Dynamic, diverse, fluid—2020’s workforce is an unusual mix of different ages, locations, ethnicities, and genders. It’s slightly becoming more personal, but still filling in the shape of a corporatus—the origin of the late 15th-century corporate comes from the Latin corporare, which means to “form into a body.”
So, how is this “body” looking today? Why is it so important? And how will HR catch up with the most diverse workforce in history?
In this article, we’re looking at what does a diverse workforce mean, the best ways to manage it, and what are its real benefits.
What Is a Diverse Workforce?
“The innovative and financial benefits of diversity start with a company mindset and commitment to day-to-day behaviors that foster diversity and cultivate a culture where team members feel respected, valued, and confident in their contributions.”
Smart talent managers already know that diversity should be a primary goal for every company looking forward. But besides a goal, what else is a diverse workforce?
Think company culture; in other words, the personality of a company—the employee’s beliefs and actions that work together to create a performance as a team. Various statistics have shown that diversity in the workplace improves company culture, as people are better learning to build respect by working with each other. It also helps in developing a healthy work environment and expanding employees’ perspectives.
Embracing diversity means embracing people from all walks of life: genders, ages, races, religions, backgrounds, and abilities. And it starts with leadership. Once the management wants to promote diversity, a company will only grow, due to the employees’ adaptability—a byproduct of different perspectives and backgrounds.
A diverse workforce equals different ideas, minds, and approaches. Simply put, the perfect setup for a team to find the best solutions after taking into consideration multiple angles.
How to Manage a Diverse Workforce?
As baby boomers occupy the majority of C-level positions today, more gen X people turn 50, while millennials approach their 40s—and start taking leadership positions. Moreover, gen Z is now entering the job market, and many of the silent generations haven’t retired yet. Talent managers have the tough job of choosing from up to five generations of employees to hire in the same corporate environment, but HR trends are also changing in their benefit.
Over the next few years, HR will be planning—if they’re not doing it already—to solve a growing challenge: the gaps in soft skills, these essential elements that sustain a better collaboration between people, regardless of technology:
- Creative problem solving;
- Negotiation;
- And influencing.
Besides acquiring these skills, hiring a diverse workforce creates a highly engaging environment, which, in return, helps in employee retention. According to recent research, more than 50% of employees want their employers to be inclusive. So, one of the latest trends is blind hiring, a practice that promotes diversity and cuts down biases based on age, gender, race, and different social backgrounds of the candidates. But creating a diverse team is an intentional process, and HR needs to pay attention to the levels of experience as well. However, there is no magic formula: every diverse group is unique.
An essential step in supporting a diverse workforce is meeting your people’s needs and expectations: you have to know how to welcome new employees and adapt to a wide variety of communication styles and work approaches. This is a win-win situation if you ensure that your policies reflect their unique skills and requirements, avoiding the risk of creating a hostile environment. Because no one wants a toxic company culture; it can push your employees to look for other job opportunities.
When it comes to the process of managing a diverse workplace, inclusivity must develop at all levels of decision-making. Studies show that inclusive teams make better decisions up to 87% of the time, resulting in increased business performance—one of the most significant benefits of a diverse workforce.
What Are the Benefits of Diversity?
Besides business performance, there are many perks of employing diversity, and as the labor market changes, organizations that dive into recruiting, motivating, and retaining a diverse workforce already have a competitive advantage. To name a few, such companies benefit from:
- A variety of perspectives
- Creativity
- Increased productivity
- Reduced fear of rejection
- Positive employer brand
- More language skills
- A better understanding of customers
- Great company culture
These advantages are backed up by innovation and better results, which turns into companies performing better financially. It’s also been proven that businesses focusing the most on racial diversity are 35% more likely to have financial returns that are above average in their industry. The fact that employees can share their unique viewpoints is a massive driver for growth. And gender equality is also one of the elements that bring long-lasting benefits.
A diverse workforce can win and sustain top talent, improve both employee and customer satisfaction, empower decision-making, and generate increased profits. This, of course, maintains the cycle of developing relevant products and services.
Because diversity will always be in tune with the ever-changing needs and demands of contemporary customers.
