Diversity equity and inclusion is no longer a nice addition to your HR tactics. DEI should be a driving force behind your company’s success. If you are ready to invest time, effort, and creativity in an inclusive and diverse workspace, you can expect an impressive ROI.
A balanced mixture of employees who represent genders, ethnicities, religions, and ages is a perfect combination for success. With the right approach to creating, managing, and maintaining a diverse and inclusive environment, you can increase revenue, reduce turnover, boost engagement, and much more.
Let’s take a closer look at how it works.
Higher Innovation Revenue
A large global study conducted by Boston Consulting Group demonstrated that the diversity of management teams contributes to higher innovation revenue.
In fact, the innovation revenue for companies with below-average diversity was 19 percentage points lower than for companies with higher-than-average diversity.
This means that companies, which plan for more innovation can benefit from diversity equity and inclusion significantly. However, each company needs to find the perfect mix for its needs and requirements.
To reap the benefits of higher innovation revenue, the company needs to have the right inclusive foundation and help diversity flourish in the workplace. This includes fair employment practices, participation leadership, and leadership by example.
Lower Employee Turnover
Amidst the Great Resignation, companies are losing billions of dollars to turnover. According to Gartner, turnover rates are likely to continue rising beyond 2022. If your company is struggling to retain top talent, diversity, equity and inclusion in the workplace can make a major difference.
A Glassdoor survey found that 76% of job seekers view diversity, equity and inclusion as major factors when choosing a place to work. If you manage to arrange and maintain a healthy and inclusive workplace environment, it’s possible to retain the current workforce and become an employer of choice for potential employees.
Since losing one employee can cost your company more than their annual income, anything that contributes to higher retention rates is a big win for your budget.
Drive Employee Engagement
Today, the majority of the workforce (65%) isn’t engaged. This has a direct impact on your company’s financial well-being.
Disengaged workers don’t contribute to the success of your company as much as engaged employees can. They miss more workdays, make more mistakes, and look for other employment options. Meanwhile, highly engaged business units can increase profitability by 23%.
A diverse and inclusive workplace boosts employee engagement. It helps foster a sense of belonging, increases comfort, and helps align the employee’s values with the company’s values.
Improved Decision Making
Decision-making has a significant impact on any company. A disrupted decision-making process can reduce your revenue and easily put your business behind the competition. Diversity, equity and inclusion can contribute to better decision-making and become the driving force behind its positive economic impact.
According to research, inclusive teams make better business decisions 87% of the time. So, if you invest in diversity, equity and inclusion in the workplace, you can reap significant financial and organizational benefits.
Build an Inclusive and Diverse Workplace Today
Diversity, equity and inclusion don’t just improve your workplace environment. They have impressive economic benefits that include lower turnover rates, higher innovation revenue, better decision-making, and excellent employee engagement.
Together these benefits can easily increase your profits, prevent unnecessary expenses, and improve the company’s bottom line.
Are you ready to streamline diversity, equity and inclusion in your workplace? Consider taking advantage of a mentoring program that grows an inclusive culture of diverse talent and helps your company thrive by ensuring access to relationships. For more information, please contact us at any convenient time.