There is a lot of buzz these days about diversity and inclusion. Yet do we really understand what these terms mean?
More importantly, do we know how to put them into practice?
Diversity and inclusion are clearly defined practices and attitudes which can be measured. These terms are often used interchangeably; yet their meaning and their implications for business practice are vastly different.
Let’s break down what diversity and inclusion mean to us personally as well as for our business.
Diversity and inclusion have an impact both on a personal and professional level. On a personal level, if these
practices are done effectively, allow people from all groups to feel welcomed, represented, and empowered.
Effective diversity and inclusion practices also influence the performance of businesses and organizations in powerful
ways.
Here we break down how these two perspectives on diversity and inclusion are different yet interrelated. Inclusion is
the extent to which we feel included – that our individual identity and contributions are valued. It brings with it a sense
of belonging and connectedness. When applied to a workplace, inclusion signifies that all individuals are treated fairly
and respectfully, empowering individuals to contribute to the business’s overall success.
The concept of diversity, though closely related to inclusion, is different and more personal. It represents the complex
interplay of perceptual differences that shape each person’s unique view of the world. Diversity is what makes each
individual unique in their perspective and approach to all aspects of life. The term comprises differences in origin,
background, personality, life experience, beliefs, and personal characteristics to name a few. True diversity means a
variety of skills, perceptions, and attributes that individuals bring to any business or organization.
The difference is diversity relates to the overall make-up of a person or an organization, while inclusion relates to how
different groups are valued and empowered within it. Diversity and inclusion may not necessarily coexist. It is possible
for a workplace to be diverse yet not inclusive, and vice versa.
Why are diversity and inclusion important?
Why does this matter to our business? You may think that individual perceptions of inclusion and diversity in the workplace have no bearing on the success of a business. However, the research shows otherwise.
Many research studies on the benefits of diversity and inclusion have been published by the likes of McKinsey, Deloitte, Harvard Business Review, and others. The results are clear, corporations identified as diverse and inclusive are more likely to outperform their competitors. Research shows diverse companies are 70 percent more likely to capture new markets 1, while diverse teams are 87 percent better at making decisions 2. In addition, companies with more diverse management teams have led to an average of 19 percent higher innovation revenue 3.
One area in which these benefits are most telling is gender diversity. McKinsey’s research indicates that gender-diverse companies (which employ an equal number of men and women) are 15 percent more likely to notice higher returns
and produce up to 41 percent higher revenue 4. These gains have a ripple effect that goes far beyond individual companies. Their research goes on to show that our gross domestic product (GDP) could increase by twenty-six percent (26%) if the gender gap were equally diversified. This equates to a potential of $12 Trillion Dollars added to the
global GDP by 2025 5.
What happens when organizations focus on diversity, but not inclusion?
Many organizations use the terms “diversity” and “inclusion” interchangeably. This inaccuracy can lead to problems in the formulation and implementation of diverse and inclusive business practices. For example, a company may focus
on diversity but not inclusion by hiring more women or more members of ethnic or racial minorities. However, if the
organization does not value the perspectives of members of these groups, they will not be able to retain them for the
long term.
True inclusion means that all members of the organization have the opportunity to contribute and to advance,
regardless of their gender, race, and/or ethnicity. This goes beyond fairness and equality in hiring practices. It provides the opportunity for all to meet their full potential, so that every employee’s contributions are valued, and voices are heard.
To be authentic, inclusion must factor into company decisions regarding:
Recruitment
Remuneration
Policy
Training and development
Performance appraisals
Advancement Opportunities
There is a lot of buzz these days about diversity and inclusion. Yet do we really understand what these terms mean?
More importantly, do we know how to put them into practice?
Diversity and inclusion are clearly defined practices and attitudes which can be measured. These terms are often used interchangeably; yet their meaning and their implications for business practice are vastly different.
Let’s break down what diversity and inclusion mean to us personally as well as for our business.
Diversity and inclusion have an impact both on a personal and professional level. On a personal level, if these
practices are done effectively, allow people from all groups to feel welcomed, represented, and empowered.
Effective diversity and inclusion practices also influence the performance of businesses and organizations in powerful
ways.
Here we break down how these two perspectives on diversity and inclusion are different yet interrelated. Inclusion is
the extent to which we feel included – that our individual identity and contributions are valued. It brings with it a sense
of belonging and connectedness. When applied to a workplace, inclusion signifies that all individuals are treated fairly
and respectfully, empowering individuals to contribute to the business’s overall success.
The concept of diversity, though closely related to inclusion, is different and more personal. It represents the complex
interplay of perceptual differences that shape each person’s unique view of the world. Diversity is what makes each
individual unique in their perspective and approach to all aspects of life. The term comprises differences in origin,
background, personality, life experience, beliefs, and personal characteristics to name a few. True diversity means a
variety of skills, perceptions, and attributes that individuals bring to any business or organization.
The difference is diversity relates to the overall make-up of a person or an organization, while inclusion relates to how
different groups are valued and empowered within it. Diversity and inclusion may not necessarily coexist. It is possible
for a workplace to be diverse yet not inclusive, and vice versa.