Why is Prioritizing Diversity Key to Business Success?

Companies that are identified as diverse are 35% more likely to outperform their competitors, reports McKinsey, since they are 87% better at making decisions and 70% more likely to capture new markets. Having a diverse team on board enables you to effectively target campaigns at more audiences, boosts your company’s reputation for ethics and inclusivity, and puts you very much in line with the millennial commitment to supporting diverse and inclusive companies. If you haven’t taken steps to build a more diverse corporate culture, identity, and team yet, read on to discover why there is no time to waste.

Having a diverse team and an inclusive corporate culture enables your team to produce better results. Research by Josh Bersin, for instance, shows that inclusive companies are 1.7 times as likely to be innovative as those that do not prioritize this value. They are also 3.8 times more likely to successfully coach staff for improved performance and 2.9 more likely to identify and train successful leaders.

As reported by CNBC’s Pippa Stevens, companies are making big promises about diversity and inclusivity but many are still falling short. Recent data shows, for instance, that 64% of employees in entry-level positions are white and the same goes for 85% of positions in executive ranks. It is one thing to espouse diversity in one’s publicity and branding but quite another to have less-than-acceptable diversity and inclusivity figures in one’s staff. It is important for companies to rely on analytics and diversity and inclusion software to understand exactly where they stand. These tools conduct deep analyses of aspects such as employee sentiment, intersectionality, and team-specific challenges, comparing your company’s D&I record to those of your peers and offering data-driven solutions to improve your performance.

Your analysis may indicate that your company could improve in recruitment. However, additional initiatives need to be taken—including the provision of safety for diverse employees, established means of reporting and feedback, and open lines of communication with managers. Your staff, as a whole, should also be trained so that they both value diversity and know how to set goals, roles, and procedures in an inclusive fashion.

To show your commitment to diversity and inclusivity, publish your diversity numbers. This task entails the compilation of data regarding hiring and promotion demographics. Some companies go so far as to have the companies audited, comparing the pay of staff from different backgrounds. Doing so will incentivize current staff to remain in your company but also improve recruitment, as more women and ethnic minorities begin to apply for jobs in your organization.

Diversity and inclusivity are key to business success. This is the case in terms of acceptance from the general public and in the ability to grow and innovate. Companies should use available tools to give themselves a D&I score, publicize their results, and make key changes in required areas. The latter can range from creating a safe environment for minorities to improving their salaries or chance of promotion.