The business world may be ever-changing, but one thing remains constant: Organizations that harness the differences of their people are the ones that will excel.
Our Great Place To Work® research has found that when it comes to unlocking innovation, workplace diversity and inclusion is the key. Regardless of industry, field, or domain, organizations that seek diverse viewpoints — across ethnicity, gender, age, educational background, etc. — experience higher rates of innovation.
For example, our research has shown that when employees are uncomfortable sharing personal details, such as sexual orientation or whether they have a disability, those companies see a drop in levels of employee trust, pride, and camaraderie, all of which are critical to effective innovation at work.
Similarly, racially diverse workplaces show higher revenue growth than their less diverse counterparts — 11.1% for those in the top quartile versus 8.6% for those with significant gaps between white and minority employees, based on our research.
But elevating the importance of diversity and inclusion in the workplace is just half of the equation for unleashing your organization’s innovative potential. A deeper, more structural change is needed.
Many leaders associate innovation with experts, technologists, and R&D professionals whose job it is to grow the company. But the truth is that innovation is about people. It’s about the game-changing ideas they can create by coming together in diverse and inclusive teams.
Here’s why diverse and inclusive teams are the new engines of innovation at work:
1. Diverse and inclusive teams create more unconventional ideas
Ideas aren’t created out of thin air. They’re created by people — by teams of people. And the more diverse these teams are along many dimensions (culture, ethnicity, gender, sexuality, age, experience level, educational background, expertise, etc.), the more likely they are to draw inspiration from seemingly unrelated places. These idea combinations lead to more unlikely — and more innovative — ideas.
A striking example of this concept is Wegmans’ cauliflower rice story. In 2014, before the cauliflower craze truly hit mainstream consciousness, Jody Wood, a meal coach at Wegmans, came up with the idea of introducing cauliflower rice as a healthy food option in the store. This initiative was spurred by Wood’s personal journey to find dietary solutions for her husband’s Type 2 diabetes.
2. Diverse teams are better at making decisions
When it comes to deciding which ideas to test and put more resources behind, diverse and inclusive teams are far better than homogenous ones.
Data collected by Cloverpop found that the more diverse the team (by gender, geography, and age), the better the team’s decision. James Surowiecki’s book “The Wisdom of Crowds” also supports this idea.
When teams increase their level of difference, they increase their chances of selecting an idea that is game-changing. Why is that? Because diversity of thought stretches a team in ways that can be uncomfortable, but effective.
3. Diverse teams are better at making innovative ideas happen
Diverse teams can bring to bear a broad array of experiences, perspectives, skills, and networks. This expansive resource base allows them to execute on ideas more quickly, efficiently, and cost-effectively.