Currently, throughout the Unites States and the world, we are all collectively going through a time of reflection and what it means to embrace and encourage diversity and inclusion in our daily lives. Especially amongst the business community, one of the most critical areas of assessment we need to pay more attention to is how we make our organizations more diverse and inclusive. While it is important to embed diversity and inclusion into our company culture and message, if no actions are taken by the organization to recruit, retain, and empower a diverse set of employees, those policies are meaningless. Companies must be willing to make long-term investments in both their organizational and training policies to embrace a diverse and inclusive culture. While these investments and changes can take time, there are immediate steps every organization can take to help embrace this shift.
Many companies have embedded recruiting and retention policies that unintentionally lead to a lack of diversity in their internal employee population, and in many cases, lead to systemic bias and prejudice in their hiring processes. Not only can this create a toxic and bias culture, but studies have shown that a lack of diversity amongst a company’s employee population leads to less innovation and poorer results. According to a Boston Consulting Group study in 2017, companies with below average diversity scores can have up to 25% less revenue due to a lack of innovation than a company with an average diversity score. In addition, companies with an above average score can have up to 42% more revenue, which is tied to innovation and the diversity of approaches and ideas. This study shows a direct return on investment for companies who embrace diversity amongst their employees and make sure they are representative of the communities they serve.
In years to come, we will look back on this as a time in history when businesses and individuals alike are acknowledging that necessary change is being thrust upon us. That change will define who we become, how we innovate our processes and businesses to accommodate a new era of employee, and what will make the most lasting impact for our clients. If you are interested in thinking critically about your organization and how its diversity affects your overall business outlook, here are a few actions you can consider immediately:
1. Campus Recruiting: For campus recruiting, diversify the colleges that you normally recruit from. For instance, consider recruiting from more diverse campuses or historically black universities. Some of these colleges offer the best talent in the United States but are overlooked due to normalized recruiting processes that are not challenged.
2. Internal Training: Provide interview training for all employees, focused on unintentional biases during the recruiting process. Many humans unintentional draw conclusions about individuals based on where they grew up, where they went to school, etc. that can be avoided if trained properly. Companies such as LinkedIn offer free on-line training courses so you can implement changes or assessments immediately. Also, consider utilizing local HR experts that specialize in this type of training.
3. Review Current Processes: Audit your recruiting processes to make sure your employee population is representative of your community and customer base. Many companies’ employee base is not representative of the community and customers they serve. This can lead to unnatural biases and even a disconnect with customers and the market.
4. Executive Team Review: It is critical that your executive team is representative of the employee population. For instance, if 45% of your employee population is of a minority descent, then this should be the minimum percentage for the diversity represented in your executive and leadership teams. Your employee population cannot be properly represented in the organization if it is not proportionally matched with its leadership.
5. Diversify Recruiting Resources: Many companies tend to hire from the same type of companies or look for the same backgrounds as people who were previously in the position. This can lead to a narrowed, uniformed, group-thinking company culture and create stagnation in the organization’s business and thought processes. This can threaten a company’s ability to adapt and excel in the rapid changes of the world economy.
These are all immediate actions companies can take to introduce and embrace strong diversity in their organizations. These changes and investments are just the beginning, but you will be surprised in their effectiveness.
