The Importance of Diversity and Inclusion in the Workplace
The growing emphasis on inclusion and diversity in the workplace is not a mere trend but a crucial shift. This change is primarily driven by recognition among employers of the significant benefits that a diverse and inclusive workplace can bring to a business’s success.
Imagine a world where everyone looked the same, came from the same place, and liked the same things – life would be boring, and we wouldn’t progress. The same principle applies to the workplace.
Diversity in the workplace refers to having a workforce comprised of individuals with varying backgrounds, experiences, skills, perspectives, and ideas. Inclusion in the workplace ensures that every employee feels valued, respected, and empowered to contribute and achieve their full potential. The two go hand in hand, and together, they create a thriving, innovative, creative, and fair work environment.
It’s important to embrace diversity and inclusion because it goes beyond anti-discrimination laws, HR, and compliance. It demonstrates that an employer is committed to building a culture of belonging and equality.
The Benefits of Diversity and Inclusion in the Workplace.
1. Greater Employee Retention:
Employees who feel valued, respected and supported are less likely to look elsewhere for a job. Employees who feel that their contributions are recognised and that they are an integral part of the team are more likely to stay committed to their employer.
Failure to create an inclusive and diverse work environment can lead to a toxic and hostile atmosphere. This, in turn, can cause employees to feel marginalised, overlooked, or even discriminated against, resulting in decreased morale, reduced productivity, and, ultimately, higher turnover rates.
2. Access to a Wider Talent Pool:
If you limit yourself to finding your ideal candidate from just one part of society – you’re doing yourself a disservice; you’d be missing out on many talented individuals who could be perfect for the role you’re trying to fill.
If you are open to diversity during the hiring process, you are giving yourself a much bigger talent pool and making it much more likely for the right person to stroll through your door.
Remember, diversity encompasses many factors beyond racial background, such as age, gender, sexual orientation, disability and socioeconomic status. Embracing a variety of ages in the workplace, for instance, allows you to benefit from the unique experiences and perspectives of different generations.
3. Improved Productivity:
A diverse workforce brings a range of experience and skills that are sure to benefit productivity, and an inclusive environment that fosters collaboration and teamwork will bring out the best results from these varied experiences.
Diversity in the workplace has also been proven to increase financial success; McKinsey found that increased gender diversity on senior-executive teams corresponded to the highest performance uplift: for every 10 percent increase in gender diversity, EBIT rose by 3.5 percent.
And, taking it back to basics – if employees feel included and respected, they are more likely to produce their best work, which will quickly benefit the performance of a business.
4). Better Understand Your Customers:
A diverse workforce brings together individuals with varied backgrounds, experiences, and perspectives, which mirrors the diversity of a customer base; this will allow you to better anticipate and meet the needs of different customers, ensuring that products and services are relevant and appealing to a broader audience. McKinsey also found that ‘companies in the top quartile for racial and ethnic diversity are 35 percent more likely to have financial returns above their respective national industry medians.’
Inclusive workplaces also encourage open dialogue, with employees able to voice any insights and suggestions that might otherwise be overlooked, leading to a deeper understanding of diverse customer needs and preferences.
By leveraging these diverse viewpoints, you can adapt your offerings to better align with customers’ evolving demands. In turn, this responsiveness and cultural competence can improve customer satisfaction.
6. Positive Work Culture:
A positive work culture is essential to the success of a business – by ensuring people feel included, you are boosting morale and encouraging individuals to form positive connections with their colleagues. This, in turn, makes the workplace a more enjoyable place to be, which is only going to get the best from your employees.
7. Good Reputation:
A study conducted by PWC found that ‘over 80% of participants said that an employer’s policy on diversity, equality and workforce inclusion is an important factor when deciding whether or not to work for them’.
A lack of diversity and inclusion is increasingly becoming a deal breaker for people looking for jobs, so your business must have a reputation for being a diverse employer that fosters inclusivity.
Being a diverse and inclusive employer demonstrates a commitment to equality and fairness, which will resonate well with employees and customers. This will drive business growth as more people will want to use your service, knowing you’re a socially responsible business, and more people want to work for you.
“[A sense of] belonging … and inclusion should be a big focus for employers because it ensures that all employees, regardless of their background and experiences, can be connected with equal opportunity and create a healthier, more successful future together with their employers".
A Culture of Inclusion: Promoting Workplace Diversity and Belonging
Challenges you may face when leading a diverse and inclusive workforce
Whilst there are many benefits to a diverse and inclusive workplace, creating a fair environment also comes with it’s challenges;
- Unconsious Bias: Addressing biases requires education and training. Policies that promote fairness in various aspects of the business, such as hiring, promotion, and daily interactions, will encourage cultural change and set higher standards
- Resistance to Change: Some employees may resist diversity initiatives due to misunderstandings or perhaps even due to a fear of change. Open communication and leadership buy-in are essential
- Outdated Policies and Processes: Reviewing workplace policies and processes can help identify and address obstacles that may hinder inclusion.
How to foster a diverse and inclusive work environment
Creating an inclusive and diverse workplace requires actionable strategies. It could also involve rethinking employee benefits to ensure they cater to the uniqueness of your workforce. Here are some practical steps to help:
- Implement an Inclusive Hiring Process: Diversify your job boards, engage with agencies and ensure your interviewers or decision-makers represent a variety of perspectives.
- Introduce Flexible Employee Benefits: Offer more flexible employee benefits, ensuring that your employees individual needs are met. Tailored benefits, such as mental health support, childcare assistance and retail discount benefits can create a more inclusive environment.
- Provide Diversity and Inclusion Training: Educate your employees and managers about unconscious bias and the value of inclusion.
- Celebrate Diversity: Recognise and celebrate a broad range of cultural events, holidays and achievements that reflect the diversity of your workplace.
- Establish Clear Policies: Create policies that promote equality, respect and inclusion. Ensure that these policies are communicated at every level of the organisation.
Ready to build a more diverse and inclusive workplace?
If you’re ready to build a more diverse and inclusive workplace, and interested in knowing how flexible employee benefits can help, contact us today. Our team will be happy to provide you with expert guidance on creating an inclusive workplace with tailored benefits that support and empower every employee.
