Diversity and inclusion (D&I) are hot button issues in the workplace. While there are many myths associated with an inclusive workplace, an increasing amount of research is showing that there are many benefits to having strong D&I policies and procedures for your company.
From the hiring and retaining of employees to the improved relations with customers, a diverse and inclusive workplace has a big impact on your business.
D&I Makes it Easier to Recruit and Retain Employees
A good D&I program makes it easier to attract talented applicants. A Glassdoor survey found that 67 percent of job seekers evaluate a company’s inclusion practices before accepting a job offer. The number was substantially higher among women and people of color.
Employee turnover is costly to employers. Retaining top talent is a high priority as it affects the company’s bottom line. A company with inclusion not only brings talented employees through the door, it encourages them to stay. Research from Deloitte found that 72 percent of employees surveyed would leave their company for a better diversity and inclusion program.
D&I Inspires Innovation
One of the greatest benefits of of a strong D&I program is the innovation it inspires. In any organization the sharing of ideas is critical for innovation which, in turn, impacts the success of the company.
Teams with diverse backgrounds and cultures have employees who are exposed to ideas and concepts that are literally and figuratively foreign to them. Problems can be approached from different angles and a broader range of perspectives.
The Harvard Business Review states, “New research provides compelling evidence that diversity unlocks innovation and drives market growth – a finding that should intensify efforts to ensure that executive ranks both embody and embrace the power of differences.”
D&I Increases Performance and Profitability
Bersin by Deloitte conducted an extensive two year study to analyze how different talent practices affected the success of a business. The study looked at 128 business practices in over 450 companies around the globe. Talent practices such as how well companies assess candidates for job and culture fit, how fair their performance management practices are, their culture of learning, and their level of maturity in leadership development were statistically analyzed against business performance in such areas as financial and talent outcomes, cash flow, profitability, innovation and growth.
So what did the study find? As Bersin states, “The results were amazing.”
Companies who were labeled as “inclusive” and “managed” are:
2.3 times higher cash cash flow per employee over a three year period
The smaller companies had 13 times higher cash flow from operations
1.8 times more likely to be change-ready and 1.7 times more likely to be innovation leaders in their market
3.8 times more likely to be able to coach people for improved performance, 3.6 times more able to deal with personnel performance problems, and 2.9 times more likely to identify and build leaders
“It’s striking to me that D&I rated the highest impact of all,” says Bersin. “It points out that in today’s working world, your ability to attract and retain people of all ages, cultures, backgrounds, and types is paramount to your businesses success.”
D&I Improves Employer Brand
An inclusive workplace improves the perception of a company. A more positive employer brand leads to a better pool of potential employees and increased visibility with customers. This can be critical for the survival of your company as many other companies, such as Facebook and Verizon, are demanding diversity and inclusion from the companies they hire.
An inclusive workplace has many benefits. If you are ready to increase the diversity in your company, work with the experts in recruiting to grow your workforce!