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Six Benefits of Diversity and Inclusion



During a recent diversity conference, a summary listing six impacts of embedding diversity work across the organisation was shared. I am providing my own insights on those six points for your consideration.


1) Greater chance of attracting, hiring and keeping high-quality staff

Organisations that actively promote diversity, equity, and inclusion (DEI) principles enjoy a wider net when attracting top talent. A McKinsey report revealed that companies emphasising gender diversity within their leadership were 25% more likely to outperform those less focused on diversity regarding financial profitability. Inclusive companies are better positioned to retain staff, as employees feel valued and respected regardless of background, creating a stronger overall draw for prospective employees. (https://www.mckinsey.com/business-functions/organization/our-insights/delivering-through-diversity)


2) Better understanding of participants, customers, funders, et cetera.

A workforce that reflects the diversity of society allows organisations to connect with a broader range of audiences. Diverse perspectives foster insights that enable initiatives, products, and services to be better tailored to different communities. This sensitivity strengthens relationships with customers, participants, and funding bodies, leading to better engagement and, ultimately, greater chances of success.


3) Safe working environment

Organisations that embed DEI values proactively nurture a psychologically safe working environment where everyone feels comfortable expressing themselves without fear of judgment or bias. Discrimination and harassment are less likely to occur, contributing to a culture of respect and trust. This has positive repercussions for well-being, productivity, and overall company morale.


4) Employees perform better at work because of a sense of belonging.

Employees with a strong sense of belonging at work are naturally more engaged. Inclusive environments ensure nobody feels like an outsider, empowering individuals to tap into their full potential. Research shows that highly engaged teams have 21% greater profitability – a compelling testament to DEI efforts’ impact on the bottom line (https://www.gallup.com/workplace/236366/right-culture-not-employee-satisfaction.aspx).


5) The more extensive your pool of potential candidates, the bigger your pool of skills and abilities.

Casting aside unconscious biases and actively promoting diversity opens the door to a much wider talent pool with a broader range of skills, experiences, and know-how. This rich resource of abilities is a driver of innovation and gives organisations a distinct competitive edge.


6) Staff are more creative and better at problem-solving as they think outside the box.

Teams comprised of people with diverse backgrounds and perspectives are naturally more adept at approaching challenges from multiple angles. This out-of-the-box thinking is a hallmark of inclusive workplaces, resulting in more creative solutions to problems. A study by Deloitte Australia found that inclusive teams outperform their less inclusive peers by 80% within team-based assessments.


Cynthia is a brilliant thought leader and speaker. We love working with her at Ludo. If you want to open minds, shift perspectives and open dialogue, ask Cynthia.
- Elizabeth Cowper, Founder/CEO, We Are Ludo


Bonus: Categorised for those who prefer reading it that way.


Financial Performance:

  • Increased profitability and revenue: Studies by Catalyst and McKinsey Global Institute show companies with higher gender diversity in leadership experience higher returns on equity (ROE) and better financial performance.

  • Enhanced innovation and decision-making: Diverse teams bring a more comprehensive range of perspectives and experiences, leading to more creative solutions and effective decision-making.

  • Improved brand reputation and client satisfaction: Organisations seen as diverse and inclusive attract and retain top talent, fostering better client relationships and brand perception.

  • Reduced talent turnover: Gender-diverse workplaces tend to have lower employee turnover, saving costs associated with recruitment and training.

Workplace Culture and Talent:

  • More robust employee engagement and morale: Inclusive workplaces where everyone feels valued and respected lead to higher engagement and motivation.

  • Attracting and retaining top talent: Gender diversity helps attract and retain a broader pool of highly skilled and qualified individuals.

  • Enhanced creativity and problem-solving: Diverse teams foster innovation by generating various ideas and approaches to challenges.

  • Improved risk management: Different perspectives can help identify and mitigate potential risks more effectively.


Social Impact:

  • Promoting fairness and equity: Gender diversity creates a more just and equitable work environment, aligning with ethical values and corporate social responsibility.

  • Contributing to sustainable development: Achieving gender equality is recognised as one of the Sustainable Development Goals (SDGs) by the United Nations.

  • Strengthening communities: Inclusive businesses contribute to stronger communities by promoting diversity and understanding.


 

With over 25 years of dedicated leadership in the corporate, feminist, and LGBTQ+ realms, with a profound commitment to LGBTQ+ and women’s rights, I’m thrilled to be recognised by the British Diversity Awards. I stand ready to support, consult, educate, and advise on your next diversity challenge. Your journey towards inclusivity begins with a conversation. Reach out to me at cynthiafortlage@cynthiafortlage.com with any inquiries.



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