In today’s ever-changing business world, diversity and inclusion are essential elements for any company to achieve success. While most companies recognize the benefits of diversity and inclusion, it can be challenging to implement. A recent Deloitte study shows that diverse companies have 2.3 times higher cash flow per employee, while a Gartner report found that inclusive teams improve team performance by up to 30 percent in high-diversity environments. Moreover, companies with diverse management teams had a 19 percent increase in revenue, according to a BCG study.

So, what is diversity and inclusion? Diversity refers to differences in political beliefs, race, culture, sexual orientation, religion, class, and/or gender identity. In contrast, inclusion is the act of ensuring everyone in the diverse mix feels involved, valued, respected, treated fairly, and embedded in your culture. Both aspects are important as diversity without inclusion can lead to a toxic culture, while inclusion without diversity can result in a stagnant and uncreative company.

A diverse and inclusive workplace establishes a sense of belonging among employees. When employees feel more connected at work, they tend to work harder and smarter, producing higher quality work. As a result, organizations that adopt D&I practices see significant gains in the form of business results, innovation, and decision-making.

Expanding the recruitment search to more diverse candidates, including background, ethnicity, and age, can widen the talent pool and increase the chances of finding the best hire. Moreover, a Glassdoor survey shows that 67 percent of workers consider diversity when seeking employment. Therefore, hiring more diverse individuals is crucial in attracting more interested and qualified applicants.

When employees feel included, they are more engaged, leading to better physical and mental health and reduced absenteeism. According to a study, 83 percent of millennials are actively engaged in their work when companies support D&I initiatives. Inclusive work environments can instill greater trust between employees and leadership, creating a more inclusive workplace.

A more diverse group increases a company’s chances of coming up with fresh ideas. A Harvard Business Review study found a statistically significant relationship between diversity and innovation outcomes. The most diverse enterprises were the most innovative, with each of the six dimensions of diversity correlated with innovation. Moreover, diverse teams can better identify products and services that fit the needs of emerging customer profiles.

Lastly, diverse teams make better decisions, according to a Cloverpop study. Gender-diverse teams outperformed individual decision makers 73 percent of the time, and teams diverse in geography, gender, and age made better business decisions than individuals 87 percent of the time. Leaders who actively seek minority voices learn about the issues that diverse employees face, gain new perspectives, and inspire employees.

Takeaway

Companies that embrace inclusivity in their culture and hiring practices can expect a range of benefits, including increased profitability, engagement, innovation, and decision-making. As the world becomes more diverse, it is essential for businesses to create an environment where employees can feel connected and valued, enabling them to work towards a common goal. By fostering diversity and inclusion, businesses can create a better future for themselves, their employees, and the world.