Benefits of workforce diversity an organizations prosperity and aggressiveness depends on its capacity to grasp diversity and realize the advantages. The result shows that workplace diversity plays an effective role in some companies. To start, lets talk about what workplace diversity means. While the final results of a properlyrun diverse workforce might turn out great, its the period of implementation of the program that is the most trying for any organization. Many initiatives stop before they can be successful because there is a lack of patience with this process. Businesses are recognizing the need and importance of investing in diversity and inclusion as part of their overall talent management practices and to continually challenge their organizations to make the connection between those principles and their corporate performance. Benefits of diversity in the workplace diversity is beneficial to both associates and employers. Individuals from diverse backgrounds can offer a selection of different talents, skills, and experiences, that may be of benefit to the organization and their work performance.
Our share of talent along with the unique skills and aptitudes they bring significantly increases as greater numbers of women, racial and ethnic minorities, senior talent, and members of the lgbt community enter the workforce. More about advantages of multicultural workforce workforce diversity management. It can contribute to an organizations efficiency and create a competitive advantage. In the article, deering explains that there is much more to diversity than age, gender, race, and cultural background. But it also has certain challenges you have to overcome to reap the benefits.
Business advantages of diversity in the work place an. The competitive advantages of a diverse workforce oracle. Diversity training requires multiple resources and trainer development and understanding of the shifts and changes in the ethical culture of the workforce. Pdf prospects and challenges of workplace diversity in. Primarily, this paper aims to make the concept of diversity management wellknown and useful in the managerial practices. These programs have a strong significance because they reflect the types of ideas, thoughts, innovation, work, and.
Definition workforce diversity is a workforce consisting of a broad mix of workers from different racial and ethnic background of different ages and genders, and of different domestic and national cultures. Variety of different perspectives diversity in the workplace ensures a variety of different perspectives. It is clear to see that some of todays biggest companies must do. Workplace diversity disadvantages while the final results of a properlyrun diverse workforce might turn out great, ita s the period of implementation of the program that is the most trying. Organizations can benefit from employees who bring language skills, cultural experience, and. Benefits, challenges, and the required managerial tools 2 advantages. Why workplace diversity is so important, and why it. An organizations success can be dependent upon its ability to embrace a diverse staff. Although associates are interdependent in the workplace, respecting individual differences can increase productivity.
Managing diversity is a key component of effective people management in the workplace black enterprise 2001. As you continue to build a diverse team in your company, remember three points. Workplace cultural diversity and its advantages diversity. One of the major principles of diversity says that a company that has diverse employees has a greater understanding of the global marketplace. May 15, 2018 advantages of diversity in the workplace. A diverse workforce employs people from all walks of life all backgrounds, genders, ages, races, religions, and abilities. What are the benefits of diversity in the workplace. The impact of workplace diversity on organisations priscilla dike degree thesis. This is because it allows a company to bring people from different backgrounds, thus enabling the organization to better understand the different cultures, races or genders that make up the consumer market. Workforce diversity is a primary concern for most of the businesses. Benefits and challenges of diversity the diversity of a universitys faculty, staff, and students influences its strength, productivity, and intellectual personality. Diversity management is a strategy to promote the perception, acknowledgement and implementation of diversity in organizations. It provides a general defini tion for diversity, discusses the benefits of.
However, one faction of the diversity push that seems to be playing catchup within the workplace is age diversity. Managing cultural diversity is one of the key factors differentiating a particular company at factors such as 1 efficient work practices or procedures, 2 technological innovation or change, 3 product or services related innovation and lastly, 4 client or. Nov 27, 2017 diversity can be a sort of strategy which enables organization to gain competitive advantage in the market competitive landscape. The undercover recruiter presents an article that examines the advantages of diversity in the workplace that is written by sophie deering, senior account executive at link humans, an employer branding agency. Some include reverse discrimination, high costs, language and cultural barriers, a better. Entrepreneurs are not necessarily motivated by profit but regard it as a standard for measuring achievement or success. Workplace diversity should be one of the top things businesses today should address. Even when coworkers find themselves in an uncomfortable situation at work because of a diverse environment, the very nature of having different perspectives available offsets the declines in productivity experienced. Per multiple studies, organizations that embrace diversity have a higher chance of sustaining a competitive advantage than those who dont. Diversity generally means recognizing, accepting and appreciating the differences among peoples differences in age, class, gender, ethnicity, physical and mental abilities, race, sexual orientation, religious or spiritual orientation, and status relative to public assistance esty. This design allows each team member to focus on their strengths. Why workforce diversity is a huge competitive advantage. The art of effective communication diversity is defined as recognizing, appreciating, valuing, and utilizing the unique talents and contributions of all individuals. Looking at how leaders, managers and nonmanagerial employees view diversity, it.
