Innovation is key to profitability. Companies with fresher product portfolios offer more creative and novel solutions, this will sell more products and services, and, ultimately, record higher profits. Diversity helps companies to achieve this innovation. There is a clear correlation between a company's diversity and its creativity, flair, and innovation.
A recent study from the Harvard Business Review examined 1,700 companies across eight different countries (the US, France, Germany, China, Brazil, Austria, Switzerland and India). For all of the companies studied, researchers discovered a positive correlation between diversity and innovation.
These researchers were able to put a number on how diversity positively influenced the companies. They found that diversity helped boost innovation revenue by 12.9%.
Most importantly, it was found that the most diverse enterprises were also the most innovative, as measured by the freshness of their revenue mix. Countries with above-average total diversity, measured as the average of six dimensions of diversity (migration, industry, career path, gender, education, age), had 19% points higher innovation revenues. All six dimensions of diversity had statistically significant correlations with innovation, both individually and collectively, although industry, nation of origin, and gender had slightly larger effects.
Therefore, a diverse workforce creates a business with innovation. This will increase the profits the business will make, leading to financial success for the company.