Discrimination based on race, gender, color, religion, and other social or ethnic backgrounds has always jinxed humankind in the past. Prior to the mid-1960s, most companies were plagued with this social issue and shared a deep history of racial and gender discrimination. They lacked cultural diversity and had no protocols, training, or reprimands to tackle this issue. However, things started to change when The Civil Rights Act of 1964 made any business or company practicing discrimination as part of their hiring practices illegal. The act was one of the first wins that encouraged the business world to acknowledge workforce diversity and diverse talent hiring.
Cut to the 21st century, and we have come a long way. Diversity has evolved from being an idea to becoming a critical aspect of workplaces. Hiring diverse talent is an essential part of any modern recruitment strategy, and the concept of a diverse workforce is far beyond simply making oneself look forward-thinking. It is the 21st-century cutting-edge that can help boost business performance and lead the market. But what exactly is diverse talent? Let us discuss this first.
What do you mean by Diverse Talent?
Diverse talent refers to employees or employee pools coming from different (or underrepresented) social or cultural backgrounds. It is the basis of the talent diversity concept which simply means having a range of people from different backgrounds working in your company.
Over time, attracting and retaining diverse talent has become one of the major priorities of many organizations across industries. Diversity in workplaces has become more visible than ever. Organizations realize that increasing diversity within a workforce is a solution where everyone – employee and employer benefits. For instance, a study by Glassdoor suggests that 69% of executives rated diversity and inclusion as a prominent issue. This is a significant increase in the percentage with only 32% acknowledging the issue as important in 2014.
But why are companies getting increasingly focused on increasing diversity at workplaces and hiring more diverse talent? The answer is simple.
The Benefits of Diverse Talent
Diverse talent brings along many advantages to the table and helps your company reap many benefits in the short and long run. For instance, a report by Mckinsey and Company – Diversity wins: How inclusion matters – asserts that most diverse companies are now more likely than ever to outperform their less diverse counterparts in terms of profitability, revenues, new market captures, accountability, and more.
The following are some of the most important benefits of hiring diverse talent.
- Diversity of thoughts
Having a diverse workforce favors diversity of thoughts – a concept based on the reality that there is more than one way to think about something. The concept asserts that each individual’s understanding, interpretation, and interaction with the world or society reflects their unique cultural backgrounds and individual experiences. Diversity of thoughts acknowledges distinct perspectives which eventually improves the decision-making process.
- Innovation and creativity
A workforce with diverse talent exposes the whole team to multiple perspectives and views and often leads to innovative and creative ideas. Moreover, research suggests that diverse and inclusive companies are 1.7X more likely to be innovation leaders in the market.
- Reduced employee turnover
An organization that acknowledges diverse hiring tends to have lower employee turnover than its counterparts who do not. Diverse environments are more welcoming and foster a culture of innovation, growth, and creativity. They make employees feel accepted and valued, which in turn makes them happier and stay longer at an organization.
- Increased Return on Investments
Increased return on investments is one of the primary benefits of having diverse talent in the teams. For instance, businesses that have more culturally diverse executive teams are 33% more likely to achieve above-average profits.
- Adaptability and Resilience
Since the business world changes at the speed of light, the ability to adjust to new environments becomes a key to survival. Fortunately, fostering a culture of diversity that embraces international talent and experiences aids adaptability. Moreover, international talent demonstrates the ability to grow and learn from challenges and brings resilience to the team.
- Organization Reputation
Acknowledging workplace diversity and hiring diverse talent boosts your organization’s reputation and brand in the market. Diversity and inclusion practitioners are considered good, more human, and socially responsible organizations.
Why is the diverse talent future of your workforce?
Hiring diverse talent and following a systematic top-down approach to increase the diversity quotient of your team has a lasting impact on organizational success. In fact, diverse talent benefits your organization in ways that bring value and future success. For instance, a study suggests that racially and ethnically diverse companies have a 36% higher chance of outperforming less diverse companies on financial fronts.Here are some key statistics that assert diversity is the future of your workplace.
- About 76% of employees or job seekers believe that diversity is one of the key factors they evaluate job offers.
- A study by Harvard Business Review states that companies with diverse leadership teams are 70% more likely to capture new markets.
- A report by BCG claims that diverse management teams can lead to 19% higher revenue.
