Diversity and Inclusion is an important strategy where people from diverse backgrounds are fairly treated and provided with equal growth opportunities. According to surveys, teams which are diverse outperform teams which are homogenous in workforce. It has been found that diverse workforce brings in more creative ideas and are more productive. This helps the organization to foster.
When an organization allows everyone to share their ideas towards a target, there are higher chances of it getting successful. People do prefer workplaces which are diverse. 67% of job seekers value diversity as an important factor while applying for any organization.
Employees are also inclined towards taking initiatives to improve the diversity and inclusion practices of the organization. Employees do realize the importance of D&I because they have faced discrimination at some point of their employment journey.
Companies which have more women in the leadership position consistently outperform companies which have less than half of the positions filled with women.
According to Harvard Business Review, companies with higher than average diversity has almost 19% higher innovation revenue. Companies which are diverse across career path, gender, education, age, industry, and migration turn out to be more innovative than other.
According to McKinsey report 2015, companies which are racially diverse are 35% more likely to outperform companies which are not racially diverse. Management does agree that if the organization has diversity based on gender, ethnic, race is 15 percent more likely to experience above-average financial returns. There is a significant relationship between profit gain and diversity. More the diversity better the competitive profit gain for the organization.
Diversity of thinking is a crucial aspect of D&I practices. This means each view should be considered as important or valuable. This helps in creating a stronger narrative for diversity, everyone will feel a part of the common goal. The main objective is to promote cognitive diversity which will ultimately leads to demographic equality. People with different places have different experiences which help the organization to get different perspectives.
It also been found that organizations which are inclusive are three times more likely to be high-performing than non-inclusive organizations. Inclusive workforce are eight times more likely to achieve better business outcomes than non-inclusive workforce. (Australian Institute of Company Directors, 2016)
According to Deloitte’s model of inclusion, to make diversity and inclusion a success, organization should follow the following process.
- There should be fairness. Each employee should be fairly treated. There should be equality and respect.
- Employees should feel valued and there should be a sense of belonging. When employee’s authentic and unique self is valued by others, employee feel connected to the organization.
- The culture of the organization has to be open and free. Employees should feel safe to speak up without the fear of retaliation. This leads to the feeling of empowerment in employees.
- Employees should feel empowered in the organization. This will improve their performance and they will grow in the organisation.
Moreover, when employees feel inclusive in the organisation the quality of decision-making increases by 20% (Deloitte Insights). Diversity and Inclusion is essential and has proved to be fruitful for the organization.