Diversity and inclusion are two terms frequently used in workplaces. But sadly they are not as often understood. This is something that needs to change. Diversity brings out different ideas that can improve a company’s productivity. Inclusion allows employees to feel a sense of belonging in the company.

This article is going to lay down why diversity and inclusion are so important in the workplace, especially in 2022.

What is a Diversified Workplace?

A diverse workplace is an environment that allows equal access to opportunities and resources regardless of identity characteristics. 

Whether it is equal pay or an equal voice within the company, providing a diverse workplace enables each staff member to be judged based on hard work and performance rather than societal stereotypes or assumed qualities. 

These attributes and characteristics include but are not limited to age, race, sexual orientation, and gender. This term is often referred to as “diversity and inclusion.”

Diversity and inclusion are strategies used to encourage employees to work together to solve problems and increase innovation while also building a culture of inclusion that promotes a sense of belonging, improving company productivity, and profitability. 

By bringing together individuals from different backgrounds and perspectives, a business can create a balanced environment that promotes innovation and fosters understanding.

A sound Applicant Tracking System makes it easier for employers to source and recruit talent from a diverse pool of applicants. In addition to reaching the right candidates, employers can also build a more diverse workforce, improving workplace productivity, morale, and culture.

Types of Diversity in the Workplace

Candidate experience is the performance or efficiency of most prospective employees, from applying for a job to getting an offer. 

In today’s competitive job market, candidate experience is a critical factor in recruiting talented jobseekers because–let’s face it–employers want only the “right” candidates, who turn out to be a good fit for the company and work culture.

Employers are starting to see the real value in promoting diversity and inclusion in the workplace. It helps create a more effective team and increases employee loyalty, productivity, and retention rates.

Employers can embrace many different types of diversity in the workplace:

• Ethnicity- In the past, there was not as much diversity in the workplace, but now that people from every background are more aware of their differences and transitioning into accepting other cultures, ethnicity is something employers can embrace.
• Nationality- Not only are people becoming more educated about their differences, but they are also becoming more culturally aware. Learning about another culture will help a person understand the values and traditions of that culture, which will increase their loyalty to the company.
• Gender- Diversity can come in many forms. Women have become an important part of today’s workforce due to them breaking down barriers within society and achieving jobs that were once considered a man’s jobs. Not only do women influence the workplace and increase productivity, but they also promote a sense of belonging in the workforce.
• Religion- Diversity can start with how people pray, worship, or think about their lives. Each religion has its own set of values and traditions that can become an important part of a company’s culture. By embracing diversity in the workplace, employers affirm that each person has the right to faith or beliefs without judgment or discrimination.
• Age- Employers should not be afraid to target older workers within the workforce. Older workers can bring a wealth of knowledge and insight to the company and be a great asset in learning from the past. Also, older workers tend to be more loyal to their employers because they have seen what it’s like to have a career end and start over if they are not appreciated.
• Disability- People are becoming more aware of disabilities and how people with disabilities can bring diversity into the workplace. Disabled individuals bring different skills and talents that make them unique. Here’s a detailed article on disability hiring.

5 reasons Why Diversity & Inclusion in the Workplace is Essential

1. Increased Revenue

Diverse groups and teams collaborate better, share more perspectives, and are more innovative. 

Diversity hiring leads to new ideas, and the inclusion of these ideas will lead to a greater variety of products being created by the company. There is more opportunity to grow in the creative and financial aspects of the business.

The McKinsey report documented several benefits for companies that actively engage in diversity and inclusion strategies. The report found that companies that can create diverse and inclusive workplace cultures and practices are 35% more likely to achieve above-average returns and 31% more likely to outperform competitors in their industry. 

They are also 83% more likely to recruit and retain top talent, with senior management teams that are diverse reporting profit from innovation that is 19% higher than average.

2. Diversity Attracts Investors

One of the biggest factors that investors consider before investing in a company is its Corporate Governance. 

Companies are now being evaluated and ranked based on effectively managing ESG risks and opportunities. 

Investors want to work with companies that consider diversity while hiring their workforce. This is because people want to invest in companies that are committed to inclusion and diversity. 

As a result, investors seek out businesses that actively promote diversity in their corporate culture. A more diverse workforce positions companies favourably with investors and customers who want to support inclusive environments.

3. Increase in Marketing Opportunities

Hiring staff with different experiences and approaches helps companies increase their intellectual capital. Different people approach a problem with a fresh perspective and develop newer ideas. It is easier to develop innovative products and services that meet customer needs and set themselves apart from the competition.

Diverse groups and teams also have diverse opinions about marketing, which leads to better communication between the company and its customers. Because of these ideas, businesses can create new products and services that are innovative based on customer feedback.

4. Increase in Brand Recognition

People want to invest their money in companies they feel are legitimate and trustworthy. Companies with diverse teams can build a reputation to show investors and customers.

People want to do business with people they can relate to, and when employees are diverse and inclusive, it allows them to relate. If a company can relate to its clients based on the different cultures within the company, then it will encourage customers to do business with this company. It also shows that the company accepts all people and can bring a sense of belonging into the workplace for employees.

5. Reducing Absenteeism & Attrition

There is a strong correlation between diversity and inclusion and employee engagement. When employers can create diverse and inclusive work environments, there is a strong correlation to reducing absenteeism and attrition.

Diverse groups and teams have different viewpoints, which leads to more engagement on the part of the employees. This is because people are stronger when they are part of groups they feel comfortable with. They will continue to interact with their colleagues, leading to a more productive workplace culture.

Companies engaged in diversity and inclusion strategies have opportunities for invention and increasing sales in their workplace. When employers are open to the idea of diversity, they can create environments that encourage creativity and more innovative ideas. They also can attract diverse groups of clients who want to support inclusive employers. 

Let us know in the comments below what are your thoughts on diversity and inclusion in the workplace this 2022?