Why investing in DEI is integral to business success
Diversity, equity, and inclusion (DEI) in the workplace has been a hot topic of discussion for decades. However, the need for companies to take action has turned into a pressing issue over recent years. As the talent market becomes increasingly competitive, it’s evident that employers must adapt if they wish to maintain a productive workforce and enjoy sustainable success.
More and more employers are investing in DEI programs and evaluating their HR practices to create a better, safer environment for their entire workforce. This Pacific Prime Latin America article discusses why investing in DEI is integral to business success.
The long road to full DEI
Progress naturally takes time and commitment, and reaching full diversity, equity, and inclusion will require a lot of both. Even though DEI efforts are becoming more popular and praised, the reality is that the majority of non-white employees feel undervalued and out of place in their organization compared to their white counterparts. McKinsey also found that diverse companies are much more likely to outperform their less diverse competition in terms of profitability.
Another benefit of diversity, equity, and inclusion in the workplace is that employees who feel their employers are committed to such efforts tend to view their workplace in a positive manner, thereby increasing loyalty and engagement.
What’s taking so long?
Many companies in the US (and globally) are still facing diversity problems. As much as they would like to manage DEI at work in the best way possible from the start, it’s important to understand the basics before taking a more advanced approach. Organizations must get to the root of the issue to begin with. Only then can they identify who it’s affecting and what can be done to change or improve it.
The current state of inclusion
BIPOC (Black, Indigenous, People of Color) and Hispanic employees tend to feel more isolated and excluded in the workplace, according to Arizent Diversity’s Diversity, Equity, and Inclusion Research 2022. This affects how comfortable they are sharing their ideas and speaking up in meetings, for example. BIPOC and Hispanic women, in particular, often feel unsupported at work – with only 47% of non-white women feeling supported and helped by colleagues in higher positions.
While 73% of white women feel that their curiosity is supported at work, only 56% of non-white women can say the same. Statistics such as these are especially concerning for businesses that recognize the long-term value of diversity throughout an organization. Based on Arizent Diversity’s survey results, it’s much more challenging for men of color, along with all women (especially women of color), to achieve leadership roles within a company.
Does DEI need rebranding?
The majority of survey respondents strongly believe that different experiences can bring more value to the workplace – so much so that only 5% feel they have nothing to learn from those who come from different walks of life. With that said, there are lots of nuances within employee sentiment regarding DEI policies.
While almost all respondents recognize the benefits of working with people who are different from themselves, just over half (66%) of total employees believe that companies make better decisions when they have a diverse workforce. What’s more, employees who see DEI efforts in a positive manner believe “diversity” and “diversity of thought” are mutual, while employees who think companies’ decision-making abilities are hindered by diversity are concerned that “diversity” is prioritized over developing “diversity of thought”.
What’s the ROI on DEI programs?
From attracting and retaining top talent to improving productivity and profitability, there are many reasons why DEI is important. One question that is bound to come up during DEI effort discussions is what is the return on investment (ROI)?
Companies that are actively committed to and invested in DEI experience positive results almost immediately. For example, over a quarter of companies report having diversity targets when it comes to hiring – with race, ethnicity, and gender targets being the most common. Over 90% reported that they have been moderately to extremely successful at reaching their diversity targets over the year.
Focusing on inclusive hiring also helps businesses achieve success past DEI goals. For example, McKinsey reports that companies with women in over 30% of executive roles are likely to perform better than those with lower gender diversity. Additionally, workforces see organizations that are strongly committed to DEI as healthy, which increases their comfort levels and enthusiasm to put their best ideas forward.
One significant test of a company’s DEI efforts is whether employees would recommend them to minority groups. Over 80% of employees whose companies are genuinely committed to DEI would recommend them to women, over 70% to non-white employees and those with different religious views, and over half to LGBTQI+ people. Employers must do everything they can to stand out in today’s competitive job market, and investing in DEI presents a significant opportunity to do just that.
Design the ideal employee benefits plan with Pacific Prime Latin America
Employers who wish to embrace DEI have to make sure that their employee benefits cater to a diverse workforce. Flexible benefits offer different benefit options for employees to choose from, and are a great place to start.
As a leading health insurance broker and employee benefits specialist with over 20 years of industry experience, Pacific Prime Latin America can help you find the right employee benefits solution, group health insurance in Mexico, corporate health insurance in Mexico, and more to match your company’s needs. We are also equally committed to DEI practices and are excited to help more companies get on board.
Contact us to arrange a free consultation and learn more about what we can do for you today!
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