For organizations to realize the business benefits of diversity, they must embrace a focus on inclusion. Inclusion concerns how diverse individuals and groups can be engaged, valued and harnessed to increase the effectiveness of an organization's human capital. Ineffective diversity management can have both direct and indirect cost implications for an organization. This may include high-profile and costly litigation cases, or indirect costs like minority employee turnover and absenteeism.
In an era of increased competition for talent, organizations known for effective diversity management are more likely to attract highly skilled workers from diverse talent pools. In a globalized marketplace, a diverse workforce can bring its rich cultural knowledge to bear when designing products and marketing strategies, which appeal to various tastes and preferences. Different ideas, perspectives and competences increase the potential for innovation and solutions to organizational problems. Organizations become more adaptable as diversity increases, and organizational policies and operating models broaden. Organizations, open up to new ideas and ways of working.
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