Inc. spells it out, “Without a diverse and inclusive culture, your people may be headed for the door.” That sentence has three keywords in it that you should pay attention to. If you don’t have a diverse, inclusive culture, the latest data shows, your business will lose top talent.
Why D&I Matters to Your Business
For a decade, dozens of studies have shown that building teams that don’t act, look, or think the same way is important to your business. A PwC study showed that 87% of global businesses report diversity and inclusion is a priority. Why all the emphasis on D&I? In addition to being the right thing to do, there are all kinds of studies that show companies with a more diverse workforce are also more productive:
- Companies with women on the board of directors yield a higher net income growth than those that don’t.
- Public companies with gender and ethnic diversity are more productive and have returns above the industry average.
- Inclusivity leads to better business decision making 87% of the time, reaching those decisions twice as fast as less diverse competitors.
- Diverse companies deliver higher work quality and more productive teams.
While this data has gotten the attention of both small and large companies, the Inc. article reports, “Minority and women leaders, particularly at the executive level, reported that they felt they had to leave their current employers to advance their careers.” They suggest three key efforts to support and retain your diverse workforce:
- Build D&I into your core leadership team. Suppose your leaders don’t support your efforts to build a diverse, inclusive culture. In that case, your employees may feel as if they need to leave to find a place where attracting and retaining a multicultural workforce is important
- Build a diverse talent pool and keep this initiative at the forefront of your recruiting efforts. If your business is growing, make certain you are building a diverse funnel of talent that includes all races, genders, ages, backgrounds, attitudes, and more. The studies show developing a diverse pool of candidates will help retain employees for the long-term.
- Make sure your leadership teams are also diverse. Promote from within with an eye to support your D&I initiatives. Solve any gender gaps that are still so prevalent in the corporate world. Make sure your managers and department leaders are representative of the employees on the frontlines to ensure they feel welcomed and at home.
Companies must sit down with human resources and strategically talk about recruiting and retaining a diverse candidate pool to start this process. Develop core values as a company that helps you practice D&I on a day-to-day basis.
Diversity matters to your employees. Most HR teams know diversity is more than a buzzword, but a daily practice that will strengthen employee loyalty and attract high-quality talent. The Harvard Business Review suggests that companies with inclusive managers are more innovative. Employees who feel their company is diverse and inclusive say they are 42% less likely to leave their job next year. Their research showed that D&I results in better talent recruitment, plus employees that are more engaged and loyal.
IES can help your team expand its candidate pool. We partner with companies to find the right talent to fit your strategic initiatives. Contact us about how we can help you meet your hiring goals.