Due to the diverse needs of the workforce and also the goal of the organization, it has become more difficult for the organizations to invest in the employees and render the required value which they want from them (Kulik 2014). Better management of the diverse workforce could help the organization to address common pain points which impact the productivity of the employees together with surface level benefits like improvement in communication and prevention of conflicts. Through better management of the diverse workforce, some of the high impact areas are collaborations, employee engagement, productivity, retention and management of knowledge.
Diversity in the workforce is regarded as a sword with double edges, which in a way could result in both positive and negative results. It has been observed by many authors that there is a rise in innovation and creativity as a result of diversity in the organization and this has a positive impact on the performance of the firm (Kulik 2014). Diversity in the workforce is a present organizational reality and efficiently managing the diversity could result in huge benefits to the firm. There was a research conducted by the Australian Center for International Business which showed that the quality of decisions was improved by diversity. As compared to the homogenous groups, the diversity groups could generate more innovative ideas, increase organizational efficiency, provide superior solutions and render profitability and effectiveness (Noon 2007). Moreover, managing diversity effectively could contribute to organizational success together with the full utilization of potential and skills of all employees; this would contribute to the success of the organization by enabling the access to the change in the market structure. This could be done by improving the corporate image and organization’s multicultural employees.