Diversity and inclusion have become key issues in today’s modern workplace. Whether you already have a diversity program or are just considering one, there are many benefits for your organization if you embrace D&I initiatives. These include attracting top talent, enhanced innovation, financial success and more engaged employees.
Why is Diversity Important?
Diversity is the term that currently refers to who is hired and who gets promoted within an organization. It is most evident in the characteristics of those in higher positions at your company. That is the race, colour, gender, religion, age, physical ability, socioeconomic position, etc. of those in leadership positions.
While it is easy to acknowledge that diversity in the workplace is essential, creating a program to enhance diversity can be a challenge. Statistics found that 87 percent of respondents indicated D&I was important at their organization but yet, 42 percent acknowledged diversity was still a barrier at their company. Developing a successful diversity program requires some effort and can sometimes challenge our personal bias, which is uncomfortable. But, the statistics show that diversity programs in the workplace offer a great return on investment (ROI). One that is worth striving for.
7 Powerful Diversity Benefits
There are several benefits that come with workplace diversity programs. Many studies have shown that organizations that invest in diversity programs experience a high ROI. That can come in the form of more engaged employees, better innovation and even growth in revenue. Here are just some of the top statistics that support diversity in the workplace.
- Employee engagement is higher. Study after study has shown that companies with a diversity program have employees that are more loyal, dedicated and engaged. In a Gallup study, it was discovered that employees who have a different background then their managers were more likely to stay with a company for the long-term if their organization was considered engaging.
- Increased revenues. Research by Gallup found that companies with more gender diversity saw revenues increase 46-58 percent. Those findings were supported by an international study reported in the Harvard Business Review. Statistics from that research found that companies with higher than average diversity in their workforce saw 19 percent more innovation revenue. Further to those findings, HBR researchers noted that gender diversity in the workplace could result in 2.5 percent higher innovation revenues while racial diversity could improve revenues by 1.5 percent. A comprehensive diversity study done by McKinsey discovered that racial and ethical diverse organizations are 35 percent more likely to see higher revenues. They also reported that for every 10 percent increase in racial or ethnic diversity, earnings before interest and taxes go up 0.8 percent.
- Younger generations are more diverse. An interactive graph by CNN shows that there are more Millennials than Boomers and that they come from a more diverse background. Only 54 percent are Caucasian. Furthermore, the number of Caucasian individuals is expected to drop further in the coming years. So, if you are looking at higher younger talent, you’ll want to ensure you have an attractive diversity program.
- Attracting talent. Job seekers today are more likely to search for employers that have a diversity program at their organization. In particular, Millennials are 47 percent more likely than other generations to want to work for companies where diversity is seen as a positive thing.
- Enhanced decision-making. Research has also demonstrated how when a diverse team of people makes a decision, that decision outperforms those made by individuals. The teams were also able to make decisions quicker. The whitepaper from Cloverpop noted that there was a 60 percent improvement in decision-making when the team was diverse. The study focused on diversity in three areas: gender, age and geographical. Groups with diversity on all three fronts were the ones with the best performance.
- Performance. Diversity can also boost the performance of your employees by 12 percent, according to Gartner. Teams that are made up of people from different backgrounds are able to avoid groupthink. This will lead to better innovation within your organization. Research has also found that those companies with a lack of diversity struggle. Statistics show that organizations with lower diversity are 29 percent more likely to underperform in their industry when it comes to profits.
- Relatability. Society is made up of many people from different backgrounds, ages, genders etc. For your organization to serve them well, you’ll need to have a workforce that represents the diversity found in society. Workplace programs that promote diversity can help equip your organization with the right type of leaders to guide you into the future with a strong customer base.
Diversity and Your Organization
Diversity is one of the most crucial factors impacting workplaces today. However, it’s important to remember that diversity and inclusivity are long-term games. That means, you may not see substantial benefits immediately but over the long-term, your organization will reap the benefits.
Many organizations understand that creating a diversity program at their workplace can bring about a number of benefits. However, there can be challenges in creating a diversity program. It takes some time, effort and investment on behalf of all those at the organization to build a successful program.
If you want to know what it takes to create a diversity program with a great ROI, contact Together today to find out how mentoring can improve the D&I at your organization.