Theoretical foundations diversity theory is grounded on concepts based on history, research and other paradigms. Top 10 benefits of diversity in the workplace infographic. List of the disadvantages of diversity in the workplace. The importance of diversity in the workplace advantages. Pdf advantages and disadvantages of cultural diversity.
Employing people from different cultural backgrounds allows the organization to better understand different cultures that makeup a consumer market. The advantages of a diverse workforce january 19, 2016 0 comments in hr topics by wanda johnson. Many workplaces have not yet caught on to the idea of age diversity. Diversity is a tool that will help facilitate business success. We discuss benefits and challenges of a diverse workplace. For employers, this change in demographics can offer substantial benefits. The term diversity management indicates the implementation of strategies or policies to knit a network of varied individuals together into a dynamic work force. Diversity of experience, age, physical ability, religion, race, ethnicity, gender, and many other attributes contributes to. The potential advantages of diversity at work are compelling, however, they dont come without thoughtful effort. Managing diversity in organizations is one of the defining issues of our time. Benefits of diversity in the workplace gender, generation, culture greater consumer market share. In recent years, diversity is increasingly perceived as an important issue in the context of business management. Diversity in the workplace leads to a plethora of benefits both from an internal and external perspective.
Most institutions try to promote the creation of a diverse, creative workforce, but unfortunately, even after several. No one can deny the rising trend of freelancers in todays modern workforce. Diversity in the workplace refers to an organization that intentionally employs a workforce comprised of individuals of varying gender, religion, race, age, ethnicity, sexual orientation, education, and other attributes. It provides a general defini tion for workplace diversity, discusses the benefits and challenges of managing diverse workplaces, and presents effective strategies. If an employer can create diversity in the workplace, then each worker will have their strengths complement those of everyone else on the team. Here are some benefits of a workplace that hires teams. Benefits and challenges diversity in the workforce. Benefits of workforce diversity diversity has multiple benefits to the workplace. Mar 21, 2017 cultural diversity in the workplace occurs when a company hires employees from a variety of backgrounds, race, gender, age, or religion.
Diversity management in hrm managing diversity in the. A diverse workforce can seize a larger consumer market segment. There can be no question that diversity has become the hot topic in todays modern workplace. It has been observed that the first steps of implementation provide the biggest hurdle. Embracing cultural diversity in the workplace is an important first step for businesses that want to be competitive on an international scale. There have been debates over diversity management for years heated debates. More importantly, it estimates that from 1998 to 2008 some 41 percent of the people entering the u. According to a 2016 survey conducted by shrm, 43% of companies offer floating holidays which permit their employees to take time off because of their cultural or religious preferences.
Okoro and washington 2012 believe innovation when based on a diverse workforce provides an opportunity for competitive advantage through improved. Diversity and inclusion programs are now some of the most visible programs within workplaces. Organizations can benefit from employees who bring language skills, cultural experience, and creativity to the table. Increased adaptability organizations utilizing a diverse workforce can supply a. Gender diversity is beneficial for both women and the organizations. Diversity presents prospects for companies and organisations to exploit the diversity of its employees to achieve its wo rkplace goals, tasks, an d longterm plans.
Having a culturally diverse workforce can result in a competitive advantage for. Among theadvantages of diversity in the workplace are. But with benefits necessarily come challenges of working. Advantages and disadvantages of diversity management. Five companies in fin land and ghana have been studied in order to acquire answers to the question that is being fo. Gender diversity ensures a gender balanced and better workforce.
Pdf advantages and disadvantages of cultural diversity in. This paper is designed for managers to effectively manage diverse workforce populations. A diverse working culture benefits companies in countless ways. The cry for diversity in the workplace has reached a boiling point last october, record 12,000 people attended the grace hopper celebration of women in computing ghc, the worlds largest gathering of womens technologists according to the website. Here are a few of the top benefits or diversity in the workplace. Opponents and proponents of the issue sight many reasons for their positions. Given this fact, businesses, educational systems and other entities are investigating ways to better serve their constituents. Diversity in the workforce journal of education and human. Alder 2008 stated that overgeneralization and ethnocentrism is the cause of. The entrepreneur perceives an opportunity and often exhibits biases in taking the decision to exploit the opportunity.
