Diverse, equitable and inclusive business environments are hugely advantageous. Diversity shows both consumers and employees that your company welcomes everyone with open arms, offering opportunities for all.
Measuring the DEI of your organization can be complex. But there are certain key areas that can provide insight into its condition. These include:
Definition
People familiar with diversity and inclusion often use terms that sound alike but actually mean different things, such as diversity, inclusion and equity which may appear interchangeable at first glance but contain vastly different connotations. Learning their distinction can ensure that your efforts to foster an inclusive culture are successful.
Diversity refers to all aspects of human diversity and social identities that define us as individuals – such as race, ethnicity, creed, age, gender, religion, sexual orientation, socioeconomic status, language background culture heritage physical ability etc. Inclusion refers to creating environments in which all individuals feel welcomed respected supported and valued for their unique contributions to society.
Diversity and inclusion are inextricably linked concepts that work in concert to form the fabric of society. For organizations to achieve inclusion, organizations must ensure every person feels a sense of belonging regardless of identity or status in the company – this can be accomplished by making sure all identities and perspectives are represented, striving to avoid microaggressions and discrimination as much as possible, and hosting open dialogue about its importance.
Equal treatment can only exist if there are no barriers preventing individuals from receiving what they require to thrive. Equity differs from equality in that it takes into account structural inequalities that affect some communities more than others and create disparities in opportunities available to them. Procedural equity is one way of achieving equitable practices, and involves an analysis of policy creation and implementation processes.
Companies that prioritize diversity, equity and inclusion (DEI) experience various advantages, ranging from increased retention rates and profits to greater innovation. According to McKinsey research, having a more diverse workforce leads to better decision making and innovation. Unfortunately, many organizations struggle to implement measures to enhance DEI due to misunderstand these concepts. To make sure your organization stays on the right path, start by discussing what each term means in your context with team members.
Benefits
Organizations who commit to DEI initiatives see greater teamwork, increased productivity and revenue growth, as well as an overall more positive company culture. Employees feel valued and supported which leads to higher engagement and retention levels as well as more creative solutions offered for business problems through viewing issues from different perspectives and appreciating differences within the workplace.
Organizations looking to become truly inclusive must commit to equal treatment across a range of areas, including race, gender, age, sexual orientation, religion disability and socioeconomic status. Furthermore, an effective diversity and inclusion strategy must include an employee survey which can gauge current levels of inclusivity as well as identify any gaps or weaknesses within their workplace.
DEI strives to create an inclusive work environment, where every individual feels they belong and can express themselves freely in the workplace. This can be accomplished by acknowledging and celebrating differences, engaging in open dialogue and confronting microaggressions, discrimination and bias head on. Organizations can support inclusiveness by hiring only top talent while making processes fair and transparent.
Investment in diversity workforce can help an organization increase its success and gain a competitive advantage. According to a McKinsey report, companies with the highest levels of diversity in management are 35% more likely to be profitable and exceed industry averages for revenue, as employees become more engaged and productive while customers receive superior products and services.
Starting your diversity, equity and inclusion program can be daunting when faced with unfamiliar terminology. To help make things less daunting for newcomers to the field, we have assembled a glossary which defines some of the key terms associated with diversity initiatives – though please keep in mind this list may never be fully comprehensive as new terminology emerges over time.
Barriers
Diversity and inclusion efforts aim to ensure everyone can participate equally in the workplace, so organizations must address any barriers which prevent this. Such barriers may include cultural, systemic or personal factors which have an adverse impact on employees.
There are various barriers to inclusion. Common ones include an absence of relatable senior role models, biased recruitment practices and negative stereotypes of certain groups of people. But these hurdles don’t have to be impossible obstacles – in fact addressing them can bring immense rewards for your organization.
Inclusive cultures foster more engaged and productive employees while simultaneously improving performance and profits, which in turn contribute to improved company culture and an enhanced company image. Unfortunately, however, many leaders continue to struggle implementing inclusive practices into their organization due to barriers arising from unconscious bias; others include limited D&I training or misperceptions about what defines diversity & inclusion (D&I).
Another obstacle to diversity and inclusion initiatives is fear that those advocating for it will be treated unfairly. Some straight white men, in particular, may fear they’ll miss out when women or other minority individuals gain leadership positions in future positions. But in reality, most people benefit from D&I initiatives.
Your business must embrace the fact that every individual is distinct. Additionally, it must recognize how different identity characteristics intersect – for example race, ethnicity, national origin, age disability sexual orientation religion socioeconomic status etc. A business that understands fully how important diversity can be will have a greater positive effect on employees and customers.
Businesses must conduct an assessment of their current culture to identify and remove barriers, followed by developing strategies to promote inclusion and meet all employees’ needs – this is especially crucial when recruiting diverse talent. Companies should track retention rates as one measure of D&I policy effectiveness.
Examples
Diversity, equity and inclusion are three terms with varied meanings that work in concert to foster an improved business environment. Diversity refers to representing diverse people within an organization while equity ensures they are treated fairly and included. Finally, inclusion means making sure everyone feels welcome in their company – all goals businesses should prioritize when striving toward diversity, equity and inclusion goals.
Diversity encompasses an array of characteristics that make up an individual, including race, ethnicity, gender, sexual orientation, age, disability status status religion socioeconomic background as well as different experiences and perspectives. A diverse workforce offers greater potential to foster business development.
Inclusion refers to policies and practices which foster equal treatment, access, and opportunity for all individuals regardless of their social, economic or cultural circumstances. Inclusion seeks to remove barriers that prevent full participation by certain groups in society as a whole while helping them realize success within it.
An effective way to ensure an inclusive workplace is through encouraging employee involvement in policies and initiatives related to diversity. Employee involvement can be achieved through education, training and campaigns which provide clear guidelines regarding expected behaviour under company diversity policies. It is crucial that businesses highlight the positive effect diversity has on business performance – this will increase employee buy-in which ultimately results in improved performance and results.
Companies that prioritize diversity and inclusion are better at understanding their customers and catering products and services to suit individual audience needs, which leads to increased sales and customer satisfaction. Furthermore, such organizations foster an inclusive workplace culture which embraces unique employee perspectives while encouraging their staff members to bring all aspects of themselves into work life.
Though diversity and inclusion provide many benefits for organizations, organizations should remain aware of potential pitfalls. One common issue that can arise from having a diverse work environment can be employees feeling uncomfortable or threatened – this can often be caused by microaggressions that make someone feel unwelcome or excluded from participating fully in society.