In today’s interconnected world, embracing diversity, equity, and inclusion (DEI) initiatives is essential for organisations to thrive. Does investing in diversity and inclusion increase the returns on investment (ROI) across the various departments within your business? Let’s find out.
Let’s start by understanding what ROI means in the context of DEI. It refers to the value and benefits an organisation gains by fostering diversity, equity, and inclusion. These initiatives provide both tangible and intangible benefits. Imagine the surge of creativity, innovation, and employee satisfaction that arises from embracing DEI – and what can a surge of creativity, innovation and employee satisfaction ALSO contribute towards – profits?
But how can you actually measure the impact of your efforts towards DEI? This is crucial to gauge how effective they are. Consider these key metrics;
- Team representation: evaluate the diversity within your teams and assess the positive impact of inclusivity
- Employee surveys: engagement and satisfaction, measure the inclusiveness and engagement levels of your employees, ensuring they feel valued and heard
- Reduction in turnover, increased retention: observe if DEI frameworks contribute to improved retention and reduced turnover
- Customer satisfaction: assess how diversity and inclusion influence your customer perception, and loyalty
Collecting and analysing data will be vital for measuring DEI impact. Leverage technology and analytics tools to gain valuable insights into the effectiveness of your initiatives.
To unlock the maximum ROI from your DEI investments, consider implementing these strategies:
- Develop a comprehensive DEI strategy aligned with your organisational goals, ensuring that diversity and inclusion permeate all aspects of your business
- Secure leadership support and commitment to DEI, as top-level support is crucial for successful implementation
- Implement inclusive recruitment and hiring practices to attract diverse talent and benefit from a broader range of perspectives
- Provide DEI training and education programs to foster awareness, understanding, and inclusive behaviours throughout your workforce
- Establish employee resource groups and affinity networks that empower diverse communities and encourage collaboration
- Promote a culture of inclusivity and belonging, where every individual feels valued, respected, and encouraged to bring their authentic selves to work
- Collaborate with external partners and organisations that specialise in DEI to enhance your diversity efforts and benefit from their expertise
- Continuously assess and adjust your DEI initiatives, staying agile and responsive to changing needs and opportunities
If you’re trying to make a compelling business case for DEI – perhaps you’re trying to convince your Senior Leadership Team it’s something they should invest in, consider the following strategies;
- Demonstrate the direct correlation between DEI and organisational performance, highlighting how diverse perspectives drive innovation, creativity, and problem-solving
Companies with diverse management teams have 19% higher revenue due to innovation. (Boston Consulting Group)
Inclusive teams make better business decisions up to 87% of the time. (Deloitte)
- Share success stories of organisations that have achieved remarkable ROI through their DEI efforts, showcasing the transformative power of inclusivity
Fortune 500 companies with higher racial and ethnic diversity among executives outperform their competitors by 35%. (McKinsey & Company)
IBM reported saving $40 million over a five-year period through its diverse supplier program. (IBM)
- Communicate the economic and reputational benefits of DEI initiatives, such as attracting top talent, improving customer perception, and enhancing brand reputation
Organisations with inclusive cultures are 1.7 times more likely to be innovation leaders in their market. (Josh Bersin, Deloitte)
Businesses with diverse workforces have 2.3 times higher cash flow per employee. (Deloitte)
- Build a strong business case by showcasing the positive impact of DEI on various departments within your organisation, from increased productivity to improved collaboration.
Increased diversity in sales teams leads to a 15% higher average revenue. (Harvard Business Review)
Diverse teams have been found to improve collaboration and decision-making by 60%. (Cloverpop)
Embracing diversity, equity, and inclusion is a strategic move that can supercharge your organisation’s success. Get in touch with us so we can help you create the frameworks needed to transform a diverse group of individuals into an engaged and effective team. We help you map your journey from where you are, to where you want to be, and make sure you attract, empower and develop the people you need along the way. We support you to transform talk into action, and action into measurable impact.
Take our free three minute Inclusion Journey Quiz, to understand where you’re starting from on your journey to building an inclusive organisation.