In this article, we will explore the benefits of diversity and inclusion in the workplace, including how they lead to improved financial performance, enhanced innovation and creativity, and improved employee morale and retention.
There will also be a discussion including strategies for promoting diversity and inclusion in the workplace.
This blog will cover the following benefits in detail:
Before going into details, let's define what we mean by diversity and inclusion. Diversity refers to the differences among people, including race, ethnicity, gender, age, religion, sexual orientation, etc. On the other hand, inclusion refers to creating a work environment where all employees feel valued, respected, and supported.
Now that the main points are clear, lets see how they can contribute to the improvement of your business.
Benefit #1: Increased financial performance
Research has found that firms that prioritize diversity and inclusion tend to achieve higher financial returns compared to those that do not.
Companies in the top quartile for gender diversity were 15% more likely to have financial returns above their respective national industry medians, according to a study conducted by McKinsey & Company
Likewise, companies in the top quartile for racial and ethnic diversity were 35% more likely to have above-average financial returns.
Benefit #2: Enhanced Innovation and Creativity
A diverse workforce can foster increased innovation and creativity. When individuals with varying backgrounds and experiences collaborate, they can offer many perspectives to problem-solving, leading to more innovative solutions.
Companies with diverse management teams were found to be more innovative than those without, indicated by a study from Harvard Business Review
Benefit #3: Improved Employee Morale and Retention
In addition, a diverse and inclusive workforce can improve employee morale and retention. Employees who feel valued and included are more likely to be engaged and committed to their work. In contrast, employees who feel excluded or marginalized are likelier to leave their jobs.
A study by Glassdoor found that 67% of job seekers said a diverse workforce was essential when evaluating companies and job offers.
Benefit #4: Access to a wider talent pool
Corporations that prioritize diversity and inclusion can attract a broader range of job candidates, including those from underrepresented groups. This can lead to a more diverse and talented workforce.
According to a study by Deloitte, companies with inclusive cultures were six times more likely to be innovative and agile and twice as likely to meet or exceed financial targets.
Benefit #5: Better decision-making
A diverse workforce can lead to more well-rounded and informed decision-making. When people from different backgrounds and experiences come together, they can offer a range of perspectives that can help companies make better decisions.
Diverse teams make better decisions 87% of the time compared to non-diverse teams, a Cloverpop study shows
Understanding the benefits of having a diverse and inclusive workforce is one thing, but knowing how to implement it in your work environment is another. Creating a diverse and inclusive workplace requires effort and commitment.
Here are some key strategies that can help:
Strategy #1: Hiring practices that prioritize diversity and inclusion
Businesses should actively seek out job candidates from various backgrounds and experiences. This can involve posting job listings on job boards that target diverse candidates, participating in career fairs and events that cater to diverse job seekers, and offering internships and apprenticeships to candidates from underrepresented groups.
Strategy #2: Creating a culture of inclusion
Companies should work to create a culture where all employees feel valued and respected. This can involve training and education to increase awareness and understanding of diversity issues, as well as establishing employee resource groups (ERGs) to support employees from underrepresented groups.
Strategy #3: Providing support and resources
Organizations should provide resources and support to employees from underrepresented groups, including mentoring and networking opportunities. This can help these employees feel more included and valued, and can contribute to their professional development and growth.
Establishing a diverse and inclusive workplace necessitates dedication and perseverance. It requires prioritizing diversity and inclusion in the hiring process, cultivating a culture that values and respects all employees, and providing training and education to increase awareness and understanding of diversity issues.
To summarize, it is possible to conclude that the advantages of promoting diversity and inclusion in the workplace are evident. Companies that prioritize these values can enjoy enhanced financial performance, increased innovation and creativity, improved employee morale and retention, a broader talent pool, and better decision-making capabilities. By prioritizing diversity and inclusion, companies can establish a more dynamic and successful workplace that benefits everyone involved.
McKinsey & Company - Why diversity matters: https://www.mckinsey.com/business-functions/organization/our-insights/why-diversity-matters
Harvard Business Review - Why diverse teams are smarter: https://hbr.org/2016/11/why-diverse-teams-are-smarter
Boston Consulting Group - How diverse leadership teams boost innovation: https://www.bcg.com/publications/2017/people-organization-leadership-diverse-leadership-teams-boost-innovation.aspx
Glassdoor - Glassdoor survey reveals importance of diversity and inclusion in the workplace: https://www.glassdoor.com/blog/glassdoor-survey-reveals-importance-of-diversity-and-inclusion-in-the-workplace/
Deloitte - The diversity and inclusion revolution: Eight powerful truths: https://www2.deloitte.com/content/dam/Deloitte/ie/Documents/human-capital/ie-diversity-and-inclusion-revolution-eight-truths.pdf
Cloverpop - The business case for diversity in the workplace: https://www.cloverpop.com/blog/business-case-for-diversity-workplace