Why Your Organization Needs a Diversity, Equity, and Inclusion Strategy

According to research by Pew Research Center, generations following millennials will be the most diverse in our country’s history. With that in mind, words like diversity, equity, and inclusion (DEI) suddenly have a whole new meaning.

It will no longer be a checkbox for applications. It will be the nation’s standard. And many businesses and organizations are getting a head start on their DEI.

Beyond the fact that DEI is inevitable, it also provides a lot of revenue incentive. McKinsey & Company estimates that there will be $12 trillion in additional GDP if we can manage closing the gender gap by 2025. Furthermore, they estimate another $2 billion in revenue if we diversify “financial inclusion efforts” to services that impact black Americans.

Throughout this article, we’re going to take a deeper look into why your organization needs to include a diversity, equity, and inclusion strategy. At the end, we’ll give you some tips on how to get started.

How Does DEI Work?

Unfortunately, most businesses and organizations aren’t aware of the DEI problem. Estimates from expert Josh Bersin explain that 70% of companies think they have their DEI figured out. However, only 11% really understand the complexity of this issue.

Not to mention, many out there don’t even know what DEI is.

If you’re also not so sure about DEI, here’s a bit more explanation into what it means and the importance it has on business.

Diversity

Simply put, diversity is the practice of including and involving people from various social and ethnic backgrounds. Most companies weigh diversity based on the following:

• Age

• Disabilities (including learning differences)

• Education and experience

• Ethnicity

• Gender identity

• Body size

• Personality

• Religious values

• Sexual orientation

Of course, this is merely a basic list of diversity characteristics. Truly, a company’s diversity can go far beyond what we’ve listed for you here.

Furthermore, how a person sees diversity greatly depends on their perspective and life experiences. For example, research from Deloitte discovered that:

• Millennials see workplace diversity as an organizational advantage or change.

• Boomers and Gen Xers see diversity as equal representation.

Both perspectives on diversity hold value. However, it’s ultimately up to you as a business leader to determine how diversity will be defined for your organization.

Equity

According to Merriam-Webster, equity is defined as a “justice according to natural law or right.” Society generally views equity as a way to make sure everyone has a fair chance no matter their background.

There are a number of ways in which a business may ensure that their company practices equity. For example, some make it a requirement for the hiring process while others may ensure it through compensation.

Similar to diversity, equity is a loose term that holds different values for different companies. Some organizations may be more inclined to consider educational barriers while others are focused on societal inequities.

Regardless of your stance, it’s important to determine your company’s view on equity and how you’ll go about practicing it.

Inclusion

Inclusion is another way to ensure that your company is a safe space for diversity and equity. Depending on your policy design, you may find your company’s structure helps to eliminate barriers, discrimination, and intolerance through inclusion.

More so, you’re ensuring your employees that the environment of your workplace is collaborative, supportive, and respectful. With this guarantee, it’s more likely employees will feel more inclined to participate and contribute to your company.

Why You Should Incorporate DEI into Your Organization

While it’s important to identify all three components of DEI, it’s just as vital for you to develop it into a comprehensive strategy. When your company incorporates DEI, it’s reflected in your mission, business practices, ethics, and strategies. Furthermore, it shows you’re willing to look at DEI as a competitive business advantage.

If you still aren’t sold on the importance of DEI, here are a few ways it can benefit your organization:

• Attracts Talent - About two-thirds of job seekers believe that diversity is a vital element when seeking out a company to work for. In other words, DEI is attractive and it attracts talent. More so, if your business practices DEI right, you’re likely to also retain talent and your employee’s commitment to your organization.

• Allows Your Company to Grow - There’s been a lot of research confirming that companies who practice DEI are more likely to exceed financial goals and performance. A report from BCG found that organizations with diverse leadership teams maintain 45% higher innovation revenue in comparison to those that don’t.

• Discrimination Comes at a Cost - Even if you aren’t consciously discriminating, not incorporating DEI may prove to be expensive. Beyond the fact that DEI can help your company grow, lacking in DEI may reflect in the message you send to employees and customers. In fact, the Center for American Progress estimates that businesses pay $64 billion a year combatting workplace discrimination.

How to Get Started with DEI

So, how do you get started with DEI? If this is all new to you, it can seem a bit confusing and complicated at first. However, we ensure that incorporating DEI will take very little time and effort on your end. And, in the long-run, it will only make your company better for customers and employees.

Before diving into a developed DEI program, you’ll want to make sure everyone already involved in your organization can see a business case concerning DEI. This may include:

• An analysis

• Qualitative rationale

• Supporting research

Your business case will need to detail various aspects of DEI, including technical considerations, a timeline and budget, and how stakeholders and business units will be involved.

The best way to build your DEI is through your hiring and recruiting process. If you have a human resources (HR) team, they will need the most comprehension on your business case as they will be the most involved. Recruiting the right candidates for your company will be the stepping stone in building workplace diversity.

In order to ensure recruitment, you’ll want to consider how you develop job descriptions, screen resumes, source talent, and interview candidates. Furthermore, you’ll want to consider how DEI will be implemented for these employees once they enter into your organization.