Diversity, Equity, and Inclusion (DEI) is a crucial aspect of any workplace. It is not just a moral or ethical imperative but also an essential ingredient for a company’s success and growth. Fostering DEI is about creating an environment where everyone feels valued and respected, regardless of background, race, gender, religion, or sexual orientation. This blog will explore how focusing on DEI can equate to company growth.
1. Attract and Retain Top Talent
One of the most significant benefits of fostering DEI is that it helps companies attract and retain top talent. More than 75% of job applicants say that a diverse workforce is an important factor when deciding where to work.
Companies increasingly see that their employees value an environment where they feel valued, respected, and heard. More than half (62%) of workers consider DEI an important factor in their company’s ability to drive success. In addition, it shouldn’t come as a surprise that most of the workforce (78%) says it’s important to work for an organization that prioritizes diversity and inclusion. Employees who get the sense that their company values DEI have more confidence in their company and are more likely to stay with it, increasing employee retention rates.
2. Boost Employee Engagement and Productivity
As the workforce evolves, more companies see that employees who feel included are more likely to be engaged and motivated, leading to higher productivity. A Deloitte review on diversity and inclusion reported an increase in individuals’ feelings of inclusion translates into an increase in perceived team performance (+17%), decision-making quality (+20%), and collaboration (+29%).
Additionally, a study done by McKinsey & Company showed that companies with diverse and inclusive workforces are 35% more likely to outperform their competitors.
In an inclusive workplace, employees feel comfortable sharing their ideas, and their contributions are acknowledged, leading to a more collaborative and innovative work environment.
3. Increase Innovation and Creativity
When employees come from different backgrounds and perspectives, they bring unique ideas and approaches to agile problem-solving. This can lead to innovative solutions that may have been impossible in a less diverse and inclusive environment. One study showed that diversity in thought (cognitive diversity) can enhance team innovation by up to 20%. It also enables groups to spot risks, reducing these by up to 30%.
Increasing revenue and reducing spot risks have shown an increase in the bottom line for many companies, according to a study done by BCG. Companies that reported above-average diversity on their management teams also reported innovation revenue 19% higher than those with below-average leadership diversity.
4. Enhance Reputation, Brand Image and Increase Customer Loyalty
A diverse workforce can help companies better understand and meet the needs of their diverse customer base. It helps companies develop products and services catering to a broader range of customers, increasing customer satisfaction and loyalty.
In today’s world, consumers are increasingly aware of the importance of DEI and are more likely to support companies that prioritize it. A recent design and marketing survey reported that brands with the highest level of diverse representation in their ads saw an average stock gain of 44% across seven quarters. Additionally, the most diverse brands were preferred by 83% of consumers. By fostering DEI, companies can enhance their reputation as socially responsible and inclusive organizations.
In conclusion, fostering DEI is not just a moral or ethical imperative but also essential for a company’s success and growth. It can help companies attract and retain top talent, boost employee engagement and productivity, improve customer satisfaction and loyalty, increase innovation and creativity, create a positive company culture, and enhance the reputation and brand image. Companies prioritizing DEI are likelier to thrive in today’s global and diverse marketplace.
kpCompanies has over 20 years of experience matching top talent with companies. Our focus on diversity, equity, and inclusion, and reducing bias in the workplace ensures that we not only help companies grow by matching them with top talent but also through education and training to stay innovative in the hiring process.
Get in touch with us to start your next job search or see our current job listings at kpcompanies.com.