The business case for diversity, equity, inclusion and belonging

There’s growing demand for diversity, equity, inclusion and belonging (DEIB) in Australian workplaces as more studies documenting its impact emerge. What… you didn’t think it was just a trendy, checkbox-ticking compliance issue, did you?

While nurturing a diverse and inclusive workplace is indeed the right thing to do, it’s also a ridiculously smart business strategy that gives you a competitive edge.

Here are four measurable benefits supporting the business case for diversity, equity, inclusion and belonging in your workplace.

1. DEIB increases productivity

Maslow’s Hierarchy of Needs proposes that a sense of safety and love and belonging are basic human needs. When these needs aren’t met, it can result in distress. So, it’s only natural then, that when we feel safe and valued, this sense that we belong somewhere, that we are able to (and want to) do our best work.

The evidence:

A BetterUp study shows a high sense of workplace belonging was linked to a 56% increase in job performance and a 75% reduction in sick days. On the flip? Their studies also show that feeling excluded at work makes people 25% less productive.

2. DEIB improves creativity

Common sense will tell you that people from diverse backgrounds each bring with them a unique set of experiences and perspectives that can help challenge group think and break the status quo. Provided you’ve created a psychologically safe environment, that is.

The evidence:

Deloitte research shows that when employees think their organisation is committed to and supportive of diversity, and they feel included, their ability to innovate increases by 83%.

A Boston Consulting Group study found that companies that reported above-average diversity on their management teams have 19% higher revenues due to innovation than those with below-average leadership diversity (45% of total revenue versus 26%).

3. DEIB increases engagement

Employee engagement is the thread linking stronger collaboration, job satisfaction, better customer experiences, better workplace culture, and reduced turnover - when employees are engaged, they’re more likely to show up and go ‘above and beyond’ for their team. It’s no wonder that HR push out their employee engagement surveys every year!

So, we can all agree that engaged employees are good for business, yeah? Here’s how inclusion and belonging help.

The evidence:

Great Place to Work research shows that when employees feel a sense that they belong and are valued and recognised fairly, they are 9.8 times more likely to look forward to going to work and 6.3 times more likely to have pride in their work.

BetterUp research supports this, finding that employees who have a high sense of belonging are 10 times more likely to be satisfied with their jobs and more than twice as engaged at work. Employees with higher workplace belonging also showed a 167% increase in their employer net promoter score.

4. DEIB improves retention

Even in the best of times, a healthy employee retention rate indicates strong organisational health. But in a tight candidate market where employers grapple to find and hire suitably skilled employees? Companies should be doubling down on their talent mobility and retention initiatives to avoid unnecessary skills loss in a market lacking viable replacements.

When employees don’t feel engaged in their work, or a sense that they belong and are valued and appreciated, they will leave.

The evidence:

Great Place to Work research shows that diverse and inclusive companies experience 5.4 times higher employee retention. Additionally, the BetterUp study shows that high belonging was linked to a 50% drop in turnover risk.

Exclusion hurts.

The cold, hard truth is – exclusion hurts. There’s a good chance that no matter our background, we have felt excluded in some form over the course of our tender life. Now, imagine if you felt that exclusion in your everyday, preventing you from thriving in your career.

Humans are social creatures with an innate need to belong... and when we do? Wow. Just look at the awesome stuff that happens.

Want to learn how to be a DEIB ally and build your business case for DEIB in the workplace?