Photo from Unsplash
Originally Posted On: https://www.intuit.com/blog/social-responsibility/5-surprising-benefits-of-fostering-diversity-and-inclusion-in-the-workplace/
Today, many companies embrace the meaning of diversity and inclusion in their businesses. Organizations around the globe put diversity initiatives at the top of their “must-do” lists. And while it’s widely accepted as the right thing to do, diversity and inclusion benefits go far beyond that.
As it turns out, creating a culture of diversity and inclusion is good for your business in more ways than you might imagine. Inclusion is a way of building on diversity and creating a feeling of belonging for everyone within an organization. It means creating a workplace culture in which employees feel valued, respected, and accepted. They feel they’re welcome to be themselves and can share their ideas in a friendly environment.
When these values work together, they improve the job experience for employees. But the benefits of a diverse and inclusive workplace run much deeper than that.
What do diversity and inclusion mean?
Although the terms appear together, diversity and inclusion mean slightly different things.
- Diversity refers to the specific makeup of an organization or group. How many different cultures, races, sexual orientations, and ages do its members represent?
- Inclusion is how well an organization represents and enables diversity within it.
When thinking about inclusion, companies should focus on whether the thoughts, feelings, and opinions of diverse employees are met with value and respect.
What are the benefits of diversity in the workplace?
According to Forbes, companies ranking high in gender diversity outperform their competition by 15 percent. The results get even better for those who practice ethnic diversity — they do better than their competitors by 35 percent.
Moreover, workplace diversity is an important predictor of a company’s sales revenue and profitability, according to the American Sociological Association. Companies with the most racial diversity bring in, on average, 15 times more sales revenue than those with lower levels of racial diversity.
Our CEO, Sasan Goodarzi, has stressed that Intuit’s goals include reaching demographic numbers that will help those who are underrepresented in technology. “By our fiscal year 2023, we want a goal of 35% of women in technology and 16% underrepresented. Today, we are 28% women in technology, and we’re about 11% underrepresented.”
That’s great news for companies, but it’s just the beginning of how the benefits of diversity are beneficial to leaders and workers alike. Let’s look at some lesser-known benefits of nurturing diversity and inclusion.
1. Diversity leads to greater innovation
In the study, “Fostering Innovation Through a Diverse Workforce,” researchers for Forbes found some fascinating associations between inclusion and innovation. Diverse employees bring a far-reaching set of life experiences and backgrounds to the table, meaning they often look at life through a different lens. That different perspective can open new ways to solve challenges or address problems.
When different viewpoints mesh together, it has the potential to out-innovate the competition, or as Harvard Business Review explained, “Diversity unlocks innovation by creating an environment where ‘outside the box’ ideas are heard.” The results? Companies practicing diversity are 70 percent more likely to capture a new market.
Intuit and Goodarzi appointed its first racial equity director, La Toya Haynes, who leads the Racial Equity Advancement Leadership Team (REAL Team). One of their top priorities in equity strategy is a direct focus on in-office language. Goodarzi and Haynes created an anti-racism guide to educate employees on how to handle racism in the workplace, which removes 800 phrases and words from Intuit’s corporate language that may foster a divisive workplace.
2. Diversity makes it easier to recruit top talent
At a time when unemployment is low, recruiting talented, dedicated workers can be a challenge. They’re looking for more than just compensation perks and packages. Intuit’s Ally program has been created as an inclusion training program that teaches employees how to be an ally in the workplace so that every employee can feel empowered to bring their best selves to work. More than ever, this is a critical component of hiring and retaining top talent. A study by Glassdoor found that diversity can mean the difference between whether or not someone wants to work for your firm.
Researchers found that 67 percent of jobseekers considered a diverse workforce one of the important factors in choosing where to work. That was true regardless of whether or not the survey respondents were part of a minority. This shows that workers aren’t just open to the idea of a diverse workplace, but that they’re beginning to expect it. The more you respond to this expectation, the better your chances are of hiring and retaining top talent.
3. Customers respond to diversity
Diversity isn’t just changing the complexions of workplaces across the country; it’s also changing the faces of consumers. The U.S. becomes more racially diverse every year, and that means buyers are more likely to be members of minorities.
When a business establishes itself as having a culture that fosters diversity, it becomes more attractive to minority customers. A company with a diverse staff is more likely to be perceived as understanding the needs of a diverse customer base. Researcher Stephen B. Knouse, Ph.D., of the University of Louisiana at Lafayette, found a diverse employee base can communicate with different types of customers. This helps employees better understand and meet their needs.
4. Diversity can improve a brand’s image
As Goodarzi puts it, “We must have a diverse and inclusive environment to be able to hear all voices. If we want to know what’s important to [our customers], we actually have to be diverse like our customers.” The consulting firm DeEtta Jones reports that brands that value diversity enjoy better brand perception. One reason could be that customers perceive diverse-minded brands as being more in touch with their customers and being more forward-thinking. Potential customers may perceive brands that don’t practice diversity as being bland and behind the times.
5. Diversity and inclusion boost employee engagement
Many studies indicate that positive work environments lead to greater success. Happier employees are more productive and engaged. When you take the time to have employees describe the benefits of diversity inclusion to them personally, it creates a happier, more relaxed work environment, too. Employees feel valued and respected, which leads to greater collaboration and creativity. Goodarzi says, “If anyone ever has the courage to come into my office and say, ‘I want to drive change,’ my job is to make sure they have everything at their fingertips because you can’t just say you want to create an inclusive environment and make it so.” This focus on open communication among all workers—no matter their position in the company—is a key component of a positive and open workplace.
Inclusive workplaces show that higher levels of engaged workers correlate directly with better job performance. Disengaged employees cost U.S. companies an estimated $450 to $550 billion yearly through lost productivity, according to Gallup. They also undermine the overall morale of a company since increasing employee engagement can boost profits by an average of $2,400 per employee per year. Compared with companies with low engagement levels, companies with engaged employees enjoy 2.5 times more revenue growth.
Diversity and inclusion at Intuit
At Intuit, the proud creator of TurboTax, QuickBooks, and Mint, diversity and inclusion is part of who we are. Our mission to power prosperity worldwide is fueled by our belief that every employee should be able to bring their whole self to work.
While the meaning of diversity and inclusion go hand in hand, they’re two different things. As explained by Intuit CEO Sasan Goodarzi, “diversity is a fact, but inclusion is a choice.” Intuit’s latest developments in diversity and equity are meant to hold the entire company accountable for a strong and inclusive workplace. Gallup explains diversity as the range of differences in human demographics, such as race, gender, sexual orientation, religion, and age. In some cases, education levels and family characteristics might also fall under the category of diversity.
Understanding the true meaning of diversity and inclusion positively affects all workers, regardless of whether or not they’re part of minority groups. Diversity and inclusion don’t just happen in a workplace, however. They take careful, conscious thought and a clear plan to ensure everyone emphasizes and understands the concepts at every level. And when employees embrace and nurture this type of environment, it benefits everyone.