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Organisations that employ a diverse workplace benefit from a number of key factors, new research has found.

A report carried out by the Trades Union Congress (TUC) and the Confederation of British Industry (CBI) – revealed firms that promote diversity benefit from more productive staff and a higher morale in the office.

It added that such firms would also have a better understanding of customers' needs and a greater insight to reach untapped markets, as well as being better equipped in addressing skills shortages.

Students from ethnic minorities could particularly welcome the report because it suggests employers will continue the trend of recruiting a diverse workforce.

The report, Talent not Tokenism, also suggests diversity can be improved through positive action like developing strong links with local communities and offering flexible shift patterns to help working parents.

Brendan Barber, TUC general secretary, said: 'The need to unlock the talents of all - to create a truly representative workforce - is even more crucial at a time of economic uncertainty.

"The issue is not whether business can afford to diversify, but whether it can afford not to."

Harriet Harman, minister for equality, welcomed the report saying it reinforced the fact that equality and diversity necessary for Britain.

The TUC represents more than 6.5 million people and claims to campaign for a fair deal at work for its members.

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