DEI has become a significant organizational initiative across different industries. Once a relatively overlooked consideration, research and surveys show that diversity, equity and inclusion hold a number of important benefits to organizations and their employees.

A survey by Deloitte, for instance, compares millennial views on DEI with those of non-millennials: “With millennials, the most traditionally diverse, digitally connected, and socially-minded group of professionals, set to comprise nearly 75 percent of the workforce by 2025, we believe this research is critical to informing and elevating the inclusion conversations taking place across corporate America.” 

So what are the real advantages of incorporating DEI initiatives on a company-wide basis? Here are five benefits of diversity, equity, and inclusion in the workplace that a company interested in compliance can’t afford to ignore.

Better company reputation

As more organizations adopt new and varied diversity, equity and inclusion initiatives, it’s becoming increasingly common for employees to take DEI into consideration when looking at their next career moves. As your reputation grows, your commitment to DEI will reap long-term benefits by both attracting and retaining top talent. 

In a similar vein, by actively seeking to add diversity to your workforce, you are searching within a wider talent pool – which promises a greater range of skills and perspectives across the board.

Increased profitability

According to ’Diversity wins: How inclusion matters’, a 2019 report conducted by McKinsey & Company, “The most diverse companies are now more likely than ever to outperform less diverse peers on profitability”. In fact, a study of over 500 companies found that every 1% increase in just gender and racial diversity correlates with a 3% to 9% increase in sales revenue.

Yet another study, conducted in partnership with The Society for Human Research Management, found that companies that showcase gender and ethnic diversity are, respectively, 15% and 35% more likely to outperform less diverse peers.

The list of studies goes on, but DEI seems to have a notable impact on performance when implemented correctly.

Better customer and vendor relationships

As your team becomes more diversified and inclusive, you’ll find the advantages extend to your customer and third-party vendor relationships, too. The more diverse your team is in gender, race, experiences, and attitudes, the more opportunities for relationship-building you’ll see with different types of clients and vendors.

DEI is driving more hiring (and jobseeker interest)

Another impact of diversity, equity, and inclusion?  Being actively engaged with DEI and associated compliance needs is mandating that corporations create new positions within their organizations. In fact, according to Glassdoor, the hiring demand for DEI roles in the UK increased by 106% between 2018 and 2019.

This was matched by an increase in job seeker interest too, with searches up 35% in the U.S. and 19% in the U.K. during the same time period.

The net-net of all of the above?  By embracing DEI, organizations will be able to nurture and retain happier workforces, avoid reputational damage (and regulatory and legal challenges), and even improve their competitive position in the eyes of customers who are looking for DEI-compliant vendors and partners.

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