Small and big enterprises worldwide are being challenged to assess their strategic goals and commitments to building an equal and inclusive workplace, whatever the niche, whether fashion, technology, retail, or finance. While some organisations have adopted a proactive approach to tackling workplace diversity challenges, most have hesitated to develop policies and procedures to address these issues. As a result, organisations that ignore workplace diversity are beginning to pay the price, which is significant.
UN statistics indicate that globally, there is a gender pay gap of 16%, which means that women earn 84% of what men earn. This disparity is even greater for women of colour, women with children, and immigrant women.
The Egon Zehnder 2020 Global Board Diversity Tracker shows that 59% of FTSE 350 companies lack ethnic diversity on their boards. Research in Harvard Business Review found that 40% feel isolated and excluded at work.
Several costs are associated with a lack of diversity, equality, and inclusion (DEI). Corporations worldwide are increasingly being chastised for concerns about a lack of diversity, fairness, and inclusion. Many of these DEI-related concerns are avoidable, but it require a strategic investment in your workplace. Before we proceed further, here is a break out of the terms Diversity, Equity, and Inclusion.
Diversity
Diversity refers to our many identities, distinctions, and lived experiences, such as race, ethnicity, gender identity, religion, and sexual orientation.
Equity
Equity refers to everyone’s access to and chances for growth. It is crucial to identify and remove past hurdles to the inclusion and involvement of specific groups and understand the core reasons for such barriers to prevent the emergence of new ones.
Inclusion
Inclusion creates an infrastructure and environment where employees from all walks of life can thrive. It also encourages employees to pursue equitable chances to overcome institutional hurdles and succeed.
While institutional knowledge and understanding of DEI’s relevance are growing, the business sector, in particular, still has a long way to go in terms of creating truly equal workplaces. As of 2019, women CEOs comprised 4.7% of the total CEO strength at Europe’s top companies.
Yes, the numbers are bad, so what? What effect does it have on the business?
Not having a diverse and inclusive workplace can be detrimental to the business and its employees.
While DEI initiatives are frequently launched in the name of social justice, research has shown that they are also vital facilitators of development—both inside a company and in its market.
Check out this Mckinsey survey done in the Central & Eastern European regions. The survey found that women constitute 52% of the population in the seven CEE countries analysed. Of this, over 60% were college graduates, and they make up just 45% of the workforce. Only about 37% of all managers are female. Women hold about one-fifth of regional executive roles and 8% of CEO positions. Here’s a shocking fact – 44% of leading companies in the CEE region do not have a single woman in an executive role!
This is the current state of the Central and Eastern European region. However, if businesses step up efforts to reduce the gender gap, advantage number 1 will be increased revenue.
The research found that businesses could generate an additional €146 billion in annual GDP by 2030, an increase of 8% over a business-as-usual scenario.
Advantage number 2 – Attract AND retain a diverse talent pool
By 2029, the Millennial and Gen Z generations will account for 72% of the world’s workforce, compared to 52% in 2019. These generations place more importance on environmental & social issues than their predecessors and expect more from employers.
Inclusive workplace culture will not only help you acquire a varied range of talent, but it will also help you maintain the diverse talent you first attracted.
A Deloitte survey shows that at least 72% of their respondents would consider or may leave an organisation for a more inclusive one. Research shows that employees who are satisfied with their employers and jobs work harder, stay longer, and produce better results for the firm. More importantly, enthusiastic prospects strengthen a company’s talent pipeline and ensure consistent access to a crucial workforce.
Advantage number 3 – Realise your organisation’s full potential.
Every workplace should aspire to workplace inclusiveness. It eventually leads to higher productivity and employee satisfaction. It’s important to realise that a diverse workplace does not always imply an inclusive one. A focused inclusion plan, on the other hand, may go a long way toward building long-term diversity and inclusion within your workplace culture.
In summary, organisations that are not fundamentally inclusive workplaces risk losing money, earning less, and falling behind their rivals. On the other hand, companies that succeed with For All will generate significant value from their people’s differences and grow.
At Ataro Business Solutions, we understand the impact that a lack of DEI has on your workforce and the difficulties that challenging internal workplace norms lead to. DEI development is one of our key offerings, and we practice what we preach – emphasising DEI policy creation in our own organisation. With our knowledge and expertise in this area, we assist our customers in creating safe places for their employees to uncover and comprehend unconscious bias and then advise them on managing and limiting its impact.
Get in touch to learn how we can help you review your company’s current DEI policies and procedures, increase talent recruitment and retention, and advise you on interacting with workers and the larger community.