The advantages of a diverse workforce january 19, 2016 0 comments in hr topics by wanda johnson. Mar 21, 2017 cultural diversity in the workplace occurs when a company hires employees from a variety of backgrounds, race, gender, age, or religion. 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. More about advantages of multicultural workforce workforce diversity management. Advantages and disadvantages of cultural diversity in the workplace working paper pdf available january 2016 with 41,081 reads how we measure reads. Impact of workplace diversity society of interdisciplinary business. The advantages and disadvantages of age diversity in the. 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.
Diversity and inclusion programs are now some of the most visible programs within workplaces. From the virgin group to disney and pricewaterhousecoopers, organizations across industries are embracing the benefits of a diverse workforce. In the article, deering explains that there is much more to diversity than age, gender, race, and cultural background. The result shows that workplace diversity plays an effective role in some companies. Workplace diversity should be one of the top things businesses today should address. Aug 22, 2018 managing diversity in organizations is one of the defining issues of our time. Companies who employ a culturally diverse workforce are able to perform business tasks from a global perspective. Gender diversity ensures a gender balanced and better workforce. Because workplace diversity lends itself to many highlevel goals, such as increased innovation and better results. There are many advantages and disadvantages of managing diversity. The second part of the study explains the advantages of workplace diversity as. Pdf advantages and disadvantages of cultural diversity in the. 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.
Diversity can be a sort of strategy which enables organization to gain competitive advantage in the market competitive landscape. Benefits and challenges of diversity in academic settings. Pdf prospects and challenges of workplace diversity in. The competitive advantages of a diverse workforce oracle. Benefits and challenges diversity in the workforce. Here are a few of the top benefits or diversity in the workplace. When organizations effectively evaluate their treatment of workplace diversity issues, develop and implement diversity plans, multiple benefits are reported such as.
The advantages and disadvantages of diversity in the workplace must be carefully managed for the results to be successful. The potential advantages of diversity at work are compelling, however, they dont come without thoughtful effort. One of the major principles of diversity says that a company that has diverse employees has a greater understanding of the global marketplace. As you continue to build a diverse team in your company, remember three points. The impact of workplace diversity on organisations core. Organizations can benefit from employees who bring language skills, cultural experience, and creativity to the table.
Benefits of diversity in the workplace diversity is beneficial to both associates and employers. Pdf prospects and challenges of workplace diversity in modern. 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. Variety of different perspectives diversity in the workplace ensures a variety of different perspectives.
What are the benefits of diversity in the workplace. 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. This design allows each team member to focus on their strengths. 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.
The term diversity management indicates the implementation of strategies or policies to knit a network of varied individuals together into a dynamic work force. Looking at how leaders, managers and nonmanagerial employees view diversity, it. The importance of diversity in the workplace advantages. Top 10 benefits of diversity in the workplace infographic. Challenges, issues and advantages of gender diversity in.
More importantly, it estimates that from 1998 to 2008 some 41 percent of the people entering the u. 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. Benefits of diversity in the workplace gender, generation, culture greater consumer market share. A diverse workforce can seize a larger consumer market segment. Many articles have been written on this topic but there is no specific definition of workforce diversity. Workplace cultural diversity and its advantages diversity.
May 24, 2019 benefits of diversity in the workplace gender, generation, culture greater consumer market share. Advantages and disadvantages of diversity management. It provides a general defini tion for workplace diversity, discusses the benefits and challenges of managing diverse workplaces, and presents effective strategies. No one can deny the rising trend of freelancers in todays modern workforce. Creativity increaseswhen people with different ways of solving difficult problems work together towards a common solution. Nov 27, 2017 diversity can be a sort of strategy which enables organization to gain competitive advantage in the market competitive landscape. By integrating workers from culturally diverse backgrounds into their workforce companies become much stronger. The united states office of employment predicts that 29 percent of the u.
Diversity in the workplace can reduce lawsuits and increase marketing opportunities, recruitment, creativity, and busi. Benefits and challenges of diversity the diversity of a universitys faculty, staff, and students influences its strength, productivity, and intellectual personality. It has been observed that the first steps of implementation provide the biggest hurdle. Among theadvantages of diversity in the workplace are. Workforce diversity management aims at developing and nurturing a common organisational culture and climate. Diversity training requires multiple resources and trainer development and understanding of the shifts and changes in the ethical culture of the workforce. The importance of diversity in the workplace there are clear signs in the latest leadership, employment and direction l. The united states labor force is more diverse than ever.
Each of the potential advantages and disadvantages she listed is. Per multiple studies, organizations that embrace diversity have a higher chance of sustaining a competitive advantage than those who dont. Increased adaptability organizations utilizing a diverse workforce can supply a. Why workplace diversity is so important, and why it. Having a culturally diverse workforce can also result in several disadvantages for organizations. Organizations can benefit from employees who bring language skills, cultural experience, and. For example, cox and blake 1991 argued that diversity can be a source of competitive advantage. Workforce diversity has significant implications for the management. There have been debates over diversity management for years heated debates. Business advantages of diversity in the workplace the united states office of employment predicts that 29 percent of the u. It can contribute to an organizations efficiency and create a competitive advantage. Pdf advantages and disadvantages of cultural diversity in.
In the early 1990s, both scholars and practitioners were generally optimistic about the effects of workforce diversity on performance. Alder 2008 stated that overgeneralization and ethnocentrism is the cause of. Benefits and disadvantages of diversity in the workplace. Workforce diversity means similarities and differences among employees in. Most institutions try to promote the creation of a diverse, creative workforce, but unfortunately, even after several. To start, lets talk about what workplace diversity means.
