Globalization is finally becoming a reality due to the internet and the resulting technologies born out of it. Globalization may have increased the competitive pressure on the organizations but it has also created opportunities such as cheaper access to international markets and more efficient network of global operations. The organizations have realized the benefits of having a diverse workforce because the cultures, lifestyles, and market structures often differ greatly around the world.
First of all, diverse workforce brings different perspectives which are important because America is increasingly becoming diverse and more and more American companies are doing business overseas. It is often very difficult to understand other cultures that may be entirely different from domestic cultures, thus, it pays to have employees with local knowledge. In addition, diverse workforce also leads to more innovative culture with more out-of-the-box ideas and solutions as confirmed by a report from the European Commission. Diverse workforce also helps organizations better manage their global operations (EIRO).
When organizations aim for a diverse workforce, they have a larger talent pool from which to find the most appropriate candidates. A diverse workforce also improves the reputation of the organization and may help it attract diverse groups of customers for its products and services (Rob). A University of Illinois at Chicago study found that the average number of customers for businesses with high racial diversity was 45,525, 38,254 for firms with medium diversity, and 23,415 for companies with low diversity (Newswise, 2006). Thus, it is clear that having a diverse workforce is not only a good social policy but also economically beneficial.
EIRO. (n.d.). Report finds that diversity policies can improve business performance. Retrieved February 14, 2012, from http://www.eurofound.europa.eu/eiro/2003/11/feature/eu0311208f.htm
Newswise. (2006, August 8). Businesses benefit from diversity. Retrieved February 14, 2012, from http://www.newswise.com/articles/businesses-benefit-from-diversity
Rob, M. (n.d.). Workforce Diversity: Changing the Way You Do Business. Retrieved February 14, 2012, from http://www.diversityworld.com/Diversity/workforce_diversity.htm