The Benefits of Fostering a Diverse and Inclusive Workplace.

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.

Choose Employees from 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.

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.

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.

Positive Work Culture: Alexandre Ullmann, head of human resources at LinkedIn, said that “[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 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.

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.