Workplace diversity is an important aspect of a fast moving business as it represents the organization’s perspective on Change Management. Converting diversity into a competitive advantage is vital for the business to grow at present and sustain that growth in the future as well.
While the changing global demography continues to put pressure on business practices, here are 6 ways organizations can use diversity to their advantage to move ahead in the competition.
Growing consumer base in new markets
Diversity at workplace builds a trail of strategies for lead generation and conversions. Diversity at organizational level reflects the diversity at the consumer base. Based on the sex, age, location and economic background, companies are redesigning the way they communicate with their customer base.
An organization with high diversity quotient has better chances of penetrating into a new market based on reinvented brand message and technology-driven strategy.
Diversity improves organizational performance with new innovations
Diversity has been directly linked to superior innovation capabilities, positively influencing the position of the company in the competitive market. Gender diversity and racial segmentation within the organization at top management level significantly influences the generation of ideas and its development.
For instance, researchers studying the impact of diversity at workplace for 15 years reveal the impact made by having women managers in top management. In the IT industry, the innovations have jumped by more than 25 percent directly linked to the improved performance of the firms.
Improved decision making models
Decisions related to business are hard to mitigate. Acquisition of a new local partner, expansion into a new market, or focusing on a product that failed in some areas but has a great chance in a new location, are all challenges that can be resolved only with quality change management strategy. This is where organizational diversity spells out some serious benefits.
Diversity across the organization helps understand the change in a better way, leading to improved decision making. An organization with ethnic, cultural, academic and gender diversity stands a much better chance of tackling market-oriented challenges than those who lack the advantage.
Score good talent, and turn them into leaders
Good talent in the market is a hard thing to find, and retain. Companies with good diversity quotient somehow represent consistent talent retention throughout their hierarchy. Diversity in talent management is acquired and sustained through dynamic Training & Development programs, business intelligence mentoring and leadership training.
Cost of acquiring good talent is always higher than retaining one, and promoting diversity at the workplace is a guaranteed way to build on that competitive edge you have in-house. Companies with visible diversity see greater employee engagements, improved productivity and performance and above all, a sustainable workplace culture that continues to evolve with the trends in the market.
Positive Corporate Image and appraisals
Organizations leading the competition are always appraised for their positive diversity trends. They win on all accounts of fairness practices at workplace, generating positive goodwill within the organization and outside. Government agencies favour companies with good ethnic diversity and balanced gender-ratio, thus making it easier to acquire contacts and expand business in new market.
Diversity at workplace reduced the risk of discrimination lawsuits filed by employees on account of better talent management and mentoring programs.
Diversity drives cost-effective marketing strategies
The purchasing power of the consumers from ethnic minorities is on a rise, and it is evident how marketers are targeting culturally diverse groups to drive superlative, yet cost-effective strategies. The strategies are designed, implemented and mitigated through the diverse teams who understand the importance of ethnic segmentation and differential marketing in diverse markets.
Consumers from diversified markets trust companies that have a strong diversity quotient within their organization at all levels.
In a nutshell
Diverse opinions, perspectives and values do contribute to creative conflicts, but if managed effectively and pertinently, this adds to the richness and dynamism of business, contributing immensely to the development of a competitive integrated strategy for the ever-changing market.