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A diverse workforce with a range of different backgrounds, experiences and perspectives gives organisations a broader range of ideas and insights that can provide a greater variety of solutions. Organisations that fail to recognise the full diversity and value of each individual for the unique differences they bring to the workplace run the risk of limiting their initiatives. Also, mismanaged diversity can have long-reaching effects on employee satisfaction, thus leading to lower productivity.

Managing workforce diversity is not easy. It involves recognising the value of differences, combating discrimination and promoting inclusiveness. It requires management's participation on capitalising on differences, fostering diverse talents, enhancing mutual learning and collaboration and continuously creating an environment that values and utilises the contributions of employees with varying insights.

But we cannot ignore the downside of diversity. There could be costs associated with increasing workforce diversity. Such potential costs include diversity training for employees feeling threatened by working with people of a different age, sex, or personality; costs incurred with recruiting women and minorities; and costs for assimilating a heterogeneous workforce.

Workforce diversity helps organisations that can manage a diverse body of talent which, in turn, can bring innovative ideas, perspectives and views to increase productivity. With a mix of diverse talents, organisations can effectively respond to business opportunities more rapidly and creatively.