Five key business benefits of diversity and inclusion and how to implement them in your workplace
Diversity, equity, and inclusion (DEI) in the workplace is more than just a buzzword or a regulatory requirement to meet. It has real, tangible benefits for businesses. A diverse and inclusive workplace leads to higher levels of innovation, creativity, and productivity. It also helps to attract and retain top talent and can improve a company’s reputation.
In fact, research shows companies with the most racial and ethnic diversity are 35 percent more likely to outperform competitors.
However, creating a diverse and inclusive workplace is not always easy and requires a commitment to equity, inclusivity, and ongoing education and training.
In this article, we will explore the many business benefits of diversity and inclusion and how companies can strive for a more inclusive workplace culture.
Improved decision-making and increased creativity
Diverse perspectives and experiences can lead to more informed and well-rounded decision-making.
To give one example, researchers in Texas and Singapore conducted a series of experiments where they asked financially literate people to price stocks within simulated markets. The study participants were grouped into either ethnically diverse or diverse teams. The researchers concluded that the diverse teams were 58 percent more likely to price stocks correctly compared to their homogeneous counterparts.
What does this mean?
Research shows that diverse teams tend to perform better on complex tasks and make more accurate decisions. This is because diverse teams are less prone to groupthink, where everyone conforms to the same perspective and misses out on important information or alternative viewpoints. They process information more carefully and approach problems more critically.
Crucially, this also leads to increased innovation. A Spanish study found that gender diversity within R&D teams created group dynamics that led to “radical innovation”.
A diverse team is likely to have a wider range of experiences, perspectives, and backgrounds, which can lead to more thorough consideration of different options and a more well-rounded approach to problem-solving. When all team members feel comfortable sharing their ideas and opinions, it can lead to more creative and innovative solutions.
In short, diversity and inclusion in the workplace can lead to better decision-making by fostering a culture of open communication, creativity, and inclusivity, which allows all team members to contribute their unique experiences and viewpoints.
Organizations that are known for their commitment to diversity and inclusion may be more attractive to potential employees and customers.
Research from Glassdoor shows job shows 76 percent of jobseekers report that diversity and inclusion is an important factor when evaluating prospective employers.
Consumers and clients are increasingly seeking out businesses that reflect their values and beliefs, and a commitment to diversity and inclusion is often seen as a positive indicator. By showing that your company values diversity and is actively working to create an inclusive culture, you can appeal to a wider range of potential customers and clients.
A diverse and inclusive workplace can also improve employee morale and retention, which can lead to a better overall company culture and reputation. When employees feel valued and included, they are more likely to be satisfied with their job and stay with the company for the long-term. This can help to improve your company’s reputation as a good place to work, attracting top talent and building a positive reputation in the industry.
Improved employee satisfaction and retention
When employees feel that they are valued and included, they are more likely to feel a strong connection to the company and their colleagues. This sense of belonging can lead to higher job satisfaction and a more positive work environment.
Additionally, a diverse and inclusive workplace allows employees to bring their unique experiences and perspectives to the table, which can make work more meaningful and fulfilling. When employees feel like their ideas and contributions are valued, they are more likely to be engaged and motivated in their work.
Furthermore, a diverse and inclusive workplace can also help to create a more equitable and fair work environment, which can lead to greater satisfaction among employees. When all employees are treated fairly and have the same opportunities for growth and development, it can foster a sense of trust and respect among team members.
Improved customer satisfaction
A diverse and inclusive workforce may be better able to understand and meet the needs of a diverse customer base, leading to improved customer satisfaction and loyalty. This can translate into increased profits for the company.
A diverse and inclusive company is more likely to have a workforce that reflects the diversity of its customer base. This can make it easier for the company to understand and meet the needs of its customers, as employees from different backgrounds and perspectives can bring unique insights and ideas to the table.
Moreover, a diverse and inclusive company may be perceived as more fair and unbiased by its customers, which can increase trust and loyalty. Customers may also appreciate being able to see themselves reflected in the company’s workforce and marketing materials, which can make them feel more valued and included.
Enhanced legal compliance
Embracing diversity and inclusion can help a company avoid legal and regulatory issues related to discrimination and harassment, and ensure fair treatment of customers and compliance with equal employment laws.
A diverse and inclusive workplace can help prevent discrimination and harassment, which can be illegal and lead to costly legal disputes and regulatory action. Companies with a strong commitment to diversity and inclusion may be more likely to have policies and procedures in place to prevent such incidents from occurring and to address them when they do.
As business leaders develop their DEI programs, they should reach out early and often to legal experts within their organization to fully understand their obligations – before they are in a situation where they need to.
Start today – Every step counts
Overall, embracing diversity and inclusion can bring a range of benefits to a business, including improved decision-making, increased innovation, enhanced reputation, and better customer service, all of which can contribute to increased profitability.
Approaching diversity, equity, and inclusion should be about consistent progress, not perfection. It’s essential that DEI activities are measurable and that DEI programs have built-in means of learning from areas where your organization may fall short.
Experience the benefits of diversity and inclusion in your workplace
At Bronson Technical Search, we help organizations meet their DEI goals and drive technological innovation – at the same time!
The BTS Talent Network consists of Canada’s top technical talent, from all backgrounds and walks of life. Book a free consultation today to see how DEI can foster innovation within your organization.