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Why Diversity Recruiting Leads to Company Growth

Why Diversity Recruiting Leads to Company Growth
From Recruiter - July 7, 2016

Think diversity recruiting is all style and no substance? Think again.

According to numerous studies, more diverse workforces lead to more profitable, thriving organizations. McKinsey & Company reportsthat women account for a quarter of U.S. GDP, which suggests that a diversified workforce that allows more people to participate in labor leads to economic growth in general. On the organizational side, McKinsey also notesthat companies in the top quartile for racial and ethnic diversity are 35 percent more likely to have financial returns above their respective national industry medians and that companies in the top quartile for gender diversity are 15 percent more likely to have financial returns above their respective national industry medians.

Gone are the days when businesses simply needed to be seen as being diverse to make up the numbers, says Roopesh Panchasra, VP of global executive recruiting at SAP. Instead, there is an intrinsic desire from the very top of global organizations to be authentic, create harmonious cross-cultures, and create environments that are full of innovation.

Panchasrasays that diversity recruiting in todays day and age means more than just employing a multicultural workforceit means embracing people of all backgrounds that representdifferent age groups, notions, ideas, and thinking.

Its this diversity of perspectives that leads to increased innovation, better overall organization performance, and higher levels of company growth. When you bring multiple perspectives to the table, your organization is much lesslikely to be stymied by obstacles. If everyone thinks the same, a roadblock that stumps one will stump all. However, if your teams represent all sorts of thought processes, then the challenge that leaves one person scratching their head may be a piece of cake to another.

Diverse opinions are highly likely to encourage better, healthier, and enhanced decision making by drawing on the assortment of experiences, Panchasra says. The more diverse a team, the greater the chances of analyzing the appropriateness of key decisions as opposed to when a team consists of people with the same or similar backgrounds.

And its not just individual departments that can reap the benefits of diverse teams. The C-suite has a lot to gain from diversity recruiting as well.

At the very top of organizational structures, there is less chance of one-directional decision making if the management teams are made up of decision makers from a wide range of backgrounds who bring different perspectives, Panchasra explains. This helps when having to make critical business decisions. There is more scrutiny and debate when perspectives are broad, thus reducing the chances of critical errors in judgment being made.

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