Diversity, equity, and inclusion – a concept that has become more prevalent and important for businesses today. In 2024, we live in a society that continually promotes and celebrates the unique diversity and inclusion of the global population, and this way of thinking continues to make strides in the business world. The conversation surrounding diversity and inclusion is more open than ever, and in this blog, we will be exploring why diversity, inclusion, and equity are crucial for organizations today.
What is Diversity, Equity and Inclusion, and Why Does it Matter?
In today’s rapidly evolving corporate landscape, the terms diversity, equity and inclusion (DE&I) are more than just buzzwords; they represent a pivotal shift towards more equitable, innovative, and high-performing organizations.
For organizations to effectively tackle DE&I, the first step is to understand what it actually is. Let’s begin by exploring what each of these three terms mean.
- Diversity: who is represented in the workforce and the variety of characteristics of individuals within an organization. This can further expand into five more definitions to provide additional clarification, though remember that diversity encompasses more characteristics than just these:
- Ethnic diversity: what racial, cultural, or national backgrounds are represented within the organization?
- Gender diversity: what genders represent the employees at the organization? Is it an appropriate mix of men, women, non-binary, and gender-diverse individuals?
- Age diversity: are the ages of employees in the organization wide-ranging, or is it primarily one age group?
- Diversity of sexual orientation: are LGBTQ+ individuals represented and made to feel welcome within the organization?
- Physical ability and Neurodiversity: are disabled individuals appropriately represented and supported at this organization? Are the perspectives of individuals with disabilities – whether this is a physical, mental, or developmental disability that is apparent or not – valued and accounted for?
- Equity: the processes within an organization are fair and provide equal opportunities for everyone, regardless of personal characteristics.
- Inclusion: leaders and employees feel a sense of belonging, feel supported, and feel valued as their authentic selves by their organization – the culture in which they are a part of is highly connected.
Make no mistake: DE&I is not simply a “nice to have” within an organization. Research indicates that there is a real and measurable impact of embedding DE&I into organizational principles and operations, such as:
1. Enhanced Performance and Innovation: Diverse teams bring a plethora of perspectives that lead to better problem-solving and innovation. Research consistently shows that companies with higher diversity levels outperform their less diverse counterparts in profitability and value creation. McKinsey found that companies with lower gender, ethnic, and racial diversity were statistically less likely to achieve above-average financial returns than individuals with greater diversity.
2. Greater Employee Engagement: Inclusive environments where employees feel valued and respected lead to higher levels of engagement and satisfaction. The truth of the matter is that when employees can openly celebrate all aspects of their identity and show up to work as their authentic selves, they are more likely to be engaged and put in extra effort. This is the case for many LGTBQ+ individuals, who, according to Harvard Business Review, stated that they would remain with their employer for longer when the organization was rated highly on measures of inclusion.
3. Improved Attraction and Retention: Organizations known for their inclusive culture attract top talent from diverse backgrounds. Moreover, they are more successful in retaining talent because inclusive practices reduce the likelihood of turnover. Since 2007, Walgreens has embedded DE&I initiatives throughout their distribution centers in an effort to change the way businesses approach the inclusion of disabled individuals. Their results throughout the initiative indicated that, after employing disabled individuals in more than 21 of their distribution centers across the United States, these individuals delivered superior results in terms of safety incident costs and employee retention.
4. Reflecting the Global Marketplace: As businesses expand globally, having a workforce that reflects the diverse makeup of the global market can provide insights into customer needs and preferences, driving better service and product development.
Real Strategies for Fostering Diversity, Equity and Inclusion
As the saying goes, actions speak louder than words. Implementing effective DE&I strategies requires more than intent; it demands structured and continuous actions that drive real change. The journey from acknowledging the need for diversity and inclusion to implementing effective strategies that embed these principles into the organizational fabric can be daunting.
Here are several strategies that can help organizations build a truly inclusive and highly connected culture:
Leadership Commitment
– Have a Diverse Leadership Team: Ensure that the leadership team at your organization represents a diverse group of individuals. This can include having a leadership team made up of a mix of genders, ages, backgrounds, etc. The presence of diverse leadership is positively correlated to higher feelings of inclusion within organizations.
– Visible Advocacy: Senior leaders must not only endorse DE&I initiatives but actively model and own them within their culture. Their involvement can include leading by example, speaking openly about the importance of diversity, and holding themselves accountable for DE&I outcomes.
– Inclusive Leadership Training: Equip leaders with the skills to manage and lead diverse teams effectively. This includes training on unconscious bias, inclusive communication, and conflict resolution.
Policy and Structure
– Embed DE&I in Corporate Values: Integrate diversity and inclusion into the core corporate values. This alignment helps ensure that every business decision reflects these principles. A 2022 study conducted by McKinsey indicated that nearly 40 percent of respondents said they had turned down a job due to a perceived lack of inclusion at the organization. By embedding DE&I into corporate values and truly living them, it allows future and current talent to feel supported and valued.
– Comprehensive DE&I Policies: Develop clear policies that promote diversity in hiring, retention, promotion, and compensation. Ensure these policies address direct actions as well as provide guidelines for addressing discrimination and harassment. According to HBR, individuals who work for organizations with DE&I policies are more likely to report being satisfied with their organization and opportunities for growth and development than those in organizations without DE&I policies.
Recruitment and Career Development
– Bias-Free Recruitment: Implement recruitment practices that minimize biases by using structured interviews, diverse hiring panels, and standardized evaluation criteria.
– Mentorship and Sponsorship Programs: Establish mentorship and sponsorship programs that support underrepresented groups in professional development and career advancement. These programs should not only offer guidance but also actively advocate for individuals within the organization.
Culture of Inclusivity
– Embed Psychological Safety: Fostering a highly connected and psychologically safe culture that promotes giving everyone a voice, invites input from all meeting participants, and uses inclusive language allows team members to feel safe to share innovative ideas and take risks that allow for growth.
– Continuous Training and Awareness Programs: Conduct regular training sessions to raise awareness about different cultures, identities, and experiences. These should aim to foster empathy and understanding across the organization.
Measurement and Accountability
– Track DE&I Metrics: Regularly measure how well the organization is doing in terms of diversity representation at all levels and inclusivity in workplace practices. According to Deloitte, 24% of organizations they surveyed were not actively measuring progress in their DE&I commitments – continuous measurement of how DE&I initiatives are performing will allow leaders to identify gaps and adjust strategies where necessary.
– Accountability Structures: Hold leaders and managers accountable for meeting D&I goals through performance reviews and compensation structures.
Conclusion
Transforming buzzwords like diversity, equity, and inclusion into meaningful change is no small feat. It requires a steadfast commitment to developing strategies that not only invite diverse talent into the organization but also nurture an environment where every individual can thrive. By implementing these real-world strategies, organizations can move beyond mere compliance to become standard-bearers of diversity and inclusion, ultimately achieving a competitive edge in today’s dynamic business environment.
At IHHP, we reaffirm our commitment to the inclusion and rights of diverse populations, recognizing that inclusive workplaces drive engagement, retention, and overall success. A highly connected and diverse workforce is a high performing workforce, and we are proud to support organizations in their efforts to build more inclusive and connected teams.
Looking to build a more connected and inclusive team? IHHP’s Emotional Intelligence Solutions are designed using neuroscience-based research and findings to help organizations foster psychologically safe and emotionally connected environments, allowing your people to perform at their best and feel engaged. Learn more about our renowned Science of Emotional Intelligence program here.