Are diverse organizations really more innovative and successful than others and should diversity actually be a must-have for new companies or is it just a trend? Most managers now accept that employers/companies gain much from a varied workforce, however the idea is hard to prove, especially when it all comes down to measuring how diversity actually affects a firm’s capabilities and innovative methods. However, a number of studies show that it definitely brings a positive change. It should also be noted that your colleagues can be diverse in various forms, the most common ones being age, gender, ethnicity, and race.

The basis of innovation for every company comes from the diversity of their workforce. This could be in terms of diversity of talent, which means providing a different set of ideas and perspectives for better business solutions. A diverse workforce also reflects as an asset for innovation that would give your company a better position in today’s working sphere through consumer insights/reviews and “wisdom of the crowd” that could lead to better outcomes.

Different people perceive problems and solutions differently, which are accompanied by how every individual searches for answers. Many companies today have already started becoming more calculated about the influence diversity brings to innovation. For example, Walmart has an existing diverse culture and continues to do so by employing talent through creative methods and by increased community outreach programs.

On the other hand, inherent diversity is only half the equation. Business leaders also need diversity in order to create a culture where workers have the liberty to share ideas. There are six ways that open doors to innovation, which are: ensure that everyone is heard and understood, make the flow of ideas easier, give the authority to make decisions, share credit for success, give feedback that’s workable and implement received feedback from the team. The leaders who promote diversity in voices and opinions are almost twice as likely to receive valuable insights, according to recent research.

The top 3 ways diversity drives innovation into a business:

1. It fuels creativity – When people from various backgrounds and perspectives are in the same workplace and when leaders value these differences, sharing ideas becomes smooth and hence promotes creativity.
2. Helps make better decisions – There’s definitely a sense of satisfaction when everyone’s decisions are in harmony, but it’s better to engage in and accept various perceptions, have creative and strong debates and constructive conflict.
3. Diversity helps with recruitment – The competition for valuable talent is fierce in today’s economy. If your company is one that wants to recruit highly-talented staff, it’s crucial to cultivate a diverse and inclusive workforce. It highly benefits businesses.