 "Photo: Shutterstock")
Companies that hire a more diverse set of employees have a richer pipeline of innovative products and a stronger financial position, a study has found.
A variety of businesses large and small have launched initiatives to attract a more diverse and inclusive workforce. However, no one has measured how diverse business practices actually impact a company's bottom line.
Researchers from North Carolina State University in the US showed that companies that promote a diverse workforce and a culture of inclusion, specifically attracting and retaining minorities, women, the disabled and LGBTQ employees, were more efficient in generating new products and patents.
Published in the journal Financial Management, researchers found that diverse hiring practices increase the pool from which a firm is able to recruit talented and creative employees.
The wider the range of views and backgrounds, experiences and expertise the company attracted, the more innovative the company was to solve problems.
A diverse, inclusive culture attracts and retains talent and boosts employee morale, researchers said.
Scientists scoured and analysed data on publicly traded US firms, looking at new product introductions, patents and other company milestones. They showed that pro-diversity policies enhance future firm value by spurring innovation.
"Top corporate leaders, academics and policy makers have long been wondering about the real economic benefits of corporate diversity policies," said Jing Zhao, assistant professor at Portland State University in the US.
"Many didn't see how hiring a more diverse workforce positively affected shareholder value. Now we have strong evidence that creating a more diverse workplace today results in more innovative outcomes for companies tomorrow," he said.
The findings also showed that companies with pro-diversity policies weathered the 2008 economic downturn far better than those without them.
