Originally published November 24, 2022 , updated on January 17, 2023

Our society is growing increasingly aware of injustice. As a result, more people are looking for organisations where they can be seen and valued for who they are. These are organisations that help individuals feel a sense of belonging and connection and affirm the intrinsic value of individuals. 

Companies that authentically value individuals instead of simply utilising them for their skills, labour, or consumerism create an atmosphere where all members can thrive and reach their full potential.

Today, employees expect more from their jobs and employers concerning diversity, equity, and inclusion. A report conducted by the Harvard Business Review states that job performance and productivity reach up to 56% higher in businesses that create a sense of social belonging. The same study found that 40% of employees feel marginalised and isolated within their companies, decreasing commitment, creativity, and engagement. 

In response, many employers are called to implement policies and programmes promoting these values. However, one concern is that many of these initiatives are little more than lip service, with no real commitment to change. For example, an employer may claim to value diversity but only hire people similar to those already in the organisation. This lack of genuine commitment can be frustrating and may even lead to further animosity.

Ultimately, you must carefully craft any effort to promote diversity, equity, and inclusion to succeed. Employers must be truly committed to change and willing to do the work required to make it happen. Only then will employees feel that their workplace is truly inclusive.

Why is a Diversity Strategy Important?

Deciding to prioritise diversity, equity, and inclusion is a strong start. Still, companies often shoot in the dark about what to do next, which can lead to a misuse of efforts. To fully commit to and uphold the promise of a more diverse and inclusive work environment, organisations need to develop a DE&I strategy. These strategies hold myriad benefits. 

HR professionals have long understood the connection between talent acquisition and retention. However, people usually underestimate the effect that DE&I practices can have on talent acquisition and retention. By creating a sense of belonging at work, DE&I practices can help increase retention rates and make it easier to attract top talent.

In turn, companies that adopt an effective DE&I strategy experience greater profits. A study by McKinsey & Company found that organisations in the top quartile for racial and ethnic diversity were 35% more likely to have financial returns above their respective national industry medians. The study also found that gender-diverse organisations were 15% more likely to have financial returns above their respective national industry medians.

The correlation between business success and DE&I strategies is proven. Companies that enhance a corporate D&I strategy ultimately alter the trajectory of their business. It leads them toward a more inclusive future that garners greater profits. 

Why and How a DE&I Strategy Affects Business Values

Strong, aligned, and articulated business values lead to top talent retention and consequently, increased leads. Below are a few ways incorporating a DE&I strategy can positively affect and even strengthen business values.  

Inclusive Leadership Sets the Company Tone

Implementing a successful diversity and inclusion policy showcases the essence of the company values. This in turn attracts diverse employees while creating a team of loyal workers. A Harvard Business Review study reported that more inclusive companies where employees experienced a sense of belonging witnessed a dramatic 75% reduction in absent days. 

Creating a DE&I strategy that links to your business values requires the full support of the CEO. They need to take a public stance in favour of the policy and make it clear that this is also a priority for the organisation. They need to ensure that the policy is rooted in the organisation’s purpose. It should be reflected in all aspects of the company culture. Lastly, they need to take responsibility for progress toward goals. They should be transparent about implementing the policy’s successes and adapting to meet challenges. 

By taking these steps, the CEO can set the tone for the entire organisation and create a truly inclusive environment. With a more inclusive work environment, more employees can align their personal values with that of the business, motivating them to work harder.

Foundational Priorities Attract Top Talent

Most organisations today recognise the importance of diversity and inclusion. However, many still treat it as an HR issue to be managed rather than a core ingredient in their business strategy. This is a mistake. Businesses should embed diversity and inclusion in all aspects of the organisation, from the way they run it to the way it interacts with customers.

When a business embraces and implements a DE&I strategy, it will garner recognition from those who align with its values. The Harvard Business Review study shows that business values that display diversity and inclusion at the forefront experience a grand 167% increase in recommendations. 

This display of innate corporate values starts at the ground level. Therefore, companies need to review the presence of systemic bias – that is, bias built into the structure of organisations. Systemic bias can take many forms, from how you write job descriptions to using screening tools that favour certain groups of people.  

Organisations should focus on mitigating systemic bias rather than solely eliminating individual bias. By identifying and addressing systemic bias, companies can ensure that their talent management and other decision-making processes are fair and equitable.

When both the ground level and top tiers showcase commitment to diversity, equity, and inclusion, this creates a strong base for the company’s overall values, helping attract and retain top talent. 

Outsource to Diversity Strategy Experts

Companies must take a holistic approach that includes everything from recruiting and hiring practices to employee development and also leadership. By taking these steps, companies can create an environment where everyone can thrive.

As previously mentioned, incorporating a DE&I strategy is not as simple as stating your claim and leaving the rest to chance. Enunciating your company’s promise of diversity and inclusion is only one step of many. To truly realise, showcase, and benefit from a corporate D&I strategy, you must implement the priority in every company sphere. 

Goodman Lantern offers expert DE&I strategy services, helping customers articulate and communicate their DE&I strategies. So if you’re unsure of where to go next, get in touch. We’ll support your journey to lasting diversity and inclusion in your business.

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