Focusing on Diversity and Not on Inclusion? How To Set Your Organisation Up for Failure!

Diversity and inclusion have a wide range of business benefits, with numerous studies outlining how creating environments embedded with EDI (Equity, Diversity, and inclusion) is essential for business success. However, when approaching the topic, organisations often focus solely on diversity, leaving inclusion out of the equation. Let’s be clear: If this is your approach, you are wasting your time.  

Without inclusion, focusing on diversity does not work. That’s because for a diverse workforce to succeed, they need an inclusive culture which caters to their needs and uplifts them with the conditions to work their best. But let’s face it - companies love to tout diversity stats without addressing the systemic issues. Inclusion isn't about token hires or photo ops; it's about tearing down the barriers that keep diversity from thriving. That’s why organisations that prioritise an inclusive environment will see an array of benefits, allowing them to stand out in a competitive marketplace, ranging from improved business operations to financial impact and a healthier work environment for their employees.

How do diversity and inclusion differ?

Diversity refers to the different characteristics of employees that make them unique. It encompasses a spectrum of differences, including age, race, disability, gender, sexual orientation, religious, political, and socioeconomic backgrounds.

 Inclusion refers to the conscious efforts, behaviours and policies that allow individuals to feel heard and valued with their unique differences. To be inclusive, a workplace needs to focus on making employees feel accepted, appreciated, and engaged. Inclusion encompasses our behaviours and that of those around us.

What are the business benefits of effective EDI?

Increased Financial Performance– Evidence-led EDI focusing on inclusion is the best-kept hidden secret in generating profit and will have a major impact on your company’s financial performance. Companies more ethnically diverse are 35% more likely to outperform their industry median. Other research found that companies with poor overall diversity performed 25% worse on average financially. It’s clear that organisations need to diversify their workforce for bottom-line impact, so they will need to get real about inclusion to retain them!

Increased Team Effectiveness and Performance - It’s no surprise that when employees feel valued and included in the workplace, they perform to a higher standard. In one global survey by Boston Consulting Group, diverse management teams reported 19% higher innovation revenue than teams lacking diversity. In other research published in Innovation: Management Policy and Practice, levels of gender diversity were analysed across 4277 companies in Spain, with results showing that women were more likely to introduce radical innovations into the market across a 2-year period.

It Mitigates Risk and Boosts Reputation - A study by Weber and Shandwick found that 80% of employees believe that diversity and inclusion improve the reputability of organisations among their customer bases. It’s in the interest of companies to be inclusive so they can mitigate any risk of discrimination which could impact their company legally and the frame of their reputability externally. Incorporating inclusive practices will sway the perceptions of their organisations positively and allow their operations to resonate with customers.

It Reduces Staff Turnover – When employees feel their needs are being met, they are more likely to remain engaged and committed to the organisations they are working for. In a report by Better Up, it was found that when staff feel valued, sick days decrease by 75% and their intentions for staying with their company saw a 50% increase. Inclusion therefore plays a pivotal role in the retention of staff and their valued skill set.

 The evidence is clear that this topic should never be a side project for organisations. Yet, despite the evidential social and financial impact, many organisations focus on diversity and forget the importance of inclusion. Auditing for inclusion and creating effective strategies will transform corporate cultures, by attracting diverse talent and excelling your business operations. Don't wait until it's too late, now is the time to use inclusion in securing the long-term success for your organisation.