecology?
What is Microfinance: evolution, and practices?
What is biotechnology and its applications?
What are Workplace diversity and its benefits?
What is the difference between a leader and a manager?
What Is Branding and best branding Business strategies?
Why are microelectronics important?
What are biologic drugs.
What is the Foreign Exchange market?
What is the role of scientific research in times of crisis?
What are the risks of international trade?
What is financial management?
What is gene therapy?
What is education economics?
What is regression analysis, and why should you use it?
What Is Technology Marketing And How Should It Work?
What is Management Accounting
What are the methods of valuation of companies?
What is Immune System and Immunotherapy?
What is big data analytics?
What is the 7 layers of OSI model?
What is Neuroplasticity?
What are Sculpture art and its types?
What are the different genres of films?
What is Transcranial magnetic stimulation (TMS)?
What is TES-Transcranial electrical stimulation?
What is Relativism?
What is Vaccine skepticism, and what to do about it?
What happens in the brain when learning?
What is the deep neural network?
What is Convolutional Neural Network
What are the linear models in machine learning?