Diversity, Equity and Inclusion (DEI) is more than a term that corporations use to look good. It is a commitment to a workplace where everyone feels welcome, valued and safe. Companies have made a lot of promises about DEI over the past few years, but whether they deliver is another matter.
The benefits in numbers
Several new studies illustrate the current state of DEI and how job seekers can find an employer that matches their beliefs.
Global leadership consulting firm DDI recently released a report noting that the number of US companies that do not have DEI programs has increased by 33%. Meanwhile, corporate social responsibility software provider Benevity found that 95% of job candidates compare an employer’s DEI efforts when choosing between similar job offers.
The same Benevity report also highlighted that DEI remains a high priority for employees. 62% of participating employees believe that employers should devote more effort to DEI given the current period of economic uncertainty. In addition, DEI is critical to attracting and retaining talent and building trust with the employer. 87% of respondents would feel more loyal to a company with experience prioritizing DEI.
They also confirmed the finding that employee resource groups (ERGs) are a hidden source of value for businesses and employees. ERGs are groups that one joins on a voluntary basis. They are led by and bring together employees who share an interest in a particular dimension of diversity.
Generation gap
A survey commissioned by LinkedIn and cited by Forbes recently found that 85% of Americans say it is important to be culturally compatible with the company they work for. When the generations are compared, this is most important to younger workers, with 87% of Millennials and 84% of Gen Z saying that working for a company with matching values is important to them. 71% of LinkedIn survey respondents said that when looking for a job, they proactively seek out companies and organizations that demonstrate a commitment to the culture and values they support and believe in. When considering a new job, 66% say they wouldn’t choose the company if its culture and values didn’t match their own. 70% say they would consider leaving their job for other opportunities that better align with their values.
The economic impact
DDI’s 2023 Diversity, Equality and Inclusion Report (cited above) shows that companies with above-average levels of diversity are 2.4 times more likely to outperform their competitors financially. Organizations that develop higher-potential leaders from diverse backgrounds are also 11 times more likely to have high-quality leaders overall, 4 times more likely to have leaders who understand and act on changing needs, and customer prospects, and 3.2 times more likely to engage and retain top talent.
