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Is it beneficial for companies to foster an inclusive culture?

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Most people have a good understanding of what equality, diversity or inclusivity means. But what does that equate to in a workspace environment?

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To put it plainly, companies are looking to recruit a broader range of individuals than ever before.

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Although occasionally confused as a solely multicultural matter, diversity actually extends to include: gender, race, sexual orientation, education, age, ethnicity, language and so on.

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Beyond the hiring phase, companies are trying to ensure that they have equal participation from their employees and that L&D opportunities extend to everyone.

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Following a policy of diversity and inclusivity isn't just great news for the people who are minorities or diverse themselves. Organisations are increasingly recognising that the very nature of employing people who see the world differently is also brilliant for business.

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What are the business benefits of a diverse culture?

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Research in 2018 from McKinsey & Co, a global management consulting firm, concluded that companies with more diverse teams were also the top financial performers.

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Their findings showed a 21% increase in profitability at companies with a more gender-diverse workforce. They also concluded that more culturally and ethically diverse teams increased performance by 33% - citing "better decisions faster" as a "serious advantage" of increased inclusion and equality.

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So why are companies with greater diversity in the workplace able to achieve better business results and reap greater profits?

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The point of inclusion is that it is about everyone, not just underrepresented groups. Giving confidence to everyone in the team will often result in an increased spectrum of creativity from people with different backgrounds, skills and experiences.

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A recent study from Harvard Business Review found that cognitively diverse teams - those who think about problems in different ways - are faster problem-solvers than teams of people who think alike.

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Equality in the workplace is also great for employee retention rates. On average, it costs a minimum of 50% of an employees annual wage to find a replacement. Effective recruitment is exceedingly costly. Ultimately, when employees feel accepted and valued, they stay longer with a company. As a result, companies with greater diversity in their teams have lower turnover rates because they have created a sense of belonging within the organisation.

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Ways to improve diversity within your organisation.

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If you're interested in hiring more diverse people with different: skin colours, genders, sexual preferences, abilities and disabilities, qualifications, ages, religious beliefs, ancestral backgrounds and more, the  Chartered Institute of Personnel and Development recommends taking the steps below:

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• "It's harmless banter" - Watch out for indirect discrimination
• Be proactive and look at your current policies and procedure
• Get buy-in at a senior level. Look at the data to remove bias.
• Include all employees
• Don't be afraid to seek outside help if needed

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Improving diversity within your company is likely to have a positive influence in a myriad of ways. Commonly mistaken as a "tick box" exercise, a policy of inclusion actually leads to tangible results for improving employee happiness whilst driving profits simultaneously.

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The push towards diversification is unlikely to slow anytime soon as businesses (both big and small) become increasingly nomadic and international post covid.

If you are looking to improve your diversity hiring process, Candidly's blind-hiring functionality makes removing unconscious bias from the recruitment process easy. Please get in contact with our team to learn more.

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