Hiring diverse employees is vital for numerous reasons. It boosts employee morale, improves innovation, attracts customers and investors, and more.
However, an organization can’t achieve these results by onboarding diverse talent. Employers often think that meeting a quota in diversity recruiting will solve their problems, but it is more complex than that.
In 2015, Google pledged $150 million in funding for diversity initiatives, half for organizations and communities to improve diversity initiatives, and half for their internal programs. These include workshops about unconscious bias to change company culture.
Succession is another problem area: companies in the US have an average gender balance of 40% women to 60% men, but less than 30% of leadership in board, executive, and management positions is female. Companies are more likely to have CEOs named Michael or James than a woman CEO.
For more: Why DEI is effectively useless without inclusion (+ Case Study)
We have to start focusing on the aftermath of the diversity recruiting strategy: once diverse employees are hired, they also have to feel included and like they belong.
The essential ingredients for success are diversity, inclusion, belonging, and equity (DIBE or BEDI). You need all four to benefit from your diversity hiring initiatives.
Before diving into the benefits, we need to understand these terms. Here’s a quick breakdown of the definitions:
You need all four of diversity, inclusion, belonging, and equity to get the most out of your diverse workforce.
Diversity: the state of having different types, forms, experiences, or ideas together. Diversity includes race, gender, ethnicity, sexual orientation, age, ability, etc.
Inclusion: the state or act of including or being included within a structure or group. Creating an atmosphere where people feel welcome, supported, heard, respected, and valued
Belonging: being able to be yourself and feel valued and accepted for who you are. Employees feel like they belong when their diverse thoughts, feelings, and perspectives are valued in the organization.
Equity: treating individuals fairly and eliminating barriers to access so everyone can contribute
DIBE is the missing link to success in any diversity initiative. Now that we know what each term means, we can start going over some of the many benefits of implementing it.
Also read: Defining DEI: the emerging way to boost your employer branding strategy
Companies run by diverse teams produce more revenue from innovation, to the tune of 45% of total revenue. However, studies show that Black-sounding names receive fewer callbacks for interviews than White-sounding names by anywhere from 2.1% to 50%.
Unconscious bias often creates a homogenous workforce without fresh perspectives that question the status quo. When all your employees are the same, chances are they won’t challenge each other’s opinions and will instead stick to routine. In a world where change is the new norm, taking advantage of a diverse workforce can facilitate innovation — an integral component of business longevity.
Improve your bottom line
For companies with diverse management, margins were almost 10% higher than for companies with more homogenous leadership. Diverse teams are also more capable of addressing multiple market sectors.
On the other hand, Bias threatens company profits when reflected in products. When products from airbags and pianos to phones and even office temperatures are designed with the average adult man as the default, women and children are left out. This leads to lower productivity and greater risk of death when driving or performing daily tasks. Without diverse perspectives, companies create a product suited for only a quarter of customers.
Boost employability and morale
With Corporate Social Responsibility proving to be a lasting trend, companies are going to great lengths to demonstrate their commitment to inclusion and DIBE in general.
People want to work where diversity is accepted and encouraged: three in four Generation Zers said they’d boycott a company if it exhibits racial discrimination, and 76% of job seekers look at company workforce diversity when considering job offers. Living up to an employer brand that prioritizes DIBE deepens your talent pool and increases the number of diverse candidates you can hire from.
DIBE initiatives also reduce turnover and workplace issues by fostering cooperation, enabling open communication, and creating a sense of belonging.
After a diverse employee has been hired, it’s up to the organization to determine how they will leverage this opportunity. Many organizations fail to benefit from their hired talent by forgetting inclusion and belonging. Employees need to continue feeling welcomed and belonging beyond just the recruitment process.
If you have diverse employees who feel isolated and undervalued, they will be demotivated to bring their innovative ideas to the table. Organizations have great talent on their teams, but they will never realize it if that talent continues to be silent and isolated.
However, once an organization practices DIBE, they automatically attract quality talent, promote retention, create products that appeal to diverse markets and even improve decision making.
Check out: Why your company culture needs an inclusive language guide
That’s because their employees are heard and valued, no matter their differences and despite their diverse perspectives. Companies that understand these values are often an employer of choice, as these actions show that they genuinely care for their employees during their entire time at the organization.
The best way to harness talent is by making staff feel like their diversity is a strength and not a reason for isolation. By including employees and ensuring they feel like they belong, the team can thrive, reach their full potential, and feel like they’re in a safe space to contribute.
Knockri can organically improve your company diversity without tokenism and help you take actionable steps towards imbuing your workplace with DIBE. Partners using our recruitment software have seen up to 25% increased in racial and gender diversity as well as 60% reduced time and cost to hire. Book a consultation with our HR Solutions Consultant to see if Knockri is right for your talent acquisition strategy.