What happens if you don't do it?
Baleva Ward (US Veteran)
Culture Champion |Strategic Leader | I help organizations achieve inclusive excellence by driving diversity, equity, inclusion, and belonging initiatives, fostering community, and implementing strategic DEIB programs.
I would like to highlight some information that sometimes gets overlooked in the "DEI is dead" discussion for those who may not have confidence in the value of DEIB.
First, DEI efforts should lead to an increase in belonging for overall the workforce and second, belonging is also a obvious (and measurable by way of increased scores in employee engagement surveys, increased participation in activities and events that celebrate the people and the diverse communities' they go home to across all locations, etc.) ROI for the business. People who enjoy a sense of belonging typically stay longer (reduced turnover) and are happier employees (more productive).
The overall value of fostering a sense of belonging in the workplace is immense, especially when considering the high costs associated with employee turnover and loss of productivity.
Cost of Replacing an Employee:
Replacing an employee can cost between 75% and 200% of the employee's annual salary.
For instance, if an employee's salary is $70,000, the cost to replace them could range from $52,500 to $140,000.
This includes expenses related to recruitment, training, and the time it takes for a new hire to reach full productivity.
Loss in Productivity:
Employee turnover can significantly impact productivity. When an employee leaves, the remaining team members often have to take on additional work, leading to increased stress and potential burnout.
This can result in decreased productivity and morale.
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According to the U.S. Bureau of Labor Statistics, productivity in the nonfarm business sector increased by only 2.2% in the third quarter of 2024, indicating that productivity growth has been relatively modest.
Benefits of Belonging:
Creating a workplace where employees feel a sense of belonging can mitigate these costs. When employees feel valued and included, they are more likely to stay with the organization, reducing turnover rates and the associated costs. (https://www.peoplekeep.com/blog/Employee-Retention-The-Real-Cost-of-Losing-an-Employee?copilot_analytics_metadata=eyJldmVudEluZm9fY2xpY2tEZXN0aW5hdGlvbiI6Imh0dHBzOlwvXC93d3cucGVvcGxla2VlcC5jb21cL2Jsb2dcL0VtcGxveWVlLVJldGVudGlvbi1UaGUtUmVhbC1Db3N0LW9mLUxvc2luZy1hbi1FbXBsb3llZSIsImV2ZW50SW5mb19jb252ZXJzYXRpb25JZCI6Ilkzc3puNjJaNkFLQTlFWHpRalFxMiIsImV2ZW50SW5mb19tZXNzYWdlSWQiOiJNUkFUU3J1cHZMV3BtNDdvaTZkQVEiLCJldmVudEluZm9fY2xpY2tTb3VyY2UiOiJjaXRhdGlvbkxpbmsifQ%3D%3D&citationMarker=9F742443-6C92-4C44-BF58-8F5A7C53B6F1).
Additionally, a sense of belonging can enhance employee engagement and productivity, as employees are more motivated to contribute to the success of the organization.
In summary, investing in DEIB initiatives and fostering a sense of belonging can lead to significant cost savings and productivity gains. It's not just about the financial benefits; it's also about creating a positive and supportive work environment where everyone can thrive. I think that's the kind of environment where we would all like to work.
Sincerely,
B. Maurice Ward