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3: What diversity and inclusion means for your bottom line

This week, we’re wrapping up our Diversity & Inclusion blog series with a conversation about the ROI of D&I initiatives—yes, it has been measured, and the results are in! 

Attracting the best talent

One recent survey found that 47% of people actively looking for new jobs cited company culture as the main reason, and 80% of respondents in another survey reported that inclusion is an important factor in choosing an employer.

In organizations where differing perspectives and voices are silenced, ignored, or neglected, we often see leaders struggling with managing, hiring, and retention. However, once an organization has established a reputation as a diverse and inclusive work environment with clear opportunities for advancement and development, it will continue to attract a diverse—and highly skilled—talent.

Quote Mark Orange

“Before you are a leader, success is all about growing yourself. When you become a leader, success is all about growing others.”

Jack Welch, former Chairman & CEO of General Electric

It’s no surprise that inclusive companies are looking for new, more effective ways to attract, retain, engage, and enable a diverse workforce, and this is not only because of the recent wave of DEI movement. It’s also a fact that diversity drives innovation and fosters organizational success.

In fact, the increases in creativity, quality and productivity that result from embracing D&I enable companies to gain substantial competitive advantages in the market.

The D&I impact on profitability

McKinsey & Company has conducted a dedicated multi-year series focusing on the benefits of diversity. With the most recent data in, the global consultancy concluded that not only does the business case for D&I continue to be robust, but the diversity on executive teams is increasingly linked to the likelihood of financial outperformance.

The latest report found that companies leading in gender diversity on executive teams were 25% more likely to have above-average profitability than their peers, and companies leading in ethnic and cultural diversity outperformed others by 36% in profitability. These findings emerged from a comprehensive data set encompassing 15 countries and more than 1,000 large companies.

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What inclusive companies are doing well

  • Creating a learning culture—one that emphasizes flexibility, openness, and exploration needed to tap the benefits of a diverse workplace and to ensure that a wide range of perspectives and experiences are heard, valued, and embraced.
  • Going beyond HR—structuring accountability for D&I initiatives across multiple Chief Diversity Officers throughout the company, as well as tying executive compensation to diversity goals.
  • Collecting and analyzing data on diversity over time—conducting employee engagement surveys, creating D&I success metrics, comparing those numbers to the numbers at other organizations, and sharing them with key stakeholders to increase accountability and transparency around diversity issues.
  • Involving managers in the design process for D&I programs to increase buy-in and smooth implementation, by making sure that any adjustments are a good fit with the way managers are working now.
  • Filling more executive positions with individuals from underrepresented groups, given that diversity in leadership is a leading indicator of a more diverse company in the future.

It’s clear that organizations that value personal differences benefit from inspiring leaders, effective communicators, motivated team players and well-rounded human beings who thrive and grow in such inclusive and supportive environments. Each person contributes a unique package of strengths and gifts to their immediate team and company as a whole. That’s why embracing diversity and cultivating inclusion results in high-performing teams and exceptional business success.

Closing Triangle

Inclusion is an outcome where everyone regardless of their unique differences feels welcomed, when your organization is truly inviting to all, and where diverse individuals are able to fully participate in the decision-making processes and development opportunities.

Download the full Embracing Diversity and Inclusion guide to learn more about the different personal styles, understanding and managing emotions, how to create a culture of diversity and inclusion, and the significant impact it can have on your bottom line.