Why Diversity Is Important for Your Business
You’ve probably been hearing a lot lately about the importance of diversity when it comes to running your business. And it’s true—diversity is important. It’s good for building a strong and vibrant business that will continue to stay relevant and lucrative in a modern market.
Diversity, equity, and inclusion (often referred to as DEI for short) are important to many business owners because it’s a value they uphold and one they want to be associated with their brand. Additionally, from a purely practical standpoint, making diversity a priority gives you more opportunities for greater innovation, reaching new customers, and fulfilling new needs.
What Does Diversity Entail?
Diversity is a broad term. Think about how many people you know in your day-to-day life and how they’re all different from one another. It’s not just about skin color or gender. It’s also about religion, age, and even body size.
Many groups feel underrepresented when it comes to the world around them. Diversity might refer to:
Racial Diversity
This might be what comes to mind when you think of diversity. A racially diverse group might, for example, include people who are Black, Asian, Latino, Indigenous, and White.
Cultural Or Ethnic Diversity
Ethnicity often gets confused with race, but there are some subtle differences. Race is about physical characteristics whereas ethnicity is more about culture, such as language. For example, a Black person of African descent might have different cultural/ethnic practices from a Black person of Caribbean descent. Similarly, a Latino person of Mexican descent will have different cultural/ethnic practices from a Latino person of Brazilian descent.
Age Diversity
People from different generations have different perspectives and approaches. They are also at risk of experiencing bias—people might assume that a young person is inexperienced or has a poor work ethic, or they might think an older person has an outdated mindset or isn’t good with technology.
Religious Diversity
This could include people who practice any of the major world religions such as Christianity, Judaism, Islam, or Hinduism, or someone who practices lesser-known religions, such as Wicca. Some people don’t practice any religion at all.
Sex And Gender Diversity
This group encompasses anyone within the spectrum of sexual orientation and gender identity. Most people are familiar with LGBT (lesbian, gay, bi, and trans), but don’t forget that this community also includes people who are nonbinary (neither male nor female), asexual/aromantic (do not experience sexual or romantic attraction), or simply questioning (unsure of their sexuality or gender identity).
Ability Diversity
Ability encompasses physical and mental abilities. People with physical disabilities might use a wheelchair or communicate via ASL (American Sign Language). A person who has different intellectual disabilities might be neurodivergent or fall somewhere on the autism spectrum.
Size Diversity
Discrimination against people with larger bodies is one of the last forms of acceptable discrimination, primarily in the beauty industry or health and fitness industry.
How To Embrace Diversity Within Your Business
It's important to note that diversity doesn’t just encompass hiring. You can also prioritize diversity in your marketing efforts, in the products you sell, and in the customers you serve.
Here are some ways you can aim to make your business more diverse and how you can expect them to help your business grow.
Assemble A Diverse Team Within Your Business
Sure, diversity isn’t just about hiring—but hiring is still a major part of it. It’s important to think of differences as a strength. Just as you could look at a person’s education or work experience when considering what they would bring to your business, you should also look at what new or different perspective they can offer.
In this way, diversity improves innovation. Businesses that have diverse teams are 35% more likely to have improved financial returns. Diversity also fosters a more supportive environment where all people can feel comfortable and at ease, so they are more inclined to share ideas and feel valued. More than three-quarters of job seekers want a diverse workplace and being part of a diverse team means they’re more likely to leave their job to find another.
As an example, consider Lenovo, which has a 100% score on the Corporate Equality Index. This has helped Lenovo stand out to job seekers, bringing it more talent that is happier in their work and eager to contribute.
Have Products That Serve A Diverse Market
Remember how we said that diversity brings fresh perspectives and ideas and it makes people from underrepresented groups feel more comfortable about speaking up? This means you’re going to be serving a more diverse market.
As a great example, look no further than Good American. Good American focuses on body diversity in its product line, making clothes for more than just one size or shape. This has made it wildly popular, not just with women who struggle to find stylish, high-quality clothes that fit their larger bodies, but also with smaller women who appreciate seeing these kinds of values demonstrated.
It's important, however, to remember that creating a product for a diverse customer base is not the same as capitalizing on harmful stereotypes or appropriation. You might recall that Walmart made the poor choice of releasing a Juneteenth ice cream flavor in June. While recognizing Juneteenth is important, the fact that Walmart tried to trivialize such an important observance showed that the company was out of touch.
This leads to the final point…
Demonstrate Inclusivity With Diversity In Your Marketing
Let’s say you’re running an advertisement. And everyone in the picture is white. Unfortunately, this sends the message that your product or service is not intended for non-white customers—even if that’s not your intention at all!
By including diversity within your marketing strategy, this signals to your customers that everyone is welcome and valued within your business. If you run a children’s program, let people see that you cater to children of all races and ethnicities. If you are a wedding planner, show pictures of a same-sex wedding on your website. Johnson & Johnson is a great example of a large corporation that has made diverse voices within its marketing a priority.
Remember—diversity in your marketing goes beyond advertising. Think about your social media presence. When you wish people Merry Christmas, but neglect to say Happy Hanukkah. It might (unintentionally) send a bad message.