5 compelling reasons diversity is good for business and organizations

Let’s look at five reasons why businesses and organizations should strive to create more authentically diverse and inclusive organizations.

1. Diverse companies are more profitable

Organizations in the top quartile for ethnic and cultural diversity were 36% more profitable than those on the bottom, according to the “Diversity Wins” Report by McKinsey.¹ In other words, diversity and inclusion pays in more ways than one.

2. Customers and stakeholders increasingly care more about diversity

Brands with the highest diversity scores showed an 83% higher consumer preference.² In addition, Voya research shows that 80% of consumers said they favor companies that support underserved communities and minority-owned businesses. It is important to remember that your company culture is a reflection of your brand, and people want to do business with organizations that align with their values. Diversity and inclusion is no doubt something that customers, clients and investors care deeply about — and companies need to show that they do, too.

3. Diversity helps inspire more innovation and creativity

Having different perspectives and viewpoints is important when teams are trying to brainstorm new ideas, come up with new products and create new ways to engage and delight customers. People from diverse walks of life and with different experiences can draw from their personal knowledge, share new insights and challenge the status quo. Diversity also impacts the bottom line: a study found that companies with more diverse executives were 36% more likely to see above average profits.¹

4. Diverse companies have stronger recruitment and retention

In one study, 86% of candidates globally say diversity, equity and inclusion in the workplace is important to them.³ And 70% of job seekers in another survey said that they value a commitment to diversity among potential employers.⁴ People expect their workplaces to offer equal opportunities to all. And diverse candidates want to not only feel welcome, but they expect to see people like them in leadership positions throughout the organization.

Job postings and career sites should clearly describe the organization’s diversity commitment and highlight diverse employees’ success stories in order to attract top talent.

5. Diverse teams are more likely to be highly engaged

When people work for an inclusive organization that welcomes individuals of all backgrounds and values their contributions, it makes for a positive working environment. Employees thrive when they feel like their company values them and cares about their well-being. And increased employee engagement leads to less turnover and higher profitability.