UPFRONT : Diversity pays

From America comes more confirmation that workforce diversity delivers tangible benefits.
It is already well recognised that companies are better able to respond to the needs of more diverse global markets if their workforce population reflects that diversity. There have also been studies linking diversity to increased innovation and increased profitability.
Now sociology professor at the University of Illinois has come up with data showing companies with more racially diverse workforce tend to generate better financial results. According to Cedric Herring’s study “Does Diversity Pay: Racial Composition of Firms and the Business Case for Diversity” businesses with greater racial diversity also report higher sales revenues, more customers, larger market shares, and greater relative profits than those with more homogenous workforces.
His study (reported on www.management-issues.com) was based on data collected from companies across the United States which showed racial diversity improved performance even after controlling for other factors (size, gender composition, age, type of work etc). Average sales income for companies with highly diverse workforce was around US$5.7 million compared with US$3.1 million for company with low diversity.

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