Diversity Is A Core Element For Successful Businesses

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The integration of numerous nations worldwide has drastically impacted the global community and the countless businesses within it. Consequently, the recent shift towards globalization has led to a more diverse society. Diversity is a core element for successful businesses as it enables individuals, with different views and backgrounds, to work towards a common goal. Businesses who lack a diverse workforce are bound to face difficulty in a society where global corporations thrive off the creative minds of their diversified knowledge workers. There are four significant justifications as to why businesses should hire individuals who vary in race, ethnicity, gender, age, religion, physical abilities and socio-economic status. Firstly, it has…show more content…
As a result, companies, that utilize the competencies of diverse individuals, are able to drastically outperform their peers. A study prepared by McKinsey also discovered that companies “with more diverse workforces perform better financially (as cited in Hunt, Layton & Prince, 2015).” The report stated that ethnically diverse companies are 35 percent more likely to financially outperform their competitors who are in the bottom quartile for diversity (Hunt, Layton & Prince, 2015). The financial returns that the companies in the top quartile receive are a product of their ability to implement diversity in their corporate culture. These extremely successful companies “are better able to win top talent and improve their customer orientation, employee satisfaction, and decision making” due to their understanding of the importance of employing multicultural individuals. As a result, employers should hire a diverse workforce, as it is proven to increase their financial performance. This greatly impacts employers, as they will have the opportunity to invest that additional capital back into their business. In order to achieve results such as these, human resource management will be accountable for recruiting, training and expanding the talent pool of the most competent and diverse individuals (Dessler, Chhinzer & Cole, 64). The human resource department must also be able to manage the talent of their employees
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