While some organizations are scaling back diversity, equity and inclusion (DEI) efforts, others are maintaining their efforts. There’s also still a growing focus on DEI and inclusive company culture in the workplace, especially in corporate and startup companies. The shift toward diversity and inclusion in the workplace isn’t just a moral imperative–it can be a strategic advantage.
DEI not only promotes social responsibility in the workplace—it can also drive success. Diversity and inclusion encourage innovation, improve team performance and support employee well-being. Plus, it’s what employees want. According to LinkedIn, 80% of job seekers want to work for a company that values DEI initiatives. The Pew Research Center concurs, adding that most workers believe DEI in the workplace is beneficial and DEI-related policies have had a positive impact.
This article explores the benefits of an inclusive company culture and details diversity and inclusion strategies to prepare organizations for long-term success.
Understanding Diversity, Equity and Inclusion in the Workplace
It can be helpful to break down the terms surrounding DEI in the workplace.
Diversity
Diversity is the representation of individuals in an organization with varying backgrounds based on race, age, gender, neurodiversity, political beliefs or religion. The more variety among workers, the more diverse the company is.
Equity
Equity in the workplace refers to people being treated fairly and justly, creating an environment that doesn’t involve bias or favoritism. It recognizes that every person is unique and has their own unique needs. An equitable workplace works to make resources and opportunities available and accessible to everyone, taking into account their unique differences. A key differentiator of workplace equity vs. equality is that there is access and opportunity based on each person’s individual needs. Tailoring resources and learning opportunities according to employee needs, transparent communication and merit-based pay are examples of equity in the workplace.
Inclusion
Inclusion refers to how well the presence and perspectives of workers are integrated into the environment. A truly inclusive workplace goes beyond hiring quotas—it’s about equity in the workplace and representation at all levels. Inclusive employees should also feel psychologically safe, meaning they feel comfortable speaking up and expressing concerns without fear of repercussion.
Belonging
More recently, some companies have begun including the component of belonging. Rather than DEI, it becomes DEIB. This element refers to a genuine welcoming and desire for diversity and inclusion to exist in the workplace and for individuals to feel supported and valued. It goes beyond traditional DEI to create a positive community where everyone has psychological safety, ensuring people feel comfortable and included.
Incorporating All the Elements
A company that focuses on both diversity and inclusion will enjoy a diverse team set up for success. But performative actions don’t mean anything without authentic inclusion. It’s the difference between intent and impact.
A diverse workplace doesn’t necessarily mean it’s inclusive. Diversity without inclusion can be toxic, while inclusion without diversity can stagnate a company. Companies need both. An environment that might seem diverse but where the perspectives of certain groups are valued over others is certainly not inclusive. For example, are 50% of your employees female, but none of them are managers? If so, you may be diverse in regard to gender, but if no women hold high-ranking positions, the company is not inclusive. Diversity and inclusion in the workplace are both needed to ensure equity.
The Tangible Benefits of Workplace Diversity and Inclusion Strategies
When companies invest in diversity and inclusion initiatives, they gain significant benefits, including enhanced creativity, innovation, profits, engagement and designs.
Higher Creativity, Innovation and Decision-Making Performance
According to The Chartered Institute of Personnel and Development, “Multicultural teams are more creative than homogenous teams, as colleagues are able to share unique perspectives and experiences.” Similarly, a recent study found that “fostering an inclusive work environment can enhance a firm’s innovative capacity.” When a group with different perspectives and varied backgrounds comes together, they’ll likely push each other to think outside the box. This can result in new ideas and approaches. It could also contribute to better solutions and decision-making capabilities.
Increased Profitability
Companies in the top 25% for ethnic and cultural diversity were 36% more profitable than those in the bottom quarter, and when women are well represented in the C-suite, profits can be almost 50% higher, according to a 2020 McKinsey report. A follow-up McKinsey & Company report (2023) suggests that not only is there still a case for diversity, equity and inclusion, but that the need continues to become more important. From their global perspective, diversity benefits extend from leadership levels to boards. When reporting findings on boards of directors, McKinsey’s 2023 report found that companies in the top range for board-gender diversity were 27% more likely to have better financial performance, and those in the top range for ethnically diverse boards were 13% more likely to have better financial performance.
More Accurate Product Design and Marketing Across Audiences
Diversity and inclusion in the workplace can help attract diverse talent from a bigger talent pool and increase your chances of finding the best hire. A diverse team can then contribute more accurate product design and marketing across diverse audiences by incorporating a wider range of perspectives, backgrounds and experiences.
Take Rihanna’s line, Fenty Beauty, for example. Her inclusive move to launch 40 foundation shades matching a much broader range of skin tones skyrocketed to a commercial success that reshaped the beauty industry. TIME Magazine named Fenty Beauty one of 50 Genius Companies in 2018, stating it “reportedly made $100 million in sales in the first 40 days on the market.”
Better Employee Engagement, Trust and Retention
According to Glassdoor, 76% of employees and job seekers say diversity “is an important factor when evaluating companies and job offers.”
Inclusive workplace strategies can lead to happy employees and lower turnover rates. They also lead to better employee engagement, trust and retention. When employees are engaged and feel trusted, respected and valued—they are more likely to not only stay in their jobs but also put in the extra effort, which ripples into profitability and increased morale.
DEI in the Evolving Workplace: Inclusive Language and Leadership Skills
The modern workplace has new challenges regarding inclusive communication and collaboration. The rise of remote and hybrid roles has many positive aspects, like flexibility and the opportunity to work with people around the globe. Yet, there are also potential downfalls, like a lack of visibility and recognition. Effective communication can be more difficult when relying solely on technology. However, as remote and hybrid work evolves, so must approaches to inclusion, accessibility and cross-cultural collaboration.
