“Just hire the best person for the job.” This phrase often comes up in conversations about workplace diversity. But what if the most diverse candidate is the best person for the job?
At the International University of East Africa (IUEA), we believe that diversity drives innovation and results. As one of the most international universities in East Africa, with students from over 50 countries, we know firsthand the power of cultural diversity.
To mark the World Day for Cultural Diversity for Dialogue and Development, we’re asking a key question: Does workplace diversity make a business more profitable? If you’re wondering whether to hire a more diverse team or are simply curious about why global companies are focused on diversity, this blog is for you.
What Is Workplace Diversity?
Workplace diversity means having employees from different backgrounds, countries, or cultures. But it’s not just about hiring them, it’s about making sure they’re included. In a truly diverse workplace, people from all backgrounds are respected, their ideas are valued, and they are given equal opportunities to contribute and grow.
This has led to the growing field of DEI, which stands for Diversity, Equity, and Inclusion. DEI includes policies and practices that help organisations support different kinds of people. It’s become so important in modern business that entire roles and departments have been created to manage DEI.
Does Diversity Improve Business Performance?
Yes, it does, and research backs this up.
Many people assume that diversity is simply about social justice or helping underrepresented groups. But it’s also smart business. Companies that hire people from different cultural backgrounds often outperform their competitors.
One of the most trusted studies comes from McKinsey & Company, a global firm that helps businesses improve performance. Over several years, they’ve studied how ethnic and cultural diversity in leadership affects profits. Here’s what they found:
- 2015: Companies with diverse executive teams were 35% more likely to outperform companies without diverse executive teams.
- 2018: 33% more likely.
- 2020: 36% more likely.
- 2023: 39% more likely (based on 590 companies globally).
The increase from 33% to 39% over five years reflects not only greater benefits from diversity but also more reliable data, since each report included more companies across more countries.McKinsey is widely respected for its global research and data quality, but they are not alone. Deloitte, Boston Consulting Group, and Forbes have all reached similar conclusions: diverse leadership leads to better performance through greater innovation.
What Are the Challenges?
While workplace diversity has clear benefits, it also comes with challenges that need to be managed carefully:
- Cultural misunderstandings: Actions can be interpreted differently across cultures, which may cause confusion or tension.
- Communication barriers: Differences in language or style can affect how people understand and work with each other.
- Resistance to change: Some team members may feel uncomfortable with new ways of thinking or working.
- Unconscious bias: People may have hidden assumptions about others based on culture or appearance.
- Legal or policy limitations: In some places, hiring based on diversity may face legal restrictions.
How Can Companies Overcome These Challenges?
To get the most from a diverse team, organisations should:
- Provide regular training on cultural awareness.
- Make sure leaders at all levels support inclusion.
- Offer mentorship to employees from underrepresented backgrounds.
- Encourage feedback from minority groups and act on it.
How IUEA Prepares Students for a Diverse World
At IUEA, we believe that the workplace of the future is global and multicultural. That’s why we make diversity a core part of our learning experience:
- Diverse student body: Our students come from across Africa and beyond. We encourage collaboration across cultures to help students learn from each other.
- Cultural celebrations: Events like our annual Cultural Gala highlight and honour different traditions, building respect and appreciation.
- Multicultural staff: Our academic and administrative teams reflect the global workplace, offering real-life exposure to diversity.
- Curriculum with culture: Courses like Tourism and Hotel Management include cultural studies that show how culture can be used as a business advantage.
- Global engagement: We participate in events that promote international dialogue and cooperation.
Join a Diverse Family
Hiring someone from the same background may feel easier, but in many cases, it’s not the most effective choice. Diversity helps organisations solve problems more creatively and connect with a wider market. In today’s world, diversity is not just a value, it’s a competitive advantage.
At IUEA, we don’t just teach this, we exemplify it. That’s one reason we were named East Africa’s Most Innovative University in 2024. Our diversity has helped us better understand and address multicultural communities’ needs, creating an inclusive, respectful, and effective learning environment. This, among other factors, makes IUEA one of the best universities for international students in East Africa and Africa.
If you want to build a stronger business, start by building a stronger team, one that includes people from different cultures. And if you want to prepare for that kind of future, there’s no better place than IUEA.
