The Cost of Lack of Diversity and Inclusion at Workplace
Most of the time and money expended on diversity and inclusion were spent on improving recruitment strategy to have a diverse workforce.
Companies should consider how diversity and inclusion affect all facets of their company, including recruitment process, retention, operations, and revenue. Concentrating only on minority recruiting and ignoring equality may have detrimental implications.
C-suite executives are assuming a lot about their staff, and it is costing the economy USD 1.05 Tn.
According to new Accenture data, 98% of CEOs believe their firm is inclusive and has a diverse workforce. To put it another way, leaders believe that people may bring their complete selves to work.
Accenture questioned about 1,700 senior executives and 30,300 workers on a variety of subjects related to inclusion, including the opportunity to fail without fear, the capacity to report harassment, and the freedom to work from home. According to senior executives, 98% of their staff felt involved on the job. However, only 80% of employees said they felt included at work.
Analysts discovered that organizations with an elevated level of employee engagement were more likely to have better profit growth. Businesses saw a 33% rise in worldwide profit growth after closing the gap by 50% or making employees feel more involved. This translates to a profit rise of USD 1.05 Tn for US businesses.
Analysts calculated the profit increase and savings owing to decreased staff turnover using regression models and simulations. For example, a firm with 50,000 workers might save up to USD 8 Mn per year by boosting the retention rate of women by 5%.
Accenture’s results are backed up by research. Employees that are engaged are more productive, more responsive to customers’ requirements, and more mindful of business standards, according to a Gallup research from 2017.
What are some concrete goals that leaders may aim toward to have an inclusive and a diverse workplace?
According to Accenture, an enabling atmosphere contains the following characteristics (among others):
- Employees feel comfortable reporting sexual discrimination/harassment.
- Employees feel trusted and are given responsibility.
- Employees are allowed to be original and creative.
- Virtual/remote working is a common and accepted technique.
The good news is that adopting an inclusive culture will not only boost your capacity to recruit from a larger talent pool, expanding your company’s diversity, but it will also generate a virtuous cycle with measurable ROI across all facets of your business.
Even if you are skeptical of the business benefits of a diverse workforce, it should be evident from reading this post that it can lower your recruitment expenses and improve the average quality of your personnel by widening the pool of suitable applicants, providing you a strategic edge in the talent market.
HR directors can view ethnic and gender diversity across corporate functions, locations, and job role taxonomies with Draup‘s unique Diversity Navigator. HR directors use Draup’s Diversity Navigator’s insights to assist minorities to advance in their careers, helping to achieve diverse workforce.