Over the last two decades, diversity has become more common in the workplace, and there are many reasons for this. From globalisation and shifting demographics to changing social expectations and stronger anti-discrimination laws, businesses today are recognising the importance of having teams that reflect a wide range of backgrounds and experiences, not just a one-note team that comes from one familiar place.
This shift has caused companies to shift too, of course. The reason employment practices insurance has become more common is because, quite simply, greater diversity results in greater complexity in management, as workplace dynamics and compliance become more nuanced and challenging to navigate. EPLI is designed to help provide a safety net for these companies, giving them the flexibility to manage the legal and financial risks that can come with fostering a diverse and inclusive workplace.
But while a diverse workplace can be more complex, the other reason it has become so common is because of how beneficial it can be to the business itself. If you were to ask any business owner why they chose to hire a diverse team, the majority will tell you it has nothing to do with laws or regulations, but rather, the benefits that diversity brings to both the business and the people working there.
Why a Diverse Workforce Benefits a Business
Any smart entrepreneur will know that tunnel-vision can be hugely detrimental to the success of a business. That’s why, when they’re hiring a team, they’re looking to bring in as many viewpoints as possible, helping the business to think creatively and adapt quickly to changing markets. A diverse workforce can be this team.
Because there are so many different backgrounds, experiences, and perspectives being represented, diverse teams are far better equipped to identify new opportunities and see things that a more singular team cannot. They’re also far better at decision-making, with diverse teams being less prone to groupthink, and more inclined to make effective decisions that can drive a business to greater success.
It’s also true that companies embracing diversity tend to attract a wider pool of candidates, including highly skilled professionals who value inclusive workplaces. Let’s say you’re starting a tech company in a part of the US that isn’t traditionally known for its tech talent – and therefore offers a limited local candidate pool. By embracing diversity and broadening your horizons, you’re giving yourself access to a much wider and richer talent base, which will not only help you find the right expertise, but also infuse your company with fresh perspectives and ideas to drive you forward.
One last benefit to note is a diverse team’s better understanding of customers and markets. When business owners hire a diverse workforce, they’re also representing their diverse customer base, with certain members of the workforce able to better understand and anticipate particular customer needs. This alignment can then translate to increased customer satisfaction and, ultimately, increased company loyalty, as customers feel seen, heard, and valued in a world that isn’t always so understanding.
Working With a Diverse Team
These are the benefits a diverse team can offer to a business, but if you’re a small business owner looking for a diverse team of your own, there are a couple of things you need to bear in mind. As we mentioned previously, a workforce with a range of identities and backgrounds will be a little more complex to manage, so it’s important to protect yourself in the event that any misunderstandings arise.
It’s also crucial to set clear policies and training around diversity, equity, and inclusion, working to foster a respectful and collaborative workplace culture. It might seem tempting to overlook or rush through the development of guidelines in an eagerness to build your team quickly, but what might work for a more homogeneous team, won’t necessarily work for the team you’re looking to introduce. So long as you do that, you’ll be far better equipped to navigate the unique challenges that might arise, and create an environment where every team member feels valued and empowered to contribute their best.
