Why Are Diversity, Equity and Inclusion in the Workplace So Important?
Diversity, Equity & Inclusion are becoming commonplace in organisations. But why is it important and how does it affect the workplace?
One of the major problems employees have continuously faced in organisations over the past years is workplace discrimination, which often stems from a lack of diversity, equity and inclusion (DEI). Particularly with many organisations entering the global marketplace, the workforce is also becoming more diverse. Yet, recent global changes have brought changes to the way workplaces operate right from how we carry out our tasks to corporate culture.
To ensure employees feel valued in the workplace, many companies have introduced diversity, equity and inclusion (DEI) policies. While there is no universal approach to implementing these policies, DEI helps organisations reap various benefits by building effective teams, ultimately gaining an edge over their competitors.
Through this article, we explore the impact of DEI in the workplace and why it is considered to be a very important feature of a successful work environment.
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What Is Diversity, Equity & Inclusion?
Diversity refers to the characteristics that distinguish us from our colleagues and how each group is represented such as age, gender, ethnicity, sexual orientation etc. Equity, a new addition to the DEI initiatives, is related to the extent to which all employees are given the same treatment and opportunities. Finally, inclusion concerns how we as employees feel a sense of belonging in the workplace.
Diversity, equity and inclusion (DEI) allow organisations to nurture the performance of individuals from various backgrounds. Although used in tandem with one another, they are 3 separate values and it is important that we understand their individual meanings. At the same time, focusing on any one of these factors is not enough for it to be beneficial for the workforce and by extension organisations. For example, a diverse workforce may not provide a sense of belonging or inclusion among employees. Thus, having DEI strategies or plans help organisations to create an equitable and inclusive environment that is mutually beneficial for both the employees as well as the organisation.
Why Is Diversity, Equity & Inclusion Important?
Aside from providing everyone with the equal opportunity to join and grow in an organisation, DEI have various other benefits within the workplace. Take, for instance, research from Mckinsey & Company, which suggests that diverse organisations are 25% more likely to outperform their less diverse counterparts in terms of profitability. Moreover, when a diverse group of employees come together they bring and share different information, opinions and perspectives fostering a creative environment in the workplace.
DEI strategies do not just boost the overall performance of organisations but also give them a competitive advantage. For instance, clients and employees are increasingly looking to be part of companies with such policies that best reflect their values or beliefs. To add on, organisations that promote a diverse workforce and have sound DEI policies are likely to attract a larger number of talent. A survey by Glassdoor found that 76% of job hunters and employees consider diversity in the workplace to be a key factor when evaluating job offers or organisations as a whole.
Moreover, when employees trust organisations to treat them fairly they are 10 times more likely to go to work and 6 times more likely to express pride in their job role. This ultimately helps increase employee retention by encouraging individuals to be a part of the workforce for a longer period. In fact, research findings have shown that Millenials would stay longer with organisations that are accommodating of a diverse workforce.
How Can Organisations Take a More DEI Approach?
Although many corporations, across the world are prioritising DEI initiatives, there are still many objections around them. One such objection is that DEI often hinders the age-old practice of meritocracy, which is the practice of career growth among employees directly linked to their performance in the workplace. And according to Joan Williams, a professor at the University of California, Hastings, such objections often tend to hinder the aim of DEI initiatives to change the corporate culture. This section, thus, looks into the various ways in which organisations can integrate effective DEI plans into their workforce.
1. Inclusion of DEI Initiatives to Core Business Strategies
DEI initiatives concern far more than the HR department of organisations. In fact, they should be the core element that drives business strategies across the organisation ultimately being integrated with day-to-day tasks. Moreover, including a diverse group of individuals in the core decision-making process helps reflect and represent the voices of many customers and employees alike. For example, a diverse design group are more likely to create and develop products that cater to a wider target audience by extension reducing biases, generalisations or shortcuts.
2. Review the Hiring Process
The strategies implemented by an organisation’s Talent Acquisition Team to attract new talent can also reflect DEI plans. Is the talent pool diverse? Unfortunately, many of the talent management processes, may at times, perpetuate unintentional bias. For example, hiring managers often make use of selection criteria that are unrelated to job performance. One way these biases can be overcome is by reviewing and amending talent management strategies that tend to limit opportunities for current and future employees.
3. Exercise Inclusive Leadership
Despite ensuring that strategies across the organisation promote DEI, such policies are only effective if organisational leadership adapts to the new changes effectively. It is now imperative that leaders understand what is required and implement inclusive leadership styles for various teams and/or roles.
To conclude, by developing and implementing DEI strategies based on the needs of the organisation, leaders can expedite more positive as well as equitable results leading to engaging the present and future workforce. This allows organisations to be able to adapt to the current market trends whilst also effectively attracting, engaging and retaining their employees.