Diversity, equity, and inclusion (DEI) are crucial factors in today’s globalized society. Diversity within the workplace is of particular concern since this is where many of us spend a large portion of our waking lives.
Researchers have been delving deep into the details of DEI to gain a better understanding of the impact these factors have on various aspects of our working lives. Below, we will take you through five fascinating findings from the latest DEI research.
1. Improved diversity boosts performance
Researchers have found that diverse workplaces tend to perform better than homogenous ones. For example, a recent study from McKinsey & Company found companies with more diverse executive teams were significantly more likely to outperform their competitors in terms of profitability. The researchers posited that the fresh perspectives and innovative ideas that arise from diverse workplaces may lead to improved decision-making and overall performance.
2. Gender diversity delivers better financial outcomes
Gender diversity has been shown to have a positive impact on financial performance, highlighting the business case for promoting gender equality in the workplace. Numerous studies have backed this up.
Returning to research conducted by McKinsey & Company, the management and consulting firm found that companies with more gender-diverse executive teams were 21% more likely to achieve above-average profitability. These improvements in profitability likely come from the wider range of skills, experiences, and perspectives gender-diverse companies can draw from.
3. Inclusive leadership fosters a positive workplace culture
Inclusive leadership is central to a company’s ability to foster diversity and inclusion within its departments. Inclusive leadership is all about ensuring every voice is heard, and a report by McKinsey & Company identified inclusive leadership as one of the key success factors in DEI initiatives.
The reasons behind this success are somewhat obvious. Inclusive leaders create an environment where everyone feels valued, listened to, respected, and empowered to contribute their unique perspectives. Leaders acting from this paradigm actively seek a broad range of viewpoints and ensure all employees have a chance to speak up.
4. Unconscious biases can drag down your business performance
Unconscious bias refers to automatic associations and stereotypes that may influence our decisions without our conscious awareness. This form of bias is dangerous as it so easily flies under the radar. While you may not notice its presence, it can be busy hindering your progress toward DEI goals. Thankfully, by raising awareness and implementing strategies to mitigate its effects, you can create a more equitable environment within your company.
Researchers have found that unconscious bias can impact everything from hiring decisions to performance evaluations and opportunities for promotion. By raising awareness about unconscious bias and implementing strategies to mitigate its effects, you can create a more equitable and inclusive atmosphere in your workplace.
5. Employee-led programs improve job satisfaction
Employee resource groups (ERGs) are voluntary, employee-led groups that give underrepresented employees a sense of belonging, community, and support. Research has found that ERGs can positively impact employee engagement, career development, and job satisfaction. Beyond these crucial factors, ERGs create a forum for employees to connect with others who share similar backgrounds and life experiences. This further improves the sense of community and togetherness in your organization.
The latest research on diversity, equity, and inclusion can give you valuable insights that help you support your team and boost your business performance in the process. From the positive correlation between workplace diversity and performance to the role of ERGs in driving change, these findings highlight the importance of diversity and inclusivity at work.