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What factors come to mind when thinking about business success? Perhaps it's an innovative product or service that meets a market need, inspiring leadership, or a solid business plan. A diverse employee base may not be the first idea to come to mind — but it should be.
With diverse and inclusive companies 35% more likely to financially surpass their competitors, diversity, equity, and inclusion (DE&I) ought to be a top priority for every HR team. Building DE&I initiatives doesn't need to be difficult; businesses can start by sharing a survey with employees to better understand their current diversity metrics. Investing in employee development for underrepresented groups can start to address equity gaps. To increase inclusivity, businesses can implement employee resource groups and facilitate better quality staff training.
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Inclusive environments lead to happier employees, and it's no secret that happier team members are productive. So, let's discover how adopting diversity initiatives can create an inclusive and fruitful business.
Share skills, innovation, and creativity
It's time to stop seeing differences as dividers; they are what make us unique and give us individual perspectives on life. Having a workforce with varied backgrounds, skills, education, and experiences means your team is continually challenged by its diverse group of colleagues.
This continued collaboration will enhance employees' creative thinking, problem-solving, and help them make smarter decisions. When staff members feel their workplace values diversity, it becomes a safe space for employees to speak up when there are issues or opportunities, and share experiences and skills with colleagues.
Employee and business growth doesn't come from working with the same people that agree with each other—change fuels development.
Research from the Institute of Leadership and Management shows that over half of leaders and managers would not hire someone with a neurodivergent condition. But actually, companies can strengthen their creativity by hiring more neurodiverse candidates. With an estimated 15%-20% of the world's population exhibiting some form of neurodivergence, many talented candidates face workplace discrimination.
Only recently have employers become aware of the talent they've been overlooking. With essential skills in areas like pattern recognition, visual acuity, and attention to detail, neurodivergent candidates bring distinctive viewpoints to teams.
Attract top talent and keep it
Since the pandemic, employees are more aware than ever of life and workplace stress, with people prioritizing their quality of life and no longer standing for harmful workplace norms.
A 2022 DE&I survey by GoodHire found that 81% of respondents would consider leaving their employer due to their indifference to DE&I. Even 54% of respondents say they'd consider a pay cut to ensure a more diverse and inclusive workplace. It shouldn't come as a surprise that most employees want to work in an environment that fosters inclusion and offers opportunities for personal and career growth.
A Boston Consulting Group survey discovered that 81% of participants who stated their workplace was inclusive also felt happy in their jobs. This number was three times higher than those who didn't feel their workplace was inclusive. Building a DE&I-positive workplace will create a secure space for employees to grow, collaborate, and learn together, which helps to nurture budding talent.
Lower turnover rates due to workplace contentment can redirect your precious HR resources. Rather than the continuous search for new candidates, HR teams can spend time completing more in-depth and detailed onboarding for your new team members.
Exploring how other companies enhance their DE&I goals is a great way to learn and improve your own and retain your top talent. One useful resource is the McKinsey & Company Diversity and Inclusion page; this webpage includes a multitude of reports, interviews, and articles covering all aspects of DE&I to aid in deepening your knowledge.
Another helpful way to learn from others is listening to DE&I-focused podcasts, including Untapped and The Enlightened Agent. Although we were having many internal conversations, as a leader, I realized I needed to create better awareness and do more.
Represent your customers
A 2021 McKinsey survey reported that 2 out of 3 Americans refer back to their social values when shopping. Gen Z shoppers want to know what your company represents and its values before they part with their valuable cash.
If companies ignore diversity, they're creating an undesirable work environment and displaying to customers where their corporate values and ethics lie — which perhaps isn't in line with the consumers. Making this mistake can affect their profits and future by alienating a large proportion of potential customers.
Your brand must mirror your varied client base, which is more likely when your team is diverse. Who wants to work with or be represented by a company that doesn't fundamentally understand them? A heterogeneous workforce will allow you to understand customers' needs better and enhance their overall experience.
A 2021 report from the U.S. House Committee on Financial Services investigated DEI at the largest U.S. insurers, with the results showing the need for significant improvement. The overall workforce, which is 54.6% women, approximately echoes the U.S. population gender percentage. However, this number drops dramatically when looking higher up the corporate ladder. Unfortunately, this trend is also repeated when looking at the percentages for employees of color.
We still have a long way to go with DE&I. But with more companies becoming aware of the numerous benefits a diverse workforce can provide, the future is looking bright. The evidence is clear that diversity fosters a variety of company benefits, including enhanced business success and greater potential earnings.
Jason Keck, CEO, and Co-Founder of Broker Buddha.
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