Let’s take a moment to revisit the definition of diversity, which is often understood differently depending on the organisation and age group. Older employees tend to equate diversity with the representation and inclusion of people from various demographic groups, while millennials view it as valuing the open expression of opinions from individuals with diverse perspectives and personalities.
I would argue that diversity is a combination of both definitions: the traditional view should be ensured by organisations through hiring practices and employee development, while the more modern perspective must be fostered through an organisational culture that is crucial for achieving genuine employee engagement and reaping the benefits of diversity.
The path to achieving a culture of diversity acceptance is theoretically straightforward, yet practically challenging due to a range of invisible barriers, primarily stemming from the stereotypes we are unconsciously exposed to. We tend to categorise people based on age, gender, race, nationality, background, and profession, automatically linking them to thoughts and feelings associated with the stereotypes we’ve encountered in the media or those passed down from parents and other influential figures.
Changing something of which we are unaware is extremely difficult. However, behavioural economists suggest that it is possible to adjust the decision-making process to truly bring diversity to life. By fostering awareness and implementing strategies that challenge our ingrained biases, organisations can create an environment where diversity is not just accepted but celebrated.
Diversity and inclusion, with their numerous advantages, are integral to the operational strategies of leading corporations, which have developed specific organisational functions and designated individuals responsible for achieving these goals. The rationale behind such commitment is grounded in improved business performance. According to findings from McKinsey analysts, companies with ethnically diverse leadership are 35% more likely to be financially successful than the industry average, while gender-diverse companies are 15% more successful.
It’s important to note that the reverse is also true: a lack of diversity results in poorer business outcomes compared to the industry average. Employees contribute to business success through greater creativity and innovation, more effective problem-solving and decision-making, and an increase in tolerance and flexibility. Research by Deloitte shows that collaboration within diverse teams is 1.4 times more effective, and employee engagement is twice as high.
Furthermore, research shows that teams composed of diverse members are smarter. The explanation is quite simple: working with different people challenges our brains, as we must overcome our usual ways of thinking to arrive at better solutions. Additionally, greater employee engagement, according to Deloitte, leads to increased creative contributions, making such companies 1.8 times more innovative.
For diversity to truly thrive, it is essential to involve senior management to facilitate the necessary changes in the environment and decision-making processes. This task should not be difficult when management is made aware of the advantages of business diversity as part of the organisational culture, which is nurtured by senior leadership.
The greatest benefits of diversity are realised by companies that value different opinions, perspectives, and ideas from a broad range of employees, not just from leadership. Therefore, it is crucial to develop a culture where diverse voices are heard from all areas of the company. Experts believe that companies where leadership actively promotes diversity have a 45% greater chance of increasing market share and a 70% greater likelihood of entering new markets.
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