Impact of Workplace Diversity on Company Performance

Instructor: Artem Cheprasov

Artem has a doctor of veterinary medicine degree.

Does workplace diversity actually improve company performance? Find out as this lesson first answers this question before looking at the factors that might be involved in this.

Workplace Diversity

Is it actually possible that workplace diversity can help improve a company's performance? Or is this just a myth? Workplace diversity refers to the various backgrounds a company's workforce espouses, be they with respect to gender, age, nationality, education, sexual orientation, religions, and more.

It's well-known that workplace diversity can help recruit more valuable employees. But does this actually translate to anything tangible? Keep reading to find out!

What Do the Stats Have to Say?

If we're going to get straight to the point here, then yes, workplace diversity actually does improve company performance. According to just one study alone that included over a 1,000 companies:

  • The companies with a highly diverse workforce with respect to gender were more likely to be profitable than those who weren't very diverse in this respect.
  • Even more so, companies with an ethnically diverse workforce were also more likely to be a lot more profitable than those with little ethnic diversity.

Why Workplace Diversity Improves Company Performance

But why? Why would workplace diversity lead to improved company performance such as this?

Well, one potential answer lies with innovation, a company's ability to be cutting-edge. Another study that examined well over 1,000 companies found a statistically significant relationship between increased workplace diversity and increased innovation. Logically, the more innovative the company, the more profit potential there is to be had.

There were, however, other reasons for why this increased diversity helped improve company performance, including:

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