“Diversity and inclusion are not luxuries reserved for high-performing companies in boom times. They form a powerful lever to improve performance.” – Boston Consulting Group, a global consulting firm.
DEI is not just a buzzword. Diversity, equity and inclusion are the three principles of social responsibility that businesses of all sizes are integrating in their operations, from strategic planning and goal setting to recruiting, strategy, measuring profitability, etc. In doing so, these organizations are seeing results in all aspects of their culture and operations.
What is DEI?
The University of Washington Office of Research defines diversity as “the presence of differences that enrich our workplace. Equity is ensuring that everyone has access, resources and opportunities to succeed and thrive, especially for those who are underrepresented and historically disadvantaged. . Inclusiveness is a workplace culture that welcomes everyone regardless of race, ethnicity, gender, gender identity, age, ability and religion, and everyone is valued. , respect and be able to realize their full potential.”
“The DEI is more than just a static policy or statement of value that exists on a business website,” said Jenel Harju, Senior Customer Relations Manager, Business Operations, PayneWest Insurance. “DEI is about taking measurable actions to address systemic social inequality, build a stronger and more inclusive workforce, and improve economic mobility.” health care for women and other minorities.”
Such actions may include self-reflection and uncovering unconscious bias, listening and learning, creating a culture of equality, standing up against racism, committing to transparency, amplification voice of the underrepresented, prioritize representation, hold leaders accountable, and improve board diversity.
Start your DEI journey
The DEI journey can begin in many ways, starting with strategy development from the HR team, senior leadership, or the board of directors. Ultimately, a path that includes all levels of an organization will have the greatest influence on the culture of the organization and produce successful results.
“PayneWest knows that our own DEI journey has only just begun and that it will be a process of constant learning and growth, one that we embrace with gratitude and full support.” Harju said. “We recognize that DEI is a powerful component of our culture and we are very thoughtful about how we invest in this opportunity and the positive and genuine impact it has on our relationships. us with Customers, Colleagues and Communities.”
DEI and ROI
Businesses that are delivering on their commitment to putting DEI in their operations are not only creating positive social change and helping to close racial and gender gaps between rich and poor, they are also retaining talent and improve organizational performance and profitability. Studies by leading advocacy and consulting groups clearly show an advantage for businesses committed to DEI principles.
According to global advocacy group Women Deliver, “As women hold more executive leadership positions, their companies will be more profitable. Companies in the top four for gender diversity in executive teams are 21% more likely to perform better than the national average.
A study by the Boston Consulting Group found that “increasing diversity of leadership leads to better innovation and improved financial performance”, finding that diversity is increasing day by day. Increasing in the management team leads to 19% higher revenue thanks to innovation. Similarly, a report by Deloitte found that companies with an inclusive culture are six times more likely to innovate and be agile.
A McKinsey & Company report studying the financial performance of technology companies found that the top racially diverse companies were “35% more likely to achieve financial returns above the national average.” technology industry,” more gender-diverse companies “are 15% more likely to perform than others” and multi-ethnic companies are “35% more likely to perform.”
Customers also see value in DEI. In recent years, consumers often conduct research before making a purchase and prefer companies that are socially and environmentally responsible. A consumer survey by the IBM Institute for Business Value found that areas of social responsibility such as gender equality, ending racism, and promoting opportunity are important or critically important to consumers. with 75% of the respondents.
DEI and the future
DEI is becoming an important aspect of business operations, from boardrooms to profitability. Organizations committed to promoting DEI are likely to remain relevant and profitable.
“From creating collaborative and respectful relationships to increasing employee empowerment and engagement, we are fully aware of the benefits that a diverse, equitable and empowered workforce can benefit from. the right to bring,” Harju added. “At PayneWest, we keep an eye on today and the future.”