Diversity, equality and inclusion (DE&I) are highly relevant and important to all businesses. For those educating themselves on the topic of DE&I, it's clear that not only are businesses legally obliged to consider DE&I, but there is a moral and ethical need to be accepting of everyone regardless of race, gender, age, ethnicity, religion, ability or sexual orientation.
One of the most striking aspects for business leaders to consider is the wealth of research and reports proving that a diverse workplace performs better.
What is diversity, equality and inclusion (DE&I)?
Diversity refers to the range of different characteristics in a group of people, encompassing aspects like race, gender, age, ethnicity, religion, abilities, and sexual orientation.
Equality means ensuring everyone has equal opportunities and is not treated differently or discriminated against because of their characteristics.
Inclusion is about valuing and involving all individuals, ensuring that everyone feels their perspectives and contributions matter.
The following are all examples of how DE&I impacts positively on business performance:
Higher Revenue
McKinsey & Company is a global management consulting firm advising some of the world’s leading businesses, governments and organisations. Their own report on DE&I states that companies who have a diverse executive board experience 53% higher returns on equity than companies that are less diverse!
Increased Innovation
Another benefit of having a diverse workforce, are the multiple perspectives when problem solving or considering a long-term vision. Research by Boston Consulting Group proved that companies with above-average diversity scores also reported a higher innovation revenue. During an interview with McKinsey & Company, Nobel Prize winner Richard Thaler, said: “There’s lots of talk about diversity these days,” says Thaler. “We tend to think about that in terms of things like racial, gender, and ethnic diversity. Those things are all important. But it’s also important to have diversity in how people think.”
Greater Customer Satisfaction
Businesses that embrace DE&I are 70% more likely to attract and capture new markets, according to a study from the Harvard Business Review. The future success of business relies on many elements, but professional relationships, the connections we make, and the network we build around ourselves will continue to contribute to that success. It is really important to be able to cast the net far and wide with a pro-active DE&I strategy to see the many benefits.
Improved Problem-Solving
Forward thinking businesses need to make sure they are seeking a diverse input when it comes to problem solving situations. The journal "Personality and Social Psychology Bulletin," published a study which states that diverse groups are 58% more likely to accurately solve problems compared to homogeneous groups!
Better Decision Making
Combining the power of different thinking styles and a variety of outlooks will never fail to widen the views of a group. Cloverpop, a complete Decision Intelligence platform, found that a high level of diversity in a team leads to decisions being made up to 87% faster and 60% more effectively! And quick, well thought through decisions being delivered efficiently will directly impact the bottom line of your business.
"When we put our heads together, when we trade, borrow, and acquire ideas from each other, we all win." Gusani Infotech
Higher Employee Retention
Recruiting and retaining new employees is an expensive and time-consuming process. Deloitte, the largest professional services network by revenue and number of professionals in the world, and one of the Big Four accounting firms, states that employees who believe that their organisation is committed to DE&I are three times more likely to stay at their company for the long term.
Global Talent Pool
At White Horse, we are constantly adding top talent to our pool and being proactive with assessing their needs and values when it comes to their personal recruitment goals. DE&I is without a doubt, one of the most important factors for people considering a new role. A survey carried out by Glassdoor, an American website where current and former employees anonymously review companies, found that 67% of job seekers will evaluate job offers against the DE&I policy of the company.
Enhanced Reputation
Have you heard of PwC Global? They describe themselves as “a community of solvers combining human ingenuity, experience and technology innovation to help organisations build trust and deliver sustained results”. Impressive, right? They conducted a survey which revealed that DE&I is becoming highly important to the image of a corporation. 87% of respondents considered DE&I to be of reputational importance for their CEOs. Some companies even attach DE&I targets to their employee’s bonus.
Competitive Edge
To be competitive you must be able to think ahead. As we already know, diverse teams are typically more innovative and better at problem solving – but they are also better at anticipating shifts in the market due to the variety of experience, expertise, and viewpoints brought to the table. According to a Forbes Insights report, more than 65% of executives consider that diversity is crucial to fostering innovation in the workplace. And if you’re smashing your innovation targets, you’re going to have one heck of a competitive edge!
Legal and Ethical Compliance
While incorporating DE&I because it is the right approach for an ethically minded business, it is important to note that a commitment to DE&I will help a company to meet legal standards which are required by law.
There are multiple studies and reports, some of which we’ve highlighted in this blog, which prove time and time again that DE&I in the workplace can only bring benefits. So while there are moral and ethical drivers for diversity, equity and inclusion in the workplace, there is no denying that there is a clear commercial value for businesses too.
Get in touch with us today to chat to any of the team for support with your DE&I strategy, or of course – your recruitment goals.