Diversity and inclusion have become buzzwords in the world of human resources, but what exactly do they mean and why are they important? In this blog, we will explore the impact of diversity and inclusion on organizational performance and provide relevant data, quotes, and references to support our claims.
First, let’s define diversity and inclusion. Diversity refers to the differences among people, including differences in race, gender, age, ethnicity, religion, and sexual orientation. Inclusion, on the other hand, refers to creating a work environment where all individuals feel valued, respected, and supported.
Numerous studies have shown that organizations that embrace diversity and inclusion outperform their peers. For example, a study by McKinsey & Company found that companies in the top quartile for gender diversity are 15% more likely to have financial returns above their respective national industry medians. The same study also found that companies in the top quartile for racial and ethnic diversity are 35% more likely to have financial returns above their respective national industry medians.
But it’s not just financial performance that benefits from diversity and inclusion. A diverse and inclusive workforce can also improve employee engagement, innovation, and decision-making. According to a study by Deloitte, inclusive teams make better business decisions up to 87% of the time. Another study by Harvard Business Review found that diverse teams are better at problem-solving and generating more creative solutions.
In addition, creating a diverse and inclusive workforce is becoming increasingly important to customers and clients. A study by Accenture found that 67% of consumers prefer to do business with companies that are committed to diversity and inclusion.
But it’s not enough to simply have a diverse workforce – inclusion is also crucial. A study by Glassdoor found that employees who feel included are 2.7 times more likely to feel engaged at work. In addition, a study by SHRM found that employees who feel their organisation is committed to diversity and inclusion are more likely to stay with the organisation long-term.
In conclusion, diversity and inclusion are not just feel-good buzzwords – they have a real impact on organisational performance. From financial performance to employee engagement to customer satisfaction, embracing diversity and inclusion can provide numerous benefits. As the workforce becomes more diverse and the importance of inclusion grows, it’s crucial for organisations to prioritise diversity and inclusion efforts. As stated by Lorraine Hariton, CEO of Catalyst, “Inclusion is no longer a ‘nice-to-have,’ it is a business imperative.”
To read more blogs click here.
Writer,
Md Sayeed Parvez
Intern, HR & Admin Department ,YSSE