Diversity, Equity and Inclusion (DE&I)
“More U.S. workers are quitting their jobs than at any time in at least two decades… adding to the struggle companies face trying to keep up with the economic recovery… In a March survey of 2,000 workers by Prudential Financial Inc., one-quarter said they plan to soon look for a role with a different employer.” – Wall Street Journal (June 12, 2021)
Job seekers are highly selective.
Many of today’s brightest job seekers have developed definite ideas about the kind of company they prefer to join. They want to work at a forward-thinking business that is fair and equitable to all employees, that represents the diversity of society at large and one that welcomes people from all ethnic and racial backgrounds, religions, sexualities, etc. Key point: two-thirds of job seekers say they prefer joining a diverse company.
This all falls under the umbrella of DE&I: diversity, equity and inclusion.
Why emphasize diversity?
The reality is, diversity is not just good for business, it’s great for business! Consider that, overall, racially- and ethnically-diverse companies are 35% more likely to perform better than competitors, and if their boards are diverse as well, 43% report significantly higher profits. Diverse companies are proven generate more than twice the cash flow per person compared to less diverse companies.
This translates into greater innovation, as companies with higher-than-average diversity have 19% higher revenues from innovation.
Indeed, if all companies were truly diverse, it’s estimated that the U.S Gross Domestic Product (GDP) will increase by 26%!
Equity is a no-brainer.
Laws are being updated in every state for pay equity for employees. There are so many different laws because there are different points of view on how best to effect positive and inclusive pay changes to provide pay equity.
The point is, even if laws affecting your company aren’t as demanding as those elsewhere, proactively meeting higher standards and staying ahead of competitors will serve you well over the long term. It will bolster your company’s reputation as an employer of choice; a company in touch with the workforce.
Inclusion brings it all together.
Just one example of a group who have not been consistently included in leadership is women. Many women in the workplace have been left out of corporate decision-making and have been reluctant to voice their opinions and have doubts about a path to success within their current company.
Yet when women are included, their impact is profound. Women in C-suite-level positions generate considerably greater returns for shareholders – often, over 1/3 more than their male peers.
Inclusive companies are 1.7 times more innovative and 120% more likely to achieve their financial goals.
DE&I delivers countless benefits for companies.
Studies show that companies who provide a strong DE&I culture are better at attracting and keeping top talent. They provide an environment where employees perform better, produce higher revenue and experience greater job satisfaction. The ultimate outcome is a deserved reputation as a great employer.
How can your company implement DE&I?
In demand professionals have the freedom and power to select an employer who embodies their personal values. Be thoughtful about how you evaluate your current DE&I initiatives. There are proven standards and business practices that will reach these highly desirable professionals.
As always, we’re here to help. SRA – Newman Group can support you in building and maintaining a DE&I Recruiting program tailored to your company’s situation. Reach out to Peg Newman at 801-716-5926 for a conversation!
The Newman Group is the Commercial Risk & Insurance Search division for Sanford Rose Associates. Sanford Rose Associates has more than 140 offices worldwide and has been recognized for more than a decade as one of North America’s Top 10 Search Firms by Executive Search Review. The Newman Group is based in Salt Lake City and is known for working with major insurance groups to build powerful teams that maximize results for their firms across the nation.