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Firms should promote diversity in the workplace if they are to attract and retain talented workers, the Chartered Institute of Personnel and Development (CIPD) claims.

A report by the organisation recommends that business avoid giving workers 'trendy new generation labels' but says that some differences are important in how they relate to their staff.

According to the study, companies which maintain a clear commitment to diversity are more likely to attract employees, especially those from younger generations, than those which do not attach any significance to the issue.

Dianah Worman, adviser on diversity at the CIPD, comments: 'The more you inspect the diversity agenda, the more it is apparent that focusing on people as individuals and delivering fairness for everyone is vitally important to become an employer of choice.'

Furthermore, the report suggests that firms should attempt to be more inclusive when offering schemes such as flexible working, suggesting that older employees may have an interest in it as alternative to retirement.

Worman adds that this shows businesses need to be aware of evolving employee expectations and adapt to these if they are to be successful in recruitment and retention.

Previous research from the CIPD claimed that companies are concentrating on retaining and developing their workers instead of seeking new talent, due to a perceived skills shortage.

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