How Can Having a Diverse Team Boost Your Profit?

Published March 30th, 2021 - 03:00 GMT
team members
Taking diversity into consideration while building a team matters now more than ever. (Shutterstock: Rawpixel.com)

Reading through job listings in recent years, you will notice that a considerable number of businesses, especially larger ones, have dedicated a line or two to stress their interest in building a diverse team. But how is this relevant to a profitable business?

Even though this growing trend started as a reaction to the fact that many global businesses were facing questions over biases in the hiring process, in terms of race, culture, religion, and disabilities, more and more businesses are now realizing that diversity is not only an ethical element they need to maintain to make sure they are providing equal opportunities for everyone but also a quite significant factor in driving more profit.

In major multinational companies, we often find a diversity and inclusion team or department, one that is meant to ensure that the company's human element is brought from different backgrounds. They also keep an eye on the different challenges that may emerge as a result of the cultural differences in teams and innovate team-building activities that serve as a proactive approach to solving misunderstandings and bringing people together in spite of their differences.

A 2018 study by McKinsey&Company has found out that businesses with more culturally and ethnically diverse boards were 43% likely to achieve better profit than those with less diversity.

This substantial figure has been attributed to a number of factors that once accomplished in a team, can usually form a magical recipe for success.

First of all, being known for diverse teams can help a business in attracting the best talents available. Highly skilled individuals from different backgrounds will appreciate a company that does not only accept and recruit people regardless of their backgrounds but also embraces having a variety of cultures in one place.

Secondly, a team with people coming from different backgrounds can keep things interesting for team members, so individuals form good friendships based on their interests in learning about each others' cultures. Happy team members with friends in the workplace have for long proven to increase productivity, and hence profitability.

Moreover, having a diverse team means having a variety of mindsets and perspectives all in one place, each with its unique set of experiences and skills, which helps when creating new ideas is needed, in addition to it being a great asset to decision-making and problem-solving skills, making the overall team a smarter one.

Additionally, having team members work with people from outside their comfort zones will help them develop a better sense of adaptability and emotional intelligence, both quite important skills in the workplace, which will eventually build a resilient, more engaged team based more on respectful communication than anything else.

What other advantages are there for having a culturally diverse team in a company? Which of the world's companies is most known for appreciating diversity and recruiting people from different backgrounds?

 


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