4 reasons to focus on Diversity and Inclusion in the workplace.
“Diversity is the mix. Inclusion is making the mix work.” – Andres Tapia.
If you are a people Manager or HR Manager, we are certain you have faced challenges when leading diversity – leading people that are different from you. And even though you might be extremely good at delivering on business goals, creating an effective and cohesive team, where everyone contributes, innovates and feels safe to bring their unique perspective, is challenging to all of us.
Research shows that Diversity and Inclusion benefits individuals, organizations and teams. Countless studies, research, and experience with our clients have proven the benefits of a diverse and inclusive culture. We cannot emphasize enough how crucial this is for every organization that wants to create sustainable growth and impact in the long term.
Allow us to share with you some of the most beneficial parts of being a diverse and inclusive organization, because this is key to a healthy business. We divide the benefits of Diversity and Inclusion into four areas: Innovation & Group Performance, Talent, Reputation & Responsibility and Financial Performance.
INNOVATION & GROUP PERFORMANCE
Diverse teams are crucial for innovation.
It is, however, not only about having diverse teams. It’s also about understanding how to lead every individual to bring about their best performance and create an environment where those individuals can collaborate and create an effective team. Research shows that when companies create inclusive cultures and policies they are more likely to report increased creativity, innovation and openness. They are much better at assessing customers’ interests and needs.
Diversity reduces one way of thinking and enhances decision-making.
Diversity is the key ingredient for better decision making amongst teams. Teams that are very similar think alike. Diverse and Inclusive teams take time to understand different perspectives, consider a variety of information more thoroughly and leverage it when making decisions. Teams that include different viewpoints, ideas and cognitive structures solve problems faster and produce a higher quality intellectual property. Gender mixed teams are better at managing conflict and are more likely to be creative and innovative as well.
Inclusion is the key to team performance.
As mentioned above it is not just about having a diverse team. It’s about understanding how to create an inclusive culture. People experience inclusion at work when they are valued, can be authentic and are trusted. Psychological safety increases problem-solving, innovation and employee engagement.
TALENT
Diverse organizations are more successful at recruiting and retaining talent.
Firms with a focus on higher levels of gender diversity show a lower people turnover. Women are also more likely to work or be interested in pursuing careers in companies where women are represented in top management positions.
An inclusive workplace maximizes talent and productivity.
Organizations that have a strong inclusive culture are likely to show a high level of employee job satisfaction and commitment. In those organizations, women and people of color are less discriminated against. One of the most important outcomes of inclusive work cultures is trust, which is a key ingredient to strong and honest relationships, engagement and a healthy bottom line.
REPUTATION AND RESPONSIBILITY
Inclusion strengthens companies’ reputations.
What does this mean? Customers are more likely to buy or consider purchasing a product that comes from a company that is perceived as inclusive. And even when things are difficult, as they are now during a pandemic, organizations still recognize that investment in Diversity and Inclusion is crucial to get through the tough times.
Boardroom diversity strengthens environmental, social, and governance performance.
When corporate boards include people of diverse backgrounds and experiences, they are more likely to focus on the needs and interests of various stakeholder groups. For example, females on corporate boards are more likely to identify activities (social issues, human rights, climate change, income inequality, etc.) and implement appropriate constructive actions as part of the corporate strategy.
FINANCIAL PERFORMANCE
Inclusion can help organizations thrive during an economic recession.
Even now during the pandemic companies that are consistent with their inclusive work culture outperform others. Saying that focusing on return on investment (ROI) rather than on people and talent can eventually lead to compliance rather than building a culture that celebrates and leverages innovation and a diverse workforce. There are many studies that link diversity to indicators of financial health and profitability such as cash flow, return on investment, gross and net margins, market value, investment performance, stock returns and revenue, etc.
Having Diversity and Inclusion as a strategic focus is not a nice-to-have, it is a must-have in order to create a sustainable and high performing organization. Whatever your case is, business, moral, legal, make sure it is really part of your core mission and every individual understands and feels that they are valued for who they are.
If you want to know more about I&D Strategy, click here.
Inclusionem is a global Diversity and Inclusion Consultancy based in Dubai. We specialize in measuring inclusion, diversity and inclusion strategy, inclusive leadership training programs and inclusive communication. Our diversity and inclusion consultants create an impact daily and help to build inclusive organizations in Dubai, the Middle East and all over the world.
