Diversity, Equity, and Inclusion (DEI) have become buzzwords in the workplace lately, and for good reason. DEI is a critical aspect of creating a thriving work environment. In today’s article, we will explore why DEI is important and how it can benefit your workplace.
What is Diversity, Equity, and Inclusion (DEI)?
Differences in ancestry, ethnicity, age, gender, religion, culture, sexual orientation, and upbringing are all aspects of diversity that should be celebrated. Inclusion is making sure all workers feel like they belong and are encouraged whereas equity refers to treating people fairly regardless of who they are or where they come from.
Why is DEI Important in the Workplace?
- Increased Innovation
More creative solutions may be found when members of a team come from different backgrounds. When people get together who have had varied life experiences, they generate more options for how to approach an issue. According to research published in the Harvard Business Review, businesses with more racially and ethnically diverse staffs saw a 19% increase in innovation revenue.
- Improved Decision Making
Diverse teams make better decisions. A study by McKinsey & Company found that gender-diverse teams were 15% more likely to have financial returns above their respective national industry medians. Similarly, ethnically diverse teams were 35% more likely to outperform their industry peers.
- Enhanced Employee Engagement
When employees feel valued and included, they are more engaged, leading to increased productivity and job satisfaction. In a study by Deloitte, companies with an inclusive culture were twice as likely to meet or exceed financial targets.
- Better Talent Acquisition
Companies that prioritize DEI in their recruitment process attract a more diverse pool of candidates. This, in turn, leads to a more diverse workforce, improving the company’s reputation as a welcoming and inclusive place to work. According to Glassdoor, 67% of job seekers consider a company’s diversity and inclusion when evaluating job offers.
- Increased Profitability
DEI is not just a moral obligation but also a smart business decision. A study by Boston Consulting Group found that companies with more diverse management teams had a 19% increase in revenue compared to their less diverse counterparts.
There are several positive outcomes that may result from a company’s use of DEI. Companies may benefit from more creativity, better decision-making, higher employee engagement, the attraction of top talent, and higher profits by fostering a diverse, fair, and inclusive workplace. It’s time for us to stop treating DEI like a buzzword and start treating it as an essential part of building a successful business. Emotional intelligence (DEI) is also very important. Here’s a link to an older piece I wrote on the importance of emotional intelligence for leaders, for those interested in learning more.