Proving the value of diversity
and inclusion through profit.
Diversifying your workforce to stay one step ahead of the game.

By recruiting diverse senior executives and advertising teams and forming an environment where employees are valued for their distinct skills, experiences and perspectives, they have developed profitable new brands for diverse market segments, secured brand loyalty, and enhanced their power to retain top executives from communities of color. Both companies have clearly benefited from acknowledging diverse insights and the product affinities that a visible commitment to diversity delivers.

Finally, in today’s global economy, companies are often represented in more than one country – either through direct operations, outsourced partners, or vendors and affiliates. A business strategy or problem in a globalized world requires a global solution. This is more likely to happen if people from different backgrounds, races and places are included in the solution. Thus, diversification helps a company become more innovative and outperform the competition.

The demographic trend.
A quick look at demographic trends in the United States is all the proof that is needed to understand that a diverse workforce is imperative to growth. Companies that have committed to diversity hiring – such as Verizon, HBO and Coca-Cola – have already expanded their market share and secured a diversified talent pool that drives innovative thinking at the organization.

If we look at data from 1950, there were nine white people for every person of color in the United States. Today, when we look at employees 40 or younger, there are three white people for every two people of color, and the Bureau of the Census estimates that people of color will constitute at least 47 percent of America’s population by 2050.

Moreover, Baby Boomers, the mainstay of America’s workforce for three decades, are reaching their retirement age, with approximately 70 million Baby Boomers to retire over the next 15 years. They will be replaced by an increasingly multicultural workforce whose diversity has been fueled by the single greatest wave of immigration in our nation’s history – a wave that has drawn millions of first- and second-generation citizens from every corner of the globe.

Women – the new decision makers. 
Today’s economy is strongly influenced by the female head of household. Research recently conducted by the Boston Consulting Group confirms that women have firmly established themselves as the chief purchasing agents of America’s households. In fact, women represent 46 percent of the American workforce, and their median income has increased by 63 percent over the past three decades. Companies that engage women as managers and leaders will benefit from the insight of the most important decision makers on domestic spending and investment. Deloitte’s Personal Pursuits initiative has put them on the forefront of recruiting and retaining female executive talent. Through tailored programs that allow women to leave the workforce for up to five years to raise children, Deloitte offers ongoing training and support to keep their skills sharp and remain connected to the business. 

The untapped talent pool.  
According to the Department of Labor, one in five Americans are currently classified as disabled, and people with disabilities themselves control more than $200 billion in discretionary spending every year. People with disabilities have special insight into consumer needs, and their contributions to the development of products and services that meet those needs is invaluable.

Diversifying your workforce age spectrum.
Over the next decade, employers will confront a nationwide labor shortage more significant than the workforce crunch we saw during the 1990s tech boom. The shortage will be dictated by a mass wave of Baby Boomer retirees that will produce a deficit of over 30 million workers. To withstand this transition, employers must also look to diversify their workforce’s age spectrum. Employers will have to make adjustments to their corporate culture in order to meet the high expectations of the Generation Y and Generation Next workers who are entering the workforce for the first time.

Today’s 20-somethings use a customer’s mindset when it comes to making career choices. They care about the ideals of their employers and the value that companies place on their employees. Thus, companies will need to consider how to create multigenerational workplaces, tap the knowledge and experience of employees 65 and older, and, at the same time, invest in solutions to bring the new workforce up to speed.

Diversity in the workplace. 
Having a diverse employee pool better positions companies to develop products and services that appeal to the full range of consumer populations.  Diverse workforces have the insight to develop effective marketing strategies that address the unique needs, tastes and interests of multiple target audiences.

Inclusive workplaces provide all employees with opportunities to learn and experience cross-cultural communication, integrate multiple perspectives and apply creative approaches to problem solving. These skills are absolutely essential in the diverse business culture of today’s global economy.

How do companies capitalize on the opportunities that diverse and inclusive workforces offer?

As a division of the world leader in workforce solutions, LHH recognizes that diversity is essential to helping our clients build a competitive advantage in a 21st-century global economy that knows no boundaries, operates in all cultures, and trades in every language.

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70 million baby boomers are expected to retire over the next 15 years and only 40 million workers are expected to enter the workforce in the same period.