4 Reasons Why Diversity and Inclusion Saves Money

 4 Reasons Why Diversity and Inclusion Saves Money

Statistics allow companies to measure performance, identify trends and plan for the future. Over the decades, diversity and inclusion research provided the largest companies with information that helped shift their culture and hiring practices.

But with the troves of information available, where do diversity and inclusion advocates begin to find the relevant data to help bring to bear the changes necessary for an inclusive workplace? Below are five statistics that help clarify the importance of DEI and how it impacts businesses, employees and customers.

Ignoring Diversity and Inclusion is Expensive

  1. $1 trillion: this is how much money U.S. businesses lose due to voluntary turnover each year, according to Gallup. With less than 30 percent of underrepresented employees feeling heard in the office, this sets the stage for attrition issues and costs.
  2. $8 billion: the investment companies spend on diversity and inclusion training. After high-profile instances of racial insensitivity that have happened at companies like H&M, Gucci and Sephora, leadership turns to D&I consultants to provide on-site training. Whether half-day or multi-day, diversity training is not always as successful as intended; one study cited found mixed results, with men and those in power showing no changed behavior after training. Another study of mandatory diversity training found that the program created pushback against the very ideals it promotes.

Diversity and Inclusion Encourages Innovation

  1. 19 percent, the difference in revenue that companies with more diversity in management make due to innovation over companies that lack diversity. This number is one of the most direct reasons, in terms of impact to the bottom line, you can give for why investing in DEI matters to a business’ success. Simply put, when everyone thinks the same due to education, background and experience, and demographics, there is no way for new thinking that challenges and expands current practices. It’s easier for management to think “It’s always been done this way” when no employees are bringing in new ideas, and none think there is another way to conduct business.
  2. 83 percent of employees reported an increased ability to innovate when they believed their company was committed to and supportive of diversity and the employees felt included in the company. The Deloitte study demonstrated that it takes not only an investment in prioritizing diversity in hiring, management and promotion of a team, but also the active process of change and the emotional quotient of feeling included to shift an employee’s satisfaction.

With the easy-to-understand explanation of the above four statistics on diversity and inclusion, feel empowered to walk into your next meeting with leadership and advocate for changes that not only drive innovation but also make your business among the top performers in your industry.

Want to help even more? Suggest your company partner with Kanarys to provide employee surveys on diversity, equity and inclusion: www.kanarys.com

Veleisa Burrell

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