A strong diversity and inclusion strategy isn’t just the right thing to do—it’s also an important strategic business move. It’s becoming increasingly apparent that organizations that are more diverse and inclusive drive innovative results and attract top talent.
First of all, let’s define what these terms mean. Diversity is comprised of the things that differentiate us. It encompasses the characteristics that make one person or group different from others. Things such as age, race, gender, religion, disability, ethnicity and sexual orientation.
Inclusion is a bit more nuanced. Overall it refers to accepting and respecting differences and realizing the value those differences bring to the table.
It refers to creating an environment where everyone is welcome. Where they feel the respect and support of their peers and management and consequently, they actively participate throughout the business.
Here are 4 ways that D&I helps strengthen your business:
1. It impacts the bottom line
A solid D&I program isn’t just good for workplace culture, it has been shown to improve your company’s financial performance.
McKinsey & Company, a global management consultant company, examined data for 366 public companies across a range of industries in Canada, Latin America, the UK and the US.
Their report found that companies in the top quartile for racial and ethnic diversity are 35% more likely to have better financial returns than their non-D&I industry counterparts.
How would you feel if you had 35% more cash in your bank account?
2. It promotes a better understanding among teams
A Harvard Business Review study found that when at least one member of a team has traits in common with an end-user on a project, the entire team better understands the user.
Not only that, but a team with someone who shares a client’s ethnicity is 152% more likely to better understand what the client is looking for.
3. It attracts top talent
Employee turnover is costly to companies and damaging to workplace culture. And a company may not even realize that its hiring practices are unintentionally excluding applicants.
When you communicate your commitment to diversity and inclusion in your business, you attract a larger pool of applicants and are better at retaining the talent you have.
I remember when, as the HR professional in a large organization, the company decided the time had come to embrace and encourage a diverse and inclusive environment. This happened after experiencing some legal challenges in other parts of the nation.
As a member of the local leadership team, it didn’t take long to realize that there wasn’t much diversity at our specific locations when it came to leadership roles. Most were filled by Caucasian men, which was very customary at the time, especially in manufacturing.
With the focus on finding the best and brightest talent and filling teams with people who had a variety of backgrounds, experiences, age, education, ethnicity, religion, sex, etc. our company looked very different.
Exciting stretch goals were being accomplished, turnover decreased and morale increased significantly. That company continues to be a leader that others strive to model their workplaces after.
LinkedIn’s Global Recruiting Trends 2018 study has some good ideas on hiring diverse talent. They surveyed 9,000 recruiters and hiring managers from 39 countries and found that:
- 52% use diverse employees in web and print materials
- 35% present diverse interview panels
- 30% talk about their employee resource groups (ERGs)
- 28% recruit at schools with diverse student bodies
It encourages vulnerability
Deloitte has done quite a bit of research on diversity and inclusion.
They’ve identified vulnerability as one of the top six signature traits of highly inclusive leaders. The reason that vulnerability is so important is because “talking about imperfections requires personal risk-taking.”
Dr. Brené Brown is a vulnerability expert whose TED Talk went viral in 2010; it remains one of the top 10 most popular TED Talks. She’s the author of a number of books, including Daring Greatly, which breaks down myths around vulnerability. Myth #1 is “Vulnerability is weakness.”
She argues that it’s actually “the best measure of courage.” She says that vulnerability can create a safe space for “productive failure,” which can lead to increased productivity, transparent communication and more engaged employees.
When you’re starting a D&I initiative, it’s important to be authentic. People are going to see right through a campaign that just ticks HR’s boxes or pays lip service to a certain group.
Investing in diversity and inclusion in your business can be one of your biggest competitive advantages, but it has to be done with respect and honesty.
As an HR Consultant and Executive Leadership Coach, I can help you assess your current environment and create a winning culture with a diverse & inclusive team.
Contact me today to start creating a more diverse and inclusive workplace culture.
Business Leadership, Team Management