Diversity Can Pay Off In Silicon Valley
There is a good case for gender and race diversity in the workplace, and Silicon Valley wants everyone to know it encourages it. In a report recently published by CNN Money, a number of tech companies have stated plans and initiatives in order to acquire a more diverse workforce in their offices.
In 2014, it was found that big tech companies such as Apple, Facebook, Google and Microsoft have Caucasian males representing the majority of its employees. Meanwhile, a more global look at the said companies with the addition of Yahoo, Twitter and LinkedIn revealed male employees make up majority of its workforces, averaging at about 83% across the said companies. The hope is that 2015 will be the start of making their workplaces more diverse.
Diversity, after all, may just be the key to increased revenues and profits. EthnoConnect, in its report, said that having gender and racial diversity in the workplace increases productivity and creativity, which are key factors to progress for any company in today’s increasingly competitive world.
Moreover, the American Sociological Association has also done a study to look at the effect of racial and gender diversity in a company’s customer numbers, revenue and even profitability. It was found that companies showing the highest levels of racial diversity showed as much as 15 times more revenue than those with the lowest racial diversity levels.
On the other hand, gender diversity contributed a difference of $599.1 million in average sales revenue. Meanwhile, those with lowest rates of gender diversity only had sales revenues averaging to $45.2 million. In addition, the study has also found that there is a positive correlation between the increase in rate of racial and gender diversity to the sales revenue of the company.
Meanwhile, the study also revealed that there is a dramatic effect in having a diverse workforce to customer numbers. In fact, it was found that companies with the highest racial diversity among their staff had an average of 35,000 customers, compared to those with the lowest rates racial diversity that only had an average of 22,700 customers. The same effect was found when it came to gender diversity, with companies getting an average of 15,000 more customers than those with the lowest gender diversity levels. In addition, the study also believes that racial diversity can deliver about 400 more customers to a company while gender diversity can deliver an additional of 200.
In Silicon Valley, CNN Money reports that diversity initiatives are already underway. Google has announced plans to spend about $150 million for a “combination of internal and external diversity efforts.” Meanwhile, Apple has pledged a donation of $50 million to organizations that promote and support the employment of women and minorities when it comes to tech jobs. On the other hand, Intel has allotted $300 million for the hiring of women and minorities that are “more representative of the talent in America.”
Meanwhile, Microsoft and eBay have both already hired women for their executive teams while Salesforce says they are reviewing all employee salaries to ensure that men and women are paid equally. In Silicon Valley, diversity is gradually underway.