3 ways your business can benefit from adopting DEI policies
We previously wrote about the problematic lack of diversity within the marketing and agricultural industries, and proposed steps for companies to begin shifting toward a more inclusive future. You can read our earlier blog post about the lack of diversity here. In a nutshell, we outline how diverse viewpoints, experiences and perspectives help us grow stronger and thrive.
The 2022 Ag Census is in the process of wrapping up and we should have new benchmarks to review in early 2024. But new numbers from the Association of National Advertisers (ANA) already show modest progress over the last 2 years, at least within the marketing world.
Published in November of 2022, the Diversity Report for the Advertising/Marketing Industry shows two positive steps. First, the representation of women in the industry overall and in leadership positions continues to be strong. Secondly, there is a 4.9% increase in ethnic diversity within the advertising industry, from 30.8% to 32.3% ethnically diverse. This represents the largest increase in the five-year history of the report.
While this study isn’t a reason for a victory lap yet, it’s important to recognize the progress and understand that this is a marathon, not a sprint. Continuing to evolve our industries to better reflect the general population will take time, commitment, and patience.
Knowing we still have work to do, we’re shifting our focus from the problems lack of diversity poses, to the benefits increasing diversity brings to our workplaces and industries. So, let’s put away the stick and get out some carrots!
#1 COMPANIES THAT PRIORITIZE DEI (DIVERSITY, EQUITY AND INCLUSION) ARE MORE LIKELY TO HIT THEIR FINANCIAL GOALS
McKinsey & Company shared a study that found that companies in the top quartile for diversity were 35% more likely to experience above-average profitability than their respective national industry medians.
These companies also tend to have higher employee retention and job satisfaction rates. Employees at these companies report feeling safe, respected and seen. All of this leads to a stronger sense of community, shared culture and, ultimately, increased productivity and profitability that drive financial results.
#2 DIVERSE TEAMS DRIVE MORE RAPID A INNOVATION
McKinsey reports that diverse teams, and especially teams with diverse leadership, are more likely to outperform financially because they innovate at a faster rate. Diverse perspectives and thinking lead to quicker development of new solutions, products and services.
Another study by Boston Consulting Group found that companies with diverse management teams reported higher levels of innovation-related revenue than companies with less diverse teams at 45% vs 26%, respectively.
#3 COMPANIES WITH A COMMITMENT TO DEI CAN ENHANCE THEIR REPUTATION
Businesses that have clearly articulated goals around enhanced diversity are often viewed more positively by customers, employees, and other stakeholders. This can help build a positive reputation and increase brand loyalty. It can also enhance recruiting and hiring by attracting a wider range of candidates with diverse skills and backgrounds.
Glassdoor reports that 76% of job seekers believe a diverse workforce is an important factor when considering job offers and evaluating employers.
But DEI is more than a diverse employee base. It’s about belonging. Activating diversity without belonging is meaningless. Without belonging, employees are disconnected, unhappy and quick to leave. Michelle Arieta, Senior Vice President of Human Resources at Media Lab, called belonging a lynchpin to diversity, writing “it is how you can create a cohesive team that knits together each individual’s unique strength to tackle hard problems and big tasks.”
The next time you discuss diversity with your team, don’t forget to highlight the specific and tangible benefits a clearly articulated and documented DEI strategy can bring to your company. As we continue to track broader industry shifts over the long-term, it's important not to lose sight of the power individual companies hold in the short term. Company-specific policy shifts can happen quickly, and often to the benefit of their overall performance.
Interested in learning more about how diversity can drive your business? We would love to talk to you. Contact our Business Development Director today.