Diversity, equity, and inclusion (DEI) initiatives are at the forefront of modern organizations, not just because they are ethical but because they provide optimum business outcomes.
As per the DEI Lighthouse Program, at least US$15.4 billion will be spent by 2026 to enforce DEI at the workplace, and yet it will take the next 151 years to close the global economic gender gap.
Evolving customer expectations, increasing awareness, investor interest, and competition for talent are major driving forces for companies to focus on workplace diversity. Employees hold their employers accountable for enforcing DEI and are unsatisfied with the increasing gap between DEI commitment and impact.
An inclusive culture is a workplace environment that welcomes, appreciates, and values employees from diverse backgrounds and characteristics. It celebrates their differences and identifies unique opportunities to respect and motivate them.
When leaders respect employees’ opinions irrespective of gender, age, race, religion, physical ability, socio-economic status, and orientation, employees innovate freely.
Establishing inclusive workplace culture involves ensuring the psychological safety of employees and reinforcing positive employee experiences.
In an inclusive workplace, employees are encouraged to be authentic without judgment and marginalization. It helps build diverse teams with empowered and supported employees who utilize their potential to help organizations reach their objectives.
Organizations need different types of analytical workers, creative minds, conceptual thinkers, and detail-oriented individuals to drive productivity and new ideas. This can shape the workplace culture to support employees with different personalities, backgrounds, and cultures. The key characteristics of an inclusive workplace are:
Understanding the difference between diversity and inclusion is necessary to create a safe workplace for employees.
Diversity is a set of traits and characteristics that differentiate one person from another. This can be ensured by hiring people from different backgrounds with an unbiased hiring process. Employees must be hired based on their skills and performance, irrespective of gender, race, nationality, identity, and sexual orientation.
Inclusion in the workplace refers to the recognition of the presence, perspectives, and contributions of diverse employees. Every employee must be valued equally, and such policies must be integrated into the environment.
A diverse and inclusive environment makes every employee feel valued and supported, which increases employee engagement. Equity ensures that all employees are given the same career growth opportunities based on performance.
When multiple voices and perspectives are expressed, new and innovative ideas emerge, benefiting the organization.
Glassdoor’s Diversity and Inclusion Workplace Survey shows that 76% of job seekers and employees evaluate company offers based on workforce diversity. Therefore, it is necessary to promote diversity to hire top talent from various groups in the future.
Companies with people from different backgrounds foster innovation. Supported employees contribute more to meetings, conversations, and reviews. It helps create unique and value-driven products to capture new markets.
By 2025, a large section of the workforce will comprise millennials and Gen Z. Deloitte’s Inclusive Mobility study shows that 83% of millennials are more likely to be engaged at work if their company is inclusive. Younger generations want to feel valued for their opinions, and they are willing to go above and beyond for leaders who respect them.
Organizations with diverse teams are better at decision-making. The valuable input from employees of different backgrounds provides a fresh perspective on the company's challenges, and their personal experiences help leaders make mindful decisions.
Employees wish to work for inclusive companies that provide career growth opportunities without bias. When employees feel they belong with their employer, they contribute more and are likely to stay with their employer.
Inclusive workplaces have lower employee turnover because satisfied employees are loyal to the company. This helps leaders to reduce hiring costs. When employees are given equal opportunities to improve their performance through training and development programs, organizations can fill senior roles by hiring from within the company.
Employees who feel welcomed are less likely to have work-related stress. They feel positive about their work and approach their managers without inhibition. It reduces the risk of anxiety, stress, and depression.
Engaged and innovative teams are productive as they are motivated to accomplish their goals. Managers supporting employee performance in an inclusive environment leads to better business profitability.
The best practices for implementing DEI initiatives for success are:
The first step to promoting diversity and inclusion in the workplace is to understand challenges and their root causes. Interacting with employees and getting their feedback and opinions on what is important helps address diversity challenges.
Improving organization-wide diversity and inclusion involves establishing an ongoing process with clearly defined measurable goals.
Employees expect top leaders to be accountable for diversity initiatives and a supportive environment. Leaders are most likely to contribute to driving diversity and encouraging inclusion when they deeply understand how their behavior, biases, and values affect various stakeholders inside and outside the organization.
With a concrete understanding of challenges and an execution plan, organizations must create impactful and context-based solutions. These changes must be easy to integrate into the day-to-day activities.
Employees should feel safe to discuss any discrimination that they have faced either personally or observed the same happen to others.
Effective solutions are impactful only with continuous monitoring and tracking. Developing insights from such measures help organizations take corrective actions and increase the impact of diversity solutions.
Organizations face challenges in prioritizing DEI initiatives because they need to be aligned with company objectives. The unprecedented shift in the work environment in recent years has further created turmoil in the workplace environment. Therefore, organizations must invest in creating an open-minded hiring and retention policy to eliminate conscious and unconscious bias, contributing to a diverse and inclusive workforce.
Mercer | Mettl offers a suite of assessments and hackathons for hiring and learning and development. The assessments are designed to promote workplace diversity, inclusivity, and equity. With a scientific approach and data-backed questions, these tests promote an unbiased evaluation for optimum hiring and L&D.
Originally published June 15 2023, Updated June 15 2023
Vaishali has been working as a content creator at Mercer | Mettl since 2022. Her deep understanding and hands-on experience in curating content for education and B2B companies help her find innovative solutions for key business content requirements. She uses her expertise, creative writing style, and industry knowledge to improve brand communications.
Employee engagement is a process by which companies undertake specific activities to interact with employees and engage them. The activities include employee development, team building, skills development, trainings etc.
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