Diversity in the workplace is crucial for competitive advantage, as it increases productivity, attracts top talent, and fosters inclusivity among employees. Companies that embrace diversity can leverage it for public perception as an equal-opportunity employer and gain an advantage over more exclusive businesses.
As globalization grows, diversity in the workplace is a factor that employers can no longer choose to ignore. Diversity can include aspects such as the ratio of employees categorized by gender, religion, race or even sexual orientation. The role of diversity as a competitive advantage depends on the willingness and ability of an organization’s management to use the diversity of its workforce as a source of competitive advantage rather than a source of division. Not only does diversity in the workplace serve as a microcosm for society at large, but the role of diversity as a competitive advantage is the increase in productivity brought about by an atmosphere of inclusiveness in the company. Furthermore, the role of diversity as a competitive advantage is the ability of companies to be able to select the best talent or employees with good human capital from an available pool.
When a company embraces the concept of workforce diversification, it can leverage this as a basis for competitive advantage through its public perception as an equal-opportunity employer. For example, a country with a mix of diverse immigrants will have a greater point of contact with community members if the company has adequate representation from most of the major immigrants and local community members. If the community has a substantial percentage of Hispanic immigrants, the company will have a more personal relationship with Hispanic community members and other members. This can serve as a competitive advantage, because the company in question can use this selling point as an advantage over other more exclusive businesses in selecting its employees.
The effect of globalization also means that top talent is more likely to come from different backgrounds and orientations. A company that has a very high percentage of male employees in key positions can take advantage of diversity by hiring the best female graduates in related fields of study. This is a competitive advantage as it also creates the impression that the company only hires the best, regardless of gender.
Perhaps the most important role of diversity as a competitive advantage is the fact that it can foster a feeling of inclusion among employees, boosting their morale and increasing their productivity and even bottom line. A company with a diverse workforce creates a sense of belonging among employees who have a greater sense of belonging than one where there is a disparity in the demographic population. In this case, employees will have a greater sense of purpose and also an incentive to work harder.
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