Most discussions on gender diversity tend to focus on larger businesses. However, the advantages of a diverse workforce should not be seen as exclusive to large companies. Research studies show that business profits are more likely to be stronger when there is gender balance. According to McKinsey’s finding in their 2020 report, Diversity Wins: How Inclusion Matters1, the most gender-diverse companies are 25% more likely to experience above-average profitability as well as having a 36% likelihood of outperforming non diverse companies on their EBIT margin (their operating earnings over operating sales) due to ethnic and cultural diversity.
It makes sense that no matter the size of a company or what industry or business sector it represents, gender diversity should be employed as a winning business strategy.
What is gender diversity in the workplace?
In business, gender diversity means ensuring the equal and fair representation of all genders within the workforce – including men, women, transgender, and non-binary individuals – at all levels within a company.
- It is about offering equal pay for equal work to ensure that all employees are treated and compensated fairly, regardless of their gender.
- It allows for equal opportunity for advancement with the company.
- It describes the practice of understanding the specific skills and perspectives that diverse genders bring to the workplace when blended into one community.
Truly gender diverse companies do not stop at employing a balance of diverse people, they make nurturing an inclusive workplace culture a business imperative. The outcome is a working environment that provides psychological safety, in which everyone feels empowered to speak up.
It is essential to encourage gender equality through company culture
One of the most significant methods of promoting true gender diversity in the workplace comes from sowing it into the company’s culture. Because company culture forms the basis of behaviour at all levels within the company, it is essential to work on changing and shaping workers’ attitudes. Here are 5 ways to promote and support gender equality in the workplace:
- Have the courage to lead by example
- Create a culture of shared accountability
- Develop both men and women equally in all roles
- Provide ongoing training on unconscious bias
- Hire employees that have core values consistent with this value
When is gender diversity good for business?
Maintaining gender diversity in the workplace takes setting appropriate company policy, paying ongoing attention to balanced gender representation in the workforce and fostering an environment where all employees practice being inclusive. Diversity is good for business when business owners and leaders know how to truly embrace, value, and make use of diversity among its management and workforce.
Companies that put in the work will reap the following benefits:
1. A wider talent pool
Diversity in the workplace generates a far wider talent pool and can be a critical driver of attracting top talent. Its growing importance to organisations and employees globally makes it an important facet of talent acquisition. Plus, inclusive workplaces tend to have lower employee turnover rates – which means significant savings in terms of time and money spent on recruitment and training new employees. A reputation as an inclusive employer will also demonstrate your positive company values and that will enhance your reputation in the recruitment marketplace.
2. Different perspectives
Having a mix of genders in your teams leads to gaining from differing points of view and the diverse approaches that come from a range of life experiences. This variety of perspectives can spark creativity and innovation – and help organisations spot and seize new opportunities. It can also encourage organisations to challenge gender stereotypes.
3. Enhanced collaboration
Having women within teams can help streamline team processes and boost group collaboration.
Researchers have found that teams with more women in them are better at each taking turns in conversation – rather than talking over one another – and so making the most of the team’s combined knowledge and skills. They have found that women have stronger skills when it comes to reading non-verbal cues. Having such an inclusive culture in your workplace will boost morale and promote opportunity.
4. The team better reflects your customers
In South Africa customers come from all walks of life. The more the make-up of your workforce reflects the diversity of your customers, the more likely it will be that you are relatable and able to communicate effectively with them. This means ensuring that your teams have a diversity of genders, ages, and ethnicities.
5. Greater profitability
There is much evidence that supports the viewpoint that gender diversity positively impacts a business’s impact on the bottom line.
In conclusion, pursuing gender diversity in the workplace is not only fair labour practice, but also a smart business move. By promoting equality and inclusivity, companies can benefit from a wider talent pool, different perspectives, enhanced collaboration, improved staff retention, a better reflection of their customers, and greater profitability.
Over to you for sharing your comments and experiences.
About the Author: Kerstin Jatho
Kerstin is the senior transformational coach and team development facilitator for 4Seeds Consulting. She is also the author of Growing Butterfly Wings, a book on applying positive psychology principles during a lengthy recovery. Her passion is to develop people-centred organisations where people thrive and achieve their potential in the workplace. You can find Kerstin on LinkedIn, Soundcloud, YouTube and Facebook.
