Diversity and inclusion policies are good for business

In the first of a two-part series, IOE senior staff set out how effective diversity and inclusion policies can benefit employers’ business objectives and end longstanding biases.

Multiple studies have established the value of a diverse workforce. Even prior to the #blacklivesmatter and #metoo movements, data from leading experts such as McKinsey, the World Economic Forum and the OECD to name a few, confirmed that a diverse workforce – one that encompasses different ethnicities, genders, religions, ages, sexual orientations, or disabilities – can be a key driver for innovation and productivity, and a vital ingredient for business success.

The top five benefits of workplace diversity include:

• Increased productivity: A diverse workplace allows for a diversity of talent, experiences, and perspectives which means a broader range of skills among employees. Collaborating in this type of environment can encourage employees to think more critically about their assumptions and understand that there are multiple ways to achieve solutions efficiently and effectively. This has the potential to increase productivity.
• Increased creativity: As people from various cultures and backgrounds work together, the opportunity for increased creativity exists. This is because the company or organisation has employee profiles with a variety of perspectives, a wider range of knowledge to extract information from, and diverse ways to approach challenges, allowing for a greater chance of finding workable solutions.
• Increase in outreach:Having a diverse and inclusive workplace is central to a company's ability to attract, develop, and retain the talent it needs to compete in the dynamic world of work. More diverse organisations have broader talent pools from which to source skills to compete in this rapidly changing world.
• Improved cultural awareness: A diverse range of cultures within the workplace provides organisations and companies with the opportunity to deal with existing nuances within a national or global context. Sending the wrong message can discourage consumers or partners from your business or product, or even lead to a boycott of your business altogether. 
• A positive reputation: Your company or organisation is perceived by potential and current employees as an accepting and inclusive employer, which can provide a welcoming environment and additional business opportunities. Companies or organisations that lack diversity may be called out publicly and may even lose business or reputation.

These are some of the established benefits, but in simpler terms, what do diversity and inclusion at the workplace or at the organisational level eventually mean? According to Namira Islam Anani, diversity is about who is in the room and inclusion is about who has influence in that room. It is not enough to merely have diverse faces in your company or organisation, if employees have no say or input in how work is carried out, do not benefit from equal career advancements, or if they are unprotected in the face of discrimination, bullying, or racial and sexual harassment, at the workplace.

Understanding that many companies operate in demanding and competitive industries, and that employers’ organisations often work in dynamic and frequently politicised environments, staying ahead of the competition requires innovation and productivity. As organisations strive for success, understanding the link between diversity and success can provide a competitive advantage.

In our next blog, we provide five concrete steps the private sector can take to mainstream a diverse and inclusive workplace.