Last Updated on September 1, 2023 by David
Guest Post by Noah Rue
Any growing business will experiment with various techniques to gain better revenues. From multiple channels of marketing to product development and gaining expertise in customer care; companies go through the drill of building strategies to cover the myriad aspects of business. However, it is easy to miss taking note of one of the most important structures that form the spine of your company: your employees.
While hiring and talent acquisition falls under the scope of the Human Resources department, it is only sensible to recognize how hiring affects sales. Hiring is not as straightforward as simply filling vacancies or check-marking skills on resumes. Hiring policies and plans, now, have to be much more comprehensive. Not only are companies measured by diversity, but they are also judged for a lack of it.
But is diversity just a metric?
Research by BCG shows that in fact, diversity is not just a metric, but rather translates into better financial performance and increased innovation. One of the reasons for this is that diverse employees also means diverse solutions to every problem. If we dial back, it can also avoid certain problems altogether. In 2020, as a whirlwind of conversations about racism began and eventually led to the topic of diverse workforces, many organizations went through major changes and setbacks. Man Repeller’s founder, Leandra Cohen, stepped down upon accusations of a non-diverse standpoint of the magazine. Bon Appetit hired people of color in its team. These controversies were less likely to have happened if a diverse workforce was already in place.
A diverse workforce
Does diversity simply mean hiring people of color? Or does it mean hiring more women? It is both and more. It’s important to remember that the “diversity box” cannot simply be checked off by having a board that is 40% women. Yes, this is one step in the right direction, but not nearly enough. Rather, a truly diverse workforce has people from different backgrounds, different ethnicities, different genders, biases, education, and even sexual orientation. A diverse workforce brings a diverse skill set to the company as a whole, making it richer in not only anticipating and preventing problems but also solving them.
If you’re planning on diversifying your workforce it is best to account for many different kinds of people and make cultural changes that will help them in adjusting to your company.
What are the benefits of having a diverse workforce?
Diverse workforces everywhere can impact society at large by the tolerance and acceptance that comes with the notion of diversity. Furthermore, diverse workforces have a range of business-specific benefits, both for employees and employers.
As an employee
For employees, a diverse workforce creates an environment conducive to creativity and collaboration. If teamwork isn’t your best suit, a diverse workplace is the best place to get better at it. When you work with people from different walks of life, teamwork becomes more difficult but also much more rewarding. If you belong to a minority community, then diverse workplaces can be a boon.
As an employer
The most important decisive factor for hiring any new employee is whether they will add to your revenue or not. A diverse workforce, as stated in the BCG article, can increase revenue by up to 19%! This is true for companies that focus on creating teams with multiple areas of diversity, as opposed to focusing on one specific area of diversity. Additionally, having a diverse leadership team — such as one that consists of minority-status individuals — can lead to new streams of revenue and/or funding altogether. Minority-owned businesses have access to a range of resources to help support their business plans.
Secondly, inculcating a diverse workforce into your business model can get you the best talent, which is also more loyal. Many a time, the best talent might not belong to a majority community. But if your company’s policies make them comfortable, there is a higher chance of them joining you. The work culture could also make them stay around for longer and remain loyal to you for a long time to come.
Finally, and to put it plainly, diversity makes you look good. Consumers today, especially Gen Z, can be won over by centralizing your marketing around them. Gen Zers are looking for brands that hire diverse employees and stand for the values they believe in. To get noticed, being a company that stands for diversity is key.
How to make the change
If you want to have a diverse workforce, your company will have to make adjustments to accommodate it. There are many changes you can make to suit a diverse work environment. However, these have to begin with your recruitment process that should account for different kinds of people. Interview questions should be more sensitized and qualifying factors may have to be amended as well.
Importantly, your recruitment processes should aim to maintain balance among your teams. This means that your team should ideally be a mix of people that can complement each other. One member’s weaknesses should be balanced by another member’s strengths. A good, diverse team is one that covers for each other and is stronger as a unit rather than individually. As stated in Re:amaze’s downloadable e-book, “pay close attention to the few right people, right personalities, and right ideas that will foster healthy cultures, communications, and processes later down the road.” This balance can look different for every company and therefore, has to be decided by the top management. But don’t forget to ensure that your top management is a team of diverse people as well so that they can effectively voice the concerns of different groups.
Another thing to keep in mind is that diversity extends well beyond one’s cultural or ethnic background. A diverse workforce includes people from disabled groups as well. This means you have to consider how open all aspects of your business are — from web accessibility to your physical office space.
For regular business owners, the time is here to accept and normalize a diverse workforce. It is time to let go of older biases and notions and welcome the differences that also bring us together as humans. Both consumers and prospective employees today appreciate and actively look for diverse companies. As a bonus, there’s a high probability of improving revenue and sales through the implementation of a diverse workforce.
About Re:amaze
Re:amaze is a modern helpdesk and customer messaging platform designed to help eCommerce businesses boost customer happiness and revenue. Re:amaze allows all customer-oriented teams to work together in a shared inbox through email, social, SMS, voice, and live chat. Re:amaze also comes packaged with automated messaging and chatbots so eCommerce brands can succeed at the front lines of conversational commerce.
About Noah
Noah Rue is a journalist and content writer, fascinated with the
intersection between global health, personal wellness, and modern
technology. When he isn’t searching out his next great writing opportunity,
Noah likes to shut off his devices and head to the mountains to disconnect.