- A Mckinsey report suggests that gender-diverse companies are 15% more likely to get higher financial returns. It further adds that equally diversifying the workforce could increase the GDP by 25%.
- Diversity and Inclusion (D&I) Global Market Report 2022 by ResearchAndMarkets suggests that diverse companies have 2.5 times higher cash flow per employee.
Diverse talent helps your company go global. People from different nationalities and social backgrounds bring language skills and cultural awareness that supports new and current business in emerging economies. They allow companies to deal with the different nuances within a global marketplace. For instance, if an organization works with clients in Japan, having an employee who speaks fluent Japanese and comprehends their accent proves as an asset.
But the question still prevails. How can you improve workforce diversity and hire diverse talent?
How to attract and hire diverse talent?
A report suggests that over 70% of companies experience trouble in finding the right candidates for vacant positions. The struggles have seemed to aggravate in the past months with issues like talent shortage and great resignation disrupting the market. Fortunately, increasing the size of your talent pool and making recruitment efforts to hire diverse talent can work in your favor.
Here are some of the ways to attract and hire diverse talent-
- Broaden your talent search
Broden your search for talent by partnering with associations and diversity groups. Expand your reach and look out for diverse talent in social groups like veterans, formerly incarcerated, people above the age of 50, etc.
- Develop and promote an inclusive company culture
Attracting talent through an inclusive company culture goes a long way in building a diverse workforce. Thus, focus on improving the inclusiveness quotient of your company and acknowledge a welcoming culture. For instance, you can conduct workshops on diversity skills for your existing employee force. Further, promote the inclusive culture through your branding materials like websites, social media, and employee-generated content.
- Develop unbiased interview processes
Follow a structured interview process to eliminate any form of bias. Ask the same set of questions and ensure all the candidates follow the same steps to ramp up your search for diverse talent. For example, develop a skill assessment test to measure the impact a candidate can have.
- Collaborate with minority institutions
Collaborate with institutions that work to support people from underrepresented groups. These institutions can help you connect with people from minor communities like LGBTQ+ and people with physical disabilities.
- Find diverse talent through referrals
A referral is one of the best ways to recruit people and works equally well when hiring diverse talent. Include your employees and seek their help to search for talent from underrepresented groups. It also contributes to fostering an inclusive company culture.
- Write an inclusive job description
A job description (JD) serves as one of the primary communications with the candidate. Thus, make sure to add an equity statement in the JD. Further, run the content through an intensive check for any bias and ensure the language does not appeal more to one specific group.
- Ensure a strong onboarding process
An inclusive onboarding process ensures that your top-choice candidate is getting on the boat as an employee. Thus, make sure to offer a comfortable and personalized onboarding experience to your diverse talent. For instance, ask for any specific pronouns they prefer to use or assist them while they relocate as per their new job.
- Scholarships and internship programs
Offering scholarships or internships is a great way to attract young diverse talent. You can also collaborate with colleges and universities to help you promote opportunities and reach diverse talent pools.
- Celebrate the success of your diversity recruiting programs
Keep track of your progress in the pursuit of achieving organizational diversity goals. Share your successes and achievements with your team and let everyone at your company know about your inclination towards diversity, equity, and inclusion. This helps in encouraging your employees to stay committed to DE&I and build better workplaces.
DE&I at Pyramid Consulting, Inc.
Pyramid Consulting is an Intentionally Inclusive organization that firmly believes in fostering equal and fair opportunities for all. We provide diverse staffing solutions and help clients meet their diverse talent needs. Through our DEI staffing expertise, we help talent realize their full potential and excel in their careers. We intend to foster a workplace that favors diversity in thoughts, experiences, and representation.
At Pyramid Consulting, we are intentionally putting DE&I into action through programs, initiatives, and partnerships.
Corporate Initiatives focused on increasing diverse representation among our employees, tracking our delivery of diverse talent to clients, and creating a sense of belonging for our employees and consultants through the staffing industry’s first Employee Resource Group program – Belong: IN.
Business Imperative with unique diversity-first programs such as GenSpark for upskilling diverse talent in tech for jobs of the future.
Recruit: IN – equipping our recruiters with the skillset, knowledge, and technology to effectively source qualified diverse talent and build a more inclusive workforce.
Community Impact with support and investments in nonprofit organizations that are positively impacting a more equitable and inclusive world.