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Personal Finance

Embracing diversity in a global work environment

Nov 06, 2015 12:40 AM EST

Meeting globalization, our nation has become diverse. And with it, comes the need for people to engage and communicate to different people and different culture which encompasses the globe.

People have come to realize that they are not living in a secluded village of like-minded and same cultured inhabitants but a part of a greater and more diverse global village with different mindsets and cultures.

Workplace diversity can be synonymous to the differences among each individual in the company. It encompasses educational backgrounds, gender or sexual orientation, race, ethnicity, religion, cognitive style and organizational structure.

In a study by McKinsey & Company, women in the workforce have accounted for a quarter of the current US GDP or 47%, an increase from 37% in the past 40 years. It substantiates the need and importance of diversity in the world economy.

Furthermore, the National Gay and Lesbian Chamber of Commerce reports that gay or transgender-owned businesses account for more than 5% of the US businesses or 1.4 million. From the data gathered by the US Census Bureau, people of color hold 22.1% of all US businesses while 28.8%3 are owned by women.

DiversityDefined                                                                                                                             

Diversity, according to the scholarly paper of Esty, defines it as the valuing, acknowledging, celebrating and accepting the differences of people with regards to race, sexuality, age, religious denomination and or societal status.

According to Stephen G. Butler, co-chair of the Business-Higher Education Forum, diversity has become a major catalyst that the United States has yet to be recognized.  He also said that proper management and its effectiveness thereof is a key to improve productivity in the workplace.

Diversity and Benefits

In the paper of Green regarding diversity, they have listed three important benefits of diversity in the workplace.

An Increase in Productivity

Companies and organizations embracing effective diversity have reported an increase of productivity in its employees. It experienced a greater number of solutions when encountering a problem due to its employees having different viewpoints. It also reported a decrease in lawsuits, making the executives and its employees feel at ease with their jobs in fluctuating and competitive markets.

An Increase in Creativity

With a diverse pool of human resources, companies have been reported as being competitive among others, making them more profitable and will likely to enjoy success. Creativity from the employees has been shown to be the reason for the success through their different viewpoints and individual talents in the problem-solving scenarios.

Drives Forward the Economic Growth

The consolidation of individuals with different talents, backgrounds and status, companies and organizations has known to make a bigger share of the market because they can cater to different gender and racial backgrounds.

Diversity and its Challenges

Diversity is a difficult task that poses many challenges to foster an inclusive environment in the workplace. Because it is not easy managing a diverse workforce, company and organization executives must remove the barriers that hinder a smooth and productive diversity in the workplace.

They must plan and implement well-suited organizational rules and system of practices for productivity to be maximized. Ineffective communication leads to low morale, confusion and little to  

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