Diversity and inclusion initiatives not only make companies better places to work, but also contribute to better business performance. Here we break down five reasons why D&I is essential to building a trusted brand and bolstering your corporate responsibility, reputation, recruitment, and reach.
The most important reason first:
The nation is becoming more diverse across many distinctions. Just to start:
Yes, those are encouraging numbers. But it ain’t all rosy.
Statistics help us get a big picture. But caring about diversity and inclusion in the workplace can’t be quantified. It’s a core value from the top down, not a policy. It’s a culture, not a club.
It’s the right thing to do as human beings. Everyone deserves a seat at the table.
We are looking to end workplace discrimination. That is the goal.
Still, there is a strong business case for D&I in the workplace. Let’s take a look.
A vast body of research confirms that companies that value D&I in their workforce (and especially on their executive teams) financially outperform those that do not.
Renowned think tank McKinsey & Company has published three reports on the business case for diversity and inclusion—one in 2015, again in 2018, and the most recent one published in 2020. Their findings:
What is the connection?
This, in turn, leads to a more multifaceted problem-solving process and a more innovative environment. In fact, Deloitte reports that diversity in thinking:
Our differences widen our perspectives and make us stronger, and this is felt at the bottom line.
Let’s face it: This isn’t the easiest time to find and hire talent. And today’s jobseeker considers a company’s commitment to D&I when applying for and accepting jobs. According to a 2020 survey from Glassdoor:
Simply put, companies that aren’t committed to diversity won’t appeal to a huge portion of today’s workforce. Companies can’t afford to cut themselves off from such a significant pool of talent.
Diverse and inclusive organizations earn trust and commitment from their employees. Conversely, when people feel that their ideas and contributions aren’t truly valued or taken seriously by their organization, they leave.
According to Great Place to Work, a workplace culture consulting firm, when employees believe they are treated fairly regardless of race, gender, sexual orientation or age, they are:
The global analytics firm Gallup came to the same conclusion. From their report:
Employees in an inclusive environment are more engaged, demonstrate higher advocacy for their organizations, and have a greater intent to stay. That same study found with respect to race, in particular, engaged employees are much less likely to leave their organization regardless of race.
Supporting the unique attributes and contributions of people and groups is vital to a company’s ability to attract and retain employees, and it will only grow more important.
For the first time in history, there are five generations in the workplace. They are:
Diversity of age benefits companies much in the same way as reason #2; varying perspectives bring a broad range of knowledge and problem-solving capabilities to your team. That alone is good enough, but:
Having multiple generations in your company offers great mentorship opportunities—in both directions. Cross-generational mentoring is defined as pairing those from different generations with the goal of mutual learning and growth.
Younger people can learn from seasoned pros, high achievers can share their knowledge, junior employees can help mature workers understand a piece of technology or trend (me when Snapchat first came out: “It does what? The pictures disappear? Why?”). Everybody wins: new skills, more knowledge, team bonding and career satisfaction.
Regardless of industry, chances are good that your existing and prospective customers are a mix of races, faiths, sexual orientations, gender identities, and physical abilities, etc.
When your workforce is a mix of these things as well, you are better positioned to understand your target audience’s needs. Teams solve problems faster when they’re more cognitively diverse, reports Harvard Business Review.
This, in turn, could open up new and previously unforeseen market opportunities, and even help your company innovate on a global scale. A global perspective could spark global growth.
But perhaps even more importantly, you grow authentic relationships with diverse audiences within their communities. And authenticity is always good business.
Ready to showcase your Diversity and Inclusion story? Connect with us, here.