Why does a company need an equity, diversity and inclusion strategy?

While a few years ago, the benefits of diversity, equity and inclusion (DEI) were little discussed within companies, today’s leaders have no choice but to adapt to a market that needs to be more inclusive.

For many executives and human resources management experts, establishing an equity, diversity and inclusion strategy is more than just a trend. It’s a way of dealing with the crisis and meeting talent expectations.

Reason 1: Attract and retain diverse talent and customers

According to a report published by Deloitte and the Billie Jean King Leadership Initiative (BJKLI) entitled Unleashing the power of inclusion: Attracting and engaging the evolving workforce, 80% of respondents stated that diversity is an essential feature when choosing their employer, and 39% would be prepared to leave a company for one that is more inclusive. These figures can be explained by employees’ need to work in an environment of trust, where they can be authentic without fear of being judged or rejected.

This is the view of Floris de Kort, Managing Director of Xplor Technologies, who emphasized the importance of diversity and inclusion in his own company in an interview with Forbes.

“It’s essential for companies to continually strive to be better, wiser and more inclusive by creating a workplace where everyone has a sense of belonging, where people can bring all aspects of their personalities to work […] We promote inclusion and strive to hire diverse talent that reflects the communities, customers and consumers we serve” the leader clarified to explain the benefits of an inclusive workplace.

Reason 2: Inclusion stimulates creativity

In his interview with Forbes magazine, Floris de Kort also emphasized the impact of diversity on creativity. Indeed, having members with different experiences, ways of thinking and lifestyles on the same team leads its contributors to step out of their comfort zones and explore new ideas and perspectives.

“At Xplor, we believe that inclusion ignites innovation. The best ideas emerge when different perspectives meet different generations, disciplines and experiences. An inclusive culture that values differences, welcomes ideas and empowers people. Unlike some companies that have tried to integrate their equity, diversity and inclusion agenda solely into their business strategy, inclusion is at the heart of everything we do” explained the company head.

Reason 3: Inclusive companies have better financial results

An article published by Harvard Business Review entitled How Diversity Can Drive Innovation further supports Floris de Kort’s assertion that inclusive companies are more innovative and achieve better results than their competitors. According to this article, employees working in inclusive environments are 45% more likely to report that their company’s market share has increased over the previous year than other companies.

A number of research studies have already demonstrated the correlation between diversity in the workplace and the profitability of companies that adopt it.

While generating profits should not be the only reason for business leaders to opt for an equity, diversity and inclusion strategy, it is nevertheless important to highlight this advantage.

What’s more, according to a 2019 study by Mckinsey, companies that distinguish themselves by gender diversity in their management teams are 25% more likely to experience above-average profitability than others.

Why should companies outsource their DEI strategy?

Having a DEI strategy tailored to the company

Implementing a diversity strategy isn’t just about preparing team activities, equalizing salaries and producing inclusive content for external communications; it’s first and foremost about implementing strategic actions aligned with both the reality of your market and your corporate culture. This requires specialized skills in strategy and in diversity and inclusion, which is why it’s important to call on external talent specializing in DEI.

What’s more, the implementation of these initiatives should involve an in-depth analysis of all a firm’s departments and the organization of focus groups with the aim of understanding the blockers to inclusion and creating a space of psychological safety.

Therefore, if some employers are not achieving as much impact as desired when rolling out their DEI strategy, it may be because the initiatives they undertake are not always aligned with their overall strategy and the needs of their teams. A third-party entity could be beneficial in supporting management in their diversity and inclusion strategy.

Create a secure space to better identify DEI challenges

Providing a strategic vision and fresh, objective analysis is also a good reason to outsource your DEI strategy. If the majority of one-to-one interviews, training sessions and focus groups are conducted by members of management or in-house talent, minority groups may be afraid to express themselves freely. As a result, diversity and inclusion issues may be poorly identified.

However, expertise from outside the company can put employees at ease enough to share their feelings and experiences on a subject that is still taboo. This neutral analysis would enable companies to better identify the issues at stake and align their action plan according to the results raised.

Raising employee awareness of DEI

Calling in a DEI consultant will not only enable companies to take strategic action in line with the reality of their market, but also to train their internal resources on the subject.

Management and talent managers will be able to base their strategic decisions on the strategy agreed with the consultant. What’s more, their collaboration with the expert in question will enable them to learn and acquire in-depth knowledge in terms of diversity and inclusion.

If you’re a human resources manager or company director looking to create an inclusive working environment for your colleagues, URelles can help you. URelles can help! Find out more about our equity, diversity and inclusion solutions.