Over the past few years, narratives around diversity, equity, and inclusion (DE&I) in the workplace have become louder and more visible. A lot of recent research makes a clear case and proves how everyone can benefit from DE&I initiatives.
Diverse companies that actively promote DE&I and have solid strategies and policies enjoy many benefits over their less-diverse counterparts. For one, diverse companies are more profitable, earn higher revenues, and have healthy cash flows. Moreover, they can capture new markets, make better decisions, and deliver more value to stakeholders.
Firms with multicultural initiatives and inclusive environments usually have a more collaborative, engaged, and productive workforce. They also attract the best candidates from a fast-shrinking talent pool in a competitive employment market. Employer branding aims to achieve these very same goals – which DE&I can help to realize. This is why DE&I plays an important role in employer branding.
Promoting DE&I in the Workplace
The hyper-competitive markets make it difficult for companies to remain profitable and successful. Companies must foster innovation and creativity and respond quickly to change. However, it is possible if they create an inclusive, equitable environment that allows them to access a diverse talent pool. Here’s where DE&I comes in.
DE&I is about cherishing the heterogeneity between employees. Equally important, it is about making an effort to shield employees from any discrimination or harassment they may be exposed to because they are “different.” DE&I initiatives aim to ensure that all employees are treated fairly in the workplace and given equal opportunities to grow and succeed, regardless of their age, gender, skin color, nationality, religion, sexual orientation, or other factors.
In 2020, McKinsey published a now-famous report called Diversity Wins: How Inclusion Matters. Based on a survey of 1000+ large companies in 15 countries, the report’s authors found that diverse teams are more likely to help their companies gain a competitive edge. Also, companies committed to DE&I can successfully strengthen their global image, boost employee motivation, and perhaps most importantly, outperform their non-diverse peers on profitability.
McKinsey is just one among a growing cohort of those who believe that the business case for diversity, equity, and inclusion (DE&I) is stronger than ever. One recent report says that diverse companies earn 2.5X higher cash flow per employee and inclusive teams are 35% more productive than homogenous teams. Another survey found that companies with more diverse leadership teams are more innovative and earn 19% higher revenues than less diverse organizations.
Even workers support DE&I initiatives. In one survey, 85% of female millennials said that DE&I policies influence their decision to work for an employer, while in another, 76% of job seekers reported that they always consider workforce diversity when evaluating companies and job offers. The case for DE&I pretty much makes itself!
DE&I also influences employer branding. Here’s how.
The Impact of DE&I on Employer Branding
In the past few decades, the world has experienced a lot of upheaval due to wars, global pandemics, and unprecedented events that have increased public awareness around gender inequality, racial injustice, and the ongoing bullying of the “weak” by the “strong.” Such awareness extends to the workplace as well.
Today’s employees want to know that they will be safe in their place of work. They want to be treated with respect and are unwilling to tolerate discrimination, harassment, or bullying in any shape or form. That’s why they are attracted to companies that can promise them a more inclusive, equitable, supportive, and discrimination-free workplace. These are the companies that are committed to DE&I.
Such dedication to DE&I shapes employees’ opinions about the company which depicts how a firm is perceived by outsiders, especially future employees and candidates who are currently in its recruitment pipeline. Their perceptions can strengthen or weaken the organization’s employer brand and influence its ability to attract more people from the employment marketplace.
More people will want to work for a company that actively promotes and encourages DE&I so it can access a larger talent pool. It can also successfully assemble teams with superior knowledge, advanced skillsets, and in-demand experiences that can take the company in the right direction. A lack of these elements, however, can completely derail the firm’s plans. Here again, DE&I – or rather a lack of DE&I – comes into play.
Well-planned, well-implemented DE&I initiatives tell candidates and future employees that they will be treated fairly, no matter their personal beliefs, lifestyle, where they come from, or what they look like. As a result, they will feel included, valued, and empowered. They will thus be more motivated and engaged at work and want to stay with the organization instead of looking elsewhere for better opportunities. They will also act as the company’s “employer brand advocates.” By promoting it as a great place to work, they can enhance the company’s employer brand.
Conclusion
In the 21st century, the strength of your employer brand is directly related to your ability to create a more diverse workforce, more inclusive policies, and a more equitable workplace. Your DE&I initiatives will also determine whether you can attract talented workers and retain them for longer.
When you consider DE&I as a key pillar of employer branding and incorporate DE&I thinking into every facet of the enterprise, you will see your working environment transform in amazing ways. You will also see a tangible effect on employee workplace happiness and the attractiveness of your employer brand. Contact Ergode. We’ll show you some real-world success stories about employer brands that have captured enormous benefits with DE&I!
