Diversity In The Workforce Increases Consumer Reach
Once seen as an idea of the future, diversity in the workplace is now the popular method of employment companies are implementing to sustain business for the future. The reason is because this provides a rich mix of employees to capture a snapshot of different markets and therefore build trust and a further connection with consumers. Brands that make it a point to understand deeply the differences in ethnicities, gender, sexual orientation, religion, and cultures, strengthen their marketing strategies which can result in faster growth.
Companies in the S&P 100 that received first and second ratings for including women, minorities, and people of diverse sexual orientation include Citigroup, Merck, JP Morgan Chase, and Coca Cola. Another 11 companies ranked third, including American Express, Dell, McDonald’s, and PepsiCo. What these companies also have in common, is that they are all top mega international brands. Their consumer reach is greater than most companies, which perhaps relates to their diverse workforce. Investing in a diverse workforce effectively drives innovation, increases creativity, and makes recruitment easier.
One group in the U.S. that has been demonstrating a constant growth and will continue to grow in the workforce are Hispanics. According to the U.S. Business Labor Statistics, the Hispanic workforce is expected to skyrocket from its 2011 number of 23 million to 30.5 million of the U.S. workforce in 2020.
This finding among the U.S. workforce is important to know since Hispanic consumers were reported by the Selig Center for Economic Growth of having a purchasing power of about 1.0 trillion in the U.S. and will grow north of 1.5 trillion in 2015. When conducting market research, recognizing such information can provide companies valuable insight about tapping into certain markets and targeting consumers, which can be linked to the practice of diversification in the workplace.