The Diversity Rate metric is important for a company because of several reasons. Probably the most important one is the fact that the said company’s brand will be acknowledged by the media and by more people that belong to diverse cultures and ethnicities.
In terms of diversity, the topic has been discussed many times, especially in the online environment. Naturally, the first thing that pops in our mind is the fact that certain ethnicities used to be avoided when a certain company was hiring new people.
Of course, the media severely punished the companies that were discriminating other people. However, it’s not everything about pleasing the media – therefore, in the following paragraphs, we’ll explain why a higher Diversity Rate is recommended for your company.
What Does Diversity Bring to the Table?
First of all, it improves the working environment – having a staff that open and accepting towards every kind of people out there is clearly much better than one that has split opinions in terms of race, age, sexuality, and such.
As every member of a company’s department should be friends with the other members, it’s only normal that diversity will also help strengthen the relationships between different teams.
Moreover, a study has shown that companies that have a higher Diversity Rate are likely to have financial returns that are way above their national industry medians. Of course, this is not because the said company chose to add more races to its roster – so to say.
It’s because of the cultural background and the knowledge of it that various people have. For example, there are very few companies that make, for example, hair care products for black people and don’t have black people as employees.
If we are to talk about a multinational company, it’s only normal that every kind of people can be seen working in it – it’s more about what their knowledge and the fact that they grew up in various environments can bring inside a company.
Diversity Rate Statistics
For example, there is a study that’s been conducted in the United Kingdom that shows that because of a greater gender diversity in the team of senior-executives, some companies were able to significantly increase their performance in terms of earnings before taxes (EBIT).
To be more specific, for every 10% increase in terms of gender diversity, the earnings before taxes of certain companies have increased by 3.5 percent.
When it comes to the United States, it has been shown that both ethnic and racial diversity have a much stronger impact on the financial performance of a company when compared to other countries in the world.
Naturally, this is because women and black people, for example, had a hard time making their way up a company and this has led to efforts to increase their representation in the workplace – efforts that have been more than successful.
The Bottom Line
In the end, the world is making a clear statement – it’s about time we lost the stereotypes and hire people that are fit for a certain job no matter their background.
In turn, our company will be provided with an open and accepting community – therefore, with a workplace environment that’s positive for each employee in the company.