February 27, 2021 by Coach Training EDU
According to a study by the Boston Consulting group, diversity has a key factor in driving innovation with diverse teams producing 19% more revenue.
An organization being inclusive of people from all backgrounds guarantees a community that encourages equity and accessibility. Prioritizing diversity and inclusion at your organization is the right thing to do, but there are also financial benefits to these efforts too.
A diverse workplace with employees from different backgrounds with different experiences means many unique skill sets. All the challenges your employees have faced and the experiences they’d had contribute to their cognitive diversity.
Cognitive diversity is defined as the inclusion of people who have different ways of thinking, perspectives and problem-solving styles. What makes you different is also what makes you great. The experiences they’ve faced because of how they identify gives them a unique perspective that can elevate your organization’s problem-solving capabilities.
When an organization prioritizes diversity and fosters an inclusive culture where employees feel that they belong, they’re more likely to have innovative ideas. The feeling of belonging fives employees the confidence to speak up and share their ideas.
Employees who believe their organization is committed to diversity and feel that they belong are 80% more likely to believe they work in a high performing organization, therein leading to workflows that align with that.
You’ll have many options for candidates to choose from if your recruiting efforts strategically include diverse populations. It can be limiting for your organization to only source talent from certain universities, websites, etc. The more expansive your recruiting efforts are, the greater number of quality candidates with different skill sets you’ll have to choose from.
An issue that many employees from marginalized groups face in the workplace is being the only person that looks like them. Being the only person from a certain group can cause feelings of isolation and tokenism. Making it a priority to hire diverse candidates can prevent this feeling and foster an inclusive environment.
An inclusive culture improves individual self-concept, self-esteem, and encourages employees to bring their full, authentic selves to work. A culture that fosters this kind of environment reduces employee stress, a major factor that leads to employee turnover.
84% of surveyed executives disclosed that they know that a lack of attention to diversity and inclusion contributes to employee turnover.
Feeling like the odd one out, stress and a general lack of diversity & inclusion efforts can have a negative impact on employee morale and well-being. This leads to voluntary turnover and the high costs with replacing a candidate are bad for both organizational reputation and finances.
Diversity & Inclusion initiatives need to be strategic and embedded in every aspect of the organization to maximize the positive impact on employee well-being. Your organization should be diverse and inclusive because it’s equitable and overall, ethically the right thing to do. However, the right thing to do also has proven financial benefits.
Do the right thing.
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