Moving From Diversity To Inclusion

The business case is clear, if organisations are to work with their client base and networks, they will need to source a diverse talent pool in order to help resolve some of the challenges that face them in the market in which they operate. In order to do this, it is vital they they broaden their perspective in the way that they work, the environment they build for their teams and how that is then portrayed to potential employees. 

From a legal perspective, government is continuing to expand the laws and regulations mandating equal treatment for women and other disadvantaged groups. The compulsory Gender Pay Gap Reporting legislation came into force in 2016 along with the 2010 Equality Act provides comprehensive legal protection for all protected characteristics.  Organisations need to look past ticking boxes and and being compliant, to being proactive and seeing how they can use this (and other D&I data) to help shape their strategy.

Financially you will see improved performance through fostering diversity of thought, ideas and ways of working. This will drive innovation and disruption to any given industry and ultimately bring that competitive edge all businesses are striving to achieve. Now it is not just about having a diverse workforce, its about then creating an environment that is inclusive and allows everyone to bring their whole selves to work. Its almost like having all the ingredients to make the perfect loaf of bread, but then putting it in the fridge rather than a warm place for the ingredients to do their thing.  

It really starts with the whole Employee Value Proposition (EVP) this isn't something that you just create, it exists right now in your organisation. What does your organisation's employer brand tell potential candidates? Does the candidate market know your organisation? What messages are being sent out to via website content, feedback channels such as Glassdoor and Google reviews also, from a social media perspective, how is your culture reflected by the posts that are being made? What image are you portraying to the wider business world that is going to attract that diverse workforce? Are potential candidates being put off by certain activities that may not be inclusive for them? Facilitating a diverse and inclusive working environment will highlight organisations as a potential employer of choice. Having this reputation helps with the war on talent in competitive markets. These are but just some of the things that need to be taken into account and highlights the need for a strategic approach rather than an adhoc approach that ticks boxes.

As mentioned Diversity is an important issue for any organisation, but it is not just about hiring people of different nationalities, races, genders and sexual orientations – everyone needs to feel they are truly welcome, safe & free to be themselves in the workplace. Any D&I strategy must be based on what Diversity & Inclusion means to that specific organisation and how it can be successful in supporting the organisation to achieve its goals and supporting business success. Setting out and being clear about what diversity means and what inclusion means for the organisation is key, it is the blueprint for the organisation and its environment, it helps then to define what that inclusive culture looks like and how it feels.

Again, we see many organisations flirting with the idea of creating an inclusive culture that allows its people to share their views and opinions and address challenging behaviours and drive change, but when it comes to it, internal politics quash anyone who may speak up or try to bring about change. Again this brings us back to the importance of having a strategic approach that is championed from the top and not just paying it lip service. It highlights that this is not easy, getting it right is challenging and needs a guiding hand and the ability to ask challenging questions to help shape something that is right for individual organisations.

Partnering with experts will help organisations to shape their D&I strategy, EY run The National Equality Standard which helps organisations underpin their approach with structure and accountability. The EW Group have The Diversity in Business Accreditation that is based around 25 accreditation standards of diversity. Now the point here is not about just achieving the standards or accreditations in order to say that you have them, it is about making a commitment to harnessing diversity and creating an inclusive environment that drives organisational success, that is what is truly important. When an organisation achieves this, it is almost viral and benefits are seen across the whole organisation and not just on the bottom line figures.

What does the research say? Well there is no shortage...

Research by the New York-based Centre for Talent Innovation (CTI), undertook more than 40 case studies and 1,800 employee surveys, it looked at what it termed “two-dimensional diversity”, namely “inherent diversity”– such as gender and race – combined with “acquired diversity” – such as global experience and language skills. 

It found that publicly traded companies with two-dimensional diversity were 45 per cent more likely than those without to have expanded market share in the past year and 70 per cent more likely to have captured a new market. When teams had one or more members who represented a target end-user, the entire team was as much as 158 per cent more likely to understand that target end-user and innovate accordingly.

A McKinsey 2012 report found that, “though CEOs made gender diversity a priority in more than 80 per cent of our 60 participating companies, only about half of employees surveyed from the same companies agreed that the CEO is committed to it”. The business case for diversity may now be proven, but it seems that action is lagging behind words. 

Now its not hard to find evidence and research that proves why Diversity and Inclusion is key to business success, what is hard is for organisations to reassess their business and look themselves in the mirror and adjust their approach in the short term in order to achieve long term success. The recipe of bringing diversity into an organisation and providing an inclusive environment in order for it to flourish is both challenging and rewarding from a financial and maybe more importantly from a societal perspective.