In the wake of the “Black Lives Matter” protests, the frequency of diversity-related lawsuits is increasing drastically. Nevertheless, while we regularly hear about how companies are taking steps to avoid similar lawsuits - that have struck the likes of Facebook and Gap – it’s important to highlight the performance related benefits that diversity can add to an organization.
Nonprofit organizations are held to the same legal standards as for-profit corporations, but face lawsuits much less frequently. Despite their lower risk profile, by adhering to, and placing emphasis on the diversity and inclusion standards expected from corporates, they can reap a number of various benefits and operational improvements, including:
Talent management
Diversity at board level and a diverse set of employees provides an advantage in attracting talent. If a candidate visits a nonprofit workplace and finds employees from a range of demographics – gender, race, age, religion etc. – they may find themselves more at ease in terms of being accepted and connecting with colleagues.
Employee performance and retention
Employees will usually perform to the best of their ability when they feel that they can be themselves. An environment consisting of employees from a variety of backgrounds, cultures and ways of thinking will often make people feel more comfortable, therefore happier, more productive, and more likely to stay with that organization.
Customer and donor orientation
As the U.S. population grows more diverse, it’s vital that nonprofit organizations reflect this trend and take steps to align themselves more closely with a wider range of people coming from different backgrounds. A diverse and inclusive nonprofit is more likely form tighter bonds with the constituents it serves, while donors will be more attracted to a nonprofit if they believe it mirrors their community.
Decision-making and innovation
Overcoming tough issues and solving problems are daily occurrences in the workplace. A diverse set of employees brings unique perspectives and generates creative thinking and new ideas that influence how a nonprofit approaches its mission.
