20 Sep, 2022by Keshelda Miller
In 2022, the global market for diversity and inclusion is estimated to be worth a whopping $9.3 billion, with an expected 12% growth by 2026. Organizations worldwide are striving to diversify their hiring processes, create better access to opportunities, and provide a work environment that supports and includes a diverse workforce.
With so much money, time, and effort spent on corporate DEI efforts, business leaders who have invested in DEI initiatives are reaping the benefits of diversity and inclusion in the workplace.
If you’re still wondering what DEI programs can do for your company, we’ve put together this short guide on the tangible benefits of diversity and inclusion in the workplace based on the latest data.
Increased diversity in an organization provides benefits throughout the entire employee life cycle, from recruitment to employee retention.
A primary benefit of diversity and inclusion in the workplace is that it attracts customers and employees.
A company’s brand is the heart of the business and is what attracts potential talent. Over 50% of employees currently view diversity as important to the workplace. Gen Z job seekers want to know that a company’s day-to-day operations and culture match the claims it makes in its DEI statement. Millennials especially seek employers who are committed to change and are ready not only for the tough conversations surrounding diversity but for action, too.
When prospective employees research companies, they check online reviews from previous employees to see if the culture welcomes and supports diversity. Over one-third of job seekers won’t apply to a company with negative ratings from people of color. The presence of visible DEI efforts in an organization is a key recruiting tool for diverse candidates, with roughly one-quarter of candidates requiring employee demographics and published diversity goals from prospective employers.
Increased productivity and profit are proven benefits of diversity in the workplace.
Gender-diverse organizations are 25% more likely to outperform their peers, meaning that those with higher racial, ethnic, and gender diversity are outperforming less diverse companies.
When women form part of an organization’s C-suite, the company’s earnings nearly double. Many organizations have improved their gender mix but must now embrace candidates from various racial, ethnic, and social backgrounds to remain competitive with more diverse peers. Companies that are more racially and ethnically diverse are 36% more likely to experience above-average profitability than those that are less diverse.
An inherent benefit of a diverse workplace is the wide range of perspectives that positively impact an organization’s innovation and decision-making. The more homogenous a group, the more similar their problem-solving pattern, whereas a diverse group can provide a variety of solutions because of their different creative backgrounds. In a welcoming environment, diverse individuals are more likely to contribute to their full innovative potential.
According to Gartner research, 75% of inclusive companies in 2022 will exceed their financial goals. In a diverse workforce, performance improves by at least 12%, and employees’ intent to stay increases by 20%.
Representation truly matters, especially when it comes to retaining diverse candidates. Since millennials cite diversity as a significant concern and Gen-Z, the generation set to take over the workforce in the next ten years, and that is made up of the most diverse workforce ever, representation will be more important than ever before.
In addition, historically underrepresented individuals are concerned with how they are treated in the workplace. Over 50% of Black and Hispanic individuals have left a job when they’ve witnessed or experienced racial bias. Organizations expend valuable time and effort to recruit new candidates and can better retain them with inclusive practices.
According to research, retention rates for diverse talent increase when inclusion measures are clearly in place. Companies with inclusive cultures have a 19% lower turnover rate. Women who worked for organizations that fostered inclusion were 23% more likely to stay with their current employer. A McKinsey study also found that 47% of employees are more likely to stay at an inclusive organization and 50% more likely to refer a friend to the company.
The statistics on the benefits of diversity in the workplace paint a clear picture — the data is indisputable. Highly diverse companies not only enjoy improved recruitment and retention, but they also outperform their peers and earn higher profits.
Diversity is not just good for the brand; it’s good for the entire business. If your organization is ready to reap the benefits of diversity in the workplace, connect with our team of experts and schedule a demo today.
Learn more about Included, book your demo here.