Diversity, Equity, And Inclusion Boosts Business Performance
In today’s world, there is diversity in everything whether it is written content, verbal information or consumer durable products. One can witness diversity all around. It can be noticed in designs and colours of the automobiles plying on the roads. There is an alternative for every second thing you see online or in real market. Everything is little different from the other and hence diversity inevitable, opine industry experts.
One of the main reasons for this diverse and wide market of content, products and services is diversity of population that wants to be treated a little differently. The human tendency is that we always want something different from the people around us.
This demand of diversity in products and services sometimes uplifts the market or pulls it down.
For instance, the world-famous Barbie doll sales went down a few years back due to its appearance. The doll had not changed much since its launch in 1950s. But, the sales shot back after falling 25 per cent between 2012 and 2017 as the doll was revamped.
With this incident, we learn that organisations should bring diverse perspectives together to offer various products and services. An organisation must hire people from diverse backgrounds to come closer to the new innovations in the different sectors.
Here diversity means that a group of people who represent different age, gender, educational background, life stage, sexual orientation, size, mental and physical ability, socioeconomic status, language, and so on.
When we talk about equity, we should not just treat it as a word but we should implement this in the organisation so that same opportunities and benefits could be provided to the members of underrepresented and majority-group employees. The top leadership has to set the culture, allocate the budget to various diversity initiatives, lay out the formal policies, create a level playing field for everyone, and define measurable and meaningful outcomes.
Inclusion means providing everyone with a supportive workplace experience to feel welcomed and valued.
Sharing thoughts on diversity, Snitch—a men’s online clothing brand founder Siddharth Dungarwal said that if someone is trying to build something then diversity plays a big part in it.
“We started with a team of four people and now we are a family of over hundred people. Everyone is from different parts of India including a couple of LGBTQ community. If you are trying to build something and want to make it really big then you need good quality people who can take the organisation forward,”he told Opportunity India.
How Diversity, Equity, And Inclusion (DEI) Helps Organisations
Accelerates Innovation
The diversity of people in an organisation and diversity of thoughts come up with great and unique idea which helps a local brand to be world-famous and accepted. As L’Oréal has transformed itself from a French beauty products business to a global brand, the company deploys professionals with multicultural backgrounds in new-product development.
Facilitates Participation
When people feel welcome to contribute and confident to be heard, they come up with great ideas and give their best. Facilitating participation of employees in any organisational activity can prove to be beneficial for the both. Employees may come up with an idea that could become a game changer for the organisation and it will also boost confidence in the employees who will be motivated to work towards the success.
Enhances Problem-Solving
Sometimes people with diverse background see a common problem in a different way and hence they come up with a great ideas and quick solutions with maximum probability of success. In a discussion-based problem-solving environment, such as an MBA programme, the diversity of participants’ backgrounds contributes significantly to the learning experience as it exposes students to multiple perspectives and life experiences.
Enables Positive Social Change
DEI is not just about attracting talented employees from diverse backgrounds but also allows them to flourish and feel supported. They must feel supported while putting forward their thoughts and ideas. Through this practice, the employees will become more confident in putting forward their thoughts related to the growth of the company and execute them passionately.
Improves Business Performance
According to analyses by various firms, diverse companies are more likely to outperform non-diverse companies in profitability. According to Boston Consulting Group, businesses founded by women deliver higher revenue than those founded by men. Therefore, by creating gender-diverse management teams, companies can perform better financially.
Attracts Talent
Businesses are facing increased competition for talent due to factors like an ageing population and many other factors. DEI can help organisations bring positive cultural change while boosting the reputation of their employer brand. The business case for DEI is solid and transparent. The organisations that will take DEI initiatives seriously will get ahead in the future. So, DEI should be treated the same way any other strategically important business imperative would be treated.
Meanwhile, Nectar Fresh Foods founder ChayaaNanjappa said that the purpose of entrepreneurship cannot be fulfilled without diversity.
“The diversity is so crucial if you truly need to empower and need to be a part of a change. If an organisation wants to realise real happiness of transforming life then diversity is too crucial. Without change and just looking into the profits and margins, I don’t think that the purpose of entrepreneurship is worth it without diversity,” she said.
