Due to the ever-changing landscape of business, as we know it today, diversity and inclusion (D&I) are now words everybody wants to hear-and for more reasons than one being just another buzzword or a checkmark on the list. But progressive organizations understand that D&I is not just about politics or doing the right thing, it can be a significant driver for innovation and ultimate sustainable business success. In this article, we unpack what the transformation of D&I from just a compliance measure into an asset that could power your business to success means for companies and organizations.
The Evolution of D&I in the Corporate World
In the past, a lot of organizations saw their diversity and inclusion activities more or less as compliance plays – especially given that so many had begun to these drive behaviors out of legal adherence/risk management pressure. Targets were all about hitting numbers, staying out of discrimination litigation, and managing the brand. While these are important aspects to consider when it comes to diversity and inclusion, the reality is that such a narrow perspective holds back what an organization can truly gain from creating an inclusive workforce.
The Business Case for D&I
One of the best-documented findings in recent management research, it says diverse teams win over homogenous ones times and time again. According to a 2018 McKinsey & Company study, companies in the top quartile for ethnically and culturally diverse executive teams were 33% more likely to outperform on profitability. You are 21% more likely to outperform your peers if you work at a gender-diverse company.
However, D&I drives additional benefits to the bottom line:
Provides Greater Innovation: Having teams made up of people with numerous experiences and perspectives (and problem solving skills) can enhance innovation. All of this drives creativity and spurs novel solutions.
Better Decision-Making: The inclusive environments foster healthy debates that also encourage dissenting opinions and break the group think which results in more sound/rounded decisions.
Wider Market Reach varied workforce is more representative and knowledgeable concerning a large customer market, translating to the opportunity for businesses to achieve growth in new markets and provide personal opportunities.
Category: Talent Attraction and Retention – Companies recognized for having inclusive workplaces have been able to lure a diverse assortment of top performers while holding on to their best employees.
Higher Employee Engagement: Engaged employees are happier, more productive and are dedicated to ensuring the success of their employer.
Moving Beyond Compliance: Strategies for Success
However, organizations must change their mindsets and strategy if they are to use D&I as a competitive diverse formation advantage. Thus, these are strategies to take into account:
1. Accountability: leadership commitment
The highest ranks of a business should embrace D&I initiatives. Leaders should:
An early and obvious example of this is to state the business case around D&I decisively
Measure themselves against annual objectives and be held accountable for failures
Set a positive example for diverse culture
2. Integrate D&I as a Strategy into Business
Rather than a stand-alone objective, build D&I into every facet of the business:
Integrate goals for Diversity & Inclusion in Strategic Planning
Establishing how D&I efforts can improve important and relevant KPI (LOGO).
Include D&I considerations when developing products, marketing material, and customer service strategies
3. Foster an Inclusive Culture
This is essential for establishing a culture of value and empowerment across the profession:
Conduct unconscious bias training at all levels
Promote Employee Resource Groups & Mentoring Programs
Continually check-in and optimize for the employee experience on behalf of under-represented groups
4. Broaden the concept of diversity
See beyond the differences you can see, to include diversity of thought and experience.
Include cognitive diversity in team creation and problem-solving exercises.
Appreciate and make the most of employees’ generational, educational, broad market experience
5. Leverage Data and Analytics
Leverage these insights to understand what data points can be used in developing D&I strategies and measures on the path towards progress.
Build # Diverse metrics and Analytical Capabilities
Performing regular pay equity analyses and rectifying any imbalances
Predictive analytics to detect biased bias in the recruitment and selection process
6. What you can do Building on that information, make best practice AKI guidelines well known to allow providers to send in their opinions and challenges with the satisfaction of knowing it is a safe place where they can do so without receiving harsh criticism.
No one organization has conquered D&I. Take advantage of opportunities to learn and grow
Engage in industry consortiums and cross-learning efforts
Diversify suppliers and partner with local organizations.
Ask employees, customers, and other stakeholders for feedback on D&I initiatives
Overcoming Challenges
Of course, turning your D&I programs into a viable competitive advantage is perhaps easier said than done. Common obstacles include:
Resistance to Change: Some employees who have grown complacent may see D&I efforts as a disruption and unfair advantage for other types of people in the company.
Impact Quantified: In the short term quantifying ROI from D&I initiatives may be challenging.
Refueling the Engine: Supporting D&I efforts necessitates continuous investment and walk.
Organizations need to overcome these challenges by:
Be upfront about what you hope to achieve with your D&I efforts
Offer plenty of training and support to help staff get used to change
Create well-rounded measurement metrics that can account for the positive qualitative impacts of D&I efforts as well
D&I strategies must be reviewed and renewed to stay relevant and effective
Conclusion
The business world is more complex and interconnected than ever before, and diversity (the variety of differences regardless of race, gender or religion) has become an essential element that can foster innovation, growth as well as competitive advantage. Those entities that transition from rolling out D&I initiatives to fully embracing the concept, externally and especially internally practice it will be better suited to take advantage of their structural competitive edge in this continuing changing domestic marketplace.
Companies that approach D&I as a fundamental building block of their business strategy, create inclusive cultures, and keep learning can unleash the power of their diverse workforce. In the process, they not only make our workplaces more inclusive and powerful but also find themselves at the head of a talent competition, closer to their customers, and in better shape for long-term success.
The quest [to real diversity and inclusion] is, of course ongoing – but the payoff for those who persevere in it is immense. As we look to the future, it is apparent that D&I will be a defining factor in what separates companies from successfully leading versus slowly taking over or failing along the road of attracting talent and innovating for market share.