Did you know that women comprise 58.30% of the workforce in the US today? 48% of GenZ are ethnic or racial minorities and will form a significant part of the future workforce.
In fact, cultural diversity in the workplace is a priority for over 50% of American employees.
So have you ever asked yourself the question: what is cultural diversity in the workplace? How much do you know about its benefits? Read on to learn more.
What Is Cultural Diversity in the Workplace?
Cultural diversity indicates a workplace that accepts and integrates people from diverse backgrounds. Gender, race, sexuality, or other characteristics do not limit employee growth and development.
In addition, cultural diversity is a must to ensure excellent company culture. This in turn helps retention rates.
What Are the Different Types of Cultural Diversity?
The conventional definition of cultural diversity refers to ethnic, religious, and societal backgrounds. But, cultural diversity has come to encompass a much broader spectrum of people.
Diverse workplaces have employees from some or several of the following dispensations:
- Sexual orientation
This list shows the breadth of different experiences at the workplace! It is clear the modern workplace needs to cater to employees from so many different walks of life. Click for a DEI speaker for your workplace today!
Benefits of Cultural Diversity in the Workplace
A workplace comprising people from similar backgrounds may understand each other better. Does it lead to better performance, though? Consider some of the following statistics.
According to McKinsey, gender-equal companies deliver 15% higher returns. Upwards of 67% of job seekers cite diversity as key when evaluating a company for employment. Firms such as FIG Strategy & Consulting help you learn about and implement cultural diversity in your organization.
Top 5 Benefits of Cultural Diversity in the Workplace
Cultural diversity has become a hot topic in the world of HR. And it’s easy to see why – it is an essential factor in determining a company’s success. Let’s take a look at the main benefits below.
1. Foster Innovation and Productivity
Cultural diversity also fosters diversity in thought. Diverse teams bring unique perspectives and strategies, contributing to an increase in productivity. 85% of executives believe cultural diversity is vital in driving innovation and productivity.
2. Develop Brand Reputation
Companies embracing diversity have an edge in attracting top talent. Top global brands have made diversity a strategic priority.
Nike, Johnson & Johnson, AT&T, Microsoft, Accenture, and Coca-Cola are a few of the top companies that are leading cultural diversity in the workplace.
3. Attract and Retain Talent
Diversity has become a strategic priority for companies globally. It is key to attracting and retaining top talent.
Deutsche Bank’s Eileen Taylor says in this Forbes Insights report: “If you want to attract the best talent, you need to be reflective of the talent in that market.”
4. Drive profitability
Research has shown that employee diversity promotes innovation and productivity. And increased productivity leads to higher profits.
Diverse management teams record 19% higher revenue than companies with homogeneous cultures.
5. Increase Employee Engagement
Cultural diversity in the workplace increases self-confidence and decreases stress levels. It fosters better communication, participation, and a sense of belonging.
Cultural Diversity in Your Workplace
Diversity, equity, and inclusion are key strategic priorities for business success. But it can get confusing when building diversity policies and training, or creating an accountability plan.
We hope this article helped you understand what is cultural diversity in the workplace!
For more informative and helpful articles, be sure to browse the other articles on our site today!