Workplace Diversity: The Benefits of Diverse Employment Practices

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One in four of Australia’s 22 million residents were born overseas, and 46 per cent have at least one parent who was born overseas, making Australia one of the most multicultural and diverse countries in the world. As an employer, having this diversity reflected in the workplace is essential and highly beneficial. Find all you need to know about diverse employment in this article.

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What is diverse employment?

Diversity in the workplace is all about the right blend of people. It’s about hiring employees who all bring unique identities to the table, representing an intersection of different ethnicities, races, physical abilities, life experiences and much more.

Diverse employment practices and policies ensure that you hire staff from a wide range of backgrounds. Having access to a team of diverse employees is sure to enhance your business through all their different experiences and perspectives.

In Australia, national and state laws regulate equal employment opportunity and anti-discrimination in the workplace. As an employer, you need to understand your rights and responsibilities under anti-discrimination and human rights laws.

Some examples of diversity in the workplace include hiring individuals of different

  • races
  • genders
  • nationalities
  • ethnicities
  • physical abilities
  • neurotypes
  • educational backgrounds
  • locations

So, bear in mind that today’s diversity practices go beyond race and gender and focus on a number of different aspects.

Related: How Hiring For ‘Culture Add’ Can Help Your Business Outshine the Rest

Australian anti-discrimination and human rights laws

Australia has both federal and state/territory laws in place to tackle discrimination.

The following laws operate at a federal level in Australia:

  • Age Discrimination Act 2004
  • Australian Human Rights Commission Act 1986
  • Disability Discrimination Act 1992
  • Racial Discrimination Act 1975
  • Sex Discrimination Act 1984

The following laws operate at a state and territory level in Australia:

  • Australian Capital Territory Discrimination Act 1991
  • New South Wales Anti-Discrimination Act 1977
  • Northern Territory Anti-Discrimination Act 1996
  • Queensland – Anti-Discrimination Act 1991
  • South Australia Equal Opportunity Act 1984
  • Tasmania Anti-Discrimination Act 1998
  • Victoria Equal Opportunity Act 2010
  • Western Australia Equal Opportunity Act 1984

Commonwealth laws and state/territory laws generally overlap and prohibit the same types of discrimination. Both state/territory laws and Commonwealth laws apply, so employers have to comply with both.

What are the benefits of diversity in the workplace?

Workplace diversity has a number of benefits for employers and makes the working environment more enjoyable for employees. Let’s take a closer look at some advantages of diverse employment:

Larger talent pool

If you don’t restrict the required attributes of applicants too much, you’ll naturally have access to a larger talent pool. Being open to hiring staff from any culture or country makes it more likely that you’ll attract top talents in their fields. In fact, according to the Department of Immigration and Citizenship, ‘migrants make an enormous contribution to Australia’s economy and provide an estimated fiscal benefit of over 10 billion dollars in their first ten years of settlement’.

More creativity and innovation

The more employees from different countries or cultural backgrounds you have, the broader the range of ideas and solutions they will come up with and contribute to your organisation. This may just give your business the edge over your competitors.

Reaching a global market

In today’s globalised world, diversity can be a key driver when it comes to tapping into global markets. Companies no longer operate in silos, and business transactions are routinely done across borders. Staff from your target countries or cultures are familiar with the intricacies of their culture and will be able to provide in-depth knowledge of local customs and customer preferences. This is essential if you want to stay competitive in a global market, and it will improve your performance and lead to a higher turnover.

Stability and low churn rates

Having a diverse workforce usually means content staff who are likely to stay with your organisation for longer. This ensures stability in the company and lowers employee churn rates, ultimately saving you costs.

Strong brand reputation

Being known as an employer who values diversity and who actively hires people from diverse backgrounds can boost your brand among both customers and potential new hires. You will be seen as inclusive and progressive and can build your brand on these values.

Related: Employer Branding Matters More to Job Seekers Than You Think

How can you improve workplace diversity?

If you’re not sure your organisation is diverse enough, there are some steps you can take to improve workplace diversity.

Take stock

Before you do anything else, review and analyse your current diversity practices and policies. Gather data on staff demographics, for instance, the gender ratio of the workforce as a whole and of the executive team in particular. Employee surveys can also be helpful to gauge staff opinion and the general feel within the company. This will help you get a good picture of the current level of diversity in the organisation.

Lead from the top

Hire a diverse leadership team, and the message of inclusivity will filter down to all levels. It also shows that company leaders can relate to the cultural backgrounds of different employees and may therefore be able to advocate for their needs. Last but not least, a diverse leadership team clearly shows that diversity and inclusion are not just empty buzzwords but taken seriously in your business, which will send a very positive message to customers and business partners.

Set goals

On the quest to improve diversity, it helps to set clear goals in terms of what you want to achieve and by when. For example, you may want to create a two-year plan to review your diversity policies or establish an inclusivity training program. Including milestones makes it easier for your staff to stay on track and measure progress over time. Putting these goals in writing will ensure you stay on track and achieve your set targets.

Offer training

Educate your team on the benefits of a diverse working environment. This can take the form of online courses, webinars or in-person talks. If everyone in the company knows what’s expected and what advantages inclusivity brings with it, there are no excuses and they can be held accountable for taking the right actions.

Tackle unconscious bias

Unconscious bias in the workplace occurs when you don’t know an applicant but make usually unfavourable assumptions about their capabilities, character or intelligence based on their appearance or conduct, and you are unaware that you are reacting in this way, hence unconscious bias. Once you are aware of this phenomenon, you can monitor your actions, take a step back and make more informed decisions rather than operating on gut instinct.

Celebrate differences

You’ll be more likely to retain your employees if they feel acknowledged and represented in the business. In addition to hiring a diverse leadership team, your staff will appreciate having their unique backgrounds not just accepted, but celebrated. You could host a team lunch, where everyone brings a dish from their home country or cultural background, or you could introduce a different theme in the canteen once a week. Consider celebrating Harmony Day on 21 March, which was created in 1999 to celebrate unity and diversity. Accepting cultural tattoos or body art among your staff will also boost your standing as an inclusive employer.

Related: Tattoos in the Australian Workplace – Policies for Māori Tattoos and Other Body Art

Benefits of diversity beyond your company

Successful diversity policies go beyond the confines of your company. Actively looking for partners, suppliers and customers from underrepresented parts of society can be another important aspect of workplace diversity. These previously untapped and often underutilised resources may bring you a wealth of different experiences and input that will give your business the edge over more traditional competitors.

So, focusing on internal diversity is a great start, but don’t forget the opportunities that lie in external diversity either.

Read more: When you are ready to hire, visit our Hiring Resources for Employers page to help you get started.

Diverse employment practices are all about recognising the value of individual differences. When businesses hire and retain a diverse pool of individuals, this brings many benefits to both the business and its employees. Workplace diversity is therefore certainly a topic worth focusing on for employers.

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Indeed’s Employer Resource Library helps businesses grow and manage their workforce. With over 15,000 articles in 6 languages, we offer tactical advice, how-tos and best practices to help businesses hire and retain great employees.