Diversity and Inclusion

As we settle into the middle of Pride Month and protests across the world call out systemic racism, it feels appropriate that we use this time to address the importance of diversity and inclusion in the workplace.

We know innately that diversity and inclusion are an ethical decision. However, it’s also clear that they are a good business decision as well. This blog dissects broadly the benefits of embracing diversity and inclusion, the risk of ignoring it, and how you can plan for the future.

Benefits of Diversity and Inclusion

Firstly, fostering feelings of inclusion gives all employees the confidence to openly express their ideas, which increases the likelihood that they will make suggestions to improve the business. Also, the more diverse the backgrounds are of your employees, the more likely those ideas will be unique and valuable in their own way. Examples include targeting approaches in sales or marketing and themes for a new product launch. It is good business sense that your employees should reflect the makeup of your customers, and bringing in a diversity of employees better prepares you to appeal to more clients.

Other positives to a diverse and inclusive workplace include higher employee engagement, loyalty, and productivity. An inclusive environment shows each employee that they are seen and appreciated. This is common sense that an employee who feels safe and welcome is going to engage more with the brand and feel inclined to stay. In addition, studies show that employees who feel appreciated are up to 50% more productive!

According to a McKinsey study, the top racially and ethnically diverse companies are 35% more likely to financially outperform the national median for their industry. Likewise, gender-diverse companies are 15% more likely to financially outperform their industry’s median. Simply put, diversity correlates with better financial gains. While the study acknowledges that correlation doesn’t equal causation, “…the correlation does indicate that when companies commit themselves to diverse leadership, they are more successful.”

Diversity and Inclusion Compliance

Federal laws exist to protect employees from discrimination, and your organization must pay special attention to compliance with such laws. These include:

• The Equal Pay Act of 1963 (EPA)
• Title VII of the Civil Rights Act of 1964
• The Age Discrimination in Employment Act of 1967 (ADEA)
• Sections 501 and 505 of the Rehabilitation Act of 1973
• Title I and Title V of the Americans with Disabilities Act of 1990 (ADA)
• The Civil Rights Act of 1991
• Title II of the Genetic Information Nondiscrimination Act of 2008 (GINA).

Collectively, these laws prohibit job discrimination based on race, color, religion, sex, national origin, age, disabilities, or pregnancy status. Noticeably absent, federal laws don’t yet ban discrimination based on sexual orientation, gender identity, health, or military status, though select states and cities have passed laws to aid in discrimination here as well. Areas that can result in violations include a company’s practices in hiring, promoting, transferring, or training an employee, as well as how their performance is measured and rewarded.

The Equal Employment Opportunity Commission (EEOC) is a government agency that enforces these federal laws against workplace discrimination. Most of them apply to employers in both the private and public sectors that have 15 or more employees. You will need to perform regular assessments and training to ensure your business complies with these protections.