Pros of Diversity in the Workplace
The U.S. population becomes more racially and ethnically diverse with each passing year, motivating the business community to take strides toward better reflecting the face of modern American at all levels of employment. Major corporations have dramatically increased workforce-diversity efforts, no longer because of compliance requirements or because it's perceived as the right thing to do, but because it makes sense from a business perspective.
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Bottom-Line Benefits
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Companies whose workforces and upper-level decision-makers accurately reflect the customers being targeted stand to profit more than businesses that ignore diversity as a key strategy. In 2007, DiversityInc found that its annual list of the Top 50 Companies for Diversity, when examined as a stock index, consistently beat the Dow Jones industrial average, the Standard & Poor's 500 and the Nasdaq, according to the business magazine.
Employee Engagement
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Workers who feel isolated or under-represented among upper management won't be as engaged as those who have little trouble envisioning a path for themselves to the executive ranks. Engagement fosters innovation and productivity, according to DiversityInc.
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Recruitment and Retention
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More than 2 million people leave organizations because of comments and jokes, unfair policies or other perceived unfairness, costing U.S. companies $64 billion each year, according to the Society for Human Resource Management. DiversityInc found that employees at companies that take diversity management seriously are more likely to remain with that company and recommend it to others. This evangelism can lead to stronger recruitment and consumer interest in a company's products or services.
Creativity and Innovation
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Differences of opinions, based of diverging life experiences and points of view, can create more creative solutions to business challenges, from how to market to niche groups to how to attract the best talent.
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