There is considerably more to diversity and inclusion (D&I) than just numbers and rules. It enables businesses with fresh perspectives and varied experiences to improve both overall performance and work culture. More than that, it enables companies to acquire top talent from a varied pool of candidates. It also increases customer satisfaction with the services provided by the company. Diversity and inclusion in the workplace enable firms to outperform their rivals by valuing the individual needs and viewpoints of each employee.
Impact of having a diverse workforce
Diversity is the practice of including people from varied social and ethnic backgrounds, genders, and races. It is the representation of a multicultural workforce. Accepting these differences in a safe, upbeat, and encouraging environment is what diversity is all about. Some examples of diversity are gender diversity, age diversity, and ethnic diversity.
Diversity fosters creativity and innovation by bringing individuals from various backgrounds together and showcasing a range of viewpoints. Businesses that are inclusive and diverse are better equipped to handle obstacles, attract top personnel, and cater to a variety of clientele. According to a McKinsey analysis, a growing correlation has been observed over time between the likelihood of financial outperformance and the diversity of executive teams.
It is discovered that the probability of outperforming increases with representation. Businesses with over 30 percent female leaders had a higher chance of outperforming those with a percentage between 10 and 30, and these businesses had a higher chance of outperforming those with even fewer or no female executives.
Impact of having an inclusive workforce
Inclusion is the practice that allows the diverse workforce to have equal access to resources, tools, and opportunities that help them learn, grow, and prosper in their work environment. Making sure that all the employees feel comfortable in their workplace, is also an important part of inclusivity. This helps boost confidence in employees, which helps them deliver better results for the organization.
Accepting the different backgrounds and distinctive qualities of all individuals can boost productivity and provide a competitive edge. This ultimately advances organizations toward their goals and better results. The International Labor Organization reports that businesses with more inclusive work cultures and policies have increased productivity and profitability by 62.6% and innovation by 59%, respectively.
What is the difference?
Though the interpretation of diversity and inclusion is broad and flexible, they are still easily confused terms. They are two connected yet distinct concepts. It is the awareness and understanding that each individual is unique in their own way, should be respected for it, and should not be looked down on or discriminated against because of their differences. Diversity is a representation of a variety of cultures in the workforce while inclusion refers to the practices advocated in the company to retain diversity.
Why is diversity and inclusion important?
According to an article, 75% of workers will be millennials by 2025. Diversity is highly valued by this sector of the workforce. Along with that, D&I is essential to create a high-value team as it results in enhancing the company’s relationship with its clients, recruiting and retaining more talent, building teams that perform well under pressure and increasing overall workplace productivity and creativity.