In 2023, Human Resource leaders and people teams are seeing more questions emerge about diversity, equity, and inclusion (DEI). Topping the list: employee demographics, equitable representation in leadership roles, and inclusion across all levels of an organization.
The national conversation remains charged, underscoring the importance of getting diversity, equity, and inclusion efforts right. High-performing companies understand these efforts are core drivers of business success, shaping how smart companies get work done.
Lack of diversity and representation is a pain point for job seekers. In today’s talent market, organizations recognized for their authentic commitment to DEI practices and hiring procedures can better attract and retain top talent.
Lack of diversity and representation is a pain point for job seekers.
Expectations are high for businesses to be socially responsible and make positive contributions to society. Customers research and support companies that align with their values, so companies on the leading edge of promoting social justice and equality have the advantage of a positive brand image.
Let’s explore why diversity, equity, and inclusion in the workplace are essential to attracting and retaining the best employees, strengthening employee engagement, and increasing customer loyalty — and how you can improve efforts in your organization.
Here’s what we’ll cover:
- What is diversity, equity, and inclusion (DEI) in the workplace?
- Open and psychologically safe workplaces
- Belonging and support in the workplace
- Identity and allyship
- Why is diversity, equity, and inclusion important in the workplace?
- Why DEI is good for business
- A long-term commitment to DEI
- The best outcomes for every employee
What is diversity, equity, and inclusion in the workplace?
Diversity, equity, and inclusion (DEI) in the workplace is the practice of creating an environment that values and respects the unique backgrounds and experiences of all employees, regardless of race, ethnicity, gender, sexual orientation, religion, age, or ability. Differences are celebrated, and everyone contributes to organizational success.
Diversity encompasses the range of differences that exist among individuals, groups, and communities.
Equity provides everyone equal opportunities to succeed, removes barriers, and supports people’s unique circumstances and diverse needs.
Inclusion is the practice of creating an organization that is open, accepting, and accessible to all individuals, regardless of identity characteristics.
Identity characteristics include:
- Race, ethnicity, and culture
- Gender and gender identity
- Sexual orientation
- Socioeconomic status
- Religion
- Age
- Ability
- Neurodiversity
- Family structure
- Marital status
Open and psychologically safe workplaces
Openness is characterized by welcoming behavior and a willingness to be flexible, transparent, and inclusive. Inclusive workplaces embrace people from different backgrounds, cultures, and experiences who bring unique perspectives and strengths to the workplace.
Psychologically safe workplaces are free from microaggressions and discriminatory behavior, including marginalization and exclusion. Creating opportunities for all employees to participate and have a voice enhances creativity, innovation, and productivity and supports total employee well-being.
Psychologically safe workplaces are free from microaggressions and discriminatory behavior, including marginalization and exclusion.
Even as companies meet goals for diversity and inclusion, an employee may feel like an “only” at work. For example, the only person in their workplace who is openly transgender. Creating a workspace where people know they are safe to be their authentic selves is essential to a sense of openness and belonging.
Supporting neurodiversity is an example of equity in practice in the workplace. Give your people an equal opportunity to thrive by providing fair accommodations focused on ability rather than conformity.
Belonging and support in the workplace
A sense of belonging comes from knowing you will be accepted as your whole self at work. A robust, people-first culture strategy encourages employees to share what makes them unique, along with the things they love, and says, “We celebrate what makes you, you!”
Employee Resource Groups (ERGs) support the needs of underrepresented groups such as women, people of color, or members of the LGBTQ+ community. They hold space and provide a forum for employees to authentically connect with others who share their backgrounds and experiences. This sense of belonging increases job satisfaction and increases employee retention rates.
Read also: 10 Employee Resource Group Event Ideas
Identity and allyship
Different aspects of identity interact, overlap, and influence a person’s experiences. Intersectionality, coined by Professor Kimberlé Crenshaw, is “a lens for seeing the way various forms of inequality operate together and exacerbate each other.”
