5 Truths about Diverse Teams
A diverse corporate culture is one that is composed of people from different ethnic, racial and gender backgrounds. Diversity also includes people with different abilities, religious affiliations, sexual orientations and other aspects of identity. In short, diversity is about having a variety of people with different ideas and experiences. A diverse corporate culture makes your organization stronger because it provides you with many perspectives on how to solve problems or make decisions.
In addition to being inclusive towards those who are members of underrepresented groups in society (such as women or people of colour), diversity in an organization can include differences in age (from young interns up through senior management), life experience (from fresh graduates all the way through seasoned professionals) and even personality type (from introverts to extroverts). The idea is based on the fact that since diversity allows for an array of ways in which individuals can contribute their talents, the differing perspectives will help you create better products or services for your customers in turn!
How to improve diversity in your organization?
Talk about it!
The way we talk about diversity in companies can make all the difference in how inclusive we feel at work and whether or not we stay there long term.
If someone is being excluded by insensitive jokes or comments made by others around them (including leaders), they are less likely to want anything more than their pay cheque from that organization. They wouldn't feel supported enough socially as well as professionally there — especially if they are part of an underrepresented group like women or minorities who have been historically mistreated by people with higher positions than theirs.
In Canada, women at the VP level are 3x more likely to hear demeaning remarks than their male counterparts. This is a direct consequence of the gender gap in recruitment. Although “more than 82% of organizations say they prioritize gender diversity,” according to McKinsey, “only 45% of employees think this is the case.”
And it is much worse for BIPOC as only 1.5% of Black Canadians can be found in executive roles because the group is less likely to be promoted. Jessica Lee, a Chinese Canadian photojournalist even wrote a piece on how she “was singled out on the job because [she] was the only female person of colour” to discuss the systematic problems she faced at her workplace.
If you are a business looking to hire more diverse employees, take a look at the ethnicities that are currently underrepresented in your company. A 2020 report by Statistics Canada has determined that South Asians, Arabs, and Black Canadians experience discrimination at higher rates than other ethnicities when it comes to hiring practices for wages and promotions. The figures show that only 17.8% of South Asians, 17.3% of Arabs, and 16.8% of Black Canadians enjoy employment opportunities in the country. And for those who do not identify as a visible minority like the ones above, the opportunities are set at a mere 9.3%.
These are real ground-level problems that can only be solved by the upper management once they begin to have conversations around diversity at every level. If you are unsure how to bring diversity and inclusion to the surface, speak to an expert like Inclusive Kind Inc. They will support you on broaching this sensitive subject and provide easy to implement strategies for creating a more inclusive workplace culture.
Diversity is good for business but, why?
If you have a diverse team and organization, your company will be stronger and more resilient. You will have a greater variety of skills and perspectives, which means that you will make better decisions on a range of topics—from product development to customer service to financial planning. But that’s just the tip of the iceberg. Let’s highlight a few benefits including five truths of having a diverse organization.
Truth 1 - Increased innovation
When it comes to innovation, diversity of ideas and perspectives is crucial. When everyone thinks the same way, there's little disruption. But when you have diversity in thought backgrounds, experiences, and skills, you can develop new ideas for your business that no one else has thought of before. This can give your company an edge over its competitors and help it grow faster than they are able to do.
Truth 2 - Greater market share
Internal diversity means you can better understand your customers and what they want a.k.a. the external diversity. You can also be more inclusive of their needs through the products and services that you offer, which is key to improving your market share. This is because having a diverse work environment allows employees from different backgrounds and cultures to bring their experiences into play when working on projects together or discussing things at meetings.
Having said that, most employees belonging to minority groups are less likely to share their thoughts and ideas. In other words, they are unable to bring their full, authentic self to their workplace.
According to Harvard Business Review’s paper entitled “Diversity and Authenticity,” this is because “opening yourself to others requires risk-taking and trust” - something that all minorities struggle with as they find it difficult to fit in. And because similarity attracts similarity, corporate cultures often fall victims to a phenomenon called “homophily,” which enables the exclusion of anybody who doesn’t belong to the majority.
So, while it is important to hear diverse opinions, ensuring that employees know that they have a voice in the company is far more crucial.
Truth 3 - Better decision-making
In addition to increasing your company’s bottom line, having collaborators from various backgrounds working together helps them communicate more effectively because they are naturally able to empathize with one another. Not only does this increase productivity within teams – largely because efficient communication reduces operation costs and eliminates errors – but it also leads to better decisions as it allows everyone to feel heard.
Truth 4 - Improved company reputation
In today’s world, companies are expected to have a diverse workforce. If you don’t, employees might be more likely to leave and go somewhere else where they can feel more appreciated. This could lead to lower employee retention and a poor company image overall. However, if you do have a diverse team that includes people from various backgrounds and races, your company will be seen as being more open-minded or accepting of differences than other organizations with a less diverse staff.
In this research study, it was determined that gay executives produced 35-60% higher levels of engagement, satisfaction and morale compared to their straight counterparts. This is another excellent example that demonstrates diverse workplace cultures are truly great for business and company reputation.
Truth 5 - Enhanced employee satisfaction
When your team is diverse, employees have a greater sense of belonging. They feel more connected to their job and co-workers than those from homogenous teams. This can make it easier for them to do their job well as well as stay with the company for an extended period of time. Moreover, they are also less likely to be unhappy with their salary or benefits. According to research by Glassdoor, “across all income levels, the top predictor of workplace satisfaction is not pay.”
“ It is the culture and values of the organization, followed closely by the quality of senior leadership and the career opportunities at the company,” explains Andrew Chamberlain, Director of Research at Glassdoor Economic Research. “Among the six workplace factors we examined, compensation and benefits were consistently rated among the least important factors of workplace happiness,” he elaborated.
So, now you know that diversity is not a direct line to increased salaries, which is good news with the many other rising costs of business. You can always learn more about diversity in recruitment through Deloitte’s piece on increasing employment opportunities for aboriginal people before you create a plan of action to improve your corporate culture.
Summary
Diversity is good for everyone in your community! It is a powerful way to end systematic classism, racism, casteism, and exclusion of talented minorities.
Remember that mistakes are bound to happen. Like in the case of Daisy Auger-Dominguez, Chief People Officer at VICE Media, who unintentionally ended up offending and excluding regional voices while taking a stand against anti-Semitism and Islamophobia in her company-wide email blast. What matters more, is that you acknowledge the failures and shortcomings, involve experts to solve issues, and move forward with an inclusive workforce.
If you are still struggling on where to start, book a complimentary call with us and we will set you up with one of our trusted experts.