Check out these stats that illustrate the importance, value, and need for workplace diversity.
“When we listen and celebrate what is both common and different, we become wiser, more inclusive and better as an organization.” -Pat Wadors
In 2021, diversity and inclusion are the hottest of hot button issues for organizations across the globe. There isn’t an HR or recruiting team that isn’t intensely aware of the call for increased cultural and gender representation, especially at the executive level. Though the terms “diversity” and “inclusion” mean different things to different people, at their core, they answer the call for equal opportunity hiring, advancement, and pay.
A female CEO shouldn’t be a novelty, but the norm. A Black manager should be paid the same as a White manager, and hiring shouldn’t follow the status quo but throw it out the window entirely. Top-tier candidates look at companies to lead the way in terms of who they hire, who they advance, and how they support equality in the upper echelons of their organizations.
This article discusses how diversity and inclusion aren’t just pieces of a social movement but rather part of the larger picture of how business is changing in America. If the COVID-19 pandemic has shown us anything, it’s that “business as usual” isn’t the name of the game any longer. The way we work is changing, how we work is changing, and the expectations of businesses are changing.
This is the era of corporate reckoning, and business leaders must act to diversify their staff before they get left behind. Because words are not always enough, here are 3 statistics to illustrate the need for diversity. These statistics will help your team better understand the importance of prioritizing diversity and inclusion to build a better internal workforce that will ultimately attract top talent, yield higher revenue, and boost employee performance.
1. Diversity can enhance team innovation
According to Deloitte, diversity of thinking produces creativity, enhancing innovation by 20%. Innovation is crucial for modern businesses to stay ahead of the competition; however, if your business continues to look at things through the same lens, you’re going to keep seeing the same things. It’s time to break out of the mold! Existing with a mono-ethnic workforce is not only extremely dull, but it’s also not sustainable. A diverse workforce gives your organization a diversity of thought, outlook, and interpretation. Having a wide range of personalities and backgrounds leads to insightful problem-solving capabilities and creative product or service development.
Diverse teams are 70% more likely to capture new markets and are 87% better at making decisions.
In fact, diverse teams are 70% more likely to capture new markets and are 87% better at making decisions. The sky is the limit in terms of innovations by seeking out diverse talent from various education and training backgrounds. Get started increasing diversity by performing an audit of your current departments. Are your staff members from varying backgrounds? If not, it’s time to shake things up.
2. 67% of applicants consider workplace diversity an important factor
In addition to being diverse and making up a large portion of the workforce, most modern employees believe that diversity is imperative to a business’s success. Based on a recent survey, 75% of people think that employee diversity leads to a competitive advantage. A competitive advantage is associated with higher profits, so companies simply cannot afford to overlook it.
Most Millennial and Generation Z workers seek out employers who value all genres, cultures, and abilities and have the initiatives to support it. Workers who feel that their company’s inclusion strategy is strong tend to be more engaged at work. If you don’t know how applicants and employees feel about your inclusion levels, it may be time to gather feedback.
3. Diverse executive teams are 33% more likely to reap financial returns
Companies with the most ethnically/culturally diverse boards globally are 43% more likely to experience higher profits.
Gender diversity and ethnic and cultural diversity are crucial for financial success in large corporations. A recent study by McKinsey & Company illustrates that the most diverse companies are more likely to outperform less diverse companies in terms of profitability. At the executive level, companies with the most ethnically/culturally diverse boards globally are 43% more likely to experience higher profits. Perhaps this increase is due to the boost in innovation or recruitment of top talent, but either way, it’s a powerful statistic that should not be ignored. Commit to offering a path to leadership for all employees, regardless of race, gender, or disabilities.
At the end of the day, any business worth its weight needs to invest in diversity and inclusion in its workforce. In order to set the stage, organizations must recruit diverse talent, promote or advance diverse talent into executive roles, formulate the right initiatives across their entire firm, and ensure that they have the processes in place to support inclusivity and diversity in the future.
Check out our People Ops Podcast episode “Going From Best Intentions to Best Practices for DEI.”