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Diversity in the workplace is the key to being more innovative

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  • 2 November, 201930 September, 2020

Diversity in the workplace is the key to being more innovative

Aug 07, 2019

The notion that diversity in the workforce is about brand reputation or simply a compliance issue, rather than a massive business asset is a mistake. Last year, the Harvard Business Review published the results of its survey of more than 1,700 companies, of various industries and sizes, across eight countries (Austria, Brazil, China, France, Germany, India, Switzerland, and the U.S.). It looked at diversity in management positions, in respect to six dimensions – gender, age, national origin, career path, industry background, and education.

The research found “a statistically significant relationship between diversity and innovation outcomes in all countries examined”. The more diverse an organisation, the stronger that relationship proved to be, although patterns of diversity and performance varied in different cultures. Unsurprisingly, the most diverse enterprises were also the most innovative and profitable. Those with above average scores on the six dimensions of diversity scored 19% higher for innovation revenues and 9% better average EBIT margins. All six dimensions of diversity had statistically significant correlations with innovation. The research concluded that multiple aspects of diversity are the most beneficial regarding innovation-driven outcomes.

Read more: on website europe.businesschief.com (EN)