Both our country and our workforce are becoming more diverse. The proportion of people of colour in the United Kingdom is growing; more women are entering the labour force, and gay* and transgender people are contributing to our economy while being more open about who they are. As a result, businesses that embrace diversity have a stronger footing in the market than others.
A diverse workforce brings together workers from various backgrounds and experiences, resulting in a more creative, innovative, and productive workforce. And businesses have discovered that they can use our country's diversity to boost their bottom line. In this way, diversity is essential to developing a solid and inclusive economy built to last.
Let's look at the top ten economic advantages of workplace diversity.
1. A diverse workforce fuels economic growth. As more women, racial and ethnic minorities, and gay and transgender people enter the labour force, our country's human capital grows significantly. According to a McKinsey & Company study, the increase in women's overall labour share in the UK—from 37 percent to 47 percent over the last 40 years—has accounted for roughly a quarter of current GDP.
2. A more diverse workforce can capture a more significant portion of the consumer market. Businesses can effectively market to consumers from various racial and ethnic backgrounds, women, and gay and transgender consumers by bringing together individuals with diverse backgrounds and experiences. It's no surprise that studies show that workplace diversity helps businesses increase their market share.
3. A more qualified workforce results from recruiting from a diverse pool of candidates. Companies are more likely to hire the best and brightest in the labour market when they recruit from a diverse collection of potential employees. In increasingly competitive economy where talent is critical to improving the bottom line, recruiting from the largest and most diverse pool of candidates is becoming increasingly critical to market success.
4. A diverse and inclusive workforce reduces employee turnover costs. Businesses that fail to foster inclusive workplaces have higher turnover rates than businesses that value a diverse workforce because they create a hostile work environment that drives employees away. Failure to retain qualified employees results in avoidable turnover costs that cut into a company's profits. A diverse and discrimination-free workplace environment assists businesses in avoiding these costs.
5. A diverse workforce is more creative and innovative. Bringing workers with diverse qualifications, backgrounds, and experiences together is essential for effective problem-solving on the job. Likewise, diversity fosters creativity and innovation. In a 2011 Forbes survey of 321 large global enterprises (companies with at least $500 million in annual revenue), 85 percent agreed or strongly agreed that diversity is critical to fostering workplace innovation.
6. To compete in the economic market, businesses must adapt to our changing nation. According to census data, our country will have no racial or ethnic majority by 2050. Furthermore, new immigrants and their children will account for 83 percent of the growth in the working-age population between 2000 and 2050. Suppose businesses commit to meeting the needs of diverse communities as workers and consumers. In that case, our economy will grow and benefit from changing demographics.
7. Diversity is an essential aspect of entrepreneurship. Our country's entrepreneurs are a diverse group of people of colour, women, and gay and transgender people. According to the Census Bureau, people of colour own 22.1 percent of all businesses in the UK. Furthermore, women hold 28.8 percent of all businesses in the UK, with Latina-owned businesses being the fastest-growing segment of the women-owned business market. According to the National Gay and Lesbian Chamber of Commerce, gay or transgender people own approximately 1.4 million (or about 5%) of all businesses in the UK.
8. Business ownership diversity, particularly among women of colour, is critical to moving our economy forward. The variety of our country's business owners contributes to increased employment and economic growth. Women of colour, for example, own 1.9 million businesses, and these companies generate $165 billion in annual revenue and employ 1.2 million people. Since 2002, Latina-owned companies have earned a total of $55.7 billion.
9. Workplace diversity is required to build a competitive economy in a globalized world. As communities expand, it is critical to tap into the talent of all British. Businesses should continue to capitalize on the increased labour force participation of women, people of colour, and gay and transgender people. Our growing diversity represents an excellent opportunity for the UK to become more competitive in the global economy by capitalizing on the distinct talents and contributions that diverse communities bring to the table.
10. A diverse boardroom is required to realize a company's potential fully. There will be no racial or ethnic majority in the UK by 2050, and our country's boardrooms must reflect these shifting demographics. People of colour and women currently comprise only about 14.5 percent and 18 percent of corporate boards among Fortune 500 executives, respectively. Companies will benefit from hiring board directors with a wide range of expertise and experience.
DiverseJobsMatter's goal is to create an environment where employees feel comfortable speaking openly about issues that matter. DJM strives towards this by listening, without judgement or discrimination- just open discussion with different perspectives on what needs done next for success!