Diversity and inclusion in the workplace have been widely discussed areas in which a company should assess, grow, and implement as part of their company culture.
Nowadays, organizations are setting goals to improve their diversity and inclusion efforts. Companies are revamping their practices, so employees feel included and that they are an important part of the organization.
Why?
More than basic human decency, studies show effective diversity and inclusion practices increase the innovation and creativity of your workforce. These are essential to enhance organizations and ensure their continued success.
Research supports inclusion and diversity programs
“When we listen and celebrate what is both common and different, we become a wiser, more inclusive, and better organization.”-Pat Wadors, Head of HR at LinkedIn
It is normal for talent to seek out organizations that reflect their values. According to a study done by Glassdoor, 67 percent of active and passive job seekers said that a diverse workforce is an important factor when evaluating companies and job offers. Organizations with a diverse workforce will have an advantage over those who do not.
From an external perspective, companies with inclusion practices are more likely 57.8% to boost their reputation. An organization with a reputation for being diverse and inclusive is better at attracting and retaining a larger group of clients. When clients feel an organization reflects their values they are more willing to recommend it, thus framing the company in a positive light.
From an internal perspective, more diverse teams, where everyone’s opinion is taken into account make better decisions. A study done by Cloverpop shows the most diverse teams within organizations make better decisions 87 percent of the time. Not only are diverse teams good at making decisions, but they also solve problems faster.
According to an HBR article, cognitively diverse teams solve problems more quickly than their less diverse counterparts. When a company improves its decision-making process, it is more likely to succeed.
Other research tells a similar story. A company with a diverse and inclusive team is able to outperform its competitors; according to a study done by McKinsey, racially and ethnically diverse companies outperform industry norms by 36% as of 2019.
Diversity is also important in fueling the Innovation that organizations need to thrive. An HBR article stated, companies with above-average diversity had 19% higher innovation revenues as well as 9% higher EBIT(earnings before interest and taxes) margins. When an organization has higher innovation revenues they are better equipped to adapt to change.
Higher innovation, better performance, quicker at solving problems, better at adapting to change; the benefits of a more diverse team speak for themselves.
Organizations that are diverse and inclusive are more likely to have highly engaged employees. According to a report done by Deloitte Australia it is the combined focus on diversity and inclusion [in the workplace] which delivers the highest levels of engagement. When employees are highly engaged they are more likely to be happy at work and come up with more innovative ideas.
3 steps to better employee diversity and inclusion
Step 1. Identify: Understand the unconscious biases, the employees who are impacted, and the key people leaders who can make a difference.
Step 2. Engage: Provide employees a clear and always available communication line to voice their needs. Engage employees in solution-building by crowdsourcing suggestions for improvement. And close the feedback loop by rapidly taking action on employee issues and communicating change.
Step 3. Solve: Give your people leaders and internal champions access to top-tier education, trainings, and coaching. Enabling them to take the right actions and make the right decisions.
If you are seeking a DEI partner to implement these 3 critical steps, Lean DEI can help. Schedule a consultation here: https://www.leandei.com/apply