6 Benefits of a Culturally Diverse Workplace

Monday February 1st, 2021

Estimated time to read: 1 minute, 45 seconds


To develop a culturally diverse workplace, leadership teams need to bring together people from a wide variety of backgrounds and demographics and enable them to work together in a welcoming and supportive environment. 

Since most workplaces aren’t inherently set up to support this type of environment, it is up to business and human resource (HR) leaders to bring this vision to life by implementing diversity, equity and inclusion (DE&I) initiatives. The energy put into fostering an inclusive and culturally diverse workplace comes with many benefits, including:

1. Increasing Employee Engagement

Hiring a culturally diverse staff won’t make a difference if HR leaders don’t cultivate an inclusive and supportive environment for every employee. After all, a positive working environment will encourage employees to contribute their ideas and stay engaged within their roles.

2. Improving Innovation

Diversity can boost creativity within the workplace. In fact, a study from Boston Consulting Group found that diverse leadership teams can have a positive impact on innovation. This is because people with different backgrounds will oftentimes find different solutions for the same problem.

3. A Boost in Productivity

By providing support and the tools needed to perform at a high level, employees are able to complete their daily duties and focus on strategic initiatives. In fact, one study found that companies in the top quartile for racial and ethnic diversity are 35 percent more likely to outperform the competition.

4. Higher Profitability

Did you know that diversity can impact a business’s bottom line? An [analysis from McKinsey](link no longer available) shows that companies with diverse executive boards are likely to see higher profitability. Additionally, colleagues with different perspectives and ideas makes it easier to recognize and capture new markets.

5. Better Customer Service

Creating a culture of inclusion trickles down to customer service, establishing an environment where customers are served without bias. Plus, the impact diversity has on employee engagement can impact customer service as well, with research suggesting that there is a connection between engaged employees and better customer service.

6. Reduce Turnover

With all of the positive impacts diversity can have on an organization – from increased engagement and productivity to higher profitability and better customer service – it seems safes to say that diversity can also reduce turnover. Keep in mind that happy employees are less likely to search for a new job.

“By fostering an inclusive workplace, business leaders can better support employees of all backgrounds, making them feel welcomed and engaged,” says isolved’s Chief People Officer Amy Mosher. “This not only leads to a happier and more fulfilled workforce, but also can have an impact on the rest of the business – from innovation to customer service.”

It is important to note that achieving a culturally diverse and inclusive workplace doesn’t happen with a few new hires or initiatives. Rather, it is something that an enterprise needs to continually focus on by working toward specific DE&I goals. 

A DE&I committee can help hold the organization accountable in its efforts toward becoming inclusive. Learn how to create this type of committee for your workplace by downloading our eBook for a step-by-step guide.



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