Article: Diversity of workforce is crucial for business

Talent Acquisition

Diversity of workforce is crucial for business

Diversity plays a pivotal role because it promotes a unique blend of thoughts and talents
Diversity of workforce is crucial for business
 

Diversity helps promote improved marketing and customer service by understanding the needs of diverse customer groups

 

While enterprises grow to large corporations, managing large workforces has become crucial. As businesses grow, the requirements of a truly efficient workforce is fulfilled only through employees with diverse backgrounds. Diversity plays a pivotal role because it promotes a unique blend of thoughts and talents. People with different religious, cultural, educational backgrounds make a workplace dynamic, progressive and performing. The more diverse a team, the better will be their potential and positive influence. There are seven key leadership competencies, which give you reason to hire a gender diverse leadership—People development, better accountability, role model, ethics & values, innovative, effective communicator, coordination and control.

Benefits of gender diversity

Diversity in the workplace simply makes good business sense and can bring about many benefits. Diversity helps promote improved marketing and customer service through better understanding and accommodation of diverse customer groups and their needs. It uplifts employee morale, performance and productivity through equitable workplace practices that select, develop and treat people based on merit and fairness. A good diversity balance has shown better retention and cost reductions due to lower absenteeism and turnover and improves the ability to attract and recruit top talent. With a good mix, there is improved employee creativity, problem-solving and decision-making through effective management of diverse perspectives and ‘creative conflict’.

Not just for the workplace, a good diversity balance helps in a number of management scenarios as well. It reduces the risk of discrimination lawsuits as a result of a just and non-discriminatory environment. It improves eligibility for government contracts for which minority or gender-balanced businesses are given preference. It also adds to the corporate image, which generates public goodwill.

Diversity return on investment

In a study done on some Fortune 500 companies, it was found that return-on-equity was 35 per cent higher and total return to shareholders was 34 per cent higher for companies with a stronger representation of women on executive-leadership teams, compared to companies with the lowest representation. Companies have been able to achieve an RoI of 163 per cent on their diversity training investment as a result of improved retention and employee performance as well. Clearly, strong diversity management has a positive impact on corporate performance and shareholder value, which is directly linked to competitive advantage.

Hiring women leadership

Role models are important. It means a lot for recruitment that potential applicants see there is gender balance all the way to the top. This is something we need to be aware of. It’s no use having a strong gender equality policy if it’s not reflected in the management group. Employees look at what you do in practice. Good gender balance can create a better functioning group. Women are different. How they think is different and they are much more detail oriented. This diversity can be a huge strength in meetings, team collaboration and how a company develops partnerships.

If women have slightly stronger competencies, why aren’t more women leading at higher organizational levels? The answer lies in the patterns of motivators, competencies and experiences. Male patterns in each area are more consistent with what is required at higher organizational levels.

Competencies: Men show more strength in financials and strategy; women are stronger overall and particularly strong in collaboration and customer focus.

Motivators: Men value responsibility and influence more; women place more value on a friendly workplace and stimulating work.

Experiences: Men tend to accumulate more high-visibility experiences; women lag in this area. In sum, the biggest difference between men and women at senior-executive levels is experience.

Diversity always has positive prospects. It is the reason why corporations thrive to maintain a diversified workforce. In India, a set of special issues such as women inclusion is exigent, but the changing social structure with an augmenting global influence promises good optimism.

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Topics: Talent Acquisition, #TalentAssessment

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