Positive and Negative effects of workforce diversity in workplace

Positive effects

Productivity levels improve because of diversity in the workplace.

Even when a team doesn’t like the idea of being diverse, their productivity levels can rise by more than 30%. When people have co-workers who are different from them, then there is an increase in the sensitivity levels that are present in the workplace. People start to look for ways to find common ground. There is more time given to each team member to share ideas, and a higher emphasis on hiring women occurs.

Diversity in the workplace exposes societal bias.

Bias is what destroys diversity in the workplace before it can establish itself. Hiring managers tend to bring men on more than women, even if the qualifications of each candidate are equal. During a study funded by Harvard and Princeton, managers were given a set of applications and qualifications, but they did not reveal the gender of each identity. During this blind process, women were preferred over their male counterparts when gender was not part of the hiring process.

Diversity in the workplace creates more revenue-earning opportunities.

The companies which focus on diversification are the businesses which tend to see more sales and revenues because of their efforts. Emphasizing multiple language fluency for a team can boost their profits by 10% for every fluent language that is spoken. Gender diversity can help revenues grow by 40% in the first year of this effort. This advantage can open new markets for the organization that can help profits to start climbing as well without a significant increase in the work of the team.

Companies have access to more talent.

When diversity in the workplace is a top priority for an organization, then supervisors and hiring managers can expand their applicant screening processes to include more people. There are fewer restrictions on geographic location, educational accomplishments, or previous work histories. The top priority in the hiring process focuses on the talent and skills of the individual, and then how that person could fit into the team.

It increases the number of job opportunities for minority workers.

Diversity in the workplace looks at all population demographics when hiring for an open position. That means employers have an opportunity to find the best possible person for a job because they are not limited to a specific group of individuals. This advantage makes it possible to have more women working in society and promotes the hiring of minority groups. It applies at all levels of employment, from the local small business to multinational firms.

This design allows each team member to focus on their strengths.

If an employer can create diversity in the workplace, then each worker will have their strengths complement those of everyone else on the team. That means assignments can be handed out with greater specificity so that the quality of the work improves. Supervisors aren’t forced to guess at who might be the best option for an assignment because each person has a unique skill that they bring to the table.

Employers have more chances to cross-train workers and teams.

Diversity in the workplace creates teams where each person brings a unique strength to work every day. Individuals can specialize in their career, which means their skills and wisdom can be passed along to other team members. Everyone gets to learn and grow each day because there are higher levels of information exposure thanks to the varying backgrounds and educational opportunities each person accomplished.

Employers have more chances to cross-train workers and teams.

Diversity in the workplace creates teams where each person brings a unique strength to work every day. Individuals can specialize in their career, which means their skills and wisdom can be passed along to other team members. Everyone gets to learn and grow each day because there are higher levels of information exposure thanks to the varying backgrounds and educational opportunities each person accomplished.

This perspective can help companies to start growing bigger and faster.

Almost 70% of hiring managers in the United States say that the implementation of a diversity initiative was a contributing factor to the growth of their organization. This advantage helps the organization to create new opportunities for existing team members, install new positions, and raise wages as productivity and creativity levels rise to encourage a stronger sales atmosphere.

It is a way to increase the creativity of an entire team.

Almost 80% of employees working in the United States say that they are not using their creativity to its full potential. Diversity is one of the best environments to encourage this approach to a career because it offers numerous perspectives that can enhance the brainstorming sessions. The biggest complainers about a lack of creative energy in the modern workplace are those who limit the diversity of their teams.

Customers are attracted to diversity in the workplace.

Over 40% of employees say that their company has the right amount of diversity or that their teams should try to become more unique. Although it can be challenging to share a workplace environment with someone who is uniquely different, the advantages typically outweigh the problems which can develop over time. When everyone comes from the same perspective, then the daily routine becomes dull. Going to work becomes a boring experience. People can even lose their passion for what they do because there is a lack of diversity present on their team.

Negative effects

Unresolved Conflict

Greater differences in a workplace produces more potential for conflict among employees. People that come from different cultural backgrounds have different perspectives on how to handle issues or concerns that arise. An inability to see where the other person is coming from can prohibit effective resolution of conflicts. When employees feel like they cannot reach a point of agreement in conflict they may give up and simply let the ill feelings fester and create a negative tone.

Hiring managers focus on leadership qualities too often.

Diversity in the workplace seeks out experts who excel in their chosen career, job function, and team environment. The goal is to create a series of strengths that allows everyone to grow over time. These are all advantages, but it can become a problem if hiring managers are bringing in people who all want to be in charge. Competition can be healthy, but it can also be dangerous when it spirals out of control.

Potential Turnover

A significant bottom line effect of poorly managed diversity is high turnover. Dissatisfied employees that feel like the work environment is unsafe will leave. Constantly replacing employees lost to ill will or a general feeling of discontent is costly as the company has to pay to hire and train replacements. The business risks losing top talent to competitors if the workplace does not provide a safe and motivating culture where employees from diverse backgrounds are welcomed and treated fairly.

Diversity can create workers who are over-qualified for some jobs.

Communities grow and decline naturally as the economy settles into a comfortable pattern. Diversity in the workplace can create stable circumstances and more job security, but it can also create a series of problems where workers become over-qualified for what they are doing. If that individual were to lose their job for some reason, then it could become a struggle for them to find new employment elsewhere.

Poor Communication

Poor communication fuels conflict and can be one of the biggest negative effects of diversity in the workplace, according to This Way. If a workplace has employees from different countries with different native languages, communication is especially difficult. However, a number of barriers or filters can prohibit clear and meaningful communication between employees. It is imperative that companies train employees on cultural awareness and tolerance of differences to encourage them to openly discuss their different viewpoints on things as opposed to avoiding interaction or getting into conflict.

Diversity in the workplace can create too many opinions.

When hiring managers focus on diversity, then they are creating a series of differing opinions that can make it easier to find the right journey to take for forward progress. There are also times when the sheer number of available opinions can create a problem for the organization. When everyone gets a chance to be heard, then the speed of a project can slow down just as quickly as it can increase.

Time and Money

From the business’ perspective, the benefits of diversity must outweigh the time and expenses involved in managing it. Too many opinions can also be hard to sift through and waste valuable time, while potentially creating fog around the best answers, says FDI. Providing diversity training and creating a cooperative culture takes on going effort for time and management. Many companies hire trainers to come in and give background on differences and to teach the importance of accepting others and valuing their opinions.

Offshoring can become a point of emphasis with diversity in the workplace.

Domestic diversity can become an expensive proposition. It costs a lot, between salary and benefits, to hire the best people for your open positions. Because of this issue, it is not unusual for companies to look for offshoring opportunities that can help them to add unique perspectives to their corporate identity without a significant labor expense. This issue can create a lack of job security for existing workers, which can limit their focus and productivity.

Some teams become hostile during an increase in diversity.

Different perspectives create unique opinions and approaches to life that can create severe disagreements in the workplace. It is not unusual for every person to believe that their individual perspectives are the correct one, so they will share that information with others. If someone should happen to disagree, then some people will take that as a personal attack against their character, integrity, or even their spirituality.