Diversity is not just nice to have, it is a relevant business factor

Today we celebrate the 9th German Diversity Day (May 18th, 2021). It is an initiative of the Association Charta der Vielfalt e.V. and brings awareness to the concept of diverse teams and Diversity Management in the working world. And why is this so important? Because diversity is not just a ‘nice to have’! Next to the social responsibility a company has, there are numerous additional reasons to care about and actively manage diversity. Yet, a whopping 66% of German companies have not implemented any measures (EY & Charta der Vielfalt e.V., 2016).

So, what exactly is diversity? In the specific context of the working world, it means that all employees should be valued regardless of age, ethnic origin and nationality, gender, religion and worldview, physical and mental ability, sexual orientation, and social background. The legal basis for this is also undeniably and for good reason anchored in the German constitution in Art. 3, Abs. 3 GG. One of the goals of the German Diversity Day is to promote recognition, appreciation, and integration of all those dimensions of diversity into Germany´s business culture. Because diversity can only be truly (and successfully) lived when organizations create a work environment free of biases and full of equal opportunities.

Besides the plain legal inclinations of why companies should care about diversity management, there are many studies showing the number- and business driven reasons. For instance, companies that have more diverse management teams report 19% higher revenues due to innovation (BCG, 2018). This finding is huge for tech companies, start-ups, and industry where innovation is the key to growth. Another Germany-focused study showed that 72% of companies with Diversity & Inclusion management report an increased employee motivation, improved employer reputation and hence a competitive advantage in talent acquisition (PWC, 2019). The list of data driven studies on diversity advantages can be continued. In all instances, having a diverse team alone is not key for success. There are challenges especially in inclusion and equity of a diverse workforce that need to be considered and which need the right measures and mindset.

But for today, we want to raise awareness. Remember, that a team is made up of individuals – and their different experiences, backgrounds and personalities need to be valued! For them, and for a thriving (inclusive) business. How can your company become more diverse and how can you benefit from active diversity management? Get in touch with us!

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