Allyship is closely related to intersectionality. Allies build supportive relationships and align with people in the minority to help foster equity, inclusion, and opportunity. Allyship actions include:
- Confronting discrimination
- Advocating
- Mentoring
Efforts of intersectionality and allyship are crucial to aligning with the needs of the individual and the preferences of the identity communities being supported. Not the preferences of the ally. Misalignment of efforts can do more harm than good.
Why is diversity, equity, and inclusion important in the workplace?
Diversity, equity, and inclusion in the workplace is essential because it creates an environment of acceptance and respect where all employees feel valued, included, and supported.
We live in a deeply connected and global world. The more diverse your organization, the greater your potential for success.
Diversity strengthens organizations and bolsters business outcomes. Diverse and inclusive companies are better able to respond to challenges, attract top talent, and meet the needs of different customer bases.
We live in a deeply connected and global world. The more diverse your organization, the greater your potential for success.
In particular, diversity on executive teams is a strong predictor of financial outperformance. McKinsey’s 2015 report on diversity in the workplace, Diversity Matters, found, “Companies in the top quartile for racial and ethnic diversity are 35 percent more likely to have financial returns above their respective national industry medians.”
“We tend to think about that in terms of things like racial diversity and gender diversity and ethnic diversity. Those things are all important. But it’s also important to have diversity in how people think.”
Why DEI is good for business
Attract and retain top talent
About 36% of employees between the ages of 18 and 44 factor DEI as an essential element when looking for new companies. Ensuring that diverse talent is well represented will draw even more superstars to your organization.
Nearly 40% of respondents to a Mckinsey survey about inclusion at work say they have turned down or chosen not to pursue a job because of a perceived lack of inclusion at the organization.
Strengthen decision-making
Multiple perspectives enhance problem-solving and creative thinking. Diverse teams can also help companies avoid groupthink and make better decisions. When employees come from different backgrounds and have different viewpoints, they are more likely to challenge one another and think critically about the best course of action.
Diverse teams can also help companies avoid groupthink and make better decisions.
“There’s lots of talk about diversity these days,” says Nobel Prize winner Richard Thaler, “We tend to think about that in terms of things like racial diversity and gender diversity and ethnic diversity. Those things are all important. But it’s also important to have diversity in how people think.”
Increase employee engagement
Employee engagement is strongly linked to a sense of inclusion and belonging. People who feel included are more likely to feel committed to their organizations.
Raising awareness of barriers that colleagues face, along with training on unconscious bias, antiracism, and allyship, can heighten awareness and spur action.
Improve customer insight and satisfaction
Consumer-facing companies that pursue broader racial-equity goals better serve their customers’ needs. Understanding the importance of representation in your organization can help to drive greater diversity.
A diverse workforce with different backgrounds and experiences can better understand the needs and preferences of different demographics and tailor their products or services accordingly.
A long-term commitment to DEI
Diversity, equity, and inclusion efforts are top priorities, even during tension and crisis.
Early in 2023, layoffs in diversity roles were seen at a handful of major corporations, surfacing questions about whether DEI efforts were performative rather than core to corporate missions. Innovative, successful companies prioritize DEI initiatives as an essential business function for the long term.
Innovative, successful companies prioritize DEI initiatives as an essential business function for the long term.
More than a program or initiative, efforts toward diversity and inclusion are a long-term, inextricable part of your company’s mission, vision, and values. Hiring diverse talent alone isn’t enough. An inclusive workplace experience shapes whether people remain and how they thrive.
The best outcomes for every employee
Even relatively diverse companies face challenges in creating equitable and inclusive work environments. Inclusive leadership, accountability, fairness of opportunity, and freedom from bias and discrimination are challenges that continue to arise, even in the best culture companies.
There is always room to improve and elevate. Build community with Espresa’s Employee Resource Groups (ERG) platform, supporting a revolution in Culture Benefits®, inclusion, and actionable insights. When you empower your culture, everyone wins. And your people will feel empowered when all aspects of their identity are acknowledged, embraced, and celebrated.
Let’s inspire culture together. Reach out to our team for a free Espresa demo!
