With the increase of resignations and job openings in our unstable world still blighted by the pandemic, organisations must consider how to attract and retain top talent. The Bureau of Labor and Statistics revealed a record high of 11.5 million job openings at the end of March 2022.
While diversity and inclusion (D&I) has been on the leadership agenda for several years, statistics show many organisations could do more to boost their efforts. For instance, ethnic minority employees hold only 1 in 16 top management positions in the UK.
1. More women on company boards leads to better performance
A study conducted by NEOMA Business School found that having more women on company boards leads to better performance, with less excessive risk-taking and greater efficiency.
Data shows that over 55 percent of the companies that became inactive on the Fortune 1000 had only one or zero women on their boards compared to the 45 percent of companies on the index with at least 20 percent of women.
A diverse board can lead to a better knowledge and understanding of client and customer needs, as well as more innovation to solve corporate challenges.
2. Hiring disabled employees can boost profit margins
A study conducted by Accenture in partnership with Disability:IN and the American Association of People with Disabilities found that companies invested in hiring disabled employees tend to outperform others. Statistically, profit margins are around 30% higher, net income 200% higher and 28% higher revenues.
Research shows that disabled workers can also help profits due to their high rates of employee retention, reliability and low employee turnover.
3. A diverse workforce can retain and attract the best talent
Deloitte research reveals that 69% of millennials and Gen Z workers are more likely to stay five or more years with a company that has a diverse workforce. A Glassdoor report shows that 76% of job seekers believe a diverse workforce is a non-negotiable factor when considering job offers.
By 2051, it is suggested 20% of the UK workforce will be made up of ethnic minorities. Organisations that exclude such a significant percentage of the population will weaken their company’s performance by decreasing recruitment opportunities.
4. Neurodiverse employees can spark new creativity
An IMB study of 1,500 executives ranked creativity as the most important skill for tackling a changing future. Research has found that neurodiverse conditions such as ADHD and dyslexia can be beneficial for creative thinking.
Neurodiversity describes the variation in how our brains function, including how we interact and interpret the world. Around one in seven people in the UK are neurodivergent which accounts for more than 15%.
With different ways of thinking, people with neurodiversity often have exceptional memory and pay greater attention to intricate details – skills that can be vital for a creative team.
Read our blog on celebrating neurodiversity featuring Naomi Glover, an applied neuroscience and brain health specialist and associate of Serenity in Leadership.
5. Stronger inclusion can lead to more empowered workers
In 2020, a survey by BCG and New York City’s Lesbian, Gay, Bisexual and Transgender Community Centre found that 40% of US LGBTQ employees are closeted at work and 75% have reported negative daily workplace interactions relating to their LGBTQ identity.
The survey results also revealed that when employees feel able to come out at work, they are 1.5x more empowered and feel 2x greater psychological safety. As our CEO, Thom Dennis shared with HR Zone, when people feel safe, they are more likely to bring their entire selves to work.
Psychological safety is fundamental in successful workplace cultures because it allows people to openly share what is on their minds. When psychological safety is not present, a work environment is often toxic and full of mistrust, with many leaders unaware of what is causing the negativity.
6. Diverse companies are more likely to capture new markets
Research suggests diverse teams are 70% more likely to capture new markets. In addition, they are 87% better at making decisions.
Capturing new markets is a critical component of business growth. A diverse team can provide better cultural insights, alternative solutions and improved innovation.
7. Inclusive cultures have happier employees
A study by CEO North America found a link between inclusiveness and happiness. 81% of employees who believe they work in an inclusive culture are also happy in their jobs. This is three times more than those who do not feel included.
Happy employees are more productive, better team players, have lower absenteeism and are more engaged in work.
Want to boost your diversity and inclusion strategies? Here is why your organisation needs Cultural Intelligence training.
