The world is full of people with different beliefs, traditions, and ways of living. In personal or professional environments, cultural diversity benefits everyone. It paves the way for better problem-solving, more empathy and compassion, and learning and approaching the world from various perspectives.

A diverse workforce includes individuals of varying ethnicities, religions, ages, genders, sexual orientations, cultural backgrounds, languages, abilities, and education levels. But the Stack Overflow report from 2022 shows that the tech business is far from ideal. From a sample of more than 70K participants, here are some answers:

93% of professional developers identify as men;
Only 1.5% of all respondents identify as transgender;
84.09% are Straight / Heterosexual;
Most identify as white (39.38%).

Creating a diverse workplace is challenging. It requires ongoing efforts and continuous evaluation of the current work environment. But it is worth it:

Diversity inspires creativity

Cultural diversity brings together diverse perspectives, knowledge, and skills - supporting innovative ideas. According to Boston Consulting Group (BCG), diversity in leadership teams leads to more and better innovations and improved financial performance.

This research surveyed employees at more than 1,700 companies in eight countries (Austria, Brazil, China, France, Germany, India, Switzerland, and the US). The study looked at perceptions of diversity at the management level across six dimensions — gender, age, the nation of origin, career path, industry background, and education. To measure a company's level of innovation, it observed the percentage of total revenue from new products and services launched over the past three years. Companies that reported above-average diversity on their management teams also reported innovation revenue 19% points higher than companies with below-average leadership diversity — 45% of total revenue versus 26%.

People with different backgrounds and experiences often see the same problem differently and come up with unique solutions - increasing the odds that one of those solutions will be a hit. In a fast-changing business environment, such responsiveness leaves companies better positioned to adapt.

Boosts productivity

A diverse workforce will not only increase creativity but also increase productivity. In addition, a creative force will improve your company's brand and perceived value by clients and potential new employees.

Research performed with a sample of high-tech firms by the Academy of Management showed that diverse firms' productivity is 1.32 times higher than those lacking diversity. Suppose there's incongruence between upper and lower management (high diversity in upper management and low diversity in lower management, or the other way around). In that case, there's more advantage to racial diversity in upper management. Firms with high racial diversity in upper management outperform those with the reverse dynamic by 2.03.

Cultural diversity can increase profits

Lack of diversity can impact your gains, or will it make you lose? Harvard Business School focused on one male-dominated area - venture capital - and the insights demonstrate how impactful employing more women can be. On average, companies that boosted the share of female partners by 10% also increased revenues by 10%.

Another curious fact about the research: the investment's performance was lower when the investment partners had similar backgrounds. On average, the success rate of acquisitions and IPOs was 11.5% lower for investments by partners with similar school backgrounds than those by partners from different schools.

The effect of shared ethnicity was even more critical, reducing an investment's comparative success rate from 32.2% to 26.4%. On the other hand, when homogeneous and diverse sets decided to invest in investment partners, they were equally promising.

Differences in decision quality and performance can and will positively impact the performance of your tech company. Therefore, diversity strategies are critical for a company's survival and growth.

A firm's gender disparities can also impact its profits immensely. For example, a study from McKinsey & Company shows that companies that practiced gender diversity in executive teams outperformed peers by over 20%.

The connection between diverse leadership teams and increased profits is partially attributable to having more in-depth consumer insights, higher workforce engagement, and better decision-making through inclusive leadership.

Attracts top talent

Want the best top tech talent for your company? Embrace the culture of diversity to find and retain experienced candidates.

Studies show that today's talent is prioritizing diversity when choosing a workplace. About 1 in 3 employees and job seekers (32%) would not apply for a job at a company that lacks diversity. In addition, more than 3 in 4 employees and job seekers (76%) report that a diverse workforce is essential when evaluating companies and job offers.

Top talent is seeking more than just big compensation packages; today, they are paying attention to the state of diversity and inclusion at companies. In addition, they want to see all those commitments in practice, fundamental changes, and actions in the company routine. Transparency is critical in this case.

Olby simplifies building and scaling teams in Brazil

Companies partner with Olby to increase diversity in their teams and promote thriving & long-lasting work relationships based on trust and partnership bonds. We foster connections between Latin American talent and international companies, leveraging life-changing opportunities and boosting global tech companies.

Olby is your partner in this journey. Grow exponentially with a successful team of highly-vetted Brazilian tech talent. Ready to hire your next team? Let's get there.