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Yet Another Reason To Think About Diversity When You're Hiring

  • Writer: Pavan Khoobchandani
    Pavan Khoobchandani
  • Jan 10, 2019
  • 2 min read

Updated: Jan 31, 2019


You should be thinking about diversity when you are hiring new employees. I'll go as far as to say your success depends on it. I'm not talking about affirmative action plans, or about quotas - what I'm saying is this:


You will make more money if your team is diverse.


As stated in a 2017 Forbes article

Companies can capitalize on the diversity they already have by including more diverse employees in business decisions at all levels. Directly measuring this inclusive behavior focuses attention on leadership actions that executives can take today. The simple concept of inclusive decision making can bring about faster change — and contribute directly to the bottom line.  

According to Forbes, research has shown that: 

  • Inclusive teams make better business decisions up to 87% of the time.

  • Teams that follow an inclusive process make decisions 2X faster with 1/2 the meetings.

  • Decisions made and executed by diverse teams delivered 60% better results.

What drives non-diverse teams to have poorer results? A lot of things, including groupthink, a desire to conform, and self-censorship of ideas. One way to fight these outcomes is to have a variety of viewpoints, ideas, and lenses at the decision-making table, and to provide employees with a safe space to voice their ideas. How? A focus on DIVERSITY and INCLUSION (you need both). 

An aside: Oprah won't use the word "diversity" anymore. As she's stated in Time

I used to use the word ‘diversity’ all the time” "'We want more diverse stories, more diverse characters …’ Now I really eliminated it from my vocabulary because I’ve learned ... that the word that most articulates what we’re looking for is what we want to be: included. It’s to have a seat at the table where the decisions are being made.

Another aside: I have a great explanatory anecdote about diversity and Spring Break. Email me if you want to hear it!


Basically, a focus on diversity and inclusion will make your business win more and improve the bottom line.


But wait, there's more! Cases in which employees have sued after they either have not been hired or didn't get a promotion after an interview have held that "lack of diversity on a[n] [interview] panel can indicate circumstances giving rise to an inference of discrimination." 

What does this mean? An "inference of discrimination" is a legal test used at the motion to dismiss stage to see whether a plaintiff's claims might be dismissed very early in the litigation. If there is an inference of discrimination, it's harder for an employer to get a lawsuit dismissed early on. And, longer litigation = $$$$$$. 

The takeaway: Better business results will come with diversity & inclusion. You need both! 

 
 

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