Companies that have employees with different experiences, cultures, ethnicities, races, and ages are practising workplace diversity. In Nigeria, a big 4 accounting firm KPMG increased the age for graduate training to 27 years. This practice might be the firm’s way of promoting diversity in the workplace.
What is workplace diversity?
This is when a company's management allows the employment of staff and directors from various ethnic groups, sexual orientations, experience, age, disability, gender, race, and religion to work in the entity.
In workplace diversity, employers have a policy of employing people with a variety of backgrounds. So, they may consider employing more males, if there are more female employees. This is referred to as gender diversity.
In Nigeria, KPMG increased the age limit for graduate training recruitment to 27 years. This new policy by the firm might be part of its workplace diversity plan. If it is so, it is referred to as age diversity.
Companies allow individuals with different sexual orientations to work together. Also, individuals with ethnic differences have been seen working together. Yoruba, Igbo, Hausa, Urhobo, and other ethnic groups have worked together to achieve the organisation's goals.
Why do companies practice diversity in the workplace
Organisation goals and objectives
A company with the plan to achieve a high market share will seek diversity. It will employ staff from different races if the target market includes customers from various races. This can be used to sell to more people in each race.
Creativity and innovation
Diversity in the workplace can aid creativity and innovation. Ideas from people of different ethnicities, ages, experiences, genders, disabilities, and religions can stimulate creativity with the goal of innovating and creating effective products that will serve the needs of customers.
Attract investments
Some investors are particular about where they invest their money. For example, some investors focus on Islamic finance. So they invest in a company if they follow Islamic finance principles.
Although not proven through academic research, investors might be particular about an entity's policy of workplace diversity when considering investment.
Comply with regulations
In corporate governance regulation, there is a principle that the board of directors should be diverse. That is from different ethnicities, ages, sexual orientations, races, and so on. If at the top level management diversity is practised, then at lower levels it can be enforced by management.