Diversity, equity, and inclusion (DEI) are crucial pillars for workplace success. As our communities are increasingly interconnected and diverse, the importance of fostering an inclusive workplace cannot be overstated. A 2024 APA Monitor report highlighted the deep connections between systemic inequities, workplace dynamics, and mental health. Businesses addressing these inequities through meaningful DEI initiatives improve their workforce’s well-being and build stronger, more resilient teams.

In this blog, we will discuss why diversity and inclusion are not just moral values but strategic advantages for businesses striving for long-term success.

The Perpetual Need for Diversity, Equity, and Inclusion

In 2024, over 30 states proposed or enacted laws restricting equity, diversity, and inclusion (EDI or DEI) initiatives, while several prominent companies scaled back their EDI commitments due to legal and political challenges. Where DEI has taken a spotlight across the political sphere, impacting businesses small and large, it is important to avoid letting the political stigma pull us away from why Diversity and Inclusion is important to businesses.  

Diversity and inclusion should remain a top priority for all companies, encompassing race, gender equity, and representation of individuals with disabilities.

Important Trends Driving Diversity and Inclusion

Increased Focus on Mental Health and Equity

Research from the American Psychological Association (APA) reveals that 62% of employees cite workplace discrimination as a significant stressor, impacting productivity and retention. In response, companies are integrating mental health programs into their D&I efforts to create environments where employees feel safe and valued.

Tech-Enabled Inclusivity

Advances in technology allow businesses to eliminate unconscious bias in hiring. Tools like AI-driven talent acquisition platforms help companies evaluate candidates based on skills rather than demographics, ensuring fairer hiring practices.

Accountability through Data

Transparency is now a cornerstone of D&I strategies. Businesses are increasingly using data to track their progress, from workforce demographics to retention rates. This shift ensures that D&I efforts are measurable and impactful.

Generational Shifts in the Workforce

Gen Z (~1997-2012) is reshaping workplace culture with a strong emphasis on diversity, equity, and inclusion (DEI). Unlike previous generations, Gen Z is more likely to challenge traditional workplace structures and demand transparency, authenticity, and meaningful action from employers. This shift is pushing organizations to move beyond performative DEI efforts and implement measurable, long-term strategies..

According to Business Insider, nearly half of Gen Z workers (47%) say they would not accept a job at a company that doesn’t demonstrate a commitment to DEI. Additionally, Gen Z employees are more likely than older generations to advocate for inclusive policies, from pay equity to diverse leadership representation.

As Forbes highlights, building an inclusive culture for Gen Z requires more than just hiring diverse talent—it involves creating safe spaces for open dialogue, ensuring fair opportunities for career advancement, and embedding DEI into a company’s core values. Companies that fail to prioritize these efforts risk losing out on top Gen Z talent.

Despite recent challenges to corporate DEI initiatives, Benefit News notes that Gen Z’s unwavering support for inclusivity may actually help sustain and revitalize these programs. 

How Diversity Benefits Your Business

Reflects the Community & Enhances Connection 

For local businesses, reflecting the community they serve builds trust and strengthens customer relationships. A diverse and inclusive workforce allows them to mirror the rich tapestry of the people they serve. A workforce that mirrors local demographics is better equipped to understand and meet diverse customer needs in both their preferences and perspectives.

Increases Productivity

A study by McKinsey & Company revealed that companies with diverse leadership often outperform those without. The study found that companies with gender-diverse executive teams in the top quartile were 21% more likely to have above-average profitability compared to their industry peers. Similarly, companies with ethnically and culturally diverse leadership were 33% more likely to surpass their peers in performance.

This significant impact of diversity on financial performance is attributed to a couple of factors. First, diversity enhances productivity, leading to increased profits. Second, diverse teams are often more innovative and efficient at solving problems.

Boosts Innovation and Profitability

Diverse teams bring varied perspectives, leading to creative problem-solving and innovation. Importantly, the Boston Consulting Group found a 19% increase in revenue at companies with diverse leadership, attributing this to fresh ideas and better decision-making.

