{"id":29560,"date":"2020-10-15T15:49:39","date_gmt":"2020-10-15T13:49:39","guid":{"rendered":"https:\/\/www.euruni.edu\/blog\/?p=29560"},"modified":"2021-06-14T12:54:59","modified_gmt":"2021-06-14T10:54:59","slug":"importance-diversity-inclusion-workplace","status":"publish","type":"post","link":"https:\/\/www.euruni.edu\/blog\/importance-diversity-inclusion-workplace\/","title":{"rendered":"Understanding the Importance of Diversity and Inclusion in the Workplace"},"content":{"rendered":"\n

Creating a diverse and inclusive\u00a0workforce<\/a> is not just about virtue signaling.\u00a0Myriad\u00a0studies have shown that a diverse workforce leads to greater levels of innovation and profitability. Diversity is a question of growth and profit, and there are numerous ways that it\u00a0should\u00a0play out in companies hoping to reap the full benefit of their efforts.\u00a0\u00a0<\/p>\n\n\n\n

Here, we explore how diversity and inclusivity initiatives can be integrated across a business, and discover some of the companies taking the lead. <\/p>\n\n\n\n

What is Diversity and Inclusion<\/strong> in the Workplace<\/strong>?<\/strong> <\/h2>\n\n\n\n

Each company\u00a0should have\u00a0their own definition of what\u00a0diversity and inclusion<\/a>\u00a0means for them,\u00a0defined in a vision statement.\u00a0This statement\u00a0should outline why diversity and inclusion is important to the overall mission of the company. Importantly, the vision is only the beginning: it should inform\u00a0a comprehensive\u00a0strategy that incorporates communications,\u00a0processes\u00a0and\u00a0performance metrics, and is understood\u00a0by employees\u00a0across the business.\u00a0\u00a0<\/p>\n\n\n\n

Diversity and inclusion strategies should encompass all measures of difference, including sex, gender, age, nationality, race and religion.<\/strong> In the context of a private company, diversity and inclusion at its fullest sense means seeking to diversify the workforce from entry level positions to leadership roles and to support diversity throughout the recruitment process, as well as ensuring diversity in the supply chain and investments. Companies engaging in diversity and inclusion seek to create an inclusive workplace culture, a diverse workforce and to capitalize on this in the marketplace, with diverse ideas and perspectives from employees attracting a diverse range of clients.  <\/p>\n\n\n\n

Why Is It Important in Business?<\/strong> <\/h2>\n\n\n\n

Numerous studies have proven the benefits of increasing diversity and ensuring inclusion in the workplace.  <\/p>\n\n\n\n

A study by Boston Consulting Group\u2019s strategy think tank found \u201ca strong and statistically significant correlation between the diversity of management teams and overall innovation.\u201d And a report from McKinsey found that companies with the most ethnically diverse executive teams are 33% more likely to outperform their peers on profitability<\/strong>.  <\/p>\n\n\n\n

This data is further underpinned by a Deloitte study focused on Millennials and Generation Z, which found that both generations will support businesses whose values align with their own, and penalize those who don\u2019t. They also found that job loyalty among members of these generations rises as businesses address key issues, including diversity and inclusion.  <\/p>\n\n\n\n

Furthermore, Glassdoor discovered that two thirds of job seekers place importance in a diverse workforce when evaluating companies and job offers. They\u2019ve recently added diversity and inclusion metrics into their employer ratings, which are submitted anonymously by employees and enable jobseekers to assess employers. Glassdoor CEO Christian Sutherland-Wong said: \u201cJob seekers and employees today really care about equity, and for too long they\u2019ve lacked access to the information needed to make informed decisions about the companies that are, or are not, truly inclusive.\u201d <\/p>\n\n\n\n

Finally, Debra Walton, chief product & content officer, financial & risk at Thomson Reuters, said: \u201cOur research shows that companies that make investments and focus on ESG [environmental, social, and governance] matters can have a stronger stock performance and better long-term profitability. For investors, looking beyond financial data is becoming more important.\u201d Underpinning company values with active efforts to improve on diversity and inclusion performance, alongside other ESG matters, will reap financial returns in the long run.  <\/p>\n\n\n\n

All these studies go to show that it is essential for companies aiming to attract and retain a loyal workforce, expand their product lines and grow their customer base, to address diversity and inclusion. <\/p>\n\n\n\n

Achieving a <\/strong>Diverse and Inclusive Workplace<\/strong> <\/h2>\n\n\n\n

There are many approaches businesses can take to improve their record on diversity and inclusion. There\u2019s no one-size-fits all approach here; companies need to design a strategy that aligns with their vision, produce their own goals and determine how to integrate these measures across their business. Diversity and inclusion initiatives should be spearheaded by someone at the top of the hierarchy, preferably the CEO or a board member. This helps to ensure accountability and that challenges are raised during top-level discussions.   <\/p>\n\n\n\n

Diversity and inclusion <\/a>cannot be achieved by publishing a statement on the website and\u00a0sending out a press release. It requires real and sustained effort and a data driven approach, to ensure that initiatives are measured and enhanced for maximum effect. This should be seen and managed as a project with concrete outcomes, a timeline and a budget, if businesses want to\u00a0have success in this area.\u00a0\u00a0<\/p>\n\n\n\n

An effective diversity and inclusion strategy may include commitments to:  <\/p>\n\n\n\n