Episode 88. 3 Benefits of Having a Diverse Team!
Staff Researcher: Evelyn Gilliard
Who here loves the movie Terminator? I do! I'd bet $5 that as soon as you read Terminator you immediately thought of the famous phrase from Arnold Schwarzenegger "I'll be back!" Well, with that sentiment in mind, today we're revisiting a topic we've chatted about a few times: diverse teams.
If you haven’t checked out “Want to Build a Diverse Team? Here’s what NOT to do” you should. We cover some of the major dont’s of diversity hiring, like NOT falling into tokenism.
As a growing or scaling company, you quickly realize that your people are your greatest asset. That's why today I want to talk about the added benefits of having team members in your company that bring forth diverse backgrounds and perspectives.
Let’s dig into the three main benefits of having a diverse team!
PRODUCTIVITY
Productivity is a HUGE benefit of having a diverse team. But how? According to research, “a more multicultural urban environment makes US-born citizens more productive.” 1 Diversity creates two conditions known to improve overall productivity:
Knowledge Sharing: Diverse teams have a compounded pool of experience and knowledge from which everyone can draw. By sharing these experiences, teams can take a more holistic approach to many issues.
Healthy Conflict: Due to varied perspectives, diverse teams are more likely to have conflicting experiences and opinions. This may lead to talking about vulnerable, potentially triggering difficult topics. While conflict isn’t fun… it can be healthy and open up the floor for growth and learning.
2. CREATIVITY
If all you have are people who think, act and look like you do, you’re left with a bunch of “yes men” in a stifling environment (it’s giving Mean Girl vibes). Who wants to be Regina George? Not you! Cloning yourself is not the answer. It’ll leave way too much on your plate and reinforce your blindspots.
Diversity brings creativity. Period.
According to research, “creativity and innovation have been consistent in showing the value of exposing individuals to experiences with multiple perspectives and world views. It is the combination of these various perspectives in novel ways that result in new ideas “popping up.” 2 That’s why diverse businesses were found to be 1.7 times more likely to be innovation leaders in their market.
3. PROFIT
It’s no surprise that profit matters. Expanding your team, investing in advanced tech, funding new projects… this is all made possible with profit. But did you know that companies with diverse teams achieve greater profitability than their counterparts? It’s true, I swear.
Here are 3 reasons why diversity helps drive profit:
Attract Top Talent: Diverse teams attract top talent that you want for your company which leads to better business.
Decision Making: Diverse teams were found to make better decisions faster, which gives them a serious advantage over their competitors and leads to better results and more profit.
Affinity Bias: People tend to connect with others who share similarities. Your clients are more inclined to work with those they feel are similar to themselves and can understand them better, thus leading to more business.
For example, in therapy, it is common practice to be able to choose which type of therapist you want. It makes sense, right? You are going to be pouring out your heart and soul essentially to a stranger until you develop a relationship so you want to be as comfortable as possible. That is why certain people choose to have POC therapists, or women therapists, men, or even those who are older and don’t want to speak to someone younger than them.
We’ve gone over what NOT to do, and now we’ve gone over the top 3 benefits of diversity hiring - productivity, creativity, and profits. I want you to think about your own business. Is it diverse? If it is, how have you seen these benefits resonate in your own company? But if it’s not, what are you going to do to change it? If you need assistance with hiring the right people and making your company inclusive and diverse, reach out to us today.
