Widen your choice of employees to improve competitiveness
The business case for diversity
Recruiting a diverse workforce has tangible business benefits. Many businesses find it helpful to have a workforce that reflects the community they trade in.
This can help them tailor their goods and services so as to build trust and goodwill among customers and suppliers.
Other benefits of building a diverse workforce include:
- having a wider range of resources, skills and ideas among your employees that you can tap into
- improving staff retention, leading to lower recruitment and training costs
- increasing employee efficiency and reduced stress due to cross-functional teams, ie employees are capable of a variety of roles thanks to their different backgrounds and skill sets
- avoiding claims of unfair treatment or discrimination
- building a reputation as a diverse business
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building a competitive edge in recruitment and retention as you can select from a bigger pool of candidates
A diverse workforce can also help you understand your customers better by helping to identify:
- problems that customers may have, eg language barriers and poor access for disabled people
- how customers with different religious beliefs or from different backgrounds might react to your business or product
Customers are increasingly attaching great importance to a business' reputation. They may turn to a competitor if they feel your business is indifferent to supporting the needs of a particular sector of people.
By recruiting employees from under-represented groups, you can avoid alienating potential customers. You can also avoid possible discrimination claims, eg by employing women in a traditionally male environment.
Subjects covered in this guide
- Introduction
- The business case for diversity
- Recruiting a diverse workforce
- The effect of staff diversity on your customers and suppliers
- Here's how a diverse workforce has helped my business

EHRC Helpline - England
0845 604 6610
Acas Equality Direct Helpline
0845 600 3444

Actions
- Business benefits of promoting equality and diversity on the Equality and Human Rights Commission website - Opens in a new window
- Employ ability initiative on the Department for Work and Pensions website - Opens in a new window
- Use our interactive tool to help you comply with the law when taking on staff
- View grants and support schemes linked to this topic



