Why is Diversity Important in Hiring?
Author of the famous 7 Habits of Highly Effective People, Stephen R. Covey once said, “Strength lies in differences, not in similarities.”
This maxim is especially true in the workplace. According to a 2015 McKinsey study, diverse companies perform at least 35% better than their homogeneous counterparts. Not only is diversity beneficial for your bottom line, it’s common sense in our growingly diverse nation.
Research has predicted that by 2050, Caucasians will no longer be the majority in America. Thanks to the increasing rates of immigration and interracial marriages, the rising generation will be the most tolerant and racially diverse in the history of our country.
Likewise, it’s becoming more and more imperative that companies ensure an equal representation of female leadership in the workplace. While women hold a narrow majority in the American workforce, only 16.9 % of Fortune 500 board members and 4.6% of CEOs are women. Research shows that companies who promote women to the C-suite actually have a competitive advantage, with a 66% increase in return on invested capital among other results.
Since 73% of all household spending in the US is controlled by women, chances are increased female leadership is a real market advantage for your company as well. This could be why female-friendly companies outperform the competition by 53%!
Still not convinced? Check out our helpful infographic about the benefits of diversity in hiring below.