These days, due to the process of globalization, diversity in business is about much more than just gender, race, or ethnicity. People working for one company can differ from each other in terms of religious beliefs, political views, sexual orientation, education, socioeconomic background, culture, or even disabilities.
As a communication specialist, Brett Rutledge stated: "In the age of diversity, it is highly likely that cultural differences will arise as you move from desk to desk, just like when you cross the borders."
Workplaces mirror the sociocultural dynamics in our society. Vijay Eswaran, Executive Chairman of the QI Group, suggests that diversity in the workplace is not only an asset for businesses but also for their employees. Diversity brings to the table capacity to foster innovation, creativity, and empathy. It also results in better problem-solving abilities and more robust governance.
Moral arguments are already substantial enough; however, the financial aspect of diversity makes it 'a must' for companies worldwide.
Boston Consulting Group's study from 2017 proved that companies with more diverse management teams have 19% higher revenues due to innovation. Looking at the topic of diversity from the perspective of gender, we can also see that the surveys show impressive results. McKinsey's Delivering Through Diversity report showed that corporations embracing gender diversity on their executive teams were more competitive, and 21% more likely to experience profitability above average.
Another argument for diversity comes from investors. Looking for investment opportunities, they pay great attention to the representation of diverse groups within the company. This motivates businesses to diversify their workforce and intensify the representation of particular cultures, races, genders, and much more.
Profits of a socially diverse workplace can be experienced not only by the companies but also by their employees. As Jonathan Finkelstein, the founder and CEO of Credly, stated: "When people are permitted to be their true selves, they develop greater loyalty to and sense of engagement with their employer." That engagement, of course, leads to reduced absenteeism and an increase in productivity.
With the 4th industrial revolution in mind, diversity is exceptionally precious these days. Consumers become more and more demanding. Products from all over the world can be delivered to their homes within days, and food orders completed within minutes. To meet their challenging requests, businesses need as many diverse points of view as possible.
Of course, diversity can pose some challenges within which the communication problems are probably the biggest ones.
They can result from the differences in the cultural context, f. ex. in Japan, communication takes place in a highly contextual culture, which means that Japanese people exchange and articulate the information as accurately and precisely as possible. Meanwhile, in the US low-context type of communication, there is a belief that only the essential information should be revealed in conversations with strangers.
Different gestures, assumptions, or traditions are just a few examples of misunderstandings' hotspots in highly diverse environments. However, learning to solve these types of problems is highly profitable because diversity's value-added (in both economic and social nature) outweighs the costs of understanding how to manage it properly.
Businesses have enormous power to contribute to a more open and more inclusive society. We spend most of our lives at work, which makes our workplaces a significant factor in shaping our thoughts, opinions, and impressions about society and life in general. When people spend most of their time in a highly diverse environment, they become used to it and start to see its immense value. This is a great power that could help people worldwide become more open and tolerant, respecting, and admiring the differences that enrich the society we live in socially and economically.
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