The Diversity Dividend: How Inclusive Companies Gain a Competitive Advantage

Companies with a diverse workforce are better positioned to deliver a truly customer-centric experience to all consumers. For example, when building technology, it is important for employees to be aware of the cultural meaning of color schemes, symbols, and graphics. Red signifies good luck in Chinese culture, but in Western culture it can indicate danger or caution.

Likewise, icons and symbols used in software must be universally recognizable or adaptable to different cultural contexts. A seemingly simple color choice can impact everything from purchasing decisions to software adoption by different communities. Companies that prioritize a deep understanding of the needs and preferences of culturally diverse global consumers gain a competitive advantage.

Technical talent gaps can undermine customer-centric mission

Living and working in the melting pot of technology and innovation in Silicon Valley, California, I have seen firsthand the gaps that exist in the tech workforce. For example, the black community, which makes up about 7% of the region’s population, represents only 1.5% of the tech community. This lack of representation at the local level reflects a broader trend across the United States and other Western countries.

This gap is not only a social problem. This is a major business challenge. When technology companies fail to represent the diversity of the society in which they operate, they miss out on the wealth of insights and perspectives needed to create truly customer-centric products. This oversight can result in a failure to understand and meet diverse customer requirements, ultimately impacting the company’s bottom line.

Technology companies that are first to address and close this diversity gap have a unique opportunity to gain a real competitive advantage. They can expand their reach and influence by leveraging historically overlooked markets and customer segments.

How can technology companies effectively embrace diversity?

One approach is to use a targeted recruiting strategy that focuses on attracting a diverse pool of candidates. This includes reaching out to diverse communities and ensuring that our hiring process is free of biases that could hinder diverse talent. Mentorship programs can play an important role in developing and retaining diverse talent, providing them with the support and guidance they need to succeed in the technology industry.

There are many organizations that can help. For example, organizations like the Black Data Professionals Association (BDPA) advocate for bringing underrepresented communities into tech. The work they do helps companies achieve their diversity goals. It changes the lives of individuals by providing them with skills opportunities that may not exist because they typically don’t see people like them in these roles.

Another important aspect is conducting diversity training for all employees. This training builds a more inclusive workplace culture that respects and celebrates differences, rather than simply tolerating them. It’s about creating an environment where all employees feel empowered and respected. In this environment, innovation and creativity are applied in culturally diverse directions to create new business opportunities.

In addition to these internal strategies, companies can consider external programs such as IBM® SkillsBuild®. These initiatives provide resources and training opportunities to develop a diverse talent pool, equipping underrepresented groups with the skills they need to succeed in the technology sector.

But implementing these strategies is just the beginning. To truly measure the impact, it is essential to collect customer-centric metrics such as Net Promoter Score, Customer Satisfaction Score, and Customer Lifetime Value. These metrics can provide insight into how well a company is meeting the needs of its diverse customer base and guide further strategy improvements. You can only manage what you measure.

The need for diversity in technology goes beyond social equity. This is a strategic business move.

As the world becomes increasingly interconnected and diverse. The technology industry, which drives innovation and change, has the potential to lead by example in this regard and create not only better products, but a better, more inclusive future for all.

Empower a diverse future in technology with IBM SkillsBuild. Listen to a podcast discussion about diversity and business