Provide Accessible & Equitable Workspaces
One way to make your business more inclusive is to build accessible, equitable workspaces, both digitally and physically. In-person office spaces should comply with ADA accessibility laws. All employees, whether remote, hybrid, or in-person, should also have access to accessible learning tools and technology, if needed.
Supporting Mental Health and the Needs of a Diverse Workforce
Employers should also normalize mental health days and expand benefits to include mental health resources like therapy stipends and mindfulness apps. Supporting mental health and work-life balance across diverse needs positively impacts DEI efforts by creating a more inclusive environment where you’ll reduce burnout, improve retention and attract a diverse pool of talent.
Use Inclusive Leadership With Global Teams
When managing global virtual teams, learning inclusive leadership skills is vital. When speaking with people across different geographies and from different backgrounds, you’ll gain cultural intelligence, which refers to the ability to work effectively with varied cultures. In today’s landscape, it’s critical for leaders to manage global teams where employees feel safe and included, with the confidence to share diverse perspectives.
How Leaders Can Champion Racial Equity and Inclusive Leadership Skills
Embedding inclusive practices into hiring, onboarding and promotions is one way to create diversity and inclusion in the workplace. Farah Bala, Founder and CEO of FARSIGHT, is a leadership development and coaching consultancy that prioritizes equity, diversity, inclusion and anti-oppression as a core competency of leadership. She shares tips on improving DEI in the workplace below.
Craft Inclusive Job Postings
To start, she suggests crafting job postings “free from gendered, ableist or otherwise coded terminology,” and then “regularly review and update job descriptions to reflect values of equity, belonging and accessibility.”
Reduce Bias in Resume Reviews and Interviews
When reviewing resumes and throughout the screening process, Bala suggests “[removing] identifying information where possible to reduce bias.” This creates a blind system so those reviewing resumes won’t see demographic characteristics, thereby reducing the likelihood of achieving gender and racial equity in the workplace.
Then, consider establishing a diverse interview panel. Offer DEI training for HR professionals and hiring managers on addressing unconscious bias in the workplace, and provide policies regarding what can’t be asked during an interview. For example, avoid questions about a candidate’s personal life, age or religion.
Offer Unconscious Bias Training Sessions
All humans have biases; if you think you’re unbiased, you’re wrong. Offering unconscious bias training sessions is a solid way to gain awareness and understand the impact of subconscious bias. Tools like the Implicit Association Test can also help individuals explore and uncover potential biases. A business ethics certificate can also be a valuable tool to achieve bias reduction in recruitment.
Help Employees Feel Supported & Connected
Once employees are hired, establish (if they’re not already in place) employee resource groups (ERGs) and safe spaces. They’re an excellent way to foster the idea of belonging and connections at work, especially in large companies where employees are more likely to feel lost or disconnected. For example, consider starting an LGBTQ+ network. Safe spaces at work make employees feel supported, allowing their diverse perspectives to thrive and contribute to the company’s success.
Measure Progress on Diversity and Inclusion in the Workplace
Over time, continually measure progress with DEI key performance indicators and transparency throughout the hiring and onboarding process. Learn about workplace diversity trends and how to talk about diversity at work. Bala recommends establishing regular feedback opportunities to review the effectiveness of diversity and inclusion efforts. A few ideas of questions to ask include:
- What worked well?
- Where did bias or barriers appear?
- What can be improved for next time?
Making DEI and Workplace Equity a Core Part of Company Culture
Instilling diversity and inclusion in the workplace can create a strong company culture where employees are happy, productive and feel like they belong.
Try Simple Practices to Improve Diversity and Inclusion in the Workplace
Tips to achieve this include using inclusive language in the workplace and listening to what diverse employees have to say about what changes should be made. Employee voices and feedback loops are essential to gain vital information and improve processes. Set up one-on-ones, distribute an anonymous engagement survey platform like Betterworks Engage or establish focus groups using an outside facilitator to collect qualitative data.
Get Feedback to Inform Diversity & Inclusion Strategies
If there is one rule of workplace inclusion, it’s that everyone has to buy in. Honest feedback from all employees helps organizations build long-term DEI strategies, not just one-off initiatives. The input allows leaders to hear inside information directly from the source—the employees. This allows companies to take action and update workplace inclusion best practices. It also creates accountability at all levels of the organization. Utilize this information to establish or update DEI goals, customize your strategy and create a culture where feedback is always welcome.
Spread Cultural Awareness & Celebrate With Your Team
Also, consider celebrating cultural moments year-round. Most people already get traditional holidays off, like Christmas Day and Thanksgiving, but companies can also offer floating holidays to accommodate cultural or religious practices or events that might not currently be acknowledged. Introduce policies for honoring these cultural holidays or religious practices.
Another way to show people you care about what matters to them is to celebrate with them. Ask your team which holidays they celebrate. Acknowledge and respect their traditions. Even a small celebration can be a powerful team activity as well as a fun way to celebrate and learn about different cultures represented in the workplace.
Embracing Diversity and Inclusion in the Workplace
The importance of workplace diversity is clear. Diverse and inclusive workplaces empower employees and lead to sustainable and impactful businesses. Despite what recent popular media might portray, measurable benefits exist from embedding diverse perspectives and inclusive leadership into core values. Start a conversation within your team about building a culture of belonging.
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