Our work plays a vital role in creating and maintaining inclusive and diverse organizations, and we also believe that diversity and inclusion goes far beyond just hiring a diverse workforce. It requires promoting an environment where all employees feel valued, respected, heard, and included. By doing so, we can create further cultures of belonging where everyone is represented in organizational decisions and equity is universal.
A diverse and inclusive workplace has been proven to be more productive, innovative, and profitable. In this article, we’ll explain why diversity is important and provide actionable recommendations that companies can take to further their diversity and inclusion strategy.
Why is diversity important in the workplace?
Increased innovation: When people from different backgrounds and experiences work together, they bring a variety of perspectives and ideas. This can lead to new and innovative solutions to problems. A study by McKinsey & Company found that companies in the top quartile for gender and ethnic diversity were more likely to have above-average financial performance.
Improved decision-making: A diverse workforce can help companies make better decisions. Studies have shown that diverse groups are more likely to consider a wider range of options and ideas, leading to better decisions. A study by Cloverpop found that teams with more diverse perspectives outperform homogeneous teams by up to 87%.
Better customer understanding: When a company has a diverse workforce, they are better able to understand and meet the needs of a diverse customer base. According to a report by Deloitte, companies with inclusive cultures are twice as likely to meet or exceed financial targets and three times as likely to be high-performing.
Attract and retain top talent: When companies have a reputation for being diverse and inclusive, they are more likely to attract and retain top talent. Employees want to work for companies that value diversity and inclusion. A survey by Glassdoor found that 67% of job seekers said that a diverse workforce was an important factor when considering job offers.
Increased creativity: A diverse workforce can lead to increased creativity and problem-solving. A study by Harvard Business Review found that diverse teams were better at solving complex problems than homogeneous teams.
Actionable recommendations for improving diversity and inclusion at work.
Set diversity and inclusion goals: Set specific, measurable goals for improving diversity and inclusion in their workforce. This also includes increasing the number of women, people of color, or people with disabilities in leadership positions.
Provide diversity and inclusion training: Provide regular training to all employees on diversity and inclusion. This includes workshops, seminars, and online courses. Training should cover topics such as unconscious bias, cultural competence, and allyship.
Implement diverse recruitment practices: Use a variety of recruitment practices to attract a diverse pool of candidates. Partner with organizations that support underrepresented groups or use blind resume screening to reduce bias. According to a study by the National Bureau of Economic Research, blind resume screening can increase the likelihood of a woman being hired by up to 8%.
Foster a culture of inclusivity: Create a culture of inclusivity by encouraging open communication, promoting respect and understanding, and celebrating diversity. Support the creation of employee resource groups, hosting cultural events, and provide opportunities for employees to share their cultural backgrounds in safe and trusting ways.
Hold leaders accountable: Set expectations for leaders in promoting diversity and inclusion. This may look like including diversity and inclusion goals in performance evaluations or tying executive compensation to diversity and inclusion metrics. A study by the Harvard Business Review found that companies with diversity goals tied to executive compensation had higher levels of diversity.
Use data to measure progress: Collect and analyze data on diversity and inclusion to measure progress and identify areas for improvement. Track demographics, conduct employee engagement surveys, and analyze promotion and retention rates for different groups. This data can help companies identify where they need to focus their diversity and inclusion efforts and measure the impact of their initiatives.
Partner with diverse suppliers: Partner with diverse suppliers to support a more inclusive supply chain. Intentionally partner with small, minority-owned businesses or businesses owned by women or people with disabilities.
Engage in community outreach: Build relationships with underrepresented groups and support initiatives that promote diversity and inclusion. Encourage volunteering with organizations that support diversity and inclusion or sponsor events that celebrate diverse cultures.
Celebrating diversity in the workplace is important for creating a more inclusive and equitable society. By embracing diversity and creating a culture of inclusivity, companies can attract and retain top talent, improve decision-making, and drive innovation. ore diverse and inclusive workplaces and ultimately, drive better business outcomes.
References and Resources:
Cloverpop. (2016). The business case for diversity in the workplace is now overwhelming.
Deloitte. (2017). The diversity and inclusion revolution: Eight powerful truths.
Glassdoor. (2014). Diversity and inclusion in the workplace.
Harvard Business Review. (2016). Why diverse teams are smarter.
McKinsey & Company. (2015). Diversity matters.
National Bureau of Economic Research. (2017). Hiring as exploration.
Harvard Business Review. (2020). How to hold your leaders accountable for diversity and inclusion.