What's The Effect Of Diversity in A Company's Workforce?
By Victor Ochieng
Wayne Sutton, co-founder of Change Catalyst, delivered a speech during the Creative Startups Demo Day in Albuquerque, New Mexico. Sutton and the other Change Catalyst co-founder Melinda Briana Epler have spent a lot of time researching on the effects of tech and inclusion.
As the event's keynote speaker, Sutton had a moment with Julia Youngs, program manager of Creative Startups, and shared insights on what verifiable statistics reveal about companies that have embraced diversity and inclusivity in their workforce.
One of the most fundamental findings is that most of these companies outperform. To break it down, he stated that those that are gender diverse are 15% more likely to perform better than those that lack the diversity. Those that boast of ethnically diverse workforce are 35% more likely to outperform those that lack this diversity. Interestingly, Sutton also mentioned that those companies that have veterans are 4% more likely to deliver better performance than those that don't have veterans. Even more interesting is the finding that companies that have ethnically diverse makeup posted 15% increase in revenue.
The other aspect that Sutton mentioned is the display of inclusive culture, which he said resulted in 39% higher customer satisfaction, 22% increased productivity, 37% rise in profits and 22% lower turnover.
Sutton didn’t end the conversation without talking of improved buying power, which has been evident among women and minorities. Based on statistics, $40 million is held by women, African Americans hold $1.2 trillion, Hispanics hold $1.4 trillion, while Asian Americans hold $891 billion.
Moreover, statistics have confirmed that diversity in the workforce results in products that appeal to diverse consumers, which is a factor in greater customer satisfaction and increase in revenue.
What this information is saying is that it's profitable to have a diverse workforce.
“Diversity is everyone. White males are a part of that conversation. A lot of the times we think white males aren’t a part of that. No, we need everyone. We look at every demographic. Companies should look at inclusion and diversity earlier. If you don’t now, it’s going to cost you later. Gender diversity, class, all that matters,” said Sutton.
“I’m excited about the hard conversations that we are having in our world right now to create a better culture and a future for everyone.”