Diversity encompasses more than color, gender, handicap, or religion. Employees of various ages, education, talents, degrees of seniority, and local and international origins may also be included. 

Enhances Problem-Solving

Inclusive workplaces promote collaboration and open communication, leading to more effective problem-solving. Teams composed of individuals with different perspectives approach challenges from various angles, increasing the likelihood of finding comprehensive and innovative solutions. 

Leveraging this creativity can assist your organization in:

• Making processes more effective and devising newer, more efficient systems.
• Constructing more practical organizational frameworks.
• Shaping policies.
• Launching new initiatives, both within the organization and in the broader community.

Additionally, a diverse workforce is better equipped to understand a wide range of customers, building trust and solid business partnerships at a faster pace. Different cultural backgrounds and experiences contribute to a deeper understanding of consumer behavior, allowing businesses to tailor their products and services to a broader audience. 

Attracts and Retains Top Talent 

Local businesses that prioritize diversity and inclusion become more attractive to a diverse talent pool. According to the APA, 67% of job seekers prioritize workplaces that demonstrate a genuine commitment to diversity. Organizations with inclusive cultures see higher retention rates as employees feel respected, valued, and supported.

Additionally, a commitment to diversity and inclusion enhances the reputation of local businesses. Customers and clients are increasingly conscious of the social values of the businesses they support. Companies that champion diversity not only attract a diverse customer base but also set a positive example for others to follow. 

Tips to Foster Diversity and Inclusion in Your Organization 

Diversity and inclusion begin with YOU – your own personal growth and educating others about its importance. Here are some ways your organization can foster growth in diversity: 

• Engage in workshops and seminars, immerse yourself in relevant literature, and foster conversations with colleagues from varied backgrounds. This will broaden your understanding and appreciation of diversity.
• Evaluate your company’s procedures and policies, ensuring they foster inclusivity and are devoid of any discriminatory practices. This spans all areas, including the hiring process, the provision of employee benefits, and the availability of training opportunities.
• Actively seek to attract a diverse pool of applicants when there are job openings. It’s crucial to cultivate a workplace environment where everyone feels represented. 
• Encourage open communication and respect for different opinions and perspectives. This contributes towards establishing an inclusive culture where everyone feels their voice matters.
• Acknowledge and commemorate various cultural and personal holidays and awareness months throughout the year. This fosters a sense of belonging and appreciation for diversity in the workplace.
• Ensure that your company’s strategy on diversity and inclusion is communicated properly across all levels of employees.  Communication is key, and the wrong message can be received if we don’t have a laser focus on how the message is delivered.

When employees feel that they work in an inclusive environment, they are motivated to perform to their full potential. Having strategies to create diverse and inclusive workplaces is only part of the equation – being able to sustain a diverse and inclusive workplace environment is key to maintaining a high level of productivity and employee engagement. Here are some ways organizations can sustain a diverse and inclusive workplace:

• Listen to employees. It’s not just about putting policies into effect, it’s also about listening to employees to understand how they are feeling as part of their team, department, and organization.  Intentionally create space for communication, whether that is in 1:1 cadences, team meetings, engagement surveys, pulse surveys, or all of these!  
• Develop and uphold strong anti-discrimination policies. Clear consequences for anti-inclusive behaviors are essential, as is being consistent in addressing concerns and violations.  
• Focus on neurodiversity. The first things that come to mind when we hear the term “diversity” are gender, race, and sexual orientation. Neurodiversity, or the diversity of thought, comes from more than just gender, race, or sexual orientation. It surfaces in terms of different backgrounds, demographics, religions, cultures, and life experiences.  
• Intentionally provide opportunities for connection. Team events (during the work day or outside of work hours) provide the opportunity for employees to get to know each other as people. When we start seeing others as people and not just peers, we have the opportunity to move past stereotypes and misconceptions.

Here at Staffing Support Specialists, we are dedicated to the improvement and advancement of all genders, races, abilities, and representations. We strive to have a diverse workforce, which is reflected in our Staffing Support Specialists team. There is no room for discrimination and we uphold these beliefs by ensuring that companies follow ethical hiring practices.