A change is sweeping through business. Today’s organizations are utilizing cutting-edge technology to transform their digital experiences, workflows, and structures. However, technology isn’t the only engine behind digital transformation. The real driver of change is people. True innovation starts with a creative idea. And the best creative ideas arise from the coming together of diverse minds and individuals.
For companies, competition is fierce. However, those with a range of employees from different backgrounds have been proven to be better equipped to respond to the changing tides of the modern digital landscape. Diverse teams have been proven to collaborate, perform and innovate at a higher level. That means diversity and inclusion is no longer just an HR issue, it’s a business-critical opportunity for companies to stand out from the crowd.
Diversity and inclusion in context
Building truly diverse workforces is about more than simply ticking boxes, implementing strategies and headcounts. Research demonstrates that a passive approach simply won’t drive the same innovation and optimized results as an actively inclusive business model. Therefore, diversity should always be considered alongside inclusion. Diversity recognizes the need for multi-faceted teams: inclusion actually creates the atmosphere for those teams to succeed. It’s an atmosphere of trust, motivation with a sense of belonging at its core, and space in which all employees are empowered to contribute and collaborate regardless of their background.
The magic combination of diversity and inclusion means happier teams and a more positive professional environment. In today’s climate, it’s no longer a business accessory but rather a critical advantage that organizations must address in order to remain responsive to changing customer demands, to keep pace with technological development, and grow through optimized performance.
Diversity and market growth
Diversity isn’t a checkbox or another system to put in place: companies should see it as a powerful opportunity for growth. Indeed, diverse companies are 70% more likely to capture a new market, and 45% more likely to improve the market share of their organization. Furthermore, a study by the Centre for Talent Innovation concluded that there’s a strong correlation between serial innovation and two-dimensional diversity, as well as highlighting that teams are up to 158% more likely to understand target consumers when they have at least one member that represents their target audience’s gender, race, age, sexual orientation, or culture. These findings were backed up by a 2017 study which found that businesses with inclusive cultures are six times more likely to be innovative, to anticipate change and respond effectively. Those with inclusive and varied workforces were discovered to be two times more likely to meet or exceed financial targets. When it comes to the business case for diversity, numbers speak for themselves: collaboration between a wide variety of individuals acts as a catalyst for innovation.
Focus point: gender diversity
A key action point for businesses implementing inclusion in their workforce is increasing gender diversity within teams. Did you know that although women make up 40% of the world’s workforce, in technology, engineers and mathematics industries they comprise just 25% of employees? This is evidence that in industries where innovation is key, many businesses are missing out on the very factors that have been proven to drive that innovation: diverse brainpower and multiple perspectives, such as those of women. In a recent study, 90% of respondents stated they were ‘highly concerned’ about the number of women within the technology sector. Furthermore, with 48% of women in tech highlighting that they lack female mentors, and 42% lack role models in their industry, we can clearly see the gender tech gap is a cycle which not only affects today’s workforce, but will affect generations to come too by limiting their access to mentorship and visible role models.
Therefore, today’s business leaders are presented with a unique opportunity to break this destructive cycle and change the future of work, whilst reaping the benefits of that transformation along the way. Indeed, recent studies have shown that a transformation from zero women in management positions to just 30% female representation can mean a 15% increase in net revenue margins.
The future of work is inclusive
It’s vital that today’s businesses don’t simply apply diversity as an HR process. Instead, they should build inclusivity into the very fabric of their organizations. That’s way they will not only nourish their workforce with an atmosphere of trust and belonging, but they’ll cultivate all-important business advantages too as a result of a rich array of insights and perspectives.
