Diversity, equity and inclusion (DEI) is more than a buzzword: its effects are felt directly on business results. Studies have proven that diverse teams perform better than homogenous ones.
Employers are increasingly making an effort to prioritize Diversity & Inclusion when considering potential employees for employment, realizing that Gen Zers and millennials view DEI as an important aspect when assessing companies.
1. Attract New Talent
Finding and recruiting new employees is crucial to keeping your company competitive, but in order to attract top talent you need to ensure your workplace is as inclusive as possible. A diversity and inclusion initiative that includes equity can help achieve this goal.
An inclusive team can bring new perspectives, skills, languages and cultures into your business – helping it to be more innovative and competitive as members come from varied backgrounds.
Diversity initiatives can also open up untapped talent pools. Many disabled people may be overlooked as employees; however, their unique perspectives and problem-solving skills could prove invaluable to your business. Neurodiverse individuals such as autism spectrum disorder (ASD), ADHD or dyslexia could bring additional benefits as potential employees for your company.
Diverse teams often outperform their homogenous counterparts. A Harvard Business Review study discovered that businesses with more diverse teams were 70 percent more likely to become market leaders.
Provide employees with opportunities to develop leadership skills and contribute in meaningful ways as another way of creating an inclusive workplace. One approach would be encouraging employees to join employee resource groups or establish their own, while it’s important to hold honest discussions about racism, discrimination and any forms of bias present at your worksite so employees feel safe expressing themselves freely.
Diversity and inclusivity in the workplace can greatly increase employee happiness while helping your company retain current employees. According to a Deloitte survey, Gen Z and Millennial workers rank diversity and inclusion as one of the primary criteria when selecting employers; more often than not they will turn down jobs that do not align with their values or personal ethics, and may consider seeking other opportunities outside their current one if dissatisfaction ensues.
2. Increase Productivity
Employees perform at higher levels when they feel valued and accepted for who they are – one way of creating this sense of belonging in the workplace is implementing diversity, equity and inclusion measures.
Diversity and inclusion (DEI) have an undeniable effect on productivity, with diverse teams being more capable of creating innovative ideas and solutions than homogenous teams. Furthermore, companies that practice DEI tend to see an increase in employee engagement which in turn boosts productivity levels further.
But many organizations make the mistake of placing too much emphasis on diversity without considering inclusion as part of their workforce strategy. By failing to prioritize inclusion as an integral component, they run the risk of creating an atmosphere which is uncomfortable and counterproductive.
Diversity, equity and inclusion all have different meanings and approaches. Diversity refers to the representation of various groups within an organization while inclusion entails providing every group with equal access to participate and succeed at work. Equity can address discrimination or bias by altering policies and practices with situational fairness as its central theme.
An inclusive team provides you with a wider perspective when tackling business challenges and producing quality products and services for customers. Diversity and inclusion allow you to tap into an impressive pool of talent with unique insights, perspectives, skillsets, languages contacts and professional cultures not often found within traditional homogenous teams.
Employee engagement creates a virtuous cycle that benefits both an organization and its customers. Satisfied employees tend to be more productive; happy ones will likely remain part of your workforce for longer.
Diversity and inclusion should be at the core of every business strategy – from telecom to retail to finance to healthcare – yet many businesses remain unclear how best to approach such initiatives. By harnessing available tools and resources, however, you can craft a diversity and inclusion strategy tailored specifically for your organization that delivers real results.
3. Reduce Stress
Establishing an atmosphere in which employees feel free to express themselves helps alleviate stress in the workplace, particularly for members of racial or cultural minorities who are often subjected to discrimination and oppression in the workplace. Studies have demonstrated that employees from marginalized groups are more likely to experience burnout and leave their positions due to stress, low self-esteem and feeling like an outsider at their jobs – DEI can create an inclusive working environment and reduce employee turnover costs significantly.
Studies show that most employed U.S. adults agree that prioritizing diversity, equity and inclusion is positive; however, opinions can vary widely by demographic and political background.
Though many use DEI to refer to one concept, it encompasses multiple key ideas. Diversity refers to appreciating individuals’ differences while equity prioritizes representing systemically or historically marginalized groups in organizations. Finally, inclusion is defined as efforts made by an organization in ensuring diverse groups or individuals feel included as members of its culture and within its organization.
Understanding DEI requires distinguishing these terms and its different components, or else confusion and misinterpretation could arise. For instance, employees might erroneously assume “diversity” refers to having staff that look like their community – however its definition includes people from various races, cultures, gender identities, sexual orientations and religions.
Businesses that prioritize diversity, equity and inclusion enjoy distinct advantages over their counterparts who do not. Such businesses can draw top talent while increasing productivity, improving customer satisfaction and building a stronger brand image. Furthermore, they can better serve customers and communities by tapping into unexplored markets while creating more welcoming environments for all.
Implementing DEI initiatives successfully requires setting concrete goals and setting clear metrics of success. Furthermore, it’s vital that employees navigating new roles or challenging situations feel supported, valued, and accepted irrespective of their background or identity. To do so effectively requires setting concrete goals with clear metrics of success as well as creating an environment of continuous positive feedback loops which emphasize individual strengths instead of weaknesses. This ensures employees feel supported, valued, and accepted regardless of background or identity issues.
4. Increase Retention
Retaining top talent is critical to any business’s success, and diversity equity and inclusion initiatives can assist. By creating a culture of respect and equality in your workplace, diversity equity and inclusion initiatives can create an atmosphere where employees want to stay. According to research from Sensu Insight, companies that prioritize diversity and inclusion have an increased chance of keeping employees. Employees who feel included tend to be happier at work and more engaged with their jobs – they trust coworkers more readily, which increases team morale and productivity.
At the core of creating an equitable workplace is having the right conversations. By applying a framework of social identity to employee interactions at work, you can help employees understand how different aspects such as age, gender, ethnicity, sexual orientation religion and socioeconomic status impact their experiences at work. Through discussions trainings EDI/DEI programs employees can begin to recognize their own biases and learn strategies to combat them in order to foster more equitable working conditions.
Another key to reducing turnover is providing employees with opportunities for success at work. Make sure your staff can access professional development programs, mentoring opportunities and coaching that allow them to expand their skill set and advance in their careers – that way they have more to contribute and won’t leave for rival companies as easily.
One final approach to improving retention is by projecting a positive image for your company. Companies that celebrate diversity tend to appear more genuine to customers and potential employees, which in turn enhances brand reputation and revenue growth.
Workplace environments are complex environments filled with people of varying degrees of privilege and power who arrive with differing opportunities and privileges, making it challenging to create an equal playing field and achieve greater equity for all. Organizational leaders who express motivation, acknowledge barriers, and take steps to counter any instances of inequity send a clear signal that they are committed to improving lives both inside their company as well as outside its walls in their customers and community.