10 Ways Diversity and Inclusion will Improve your Business

The topic of diversity and inclusion is gaining traction and attracting more public attention than ever before. Organisations are proudly declaring their initiatives, politicians are making firm commitments and candidates are selecting businesses based on their strong diversity and inclusion criteria.

A Deloitte study found that 69% of C-Level executives rate diversity and inclusion as a top priority. I think we’re supposed to find that encouraging. But it just makes me think: what on earth are the other 31% doing that’s more important? In the study, only 38% of businesses say their strongest supporter is the CEO. It’s time for senior leaders to take ownership, with responsibility and accountability for diversity and inclusion across the business, and core values that reflect their commitment. Why? Because employees are more engaged, innovation improves, collaboration is better, and individuals are happier. Because it’s proven that businesses with a strong diversity and inclusion strategy outperform their competitors.

Here’s how your business will benefit from a robust diversity and inclusion strategy:

1.     You’ll improve business performance: companies with a strong diversity and inclusion strategy outpace those that don’t. According to Deloitte, businesses with such a strategy that permeates across a business – through talent acquisition to training, marketing to management - generate up to 30% higher revenue per employee and greater profitability than their peers. McKinsey found gender-diverse companies are 21% more likely to generate higher-than-average profitability and 27% more likely to create longer-term value than those not gender-diverse. The study also found companies with a more diverse leadership team are 33% more likely to have above-average profitability than those businesses with low diversity.

2.     You’ll deliver long-term growth: a report from WomenRising2030 found that companies with a higher proportion of women in senior leadership positions are better able to move their business away from short-term profile towards longer-term growth goals.

3.     You’ll attract and retain the right talent: people want to work where they feel they belong, where they are recognised, respected, valued and celebrated. Candidates now seek out those businesses that visibly demonstrate and actively support diversity. These companies, found one study, are preferred by up to 70% of job seekers, according to a study from CareerLabs.  When it comes to millennials specifically, the study found a deliberate avoidance of businesses not openly sharing their diversity commitments. Candidates establish whether business are actively living their values, not just including them in the small print on their website or at the back of a board report. Social media has made it easier than ever for candidates to get a real feel for a brand before they join. Those companies celebrating diversity in a transparent and open way will attract and retain the best talent.

4.     You’ll deliver a better customer experience: in today’s global marketplace, businesses sell to a diverse set of buyers across different countries, of different ages, races, genders, abilities and cultures. They need a diverse workforce to better understand the needs of their customers, to deliver a more thoughtful, personalised, relevant customer experience at every stage of the buyer’s journey.

 5.     You’ll make better decisions: according to Forbes, inclusive teams make better decisions up to 87% of the time and deliver 60% better results. Plus, teams that follow an inclusive process accelerate their decision making, with decisions made twice as fast with 50% fewer meetings.

6.     You’ll drive innovation: Accenture’s ‘Getting to Equal 2019’ report found that in the UK, employees’ desire and ability to innovate is seven times higher in businesses with a strong culture of equality. Employees within these companies are also less afraid of failure as they strive to innovate. A more diverse workforce teaches organisations to consider subjects differently as employees learn from each other, sharing ideas they bring from a range of different backgrounds and experiences and driving innovation.

7.     You’ll grow your Emotional Intelligence Quotient: Emotional Intelligence is emerging as one the most significant success measures in 21st century commerce. Focusing on empathy, self-control, perseverance and building relationships, Dr Travis Bradberry found that our Emotional Intelligence Quotient, or EQ, is responsible for 58% of our job performance. 90% of top performers have a high EQ, found Dr Bradberry. It’s particularly important as today’s buyers are looking beyond the transaction: they want to buy-in to a brand, to feel emotionally connected, to feel good about buying from them, In one CXM study 68% of UK consumers said they would be willing to spend more on a product if it was from a brand they love. Employees with a high EQ will identify ways to connect with customers, to understand and even predict their behaviours. While a high EQ is evident across genders, research has found that women outperform men in 11 of the 12 EQ measures studied including inspirational leadership, coaching and mentoring and adaptability.

8.     You’ll improve employee engagement: Deloitte found a strong correlation between businesses with robust diversity and inclusion strategies and employee engagement. This positive impact has a ripple effect, not only driving engagement across the minority groups but across a business as a whole. CEB - part of Gartner – found that diverse and inclusive businesses benefit from an 18% increase in team commitment.

9.     You’ll boost collaboration: the CEB report highlighted a 26% increase in team collaboration in diverse and inclusive businesses. The Centre for Talent and Innovation found even higher figures, with those businesses reporting 57% better collaboration.

 10. Your social engagement will improve: evidence shows that women are more socially engaged than men across the majority of social platforms. A programme to actively recruit and retain diverse talent can improve a brand’s reputation and performance with a stronger social presence. One CNBC study found that CEOs with a strong social presence outperform their peers in multiple ways: they are 89% stronger at empowering employees and 52% better at communicating in a more compelling way than their counterparts with no social media presence.   

 Please join us at the Women’s Connect Chapter meeting, Finding Your Voice on Social Media. This friendly networking event takes place on Thursday March 21st from 6-9pm GMT at London City Point, 1 Ropemaker St, London EC2Y 9HT. Register here: https://aa-isp.org/register/chapter/1405