In a diverse workplace, employees are more likely remain loyal when they feel respected and valued for their unique contribution. When a team comes from similar socioeconomic and educational backgrounds, their perspectives are going to be the same. That would make it seem like a diverse workplace would be a bad thing, but it is the opposite which is true. Diversity in the workplace sets aside society’s bias toward hiring men. Diversity in the Workplace: Benefits, Challenges, and the Required Managerial Tools1 Derek Farnsworth, Jennifer L. Clark, Kelli Green, Mayra López, Allen Wysocki, and Karl Kepner2 1. As of 2016, just 4.2% of the CEO positions in the 500 largest U.S. companies were held by women. When more future customers have access to the products and services offered, then more sales begin happening. CEOs already say that creativity is the skill they value the most, yet it is often repressed because of the desire to minimize diversity. Let’s look at the other side of that statistic. Diversity of economic structure (as opposed to specialization for comparative advantage) reduces exposure to risksâsomething highlighted during the global financial crisis. Attributes such as leadership, strategic thinking, industry knowledge, emotional intelligence and soft skills can take decades to develop – and these will be much sought-after skills in the future of work. The institutions used blind auditions where managers didn’t know the gender of the person they would hire. Although I like to focus mostly on the advantages, I think it is also important that we touch briefly on the disadvantages â¦ Discussions can slow projects down just as they can speed them up. There can be no question that diversity has become the hot topic in today’s modern workplace. Workplace discrimination is a proliferating issue in companies worldwide. That advantage is tremendous, and why many teams seek to diversify in the first place. The process of globalization influences every aspect of human life, and the workplace is not an exception. They found that as diversity increased, the amount of trust in the community decreased. They paid close attention to a specific neighborhood where inclusion was always a top priority. These cases of discrimination might not be pronounced but it can exist in a hidden manner. Some of the answers lie in the advantages and disadvantages of diversity in the workplace. The Commerce Department defines diversity as the unique characteristics and experiences people bring to the work force. We intuitively know that itâs a pathway where every corporate need to walk along. Advantages & Disadvantages of Diversity in the Workplace Workplace diversity refers to the differences between people in an organization. The easiest way to resolve this disadvantage is to make the hiring process a team effort. You will not appease everyone. When companies recruit and retain a diverse pool of people, it brings about different benefits to the company as well as its employees. According to a 2016 survey conducted by SHRM, 43% of companies offer floating holidays which permit their employees to take time off because of their cultural or religious preferences. CEOs see the improved cash flow per worker, higher revenues, and better financial picture as reasons to promote diversity even if they aren’t personally inclined to work in such an environment. 2-5-1 Advantages of workforce diversity -High level of Productivity: Increasing productivity at the workplace has been one of the major challenges for managers and leaders and to the company in general. 6. Outside the developed world, the cost of labor is much lower. Disadvantages of Diversity in The Workplace. Advantages & Disadvantages of Diversity in the Workplace Just like with everything there are advantages and disadvantages involved when discussing diversity in the workplace. The income structure of the economy would become more diversified, reducing risk exposure that likes to creep up after times of economic growth. Here's why that should change. Creativity is enhanced in diverse environments. However, it has been seen that instead of bringing employees together, it actually polarizes them into factions and groups. Workplaces are increasingly diverse. 9. The law in the United States dictates that all employees must be treated in the same manner. Just as the Americans with Disabilities Act brought significant changes to some businesses at a financial cost, so will diversity require some flexibility. Workplace diversity benefit #10: Improved hiring results. Diversity in the workplace refers to an organization that intentionally employs a workforce comprised of individuals of varying gender, religion, race, age, ethnicity, â¦ The rise of some level of conflict is unavoidable when it comes to changes in the policies of the companies. against diversity in the workplace, first a general understanding of what diversity is must be developed. That said, all the businesses are looking to adapt to diverse teams since it comes with a plethora of amazing benefits. against diversity in the workplace, first a general understanding of what diversity is must be developed. According to research published by Deloitte on diversity in the workplace, 38% of companies have the primary sponsor of an initiative begin with the Chief Executive Officer. Instead of worrying about educational experiences, age, geographic location, or other screening factors, human resources can focus on practical knowledge. If meritocracy is not ensured and people from diverse backgrounds are hired just for the sake of diversity, then it is of no use. Conflicts of Communication; Integration of employees from different cultural background and countries in your work force increase internal and external communication barrier filters. With all the benefits, itâs easy to understand why companies have diversity and inclusion training top of mind. Diversity in the workplace shouldnât be for the sake of it. Diverse teams are like sponges. Diversity at work improves productivity. Workplace diversity is an especially beneficial asset for attracting top talent from diverse talent pools. 1. Avon, MA: Adams Media Corporation. 3. Business thought leaders have preached the importance of workplace diversity for decades. Teams which are racially diverse are 35% more productive than teams who stick to the same color of skin. Legally, organizations with 15 â¦ The primary disadvantage of diversity in the workplace happens when only one executive is given the task of implementing this solution. The same would occur if people with disabilities were hired and trained to fill open positions. Disadvantages Of Diversity In The Workplace 1743 Words | 7 Pages. There’s a lot of different ways to include diversity in the workplace, and like you said it doesn’t have to stop at race or gender. Without hiring protocols in place and vigorous enforcement of policies, you’ll find everyone trying to tell each person what to do. 1. We must be willing to set aside society’s preconceived notions about gender differences to have workplaces that are truly diverse. With all the benefits, it’s easy to understand why companies have diversity and inclusion training top of mind. 5. Addressing the accompanying challenges can help realize these benefits and maximize opportunities for your organization. While cultivating a mutual respect for one another’s culture is the main idea behind implementing workplace diversity, it could be a huge task to accommodate every diverse employee’s request based on cultural and religious beliefs. That promotes higher levels of consistency (which is a good thing), but it also promotes a lack of creativity (which is a bad thing). The Committee on Diversity of the Chancellor describes it as: âThe variety of experiences and perspectives that result from differences in race, culture, religion, mental or physical abilities, heritage, age, â¦ There can be communication barriers which make productivity more challenging. People in the workplace should like diversity because it helps the company become better and stronger. So here’s the question: are we any closer to an inclusive workplace environment than when we started? Multiculturalism brings diversity to the workplace. Diversity, including diversity of gender, religion, and ethnicity, has been shown to improve retention and reduce the costs associated with employee turnover.