If you manage or own a business with employees, you’ve heard of DEI policies. Short for Diversity, Equity, and Inclusion, DEI has existed in various forms since Title VII prohibited employment discrimination based on race, color, sex, religion, and national origin. But more than a federal law, we now know that having DEI policies is a wise business choice.
With years of research on the impact of diversity on a business’s profitability, there are plenty of evidence-based reasons why you should embrace diversity and inclusion in your workplace. In this article, we’ll share five of these reasons to increase your knowledge of the importance of DEI on your business’s long-term success.
1. Refined Outcomes
When multiple people from different backgrounds work together to achieve a goal, the final result is usually thoroughly refined. Various perspectives have discussed, adjusted, manipulated, and perfected the decision before it is applied to a wider audience. This decision-making process can limit problems or complaints once the final solution is released.
This same idea is why diverse teams tend to create more innovative products. In industries like tech, where creativity and innovation are the keys to a business’s competitive advantage, embracing DEI can be vital to reaching goals. Obsidi® discusses the essential aspects of diversity in tech in this article.
2. Boosted Morale
When you’re adjusting your company policies to ensure inclusivity, you actively seek out what matters to others. This knowledge provides you with a new perspective in which you can make informed decisions that impact your workers in ways that make them feel valued and respected.
When your team’s morale is boosted through DEI policies that make them feel safe, seen, and heard, productivity increases and employee turnover decreases. Both of these positive outcomes ultimately increase your bottom line.
3. Your Reputation Increases
You don’t have to look too hard to find examples of businesses whose reputations are impacted by how they treat their employees. When you show the world that you’re focused on diversity, ethnicity, and inclusion, your company’s brand reflects this, and the top talents in your field are attracted to your business.
Another benefit of a DEI-centered brand image is your connection to your customers. Today’s consumers want to know that they’re working with businesses that are inclusive-minded and treat their employees well. By implementing DEI policies and enforcing them, you’ll not only improve your worker satisfaction, but you’ll increase your profit margin.
4. It’s a Federal Requirement
Whether you embrace it or not, the reality is that equity and inclusion are required by law. When you turn DEI into a company culture, you reduce the chances that someone in your employ will break this law and discriminate against others.
Discrimination laws are enforced by the Equal Employment Opportunity Commission. These laws make it illegal to discriminate against anyone, whether an applicant or worker, due to race, religion, sex or gender identity, pregnancy, color, disability, country of origin, age, or genetics. In short, discrimination in the workplace in any aspect is prohibited.
Actively eliminating bias and including DEI in your hiring, employment, and promotion policies has benefits beyond reducing discrimination lawsuits, though. Your staff recognizes the focus you’ve put on fostering diversity, and this theme spreads into the workplace. Teams collaborate better, respect each other more, and are more productive.
5. You Reach a Wider Market
How does diversity directly impact your business growth? When you gain a broader perspective of diversity, ethnicity, and inclusion, you understand the needs of a vast market. This knowledge will help you adjust to changing markets and meet the needs of more people. Reaching a wider market with more diversity in what you offer makes your business more competitive in a global e-commerce world.
Over time, the results of these shifts into a DEI-centered product or service-based business will show up clearly in your financial reports. The expense of revamping your recruiting, hiring, employment, and promotion policies is minimal compared to the potential return.
Conclusion
Leadership in any business requires an extensive knowledge and understanding of diversity, equity, and inclusion. From the laws in place to enforce the prohibition of discrimination to its impact on your company culture and bottom line, DEI is vital if you want to continue to grow.
