Sales trends

Mixing things up: Why diverse teams are good news for long-term business

‘Diverse teams are better for the bottom line.’

Not exactly earth-shattering insight, is it?

The latest research bears out what progressive companies have been telling us for some time: the advantages of a diverse workforce are wide-ranging – great not just for society, but for business, too.

According to McKinsey, companies with the greatest levels of gender diversity at an executive level are more profitable. The same is true for companies with high levels of ethnic or cultural diversity; Forbes notes that companies with diverse management teams produce 19% more revenue than those with more of a homogenous look and feel.

LinkedIn’s Andrew Monu, director of field and product marketing EMEA – and second in EMpower’s list of 50 Future Ethnic Minority Leaders – believes that this homogeny represents a big missed opportunity for businesses. “It’s no secret that diversity brings fresh perspective, innovation and increased business performance – and we need to do more to attract, retain and nurture the brilliant ethnic minority talent that is out there.”

So, whether you want to address inequality, improve social mobility, boost productivity, or foster innovation, a more diverse workforce can help make it happen. The question is: how can you make this dream team a reality?

The business case for diversity

According to Morgan Lobb, founder and chief executive of Vercida, an online platform that helps employees assess the diversity credentials of employers, diversity generates more sales. “If you want to open up your marketplace to a wider audience, the best approach is to have that particular group of people working on your behalf. You’re then much more likely to understand your audience.”

Consider the case of L’Oréal. When sales plateaued in 2016, the cosmetics giant decided to target a broader audience (particularly men using cosmetics) by employing a vlogging influencer known as Plastic Boy.

The brand then launched the True Match Foundation cosmetics range, working with models of all genders and varied ethnicities. The range, which matches foundation shades to a much wider variety of skin tones, soon became a bestseller in Britain. “The uplift in sales was phenomenal,” says Lobb.

Diversity: Solving the productivity puzzle

But companies keen to harness the potential of a diverse workforce should think carefully about their strategy. For one, it’s not easy to create teams with a mix of backgrounds quickly. Second, diverse teams can also be difficult to manage.

Diversity
Diversity
Diversity

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