Diversity & Inclusion as the Key to Success: 8 Ways to Promote Diversity in Companies
Diversity and Inclusion explained in less than 3 Minutes:
Two-thirds of job seekers place great importance on diversity when choosing an employer.
The Charter of Diversity states that all employees should be valued, regardless of gender, nationality, ethnic origin, religion, disability, age, sexual orientation, and identity. A diverse workforce is one that encompasses the majority of these diversity dimensions within the company.
The strategic management approach to harnessing this diversity is called Diversity Management, and it is the need of the hour: creating conditions under which all employees can unfold their potential. In a study by PwC and Ketchum, 60% of Austrian employees stated that they desire more diversity in the workplace. Other findings from the study include:
- 68% of Austrians consider a clear employer stance against racism to be of great importance.
- 58% want clearer concepts and strategies for more diversity in the workplace.
- 44% of people under 29 believe that non-white individuals are insufficiently promoted in companies.
- 69% consider the promotion of people with physical disabilities to be an important aspect when choosing an employer
An inclusive culture appreciates differences, considers diversity an enrichment for overall performance, and offers equal opportunities to all employees, regardless of their background. For example, efforts towards inclusion may involve making the workplace wheelchair-accessible or choosing a language for corporate communication that is understood by everyone.
Being an inclusive employer: 11 Benefits
We live in the age of globalization, so why shouldn't our work environment be as diverse as our social media feed or our menu? According to the Stepstone Diversity Study, diversity is increasingly becoming a factor for success and competitiveness. 70% of the 11,000 respondents believe that diverse executive teams enhance employee motivation, and two-thirds of the participants feel that such teams are better equipped to handle complex situations.
The increased engagement of employees should not be underestimated: In a Gallup study, 83% of millennials said they are more actively engaged when they believe their company fosters an inclusive workplace culture. If companies fail to do so, this engagement drops to only 60%. The cost of less engaged employees is estimated at up to 23 billion dollars per year due to lost productivity.
The Benefits of Diversity
Inward benefits:
- Increases employee retention
- Improves teamwork and collaboration
- Drives cultural change
- Enhances employee satisfaction and reduces turnover
- Studies show that companies with significant cultural diversity achieve higher revenues and profits.
- Boosts creativity and innovation: A multi-generational and multicultural workforce brings a broader range of knowledge, skills, and perspectives to the organization. Companies expand their resources.
Businesses with a healthy balance of men and women are 21% more likely to outperform their competitors. Businesses with a good mix of ethnic backgrounds are 33% more likely to outperform their competitors.
Outward benefits:
- Attracts candidates: Diverse companies attract job seekers, which helps counteract the shortage of skilled workers.
- Faster hiring: Studies show that job seekers perceive companies that promote cultural diversity in the workplace as more progressive. These companies tap into the full potential of the job market by not excluding anyone.
- Improves customer orientation: Diverse teams can better empathize with the needs of different customers and target groups.
- Positive corporate image
- Easier access to new markets, driving internationalization
Teams that are gender, age, and ethnically diverse make better decisions up to 87% of the time.
8 Ways to Promote Diversity in Your Company
- Recognize the closely intertwined relationship between diversity, New Work, and sustainability for successful work in the future and offer smart options: flexible working hours (4-day week, workation, sabbaticals, etc.) and work-life balance offerings.
- Restructure the recruiting process to be diversity-friendly: Adapt job advertisements and the application process and design selection procedures free from prejudice.
- Offer diversity and inclusion training: At epunkt, we are supported by MyAbility in terms of Diversity Management.
- Set up age-appropriate and disability-friendly workplaces.
- Promote the formation of intercultural teams.
- Promote acceptance and tolerance of sexual identity and orientation (e.g., through awareness-raising courses and designating a trusted person).
- Provide opportunities to reduce (unconscious) biases. For example, through "Unconscious Bias Trainings."
- Implement family-friendly initiatives and support single parents.
How to Consider Diversity & Inclusion in the Hiring Process
We all have biases. Therefore, it is essential to reduce (unconscious) biases - find out to what extent prejudices influence the interview process. Have an open and honest discussion with your recruiting team about this topic, as this is the only way for everyone to become aware of their biases and work to overcome them.
- Seek support from professionals: Have recruiters and hiring managers participate in diversity training (e.g., through Diversity Campus).
- Keep diversity in mind during candidate search: Advertise your jobs on various platforms.
- Make your candidate pool as diverse as possible: Targeted networking in different communities provides the opportunity to reach many different candidates in active sourcing.
- Set guidelines: Structured interviews leave less room for biased decisions.
- Ask all candidates the same key questions: Standardized questionnaires focus on skills and qualifications and help avoid bias based on factors such as age, gender, or disability.
- Highlight the importance of diversity: Mention in the job advertisement and during the interview how important diversity is to you and provide examples of its value.
By implementing these strategies, companies can actively promote diversity and inclusion in their hiring practices and create a more inclusive and equitable workplace.
Original article "Diversity & Inclusion als Schlüssel zum Erfolg: 8 Wege, um als Unternehmen Vielfalt zu fördern" by Eva Helfrich/ epunkt: https://www.epunkt.com/r/blog/...
