How Diversity, Equity and Inclusion are giving companies the competitive edge.

Brandon Lewis IG: @nerovisum @bbranobd22

What does DEI mean?

Diversity, equality and inclusion (DEI) is imperative to any business with ROI in mind. Creating equitable access to talent and workforce development is imperative to the business, employees and overall community.

Within the business organization diversity efforts will typically include a collection of written policies and processes that ensure a diverse workforce in the realm of ethnicity, gender and sexuality. Equity ensures that those processes and programs are impartial and fair to everyone. Inclusion is the practice of ensuring people feel they belong in the workplace or institution.

Employees that feels a sense of belonging within the organization will increase employee productivity, collaboration, work life balance and community engagement.

Though DEI is important within the workplace, only 32% of executives reported their company participates within the valuable program training. Measuring the impact of DEI incentives is imperative to being accountable when provide a fair workplace. DEI has four key point to company growth.

The details/facts of the above:

1. Increased Revenue and Productivity

Numerous studies have linked diversity to increased profits and productivity. Kind of a no brainer when you think about it. If the world is diverse then why not your work culture and products? The worlds revenue is diverse so if your not, you are restricting your companies overall growth. There is also growing evidence that diversity and the comfort that comes from inclusion efforts empower workforces to be more innovative and more productive.

According to a Harvard Business Review, employees of firms with 2-D diversity are 45% likelier to report a growth in market share over the previous year and 70% likelier to report that the firm captured a new market.

To reach a global customer base, you need to be a global company. That means employing people from diverse genders, ethnicities and ages. It can help you better serve existing clients as well as more effectively reach out to new markets. Overall leading to finically growth and more resources to increase diversity in and outside the company.

2. Innovation, Amplified

To often evidence shows that DEI in the workplace promotes more innovation at a faster rate. There are many plausible reasons for this. Of course, a more diverse workforce implies a less homogenous workforce, with equally diverse approaches, experiences and ideas. This is a breeding ground for new ideas and innovation which translates to ROI. DEI training and programs may also help employees recognize and acknowledge their own biases, including entrenched ways of thinking, and lead them to actively work to overcome both while opening their minds to new approaches.

When a company is aware and transparent we can remove barriers. Critical information will be received in real time to create real constructive positive change for everyone. Because of this awareness, team members will be less likely to make errors in judgement. Cognitive resources are kept sharp and in use at this during this diverse culture. Even innovations, by definition, require people to step outside their comfort zone, an approach that diversity, equity and inclusion all foster.

3. Higher Employee Satisfaction

The fostering of a strong company culture offers the immediate payout of increased engagement, retention and employee satisfaction. Publicly celebrating differences through your DEI efforts can strengthen a company culture and deliver improved employee job satisfaction. Workers will feel both empowered and respected and will be more likely to be more innovative, imaginative and productive.

When your employees are not engaged, the cost can be substantial. A Gallup study in 2013pegged that cost at up to $550 billion every year in expenditures related to lowered productivity from existing employees and others related to replacing lost employees, including recruitment and on-boarding costs. 

Reports also suggest that DEI can foster better relations between workers, including reduced conflict and improved relationships. Finally, the feeling of belonging that DEI can promote helps improve the mental health and well-being of your workers and reduce stress levels.

Interestingly, rather than slowing things down, diverse teams that follow an inclusive process make better decisions, and they make them far faster. Additionally, they typically get better results from the decisions they’ve made.

4. Improved Company Reputation

A growing number of organizations and media outlets are working to highlight and acknowledge diverse companies with annual awards. Even consulting companies like Deloitte and banks such as RBC and Scotiabank are offering diversity and inclusion awards. What this acknowledgement translates into for businesses is an opportunity to further capitalize on the goodwill and benefits they’ve already received through their DEI efforts. The Canadian government is also on board with its 50-30 initiative, which provides both resources and recognition for DEI efforts.

This kind of good publicity can, and often does, translate into more clients or customers and easier recruitment and retention. The business case for DEI is clear. Companies who fully embrace DEI at all levels of the organization hire better, retain the best, innovate more and achieve higher profitability.