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From Awareness to Action: Building a Strong Foundation for Diversity and Inclusion in the Workplace

In today's world, the importance of diversity in the workplace has become more critical than ever before. With a rapidly changing global economy and workforce, companies that embrace diversity and inclusion (D&I) are proven to be more successful and profitable than those that do not.

The numbers speak for themselves. According to a study by McKinsey in 2019, companies in the top quartile for gender diversity on their executive teams were 25% more likely to experience above-average profitability than companies in the fourth quartile. The same study found that companies in the top quartile for ethnic and cultural diversity on their executive teams were 36% more likely to experience above-average profitability than companies in the bottom quartile. This highlights the fact that diversity is not just a moral issue but also a business imperative. By embracing diversity, companies can improve their bottom line and create a competitive edge in the market.

So, there is no doubt diversity is very important. A diverse workforce leads to a broader range of perspectives and ideas. When employees come from different backgrounds, cultures, and experiences, they bring a wealth of knowledge and insights to the table. This can lead to better problem-solving, more creative thinking, and ultimately, better decision-making. Additionally, a diverse workforce can help a company connect with a wider range of customers and clients, leading to increased revenue and market share.

However, It's not just about having a diverse workforce, but also about creating an inclusive culture where everyone feels valued and respected. A diverse workforce without an inclusive culture is not enough. Employees must feel comfortable being themselves and bringing their whole selves to work.

It's important to note that diversity and inclusion are not just buzzwords. They are a crucial part of creating a successful and sustainable business model. Companies that embrace diversity and inclusion are more likely to attract and retain top talent, improve employee morale, and create a positive public image. Furthermore, by embracing diversity, companies can connect with a wider range of customers and clients and develop a competitive edge in the market.

However progress, overall, has been slow in D&I (Diversity & inclusion).

In a report “Global Gender Gap 2021”, the World Economic Forum revealed that the global gender pay gap will not be closed until 2186 and progress towards gender equality has been slowed even though organizations have shown their best intention to fill the gap.

Similarly, McKinsey in its 2021 report on “Race in the workplace: The Black experience in the US private sector” found that Forty-three percent of Black private-sector workers earn less than $30,000 per year, compared with 29 percent of the rest of the private sector. In addition, Black workers tend to be in the industries with the largest frontline labor forces.

These data demonstrate achieving diversity and inclusion in the workplace is not always easy. It requires a commitment from leadership and a willingness to make changes that may be uncomfortable or difficult. Some of the key challenges include:

  1. Unconscious bias: Unconscious biases are inherent attitudes or stereotypes that can influence decision-making, even if individuals are not aware of them. These biases can lead to unintentional discrimination and can hinder efforts to create a diverse and inclusive workplace.

  2. Limited candidate pools: In some industries, the candidate pool for certain positions may be limited, making it difficult to recruit diverse candidates. This can be particularly challenging in fields such as STEM, where women and people of color are underrepresented.

  3. Resistance to change: Some employees may resist efforts to create a more diverse and inclusive workplace, particularly if they perceive such efforts as a threat to their own status or position within the organization.

  4. Lack of leadership support: Achieving diversity and inclusion requires the support of leadership. If leaders are not committed to promoting diversity and inclusion, it can be difficult to create a culture that embraces these values.

  5. Ineffective recruitment practices: Traditional recruitment practices may not be effective in attracting diverse candidates. Organizations may need to rethink their recruitment strategies to reach a broader pool of candidates. They also need to consider providing the right skill-based training to existing employees who come from underrepresented communities and offer them opportunities for upward mobility within the organization, including transitioning to middle-wage paying jobs. This strategy can become particularly powerful as it can address a company's talent shortage while also saving significant costs associated with external hiring. Additionally, it promotes the creation of a truly inclusive and equitable workplace for all employees.

  6. Lack of role models: In some organizations, there may be a lack of diversity among leadership positions, which can make it difficult for employees from underrepresented groups to envision themselves in leadership roles.

  7. Stereotyping and microaggressions: Even in diverse workplaces, individuals may still face stereotyping and microaggressions that can create a hostile work environment and hinder efforts to create an inclusive culture.

It's important for organizations to recognize these challenges and take proactive steps to address them. This may include implementing unconscious bias training, developing more effective recruitment practices, and creating a culture that values diversity and inclusion at all levels of the organization.

There should be a systematic approach and bold steps to strengthen diversity & inclusion.

To promote diversity and inclusion in the workplace, companies need to focus on several key areas:

  1. Diverse Talent: Companies should prioritize the representation of diverse talent in executive, management, technical, and board roles. They need to create a robust business case for inclusion and diversity that's tailored to their specific organization, and prioritize multiple forms of diversity, not just gender and ethnicity. They should set data-driven targets to ensure diverse representation.

  2. Leadership Accountability: Companies should hold core-business leaders and managers responsible for promoting inclusion and diversity, beyond the HR function or employee resource-group leaders. They should strengthen the inclusive-leadership capabilities of managers and executives and ensure that all leaders are held accountable for progress on inclusion and diversity.

  3. Equality of Opportunity: To create a level playing field for all employees, companies need to deploy analytics tools to ensure that promotion and pay processes are transparent and fair. They should de-bias these processes and strive to meet diversity targets in their long-term workforce plans.In addition to that, companies should take responsibility to provide education assistance programs to entry-level employees to get the opportunity of upward mobility and middle-wage jobs.

  4. Tackle Discrimination: Companies need to have a zero-tolerance policy for discriminatory behavior such as bullying and harassment. They should help managers and staff to identify and address microaggressions and establish norms for open and welcoming behavior. Leaders and employees should assess each other on how they are living up to these standards.

  5. Foster Belonging: Companies should build a culture where employees feel they can bring their whole selves to work. Managers should communicate their commitment to multiple forms of diversity and support employee resource groups to foster a sense of community and belonging. Companies should explicitly assess belonging in internal surveys.

Overall, a systematic approach and bold steps are necessary to strengthen diversity and inclusion. The importance of diversity in the workplace cannot be overstated, and it is crucial for organizations to recognize the challenges and take proactive measures to address them. By creating a diverse and inclusive workplace, companies can attract top talent, improve employee morale and retention, and ultimately, achieve greater success and profitability. But above all, making diversity a priority isn’t just good business, it’s the right thing to do.

Contact us at to learn how we can help your organization build a stronger foundation for diversity and inclusion in the workplace. Visit our website for more information.


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