Don’t Be Fooled: Your DEI Efforts Matter for Your Bottom Line
DEI is one of the latest HR buzzwords. But, it is also so much more. While some companies adopt diversity, equity and inclusion (DEI) policies because they feel like they have to in order to be competitive in the job marketplace, the reality is that having—and following—an effective DEI policy can also significantly impact a company’s bottom line.
We’re not talking about the company’s triple bottom line, either. Instead, we’re talking pure economics. While DEI efforts are important for so many reasons, failure to prioritize diversity, equity and inclusion can also hit companies where it hurts the most.
How Prioritizing Diversity, Equity and Inclusion Can Boost Your Company’s Bottom Line
How does prioritizing (and spending on) DEI generate a return on investment? Broadly speaking, the financial benefits of prioritizing DEI fall into two main categories: (i) human resources, and (ii) brand reputation and customer/client engagement. In this article, we’re focusing solely on the first category.
From a human resources (HR) perspective, some of the ways that investing in growing a diverse, equitable and inclusive workforce can boost your company’s bottom line include:
- Hiring High-Performing Employees – A recent study found that 80 percent of jobseekers value diversity, equity and inclusion in the workplace. As a result, by investing in DEI efforts, companies can attract high-performing employees who share not only the company’s values, but also those of the company’s clients or customers.
- Increasing Employee Satisfaction – Maintaining a diverse, equitable and inclusive workplace also increases employee satisfaction. If employees are more comfortable and more engaged, they are more likely to feel connected to their jobs—and this has been shown to increase productivity.
- Sparking Innovation – Bringing together employees from different backgrounds and who have different perspectives can help to spark innovation. This can lead to new products, services, business development practices, and customer service practices that better resonate with the company’s clients and customers.
- Reducing Employee Turnover – Employees who are satisfied with their jobs are less likely to leave. Reducing employee turnover significantly reduces the costs of recruiting, onboarding, training and workforce management.
- Establishing Accountability – Adopting DEI policies also establishes accountability throughout all levels of the organization. This reduces the risk of issues related to employee harassment and discrimination—which have the potential to lead to workplace investigations and costly litigation.
Again, these are just examples. As we said above, there are lots of reasons for companies to invest in DEI. This is truly just the tip of the iceberg. If you would like to know more, we invite you to get in touch to arrange a consultation at The AR Group.
Schedule a Consultation at The AR Group
Do you have questions about what your company can (and should) be doing to promote diversity, equity and inclusion in the workplace? If so, we can help. To learn how The AR Group helps companies enhance their bottom line through their DEI efforts, please call 720-452-3300 or request an appointment online today.