By now, you’ve probably heard the term “workplace diversity” thrown around quite a bit. But what does it really mean? Workplace diversity is simply the embrace of employees from a variety of backgrounds, experiences, and perspectives. And while some business owners may see workplace diversity as a mere trend, the reality is that leveraging workplace diversity can have a major impact on your bottom line. Here’s a closer look at why.

A Diverse Workforce is Good for Business

There’s no denying that a diverse workforce brings with it a host of unique perspectives and skill sets. And when harnessed correctly, these diverse perspectives can lead to more innovative solutions, better customer service, and enhanced creativity. In other words, workplace diversity isn’t just good for morale—it’s good for business.

What’s more, studies have shown that companies with diverse workforces are also more successful financially. A 2019 study by McKinsey found that companies in the top quartile for gender diversity on their executive teams were 21 percent more likely to experience above-average profitability than companies in the bottom quartile. Another study found that ethnically diverse companies are 35 percent more likely to outperform their less diverse counterparts. The numbers don’t lie—diversity pays.

Of course, simply having a diverse workforce is not enough. In order to truly leverage the benefits of workplace diversity, you need to create an inclusive environment where all employees feel valued, respected, and heard. This can be achieved by implementing things like unconscious bias training, offering flexible work options, and creating Employee Resource Groups (ERGs). When done correctly, these initiatives can help create a culture of inclusivity that will allow your workforce—and your business—to thrive.

There’s no doubt about it—workplace diversity is good for business. Not only does it improve morale and lead to more innovative solutions, but it also has been proven to boost financial performance. If you’re not already embracing workplace diversity at your company, now is the time to start. By taking steps to create an inclusive environment for all employees, you can set your business up for long-term success.