Difference of advantages and disadvantages of diversity. Diversity is a tool that will help facilitate business success. Diversity can provide unique perspectives, but it may take time for revenue and productivity increases to arrive. Given this fact, businesses, educational systems and other entities are investigating ways to better serve their constituents. Theoretical foundations diversity theory is grounded on concepts based on history, research and other paradigms. Many initiatives stop before they can be successful because there is a lack of patience with this process. A diverse working culture benefits companies in countless ways. Building a diverse workforce is an investment of time.
Diversity management in hrm managing diversity in the. Although associates are interdependent in the workplace, respecting individual differences can increase productivity. Businesses have scrambled to hire an increasingly wide range of employees from various ethnic backgrounds and sexual orientations. Diversity in the workplace leads to a plethora of benefits. Stephen butler, cochair of the businesshigher education forum, believes diversity is an invaluable competitive asset robinson 2002. Primarily, this paper aims to make the concept of diversity management wellknown and useful in the managerial practices. But with benefits necessarily come challenges of working.
Having a culturally diverse workforce can result in a competitive advantage for. 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. Most institutions try to promote the creation of a diverse, creative workforce, but. Good communication requires an understanding of the other culture, its norms, values, preferences, and social. 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. List of the disadvantages of diversity in the workplace. There can be no question that diversity has become the hot topic in todays modern workplace. Consequently, modern day organisations need to address the causes of these issues to exploit the benefits of wpd. Opponents and proponents of the issue sight many reasons for their positions. This paper is designed for managers to effectively manage diverse workforce populations.
Managing diversity is a key component of effective people management in the workplace black enterprise 2001. Diversity in the workplace leads to a plethora of benefits both from an internal and external perspective. We live in an era of economic globalization which could not exist without workforce diversity. Employing people from different cultural backgrounds allows the organization to better understand different cultures that makeup a consumer market.
Business advantages of diversity in the work place an. 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. Workplace diversity despite having numerous benefits. However, one faction of the diversity push that seems to be playing catchup within the workplace is age diversity. The main economic benefits of workforce diversity a diverse workforce fuels growth. Pdf advantages and disadvantages of cultural diversity. Many workplaces have not yet caught on to the idea of age diversity. Workplace diversity despite having numerous benefits does have its flaws. It creates multiple layers of administrative management to juggle. Okoro and washington 2012 believe innovation when based on a diverse workforce provides an opportunity for competitive advantage through improved. Some include reverse discrimination, high costs, language and cultural barriers, a better.
The entrepreneur perceives an opportunity and often exhibits biases in taking the decision to exploit the opportunity. The art of effective communication diversity is defined as recognizing, appreciating, valuing, and utilizing the unique talents and contributions of all individuals. The intention is to push for better results via diversity. 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. Todays organisations need to recognise and manage workforce diversity effectively. These programs have a strong significance because they reflect the types of ideas, thoughts, innovation, work, and. 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. Diversity in the workplace benefits and challenges.
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. It provides a general defini tion for diversity, discusses the benefits of. Such a common organisational culture and climate leads to better human relations in the enterprise and produces allround organisational and managerial. Managing diversity in organizations is one of the defining issues of our time. Here is the list of the top 10 benefits of diversity in the workplace. Benefits, challenges, and the required managerial tools 2 advantages. It is clear to see that some of todays biggest companies must do. Too many enterprises, particularly startups that operate within the tech segment, gloss over the presence of an available older workforce. For employers, this change in demographics can offer substantial benefits. It is an important step for businesses looking to become competitive at a global level.
Jan 19, 2016 we live in an era of economic globalization which could not exist without workforce diversity. Survey results that organisations are slowly awakening to the positive benefits available through a diverse workforce. The benefits of a multicultural workforce can be realized through good communication. Advantages of workplace diversity an article by michael. Why workforce diversity is a huge competitive advantage. A diverse workforce employs people from all walks of life all backgrounds, genders, ages, races, religions, and abilities. But it also has certain challenges you have to overcome to reap the benefits. Here are some benefits of a workplace that hires teams. Gender diversity is beneficial for both women and the organizations. In recent years, diversity is increasingly perceived as an important issue in the context of business management. 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. 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. List of the advantages of diversity in the workplace. May 15, 2018 advantages of diversity in the workplace.
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. Advantages and disadvantages of workplace diversity. Diversity of experience, age, physical ability, religion, race, ethnicity, gender, and many other attributes contributes to. A genuine focus on diversity helps to shape society to become more equal. An organizations success can be dependent upon its ability to embrace a diverse staff. Entrepreneurs are not necessarily motivated by profit but regard it as a standard for measuring achievement or success. Diversity management is a strategy to promote the perception, acknowledgement and implementation of diversity in organizations. Benefits of workforce diversity an organizations prosperity and aggressiveness depends on its capacity to grasp diversity and realize the advantages. Embracing cultural diversity in the workplace is an important first step for businesses that want to be competitive on an international scale. 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. Five companies in fin land and ghana have been studied in order to acquire answers to the question that is being fo.
The impact of workplace diversity on organisations priscilla dike degree thesis. If an employer can create diversity in the workplace, then each worker will have their strengths complement those of everyone else on the team. 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. Malaysia recently mandated public companies must have 30% women in both their executive roles and their boards. Benefits of workforce diversity diversity has multiple benefits to the workplace. We discuss benefits and challenges of a diverse workplace.