Embracing Diversity, Equity, and Inclusion

Foreword

Growing up as an ethnic minority in the UK was hard. Although London is known as a multicultural melting pot, kids back then could be mean. They may not have had the cultural context or self-awareness to appreciate people not like themselves, or at least that was often the case whilst growing up in the UK in the 80s. I believe this upbringing has guided my passion for Diversity, Equity and Inclusion (DEI).

I’ve travelled a lot, and lived in a few different continents. I’ve seen firsthand the power of experiencing different cultures. It helps break down barriers and find commonalities in humanity.

Work takes up a large proportion of our lives, so DEI in the workplace is as important as it can be in any context in life. This is a series of articles exploring culture and DEI, with a focus on Asia and broader APAC, where I now call home.

Introduction

In our global and interconnected world, DEI isn’t just something someone in some other department does anymore. It is an essential driver of company and individual success that we are all responsible for. By fostering diverse relationships and building diverse teams, promoting equity, and creating an inclusive environment, we can help make a positive impact in our and others’ lives, as well as companies’ bottom line. This is no less true in Asia, with our numerous cultures and over 2,000 languages.

In the workplace, embracing DEI can help unlock a wealth of benefits - fostering innovation, improving employee engagement, and ultimately accelerating organisations towards sustainable growth. This article provides an introduction to why I think DEI is so important, highlighting what I’ve seen as the positive impacts of diverse teams and the negative consequences of their absence.

Defining DEI

DEI encompasses three intertwined concepts:

- Diversity: Recognising and valuing the unique characteristics and perspectives individuals bring to the table, including but not limited to gender, race, ethnicity, age, religion, sexual orientation, and ability.

- Equity: Ensuring fairness and equal opportunities for all, acknowledging that different individuals may require different resources and support to thrive and reach their full potential.

- Inclusion: Creating an environment where everyone feels valued, respected, and empowered to contribute their best, regardless of their background or identity.

Diverse teams bring a wealth of perspectives, experiences, and ideas that fuel innovation and creativity in organisations. McKinsey found that gender-diverse companies are 25% more likely to experience above-average profitability, while ethnically-diverse companies are 36% more likely to do so. Harvard Business Review emphasises that diverse teams bring a broader range of perspectives, leading to increased innovation, creativity, and problem-solving abilities. By incorporating a variety of viewpoints, diverse teams challenge conventional wisdom, minimise biases, and arrive at more robust and inclusive solutions.

By promoting equitable practices, organisations create an environment where everyone has an equal chance to succeed and contribute to their fullest potential. This fosters employee satisfaction, engagement, and loyalty, ultimately leading to improved organisational performance.

Inclusion involves creating a sense of belonging and acceptance for all employees. When individuals feel valued and respected, they are more likely to share their perspectives, collaborate effectively, and be more productive. Deloitte found that diverse and inclusive teams outperformed their peers by 80% in team-based assessments. Inclusive cultures also lead to higher employee retention rates, reducing recruitment costs and maintaining institutional knowledge.

Positive Impacts of Diverse Teams

a) Enhanced Innovation for Customers: Diverse teams foster an environment that encourages fresh thinking and new ideas. Diversity helps organisations tap into a wellspring of creativity that can lead to novel innovations and solutions. Coqual (formerly the Center for Talent Innovation) highlights that diverse teams represent organisations’ customer base, and can help better understand and cater to diverse customer needs, resulting in improved customer satisfaction and loyalty.

b) Improved Problem-Solving and Decision-Making: Coqual also found that diverse teams are up to 45% more likely to improve market share. By incorporating varied viewpoints, organisations can make more informed decisions, and identify new approaches to complex challenges.

c) Enhanced Employee Engagement and Retention: Breaking down cultural barriers and creating an inclusive workplace cultivates a sense of belonging. Employees are empowered to be their authentic self, spending their time and energy on productive work rather than trying to conform and be their “work persona”. They also contribute their unique talents, and organisations can attract and retain top talent, driving long-term success.

Negative Impacts of Not Embracing DEI

a) Limited Perspectives and Innovation: Homogeneous teams may suffer from groupthink, where conformity and limited perspectives hinder innovation and take companies in a singular direction. This can lead to missed opportunities, stagnant growth, and/or an inability to adapt to market dynamics in an ever-changing business landscape. Moreover, exclusionary practices can negatively impact employee morale, leading to higher turnover rates and a loss of talent.

b) Missed Opportunities in Diverse Markets: Not reflecting the diversity of customers hinders a company's ability to connect with diverse customer bases. Coqual found that companies with diverse leadership are better equipped to anticipate customer needs and capture new markets. By contrast, organisations with limited diversity, risk being out of touch with customers, thus limiting their growth.

c) Reputation and Talent Acquisition Challenges: Organisations lacking diversity may face reputational and legal risks. In today's climate, stakeholders expect companies to demonstrate a commitment to DEI. Employees are attracted to and retained by such companies. Reputational and legal challenges may also arise due to discrimination and biases in the workplace.

Call to Action: Leading the Way

We all have an opportunity to champion DEI to drive positive change. By embracing DEI, we can create workplaces that thrive on innovation, inclusivity, and collaboration. Here are some actions I’ve seen have an impact:

1. Prioritise diverse talent recruitment, development, and retention initiatives, e.g. inclusive job descriptions, diverse interview panels, women sponsorship programs.

2. Establish inclusive policies and practices that create a safe and supportive environment, e.g. remote working policies catering to those with family carer responsibilities, sharing pre-reads 24 hours in advance for employees whose company working language is not their first language.

3. Provide training and promote cultural sensitivity awareness, e.g. unconscious bias training, GlobeSmart cultural intelligence workshops.

4. Measure and track DEI progress, setting clear goals and holding leaders accountable, e.g. sign-ups for language ability training in multicultural companies, inclusion questions within engagement surveys, dedicated DEI quarterly business reviews owned by leadership.

5. Champion DEI initiatives and be a visible role model for inclusion, e.g. executive sponsorship of employee resource groups, dedicated DEI segment during townhalls.

Let’s create workplaces where diversity is celebrated, equity is ensured, and inclusion is the foundation for success.

References

• McKinsey & Company, "Diversity Wins: How Inclusion Matters", May 2020.
• Harvard Business Review, "How Diversity Can Drive Innovation", December 2013.
• Deloitte, "Waiter, Is That Inclusion in My Soup? A New Recipe to Improve Business Performance," 2013, May 2013.
• Coqual, "Innovation, Diversity, and Market Growth", September 2013.