Are Companies With Greater Diversity More Profitable?

Are Companies With Great Diversity More Profitable?Diversity is a Strategy

Diversity in the workforce is a growing topic for many big companies. With women becoming more a part of the working class, even more than they did in the past, and with African-American’s and Hispanics playing an important role of leadership in America, many are beginning to see the benefits of having various races and genders fill spots in their company. A recent report by Pew Research has shown that companies with great diversity are more profitable. How does an assortment of races contribute to a higher earning in revenue? What good comes out of desegregating our workplaces when there is such a war on race going on in our country? Often, when the topic of diversity comes up, many are left frustrated or a debate begins. But, there are an increasing number of highly successful companies that are embracing diversification. This gives ample reason to look into the different ways of how diversity is good.

How Diversity Is Making Companies More Profitable

With millions of immigrants coming over to the U.S in the last 50 years, our country is becoming more ethnically diverse than ever before. Many are seeing that foreigner’s opinions matter because they buy much of the products companies put out. That’s why you see an influx of commercials including people with different skin tones and accents. Consumers like to purchase from companies where they can self-identify with the workers and owners.

When a corporation has a good reputation, it increases the amount of teamwork each employee has. Racism can make stress-levels in one’s body worse. So, when toleration and equality is promoted, employees have less anxiety and enjoy favorable respectability. The work-environment becomes more relaxed and less tense. Workers are more focused on their work and not on unnecessary drama and segregation. This causes productivity and profit to be inflated.

Purchasing Power

Single motherhood has risen for Americans in the last few decades. With men no longer taking the lead at home, women want to purchase from female CEO’s. Feminism has become a hot topic and growing trend among females. The single independent woman that does not need a man to be successful has become a growing movement. This has led to many companies hiring women to be managers and bosses.

Recruiting Diversity

What popular employers do to encourage inclusiveness is not rocket science. They search for partnerships that offer scholarships to minorities. This makes their employee base full of variety. They reach out to different communities, whether it is the LGBT community, female groups, or Hispanic/African American neighborhoods. Anywhere diversity is at; you will see famous companies holding large events. Advocating for diversity awareness is a must. Also, regularly training your employees to not have a biased view toward gender or racial groups is promoted heavily among celebrated companies. Their suppliers have to be equally committed to inclusion. That way their customer base grows.

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Things They Are A Changin’

It is important to know that the younger generation is far different than those who were previously in the workforce and are now retired and elderly. Many millennials are naturally open to change. A lot of popular TV shows have a diverse cast with people from all different kinds of walks of life. For example, “Keeping up with the Kardashians” is a top reality-show that involves a multi-millionaire Armenian family with a white stepdad. The stepdad ends up becoming a transgender, which has turned into another money-making TV show. This keeps them famous, in the tabloids, and forever making money. The homosexual and transgender population is growing at a fast pace. The younger generation is also big on spending. New religions are popping up every day. This has caused a generation that is more focused on themselves and materialistic pursuits. So, adapting to inclusion does nothing but improve your company’s’ revenue.

When people see that no matter where they come from, what gender they are, or what their sexual preference is, they can still be successful. That makes their self-confidence boom. After the election, it was said: “now it is time for America to bind the wounds of division,” that “every single American will have the opportunity to realize his or her fullest potential,” and that “the forgotten men and women of our country will no longer be forgotten.” With all the chaos going on in the world, a lot of Americans turn to shopping for comfort. When a person sees someone with a similar background as theirs doing well in a company, they are more inclined to buy from that company. A stronger nation can build stronger businesses.