Along with shifting demographics in the U.S. population, and therefore within the American workforce, there is a growing focus among employers on creating diverse workplaces – with more women, racial and ethnic minorities, people with disabilities, and LGBTQ+ individuals who are entering and advancing within their organizations.  

Corporate efforts to evolve with and embrace diverse members of our gifted working population are giving way to dramatic benefits for companies that pursue these efforts. As a leading talent recruitment firm, we see every day that no matter the industry, creating a diverse team can have a big impact on the success of an organization.    

The five important benefits of a diverse team that we dive into below include an enhanced company reputation, increased employee satisfaction and retention, reduced human resource compliance risks, higher levels of creativity and innovation, and a competitive advantage in the market.   

What organization wouldn’t welcome the benefits of diversity in achieving these outcomes?  

1. Build up your company’s reputation  

A demonstrated commitment to diversity, equity, and inclusion (DEI) can substantially improve your company’s reputation. The outgrowth of an authentic, company-wide commitment to DEI is experienced on multiple fronts:  

• Brand image improves through employee word-of-mouth commendations. 

• There is greater success in attracting top talent. 

• Customer trust and advocacy grow stronger. 

• Innovation and creativity increase, driving higher recognition and engagement in the market. 

• There are improved public and media perceptions about a company and brand. 

• DEI initiatives strengthen overall corporate social responsibility (CSR) efforts. 

A key example of how a diverse team can improve your company’s reputation is that it builds trust with customers who prioritize inclusive business practices. This can lead to increased business opportunities, more referrals, and especially the ability to better understand customer needs.     

“Our customers are a reflection of our employees and vice versa,” said Devin Schumacher, founder of SERP, a search engine optimization company. “As diverse as our team is here at SERP, our customer base is even more so. Embracing DEI principles ripples out to our customers who can see themselves in our team.”

2. Increase your employees’ satisfaction  

Companies with strong DEI policies and programs often see higher levels of employee engagement and performance. It’s only natural that people who feel their differences and contributions are valued and respected are more likely to be engaged, motivated, and satisfied with their jobs.  

And as mentioned, companies that prioritize diversity and inclusion are often more attractive to today’s top job candidates. According to research results from Deloitte, 69% of millennial and Gen Z employees are more likely to stay for five or more years at a company with a diverse workforce, and Glassdoor research revealed that 76% of employees cite DEI in strategy as non-negotiable. Further, a compelling 50% of American workers want their company to invest more energy in promoting diversity and inclusion in the workplace.   

When you create an inclusive working environment, you and your employees will enjoy a more positive company culture – and consequently, higher talent retention rates.   

3. Reduce compliance risks  

Compliance risks in hiring and managing staff can lead to potential legal, regulatory, and ethical challenges for organizations. Discrimination, such as favoring or terminating certain employees or job candidates based on their race, gender, age, disability, or religion can occur in talent recruitment, hiring, employee compensation, promotions, and termination.  

Diversifying your team minimizes risks related to discrimination lawsuits and other compliance issues by helping your organization adhere to legal and regulatory standards set forth by the U.S. Equal Employment Opportunity Commission (EEOC).  

4. Boost creativity through diversified skill sets  

Diverse teams bring different perspectives, experiences, ideas, and skills to the table, leading their companies to more creative solutions and innovation. Different backgrounds, viewpoints, and capabilities spark new ways of thinking and problem-solving, which is crucial in today’s competitive business environment. 

Teams with varied skills and experiences can quickly tackle problems from multiple angles, leading to more comprehensive and effective outcomes. Diverse perspectives foster innovation, leading to the development of new products, services, and business models that drive growth and differentiation in the marketplace.

5. Gain a competitive advantage through better decision-making 

The late Stephen Richards Covey, renowned businessman and author of “The 7 Habits of Highly Effective People,” coined the mother of all revelations in how to succeed in business – as a leader and as a company – and he did it in just seven words:  

“Strength lies in differences, not in similarities.”   

This is true in the context of breaking ground on new products or services. Yet commensurate strength is found in the diverse teams of hundreds of U.S. companies. Diverse teams are likely to consider a wider range of options and perspectives, leading to more thorough and balanced decision-making. Research indicates that heterogeneous groups can outperform homogenous ones in complex problem-solving.   

“In a rapidly changing business environment, the additional perspectives and ideas that come from having a diverse workforce can dramatically accelerate complex problem-solving. Diverse opinions and perspectives can help your team come together to develop a quality solution in a timely manner.” –  Ron Carucci, Forbes contributor and cofounder and managing partner of Navalent   

Here are just a few statistics affirming how diverse teams and workplace diversity give companies a stronger competitive advantage:     

• Companies with racially and ethnically diverse leadership teams and executives have a 35% higher likelihood of financially outperforming companies with little or no diversity. 

• Companies with greater gender diversity perform 15 to 21% better than companies with little or no gender diversity among staff members. 

• Diverse companies enjoy 2.3 times more cash flow per employee as compared to less inclusive, more monolithic work environments. 

Experience the benefits of creating a diverse workplace 

Diversifying your team isn’t just about fulfilling social and ethical obligations but also about driving business success through brand reputation, employee satisfaction, innovation, and stronger decision-making prowess. When you embrace diversity for existing employees and in your hiring process, it will position your organizations to better adapt to a changing market and societal expectations, and help you achieve long-term sustainability and growth.   

Partner with a trusted recruiting firm to find the right talent for your team  

If you’re looking to build a more cohesive and effective team, DEI is the answer! Contact us to build a stronger workforce. Goodwin Recruiting specializes in diverse recruitment and has a nationwide talent pool of exceptional candidates.   

We also offer a helpful Guide to Equity as part of our workplace resources for employers wanting to improve their DEI initiatives and programs.