Discuss the ways in which employing a diverse workforce can give an organization a competitive advantage.

Question

What will be an ideal response?

Answer 1

Answer: Companies with a reputation for providing opportunities for diverse employees will have an advantage in the labor market and will be sought out by the most qualified employees. Furthermore, as the workforce changes, so does the customer base. Just as diverse groups prefer to work for employers that value diversity, they may prefer to patronize such organizations. A diverse workforce can provide a company with greater knowledge of the preferences and consuming habits of a diversified marketplace. This knowledge helps in designing products and developing marketing campaigns to meet consumers' needs. In addition, for at least some goods and services, a multicultural sales force can help sell to diverse groups. A diverse workforce also can give a company an edge in a global economy by helping to understand other customs, cultures, and market needs. Work team diversity promotes creativity and innovation because people from different backgrounds bring different perspectives. Diverse groups have a broader base of experience from which to approach a problem; when effectively managed, they invent more options and create more solutions than homogeneous groups do. In addition, diverse groups are freer to deviate from traditional approaches and practices. Diversity also can help minimize groupthink.