Benefits of managing workforce diversity

Managing diversity can create a competitive advantage. Potential benefits of this diversity include better decision making, higher creativity and innovation, greater success in marketing to foreign and domestic ethnic minority communities, and a better distribution of economic opportunity.


According to one study, culturally diverse groups relative to homogeneous groups are more effective both in the interaction process and job performance; these benefits occur after a diverse group has been together for a period of time.


Research indicates that greater diversity can create higher levels of dissatisfaction and turnover. Maintaining diversity in organizations may be important, however, for creativity, and for improving representation and access to power in view of the demographic changes in the workforce and equal opportunity, employment equity/affirmative action, and human rights legislation. Organizations with a diverse workforce can provide superior services because they can better understand customers’ needs. Hiring women, minorities, disabled, etc. will help organizations to tap these niche markets and diversified market segments. As all the segments of society have a stake in the development and prosperity of society as a whole, creating and managing a diverse workforce should be seen as a social and moral imperative.


As the economies are shifting from manufacturing to service economies, diversity issues will gain importance because in a service economy effective interactions and communications between people are essential to business success. As globalization is increasing, diversity will help organizations to enter the international arena. Diversity enhances creativity and innovation, and produces competitive advantages. Diverse teams make it possible to enhance flexibility and rapid response and adaptation to change. Address legal concerns; generally legislation is to promote gender equality therefore managing a diverse workforce helps in addressing concerns against discrimination illegal in the working situation so as to improve human rights.




For example women rights in the area of pregnancy and maternity. And this in turn helps to promote fair opportunities in the field of employment and vocational training. Enrich an organizational human capital; managing a diverse workforce entails a minimization of cloning that is preventing the production of an exact copy in selection and promotion. This leads to a wider range of ideas and abilities, offering greater scope for innovation and competitive performance in the future therefore enriching an organizations human capital.