Benefits of Diversity, Equity, and Inclusion in the Workplace
There are many, many benefits for a business to become more diverse. Here are eight key reasons why your organization should embrace diversity, equity, and inclusion.
1. Increased profits
Several studies have shown that companies with a diverse workforce are more profitable than those with more homogenous employees. These results are due to increased productivity and lower turnover rate, as hiring and onboarding new employees is costly for companies
2. Improved performance, productivity
Research by management consulting firm McKinsey and Company shows that an ethnically and racially diverse team can increase productivity by 35 per cent, and companies with gender diversity achieve results that surpass by 15 per cent companies that aren’t as diverse with respect to gender. This is because in workplaces where diversity and equality are championed, morale is higher. And happier employees are more motivated, which improves their performance
3. Reduced employee turnover (increased employee retention)
As mentioned already, lower turnover rate is a result of a more diversified workforce, and this is for the same reason as improved performance. Workplaces with high morale have increased employee retention because employees are happier, more loyal, and less inclined to look for work elsewhere. Employees tend to feel more valued, supported, and accepted in workplaces that are diverse and inclusive.
4. Increased employee engagement
When employees feel included, they become more engaged. They also feel more comfortable sharing their thoughts and opinions when they feel that they will be heard and respected. And this contributes to employees being more interested in their work, which results in better productivity.
5. Positive reputation
When a company promotes diversity, equity, and inclusion, its reputation is affected in a progressive way. It is seen as more socially responsible, more caring and compassionate, and better to deal with than competitors. This means that when potential customers look at which company they want to work with, they are more likely to choose the one with the superior reputation. This also means that recruitment is easier because potential employees will choose a company that is regarded positively over other companies. In fact, a study by Glassdoor found that two-thirds of job seekers said when evaluating companies and job offers, a diverse workforce is an important consideration.
6. Larger talent pool/improved hiring results/easier recruitment
As just mentioned, a company with a good reputation due to its practise of diversity, equity, and inclusion will attract a wide variety of candidates and more candidates than companies that do not place an emphasis on these qualities.
7. New perspectives, innovation, increased creativity
Cultivating diversity brings together people with different skills, backgrounds, and experiences who each add their own perspectives and ideas. Because of these varied viewpoints, a diverse company will be more creative and innovative.
8. Connect to wider range of consumers/access to broader client base/better understanding of customers
Because of the different perspectives brought by employees from a variety of ages, backgrounds and abilities, a diverse company will be better able to understand customers, who are diverse themselves. And this increases chances of achieving success.
Along with all of these advantages, having a diverse, equitable, and inclusive workplace is also just a good way to do business. Making people feel welcome, comfortable, heard, and valued is just the right thing to do.
Ensure your business and/or your clients take advantage of these benefits by training with Velsoft’s latest course offering, Diversity, Equity, and Inclusion.