Diversity and Inclusion (D&I) is becoming irreplaceable as organizations look to create a work environment that reflects current demographic progression. Diversity and inclusion create opportunities for individuals to achieve their goals irrespective of their sexual orientation, social background, age, gender, ethnicity, religion, faith, and disability.
Organizations focused on diversity and inclusion are becoming more successful in employee engagement, retention, and financial performance. According to a recent study, it was found that companies in the highest quartile for racial diversity in leadership were 36% more likely to have above-average financial returns.
With organizations globally adopting D&I into their work, it is essential to understand the underlying benefits of this new work culture. Studies conducted by global universities and industry analysts indicate the benefits of D&I in the organization, including:
- Higher employee engagement and productivity
- Better financial performance
- Faster problem solving and reduced conflicts
- Access to a broader pool of perspectives, thoughts, and ideas
- Better brand reputation and so on.
Traditionally, businesses have always hired someone who fits their current team and demonstrates the same interests and practices. Today, over 77% of companies agree that D&I is essential to their overall success and is irreplaceable.
Let us look at how diversity and inclusion can power enterprises to win the ongoing talent war.
Access to a wider talent pool
One of the prime benefits of diversity and inclusion is that you get to tap a wider talent pool. This talent pool comprises of individuals from different levels of diversity and helps an organization utilize a 360-degree view of the business ecosystem.
Expanding your recruitment searches to more diverse candidates, including background, ethnicity, age, and more, widens your talent pool and increases your chances of finding the best hire.
According to a recent survey, 72 percent of women, 89 percent of black respondents, 80 percent of Asians, and 70 percent of Latinos agree that workforce diversity was essential to them. Hiring more diverse individuals is crucial in attracting qualified talent, which will be discussed further.
Improved recruitment of top talent
At a time when unemployment is low, recruiting top talent can be a challenge. With the onset of the great resignation, employees need more than just compensation perks and packages. A recent study indicated that diversity could mean the difference between whether or not someone wants to work for your firm.
Researchers found that 67 percent of jobseekers considered a diverse workforce one of the critical factors in choosing where to work. This shows that workers aren’t just open to the idea of a diverse workplace but that they’re beginning to expect it. The more you respond to this expectation, the better your chances are of hiring and retaining top talent.
It is crucial to understand that a modern workplace is much more than a few colleagues, reasonable compensation, or better projects; modern-day employees look beyond these fundamental aspects and ask for an improved workplace, including D&I.
Increased employee engagement and work culture
Naturally, inclusion leads to engagement. When employees feel included, they’re more engaged, and highly engaged employees go the extra mile for the organization. This higher engagement has a ripple effect on profitability, team morale, and retention.
People working in inclusive workplaces also tend to have better physical and mental health while maintaining higher productivity levels at work. Companies implementing D&I saw a whopping engagement rate, with 83 percent of millennials actively engaged at work.
Further, by building an inclusive work environment, you can foster trust and loyalty between employees and leadership as only 1 in 5 HR leaders agree that their employees deeply trust their company leaders.
Reduced Attrition rate
Employee retention is central to the success of a business as high turnover costs time and money, impacts the morale of all employees, and martyrs an organization’s reputation.
An inclusive business gives space and a voice to all employees to come as they are, rather than lauding the idea of one perfect worker. Companies with a diverse workforce are generally more inclusive of different individual characteristics and perspectives. The inclusive approach also ensures employees feel recognized and valued for who they are.
Diversity and inclusion in the workplace cause all employees to feel accepted and valued, which results in employee satisfaction and retention. As a result, companies with greater diversity in the workplace generally have lower turnover rates.
Companies dedicated to building and promoting diversity in the workplace are seen with respect and considered socially responsible, gaining a better reputation for the brand.
Workplace diversity also makes your company look more attractive. When you present a diverse workforce, you make it easier for many different people to relate to your company and your brand, opening doors to new markets, customers, and business partners.
When a business establishes itself as having a culture that fosters diversity, it becomes more attractive to minority talent and potential customers. A company with a diverse staff is more likely to understand the needs of a diverse customer base.
Draup is an AI-powered talent intelligence platform leveraged by Fortune 500 enterprises to gain timely talent insights & prepare comprehensive strategies to incorporate D&I into their organizations.
Using Draup’s Diversity Navigator, HR Leaders can visualize ethnic and gender diversity across business operations, geographies, and job roles. By utilizing the insights from Diversity Navigator, HR leaders can also plan out the career paths of minorities and achieve actual diversity and inclusion.