The Importance of a Diverse Workforce  

A healthy work environment requires that every individual can work and learn in an atmosphere that promotes respect, dignity, acceptance, and belongingness for all. With the changing demographics of our student population and workforce, it is more important than ever that employers seeking to hire UNL Husker talent are committed to developing the skills and shaping a workplace environment needed to attract and retain a diverse talent pool. 

Changing Demographics in Nebraska and the U.S. 

• By 2045 Census Projections predict that the US will have a more racially diverse population where white people will no longer be in the numerical majority (Frey, 2018). 

• In Nebraska, studies show that the population is aging, becoming more racially and ethnically diverse, and moving more toward its most populous cities and counties (Drozd, 2018). The percentage of population which identify as non-white or Hispanic has been increasing yearly since 2000, especially among children.  

• As those children become college-age and eventually graduate and enter the workforce, the diversity of the workforce will increase. According to a 2018 study, minority groups contributed to more than 50% of population growth in two-thirds of all Nebraska population gains between 2000 and 2010 (Drozd, 2018). 

Connecting Company Performance to Racial and Ethnic Diversity 

• Racially and ethnically diverse companies are 35% more likely to outperform their competitors, and those with gender diversity are 15% more likely to outperform their competitors (Hunt, Layton, & Prince, 2021). 

• Companies in the top quartile for racial and ethnic diversity are 35 percent more likely to have financial returns above their respective national industry medians. 

• Companies in the top quartile for gender diversity are 15 percent more likely to have financial returns above their respective national industry medians 

• In the United States, there is a linear relationship between racial and ethnic diversity and better financial performance: for every 10 percent increase in racial and ethnic diversity on the senior-executive team, earnings before interest and taxes (EBIT) rise 0.8 percent (Hunt, Layton, & Prince, 2021). 

• Diverse talent leads to increased creativity, higher innovation, and better decision making. According to research, inclusive companies are 1.7 times more likely to be innovation leaders in their market (Bersin, 2019). 

• Since diversity in the workplace means that employees will have different characteristics, experiences, and backgrounds, it also ensures a variety of different perspectives and skill sets. Harvard Business Review found diverse teams are able to solve problems faster than cognitively similar people. Employees from diverse backgrounds have different experiences and views, which is why they are able to will bring diverse solutions to the table. Thus, the best solution can be chosen sooner, which leads to faster problem-solving (Reynolds & Lewis, 2017). 

• Recent research that included 180 companies in France, Germany, the United Kingdom, and the United States. They found out that companies with more diverse top teams were also top financial performers

• Diversity and inclusion in the workplace cause all employees to feel accepted and valued. When employees feel accepted and valued, they are also happier in their workplace and stay longer with a company. As a result, companies with greater diversity in the workplace have lower turnover rates. By creating commitment to diversity and employees create a sense of belonging to the company and are less likely to leave (Bersin, 2019). 

Research clearly shows that companies and organizations that create and retain a diverse workforce are more successful. At the same time, there are too many stories and studies that illustrate people with diverse identities feeling excluded, unwelcome, or outright terrorized in the workplace. This leads to disengagement which ultimately could lead to turnover. 

While we know diversity efforts can help organizations with profits, retention, and culture, there are still roadblocks organizations face to support a diverse workforce well.  This article about strategies to overcome those challenges and one of the first steps is aligning organizational diversity practices with organizational goals (Shelma, 2018). We recognize that each organization is at a different place in their journey, but we hope that this toolkit provides a starting point for employers to begin (or expand) designing and implementing inclusive recruitment and retention practices.