Purposeful Inclusion - Why Diversity Matters by a Strategic Planning Specialist
We hear the term diversity a lot in the business world, but what exactly is it and why does it matter so much? Diversity means an organization employs a diverse group of people that reflects the society in which it does business. There are several key reasons this is a crucial element to running a successful business.
You Will Attract Top Talent
Job seekers of today want to work for a company that embraces diversity and they do their research to make sure this is the case. A recent study showed that two-thirds of job seekers considered a company’s diversity in its workforce before accepting job offers. They’re not afraid to ask tough questions during the interview process to ensure the advertisements for employment that show diversity are backed up by actual business practice.
What you do with that potential talent will make or break your diversity and inclusion standards. Currently, Caucasian candidates are 50 percent more likely to receive a callback than their African American counterparts. Forty percent of men and women feel there is a double standard when it comes to hiring men vs. women. Your potential employees are watching you.
Your Employees Will Stay Put
One of the biggest costs to any business is employee turnover and many have retention as a measurable scorecard target. Diversity is important for employee retention for several reasons:
- Diverse employees learn from each other and feel more fulfilled
- Diversity adds to a positive brand reputation
- Diversity leads to creativity, innovation, and personal growth
People want to do more than show up and collect a paycheck. In fact, of the motivations employees cite for staying in a workplace and working to their full potential, peer collaboration and motivation topped money incentives.
Your Business Will Perform Better and Make More Money
One of the biggest eye-openers when companies hire me as their strategic planning specialist is finding out how much diversity and inclusion impacts their revenue and profits. There isn’t one study to cite to back this up, there are thousands. Diversity in entry-level positions through to C-level execute makeup plays a role in your company outperforming itself and the competition.
Companies in the top quartile for racial and ethnic diversity are 35 percent more likely to report earnings above industry averages and those with the same ranking in gender diversity are 15 percent more likely to report those same earnings. Much of this has to do with individual employee performance hitting all-time highs in workplaces with a diverse team. Those teams make better decisions 87 percent of the time than an individual does. Better decisions lead to better bottom lines.
Diverse Management
A huge factor in a company’s financial performance is linked to the diversity of its management team. Forty-three percent of companies with diverse boards increased their profits. Each individual contributor in diverse workplaces produced 2.3 times higher cashflow than competitors.
Management teams need to reflect the diversity of the workforce or employees feel inclusion suffers. A diverse management team can lead to a 19 percent revenue boost as long as that team reflects the diversity of its direct reports
Diversity Must Come with Inclusion
Companies can hire diversity but without inclusion, it won’t matter. Diversity is simply a representation of a group, but inclusion is when all employees are treated fairly and have equal access to resources and opportunities and are allowed to fully contribute to success.
That’s where I come in. I successfully help companies change their practices to better include and hire diverse talent to improve their success in their marketplace. I can help you and your organization better represent the communities in which you do business and increase your market share of that business.
You can reach me at clara@auroratsi.com or request information with our online form.