by Mamobo Ogoro, 

Diversity & Inclusion Academic Advisor,

Human Collective

Diversity and Inclusion has become a hot topic in recent years in Irish society. As new employees seek to work with companies that position themselves in line with Sustainable Development Goals (SDGs), it has become increasingly clear that an open, inclusive and diverse environment is key to positive employee engagement. Embracing diversity in the workplace is a crucial initial step for companies who aim to be competitive at both a national and international level. 

But why is diversity so important for business?

Here are 5 Reasons Why Diversity is Good for Business. 

1. Diversity brings fresh perspectives. 

With different people, comes different ideas. When hiring people of diverse backgrounds, whether is it gender, culture, sexuality and/or disability, you bring new perspectives to old problems. Based on a diversity of experiences and knowledge, diverse teams offer a layer of creativity and innovation that companies need in order to remain competitive. In fact, in 2012, a study by Cork researchers indicated that diversity in ‘nationality and educational attainment was positively associated with the probability of a business product innovating’. This shows the potential for innovative ideas that diverse teams can bring. 

2. Diverse teams are more productive & make better decisions. 

While working in a homogenous team may seem easier, it can maintain a stagnant working environment. On the other hand, diverse teams offer higher productivity and faster and better decision-making. One study by Cloverpop decision-making database that looked at 200 business teams who made roughly 600 business decisions over 2 years, found a direct link between more diverse teams and decision making and better business performance.

3. Diverse companies have stronger recruitment and retention.

According to the Washington Post, Diversity and Inclusion is not a preference for new talent, but a requirement. In a competitive job market, companies that invest in creating an inclusive and intersectional environment can stand out to the right candidates. When diversity is an important part of the recruiting process, it will broaden the pool of  potential employees and also makes your business an attractive and inclusive place to work. Likewise, by fostering a sense of belonging for all employees (of every background), diversity has shown to improve employee retention and reduce turnover rates. 

4. Diverse teams meet potential customer needs. 

According to census data, roughly 1 in 10 people in Ireland are from a culturally diverse background (and that number is greater in younger generations). As customer segments become increasingly diverse, companies with a diverse staff are better equipped to meet the needs of a growing diverse customer base. Companies with diverse staff are 70% more likely to capture new/emerging markets and customer segments than companies that do not actively recruit and support employees from diverse communities. 

5. ​​Diverse Teams are More Profitable. 

With diverse staff being positioned to better understand growing customer demands and potential customer needs. Diverse teams have shown to also create more profitable companies. In the US, the “Delivering Through Diversity '' Report by McKinsey showed that gender-diverse teams are 21% more likely to outperform on profitability. Likewise, in their “Diversity Wins'' Report, they showed that companies in the top quartile for cultural diversity were 36% more profitable than the bottom. This shows that diversity not only creates a better working culture, but results in a profitable business. 

At Human Collective, diversity, inclusion and sustainability are at the heart of our business. And in spreading the message of equality, we are increasingly engaging with companies and organisations who want to create a more inclusive workplace. 

Contact info@wearehumancollective.com if you are ready to take another step towards equality and check out our sustainable clothing here.