What Happens When Companies Create a Diverse Workforce?
Recently, Wayne Sutton, co-founder of Change Catalyst, spoke at the Creative Startups Demo Day in Albuquerque, New Mexico. He and his co-founder, Melinda Briana Epler, have spent an enormous amount of time researching tech and inclusion, so much so that the two have formed an entire conference circuit center focused around it.
Wayne Sutton and Julia Youngs (Image: File)
As the keynote speaker of the event, Sutton sat down with Julia Youngs, program manager of Creative Startups, to share what the data shows when companies create a diverse and inclusive workforce.
The first finding is that companies significantly outperform despite their tech vertical. These are the averages that Sutton saw through his research.
- Companies with gender-diverse teams are 15% more likely to outperform companies that lack gender diversity.
- Companies with ethnically diverse teams were 35% more likely to outperform companies that lacked this diversity.
- Companies with veterans were 4% more likely to outperform non-veteran employees.
- There was a 15% increase in revenue when companies showcased an ethnically diverse makeup.
Companies that showcased an inclusive culture and diverse workforce, on average, saw:
- 39% higher customer satisfaction
- 22% higher productivity
- 37% more profitability
- 22% lower turnover
In the United States alone, the buying power has significantly increased for women and minorities and continues to grow year over year.
- Women hold $40 trillion
- African Americans hold $1.2 trillion
- Hispanics have $1.4 trillion
- Asian Americans hold $891 billion
A diverse workforce ensures that companies create products that relate directly to diverse consumers. As a result, the company sees a significant increase in their bottom line.
So what does all of this data tell us? Based on the findings, it pays 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.”