What would you think if you walked into a shop where all the customers were women and all the shop assistants were men? Or if all the assistants seemed to be over 50 and all the customers were teenagers?  This kind of mismatch is the focus of a recent report “Talent not Tokenism” published in the UK by the CBI Employers Association and the Trades Union Congress, The report studies the commercial benefits of workforce diversity and suggests that a company’s success can depend on its ability to make good use of the skills, understanding and experience all its people, regardless of gender, age, race, religion, disability or sexual orientation.

1 While it’s important not to stereotype by assuming that all people who share physical characteristics behave in the same way, many companies now understand the benefits of having a wide variety of people on their payroll. “When diverse customer groups see themselves mirrored in our workforce they are more likely to do business with us”, says Fiona Cameron of banking group Lloyds TSB. “This demonstrates that diversity isn’t a 'nice to do'- it’s a source of competitive advantage.”

2 A major US success story, IBM, has a long history of supporting diversity in the workplace. One of its first equal opportunity statements was that “IBM will hire people based on their ability, regardless of race, colour or creed”. This may not seem dramatic today but the fact is that it was issued in 1953, ten years before the US Civil Rights Act and at a time when racial segregation was still an issue. The company’s current European Chairman, Larry Hirst, says, “IBM wants to have good diversity policies in order to attract the best people”. With the same goal of hiring from the widest possible talent pool pharmaceutical giant Glaxo Smith Kline has taken practical steps to avoid  ageism in the recruitment process. Dates of birth do not appear on forms the selection panel sees, and applicants are encouraged to list previous work in order of relevance rather than date.

3 Positive attitudes towards diversity can help companies to gain and retain market share. It is estimated that around 6% of the UK population is lesbian, gay or bisexual. Several recent surveys have shown a powerful brand loyalty among gay and lesbian consumers, one even showing that 77% would switch brands to companies with a demonstrated positive attitude towards them.

4 Losing staff because they feel uncomfortable or undervalued in the workplace can be an expensive business. UK legal firm, Pinsent Masons, maintains that in the two years since the introduction of its wider diversity programme lawyer turnover has dropped from 17.5 % to 12%. “Calculating that every lawyer can cost a firm £110,000 that’s no small achievement,” says partner Adrian Barlow. .

5 Skills shortages can restrict company growth. Tim Fenn, chairman of a specialist construction firm says he solves labour shortages by focussing recruitment decisions on the quality of work he sees, “Six years ago when I first employed a woman on a building site, it was new to everyone and I did say to the guys “take it easy” just as a precaution but now I wouldn’t have to say anything at all. “ Fenn’s views are backed by expert opinion which suggests that getting the gender balance in business right is vital for the UK as a whole. Making proper use of the talents of women, could benefit the national economy by £23 billion or the equivalent of an extra 2% on the GDP.

The report “Talent not Tokenism” concludes that in a situation of economic downturn human capital, the know-how and experience of all the people who work for you, is one of the most prized resources in business. The bottom line is that companies that fail to reflect the make-up of their market from the boardroom downwards just don’t do as well as those that do.