What Does Research Say About the Impact of Diversity on Business Performance?

Research consistently demonstrates that companies with diverse workforces outperform their less diverse peers. A notable study by McKinsey & Company found that companies in the top quartile for gender and ethnic diversity on executive teams were 35% more likely to experience above-average profitability.  

As digital natives, Gen Z is particularly invested in social justice and diversity, meaning that diverse and inclusive work environments are more likely to attract and retain this valuable cohort. The connection between diversity and innovation makes a compelling case for companies to prioritise Gen Z recruitment and early career talent, who bring fresh perspectives and are often champions of DEI efforts. 

Vision, FutureMatch's iON platform can play a pivotal role in enhancing diversity in the workplace by helping businesses develop tailored recruitment strategies aimed at attracting diverse candidates. This involves helping to conduct thorough market research to identify underrepresented groups within the industry and understand their unique needs and preferences.

Additionally, Jaymr, FutureMatch's video engagement platform, can assist in crafting compelling employer branding that highlights the organisation's commitment to diversity and inclusion. This includes showcasing success stories from diverse employees, promoting inclusive workplace policies, and engaging in community outreach to build relationships with diverse talent pools.

Ultimately, these efforts not only enhance the recruitment process but also contribute to a richer organisational culture and improved business outcomes, as diverse teams bring varied perspectives that drive innovation and better decision-making. 

How Do Diverse Teams Drive Innovation?

Diverse teams bring a variety of viewpoints that can spark creativity and foster innovative solutions to complex problems. When individuals from different backgrounds collaborate, they challenge each other's assumptions and approach challenges in new ways. This cognitive diversity leads to more thorough problem-solving and can produce more innovative outcomes.

For example, At FutureMatch, we attribute much of our success to our incredibly diverse workforce, predominantly made up of women and people of colour. We have invested significantly in creating an inclusive workplace culture that values diverse backgrounds and experiences. This diversity is reflected in our approach to problem-solving and innovation, allowing us to better understand and meet the needs of a wide range of clients. By integrating varied perspectives into our processes, FutureMatch ensures that our solutions are relevant and impactful for diverse communities.

Incorporating video messages through Jamyr, can further highlight the benefits of diverse teams. For instance, companies can create videos featuring employees from various backgrounds sharing how their unique perspectives contributed to a recent project or innovation. These real-life stories help to showcase the tangible benefits of diversity to prospective candidates.

Why Do Diverse Teams Make Better Decisions?

Diverse teams consistently make better decisions because they bring a range of differing experiences and viewpoints to the table. Forbes found that diverse teams are able to make decisions faster, with fewer meetings and discussions required to reach consensus. Furthermore, teams with diversity in race, gender, and age outperform non-diverse teams by up to 87% in decision-making.

Diverse teams can analyse challenges from multiple angles, reducing the likelihood of groupthink and encouraging more creative solutions.

For example, when Hilton sought to improve its customer experience, it turned to its diverse workforce for solutions. Employees from different backgrounds provided valuable insights into how the company could better serve its global customer base. These insights led to innovations in customer service, which significantly enhanced guest satisfaction.

Our iON platform can help ensure that diverse talent is incorporated into recruitment processes, from job posting. By tracking metrics and ensuring that recruitment campaigns are inclusive, Vision empowers companies to build teams that reflect the diversity of their customers and communities.

How Does Diversity Enhance Gen Z Talent Acquisition?

For organisations looking to attract Gen Z talent, diversity is a top priority. Gen Z is the most racially and ethnically diverse generation in history, and they expect the workplaces they join to reflect that diversity. According to a blog by ExtensisHR, nearly 77% of Gen Z candidates say that a company’s commitment to diversity is an important factor when deciding where to work.

Diversity also enhances early career recruitment by making companies more appealing to job seekers. Companies that actively promote DEI initiatives signal to candidates that they value different perspectives and create a workplace where everyone can thrive.

Consider the example of Microsoft, which has embedded DEI into its recruitment process. The tech giant has not only set ambitious diversity goals but also ensured that its hiring practices are inclusive at every stage. Microsoft’s focus on diversity has made it a top destination for Gen Z talent and early career professionals who want to work in an inclusive environment.

How Can Diversity Help Companies Adapt to Changing Markets?

In today’s fast-paced, globalised economy, adaptability is key to business success. Diverse teams are better equipped to understand and respond to changing market conditions, customer preferences, and emerging trends. By fostering diversity, companies can tap into a wider range of perspectives and insights, enabling them to innovate quickly and stay ahead of competitors.

For instance, a consumer goods company launching a new product line might benefit from having a diverse team involved in the development process. A team made up of individuals from different cultural backgrounds can provide unique insights into how the product will be received in different markets, helping the company tailor its offerings to meet the needs of a diverse customer base.

Our solutions can help businesses identify the skills and experiences needed to build diverse, agile teams. By aligning recruitment campaigns with market trends and customer demographics, we can ensure that your company is equipped to navigate an ever-changing landscape of talent acquisition.

Are You Ready to Harness the Power of Diversity for Innovation and Growth?

The business case for diversity is clear—diverse teams drive innovation, make better decisions, and contribute to stronger business performance. For organisations looking to attract Gen Z talent and early career professionals, prioritising diversity in recruitment is essential for future growth and success. By leveraging DEI initiatives and using tools like Vision and Jamyr, companies can ensure they are building diverse, high-performing teams that reflect the values of their workforce and their customers.

To learn more about how to build and sustain inclusive workplaces, check out our podcast with Jemma Simpsons, CEO of Diverse Talent AI & a champion of increasing diversity within the workplace. Dive deeper into actionable steps that can help your company foster diversity and inclusion. For more information, book a demo with our team of experts.