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Why your company should be diverse and inclusive

Engagement | Resource

Posted on: Wednesday December 21, 2022

With a workforce composed of different cultures and characteristics, your organisation is stronger.

Today’s employers have unprecedented access to a truly global pool of talent. And with it, the opportunity to build industry-leading teams that welcome and empower individuals of all nationalities, races, genders, sexual orientations and backgrounds — while developing the business’s human capital.

In an ever-globalised world, a diverse and inclusive workforce isn’t just a nice-to-have. It’s a must-have if you count on delivering products and services geared at an audience which, itself, is diverse.

If you’re still not sold, here are some of the biggest reasons companies are making workforce inclusion their top priority.

Greater perspective and engagement

It goes without saying that the more seats at the table occupied by employees of different backgrounds, the more insightful your initiatives will be.

Of course, there’s the immediate benefit of evading disastrous PR campaigns before they’re launched. But there’s also a strong case to be made for the perspective and creativity brought about by diverse workforces: research has demonstrated that inclusive companies are 1.7x more likely to be innovation leaders in their market. The same report also notes that these companies are 1.8x more adaptable and change-ready than their non-inclusive counterparts.

These benefits are confirmed by the CIPD’s Managing Multicultural Teams report, which reveals that multicultural teams outpace homogenous ones due to colleagues’ unique perspectives and experiences.

To top it off, 74% of Millennials believe that their organisations are more innovative when they have a culture of inclusion — and 83% feel empowered and engaged when their companies foster an authentically inclusive culture.

Greater productivity

We’ve seen previously how employee engagement can boost productivity. But diversity, too, has a direct impact on organisational output. A McKinsey report found that both gender and ethnic diversity were clearly correlated with profitability, in spite of underrepresentation of women and minorities in the workplace.

The report further highlights how companies in the top quartile for gender diversity on executive teams are 21% more likely to outperform those in the fourth quartile on EBIT margin and 27% more likely to outperform on an economic profit (EP) margin.

Greater recruitment and retention

A 2022 survey by Buck revealed that 60% of Millennials expect employers to demonstrate a commitment to diversity, equity & inclusion — and that they’ll vote with their feet if they believe the organisation is lacking on this front.

This demographic is anticipated to make up 75% of the global workforce by 2025. So, it’s critical that organisations cater to their needs by fostering a diverse, inclusive environment.

While pay is still the deciding factor in Millennials and Gen Zs leaving their jobs, alignment is also key: two in five of those surveyed in a Deloitte study say that they’ve turned down a job offer as it failed to align with their values. But on the flipside, employers that get it right can expect to see satisfied staff want to remain with them for more than five years.

If the social justice angle isn’t compelling enough, the business case for greater diversity and inclusion speaks for itself. Nurture a welcoming environment for individuals of all backgrounds and characteristics, and your organisation will thrive.

Want to learn how to foster a culture of diversity & genuine inclusion? Get advice from a Personal Group Benefits Expert or subscribe to more of our blogs


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