The Importance of a diversity recruitment strategy

The world has gone global. Diversity is the need of the hour, and it wouldn't do for a company to remain homogenous in its recruitment. According to a study by Deloitte, 78% of the respondents confirmed that diversity is an essential competitive advantage that brings lots of unique skills and mindsets to the workforce.

But beyond being a competitive advantage, diversity recruitment offers numerous other benefits for the company. But what does diversity actually refer to?

A multi-faceted concept

There’s no one-size-fits-all definition of diversity.

Diversity refers to the uniqueness in every individual, which is celebrated and championed in the work environment.

In fact, diversity in the workplace includes (but is not limited to) absolutely everything – age, gender identity & expression, sexual orientation, race, citizenship, education, work experience, physical & mental abilities, religion & culture, socio-economic status, language, lifestyles, family/marital status, attitudes, ideologies and more.

In fact, according to some studies, there are 34 criteria that should be considered when hiring for diversity.

Diversity recruitment – the road to new talent and better workplace experiences

One of the biggest reasons why employers need to hire for diversity is the sheer exposure to new ideas and talents it offers. In fact, studies show that inclusive offices are 1.7X more innovative, make 2.3X higher cash flow per employee, and generate 1.4X more revenue, than companies that aren't as inclusive.

As people from different backgrounds, different age groups, and different experiences come together under one roof, they offer a varied life-view, which helps the company make more informed decisions and create better products and services.

Another reason for making diversity recruitment a part of your hiring strategy is to increase engagement in the workplace. A disengaged employee costs $3400 per year for a salary of $10,000 – this accounts for $20,400 per year worth of losses for the company, just from one employee. By making your workplace more inclusive, you can engage your employees – especially millennial employees.

The reason behind the diversity-engagement connection is simple. Diversity and inclusion foster greater acceptance of people who are different from the homogenous population. This stimulates higher collaboration, learning, and teamwork. When leadership, in particular, is very inclusive, more employees are willing to let go of stereotypes, biases, and preconceptions, thereby making the work environment friendlier and more cohesive. Plus, diversity opens up avenues for unique experiences – something which millennials (compared to other groups) actively seek. In fact, studies have proved that 83% of millennials are more engaged and productive when the company is inclusive.

Gender and racial diversity increase productivity & performance

67% of job seekers say diversity is an important consideration when they apply for jobs. This is especially true if the applicant is a woman (or a non-binary person) and especially so if the person is colored/of African descent.

But there are numerous perks for hiring a woman/non-binary person in the workplace. Numerous studies have already proved that making the global workplace more gender diverse, can increase global GDP by $28 trillion.

Additionally, companies that are gender-inclusive, are 15% more likely to generate higher revenues. This is because women and non-binary people bring in a different set of mindsets, decision making styles, and learning, which can complement expertise and decision-making.

If the new hire happens to be racially non-white, that’s better. It’s been found that racially diverse teams have a 35% higher productivity compared to racially-homogenous teams. This is because racially diverse teams are more likely to scrutinize facts more closely and from varied angles, because of their unique life experiences; compared to homogenous teams who may have been exposed to a similar set of life experiences. This ensures well-informed decision-making.

Disability hiring is an important part of your diversity recruitment strategy

While many employers don't have a problem hiring people of different genders, races, and ages, most still hesitate to hire people with disabilities. This stems from the fear of how such employees will be able to contribute to the company.

A study by The Chicago Lighthouse showed that the retention rate of employees with disabilities was 1.7 years, far higher than the retention rate of abled employees, which was just 0.9 years. Plus, more studies showed that differently-abled employees had 1.24X fewer absences and took unscheduled leaves 1.13X less-frequently than their abled-counterparts. These numbers indicate how reliable such employees are.

Additionally, it’s been shown that employees with disabilities (this includes war veterans) are more aware of their workspace and are more mindful about safety. They experience fewer accidents and make fewer mistakes at work.

Then there is also the tax benefits that come with hiring disabled employees. Companies can apply for tax credit up to $9600 per differently-abled employee, depending on the tenure of the employee at the company. The biggest benefit of making this part of your diversity recruitment strategy is that it will increase empathy in the workplace. Surrounded by people who are physically or cognitively different from them, your staff will be more respectful, accommodative, and mindful of the rest of the team.

Apart from making work more emotionally fulfilling, this workplace empathy will also bring in revenue. It’s been found that higher empathy can reduce attrition and customer churn, thereby increasing profits by 25%-90%.