Difference of advantages and disadvantages of diversity. Diversity can be a sort of strategy which enables organization to gain competitive advantage in the market competitive landscape. Aug 22, 2018 managing diversity in organizations is one of the defining issues of our time. In the workplace, valuing diversity means creating a workplace that respects and includes differences, recognizing the unique contributions that individuals with many types of differences can make, and creating a work environment that maximizes the potential of all employees. Because workplace diversity lends itself to many highlevel goals, such as increased innovation and better results. The united states office of employment predicts that 29 percent of the u. May 24, 2019 benefits of diversity in the workplace gender, generation, culture greater consumer market share. List of the advantages of diversity in the workplace. From the virgin group to disney and pricewaterhousecoopers, organizations across industries are embracing the benefits of a diverse workforce. The main economic benefits of workforce diversity a diverse workforce fuels growth. The advantages and disadvantages of age diversity in the. Advantages of workplace diversity an article by michael. Business advantages of diversity in the workplace the united states office of employment predicts that 29 percent of the u. Benefits and disadvantages of diversity in the workplace.
Workforce diversity management aims at developing and nurturing a common organisational culture and climate. The advantages and disadvantages of diversity in the workplace must be carefully managed for the results to be successful. It creates multiple layers of administrative management to juggle. Diversity can provide unique perspectives, but it may take time for revenue and productivity increases to arrive. The second part of the study explains the advantages of workplace diversity as. Workforce diversity has significant implications for the management. Workforce diversity means similarities and differences among employees in. Jan 19, 2016 we live in an era of economic globalization which could not exist without workforce diversity. Benefits and challenges of diversity in academic settings.
Good communication requires an understanding of the other culture, its norms, values, preferences, and social. Survey results that organisations are slowly awakening to the positive benefits available through a diverse workforce. Impact of workplace diversity society of interdisciplinary business. Businesses have scrambled to hire an increasingly wide range of employees from various ethnic backgrounds and sexual orientations.
In the early 1990s, both scholars and practitioners were generally optimistic about the effects of workforce diversity on performance. Advantages and disadvantages of cultural diversity in the workplace working paper pdf available january 2016 with 41,081 reads how we measure reads. The united states labor force is more diverse than ever. Most institutions try to promote the creation of a diverse, creative workforce, but. Building a diverse workforce is an investment of time.
Having a culturally diverse workforce can also result in several disadvantages for organizations. Executive summary best practices in achieving workforce diversity diversity affects the world advances in technology and the advent of a global economy bring the people of the world closer together than ever before. A genuine focus on diversity helps to shape society to become more equal. When organizations effectively evaluate their treatment of workplace diversity issues, develop and implement diversity plans, multiple benefits are reported such as. Consequently, modern day organisations need to address the causes of these issues to exploit the benefits of wpd. Workplace diversity despite having numerous benefits does have its flaws.
Stephen butler, cochair of the businesshigher education forum, believes diversity is an invaluable competitive asset robinson 2002. The impact of workplace diversity on organisations core. The importance of diversity in the workplace there are clear signs in the latest leadership, employment and direction l. Companies who employ a culturally diverse workforce are able to perform business tasks from a global perspective. For example, cox and blake 1991 argued that diversity can be a source of competitive advantage. Diversity in the workplace benefits and challenges. Malaysia recently mandated public companies must have 30% women in both their executive roles and their boards.
It is an important step for businesses looking to become competitive at a global level. Diversity in the workplace can reduce lawsuits and increase marketing opportunities, recruitment, creativity, and busi. By integrating workers from culturally diverse backgrounds into their workforce companies become much stronger. Pdf prospects and challenges of workplace diversity in modern. The benefits of a multicultural workforce can be realized through good communication. Too many enterprises, particularly startups that operate within the tech segment, gloss over the presence of an available older workforce. Many articles have been written on this topic but there is no specific definition of workforce diversity. Here is the list of the top 10 benefits of diversity in the workplace. There are many advantages and disadvantages of managing diversity. Diversity in the workplace leads to a plethora of benefits.
Creativity increaseswhen people with different ways of solving difficult problems work together towards a common solution. We live in an era of economic globalization which could not exist without workforce diversity. Advantages and disadvantages of workplace diversity. The intention is to push for better results via diversity. Such a common organisational culture and climate leads to better human relations in the enterprise and produces allround organisational and managerial. To answer the research question as well as obtain and practical and relevant information on each company, the author conducted an interview on three of the companies, and gathered information on the internet on two of the companies. Each of the potential advantages and disadvantages she listed is. Todays organisations need to recognise and manage workforce diversity effectively. Pdf advantages and disadvantages of cultural diversity in the.
142 608 772 894 1048 352 801 331 253 1437 436 1323 1387 317 1314 1558 1061 513 46 1219 591 1603 1040 716 1295 854 1674 640 611 142 1104 411 753 842 1660 895 547 654 1317 599 225 1159 1184 248 1238 878