A commitment to DEI can benefit organizations in five key areas: Retention, Productivity, Innovation, Brand image, and Profitability
Nicolas BEHBAHANI
Global People Analytics & HR Data Leader - People & Culture | Strategical People Analytics Design
?? A commitment to DEI can benefit organizations in 5 key areas: Retention, #Productivity Innovation, Brand image, and Profitability, according to a new interesting research published by Eightfold using data from proprietary data.
? Correlation between underrepresented groups and Women in the Workforce
Eightfold researchers measure diversity by the share of Blacks and Hispanics (as underrepresented groups in the United States) and women in the workforce.
They found that the share of #Blacks and #Hispanics and women in the workforce are highly positively correlated, meaning organizations and industries with a higher share of women in the #workforce are also likely to have a higher share of Blacks and Hispanics in the workforce.
DEI is profitable
An organization’s commitment to diversity can pave the way forward for higher profits, competitive advantages, and sustained long-term growth. According to an analysis conducted by #Eightfold using proprietary data, four of the top five revenue-generating US companies maintained higher levels of #diversity in terms of race in the years spanning 2019 to 2022 as compared to their respective industry benchmarks.
DEI impact on retention
Researchers found that four out of the five top-performing firms fell below their respective industry averages in their #retention of underrepresented workers (Blacks and Hispanics) in 2022. And all five firms researched fell drastically below the industry averages in terms of gender #diversity throughout the 2019 to 2022 time period, except in one instance where the firm met the industry average.
Eightfold researchers found that three industry averages in #racial diversity in the workforce decrease from 2019 to 2021, they rose in 2022 in healthcare, aerospace, and telecom.
Pharma also saw a rise in 2021, but then fell back to 2019 levels in 2022. In terms of #gender all four of these industries are now on an upward trend in retaining women.
A?study from Eightfold researchers used diversity and employee retention data from 31 #Fortune500 companies and found that:
? Increasing the share of Black or Hispanic employees by 10% can increase an organization’s employee retention rate by 4.4%.
? Increasing the percentage of women in the workforce by 10% can increase an organization’s employee retention rate by 1.4%
DEI encourages productivity
Successive studies have shown that the more diverse and inclusive an organization is, the higher its #productivity and profit. By creating a sense of belonging for all identities, employees grow a vested interest in the organization, in that they apply themselves fully.
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?? Finally researchers provide specific tactics that organizations can incorporate to improve their diversity, equity, and inclusion efforts:
1?? Make DEI a priority:?
#leadership should keep in mind the business case for diversity and make everyone on the board aware of it. Additionally, leadership must identify the proper data-driven diversity priorities and track the effectiveness of DEI efforts. If DEI is not a priority, employees and customers will know.
2??Hold leadership accountable and educate managers on DEI best practices:
Organizations’ DEI efforts have to move beyond their #HR teams and employee resource groups (#ERGs).
3??Ensure equality of opportunity through transparency:
?Companies should establish a zero tolerance policy for discriminatory behavior, such as bullying and harassment.
4??Address discriminatory behavior and microaggression?
5?? Cultivate a sense of belonging by strongly supporting inclusion:
Organizations should promote a sense of community and #belonging managers should demonstrate their commitment to diversity, and companies should create safe places and resources, such as ERGs
6?? Commit to change.
Organizations should commit to improving DEI with both feet in the water - only then will they create meaningful change.
7??Focus on skills
Thank you ??? Eightfold ?researchers team for these insightful findings:?
LinkedIn Top Voices in Company Culture USA & Canada I Executive Advisor | HR Leader (CHRO) | Leadership Coach | Talent Strategy | Change Leadership | Innovation Culture | Healthcare | Higher Education
1 å¹´Thanks Nicolas BEHBAHANI Obie Odunukwe
“Courage is not the absence of fear — it’s inspiring others to move beyond it.†N.Mandela
1 年Duh. Why do we always want to “research†something that is so obvious? If a company don’t care (diversity), no amount of research or statistics will make them care. And if a company cares (diversity), they don’t need statistics or research.
HR Strategist. Lecturer and International Speaker on HRM and Value Management.
1 å¹´Another interesting post Nicolas but, of course, this is not new. What is interesting is the way in which people seem to treat DEI as a separate entity. I am in agreement with the comment made by Dave Ulrich - everyone has something to offer and this would suggest to me that DEI should be integrated into the culture of the organisation - by so doing, everyone would be treated alike and this means that the leadership traits outlined by Dave would ensure that equity and fairness is part of the organisational agenda. Perhaps we should get away from having a DEI policy and have a policy on culture - with everyone (irrespective of their background or where they sit in the hierarchy) having an opportunity to suggest improvements - in this way people might actually come to own the culture. Just my thoughts.
Speaker, Author, Professor, Thought Partner on Human Capability (talent, leadership, organization, HR)
1 å¹´Nicolas BEHBAHANI Very very interesting research; thanks for sharing. I wish I knew more about the sample. One of the lingering questions for DEI work is the impact on business outcomes. This research seems to confirm that organizations with higher percent black, hispanic, and women workforce have higher business results, which is important to sustain DEI efforts. In our work on DEI, we found that the most sustainable efforts were less about numbers, programs, or even strategic agendas, but about changing two assumptions about how to lead. First,everyone has something to offer, everyone! Second, a leaders job is to empower everyone to make the offering that they can. When these two assumptions permeate leadership, DEI becomes a part of business, not a separate agenda. https://www.hrdconnect.com/2021/01/11/now-is-the-time-changing-assumptions-to-build-sustainable-dei/ And, we identified 7 change practices that will help embed DEI. This research confirms that these efforts are well worth pursuing.