Here Is Why Intentionally Investing In Diversity Is Worth The Effort

This month of June is LGBTQ+ Pride Month companies showcase new ways to show their support for diversity in the workplace, but how many of these efforts have an impact in the long-term? It turns out DEI (diversity, equality and inclusion) is a moving target. As per a BCG research, while the US alone spends an estimated $8 billion a year on DEI training, only half of the diverse employees feel there are mechanisms in place to ensure decisions are free from bias.

The impact of diversity

As per a pre-pandemic BCG research, diversity boosts innovation and also strengthens resilience. Companies that reported above-average diversity on their management teams also reported innovation revenue that was 19 percentage points higher than companies with below-average leadership diversity—45% of total revenue versus just 26%. On the other hand, the impact of not being diverse translates to a smaller talent pool, more hiring costs and less collaboration, among others.

What is diversity anyway?

Increasing diversity or increasing the representation of certain demographic groups is an objective all companies should strive for. Still, the company must also focus on enabling these groups to contribute (inclusion) and advance their careers (equality).

It is also essential to understand that diversity is not about people who are not white and cisgender but about people with different needs. Certain demographic factors such as age or being an immigrant, being a caretaker for someone with cancer, or mental health challenges are examples of situations where employees may experience work differently, therefore may need more flexibility. Leaders should understand that anyone can be in any of these situations, so addressing diversity is critical to ensure they can help their teams work best no matter their circumstances.

Developing holistic solutions

While it is challenging to cater to all, a culture that welcomes diversity is essential. It is not only a matter of what HR does but how each individual behaves with the particular needs of their co-workers. Offering diversity and inclusion training, building diverse teams intentionally and making small changes in management positions are some of the most common strategies to start building a diverse culture.

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