Workplace diversity is a business issue experienced by many companies, even highly developed and advanced ones. Companies today spend hundreds of thousands of dollars on workplace diversity outreach and programs, but they often come up short.

In light of recent events, many businesses are stepping back to evaluate their own diversity initiatives. So, why is a diverse team important? Well, research shows that diverse groups of people often make better decisions. In this blog post, we will discuss what businesses should consider when evaluating their diversity and inclusion efforts and how they can improve it.

How to Measure Your Company’s D&I Impact

A diverse workforce can have tremendous organizational benefits. For instance, it can portray a more positive environment to the public eye and can give companies access to potential revenue gains from employing people who contribute new, different ideas. In fact, a recent study by McKinsey examined diversity levels at 366 public organizations and found ethnically diverse companies were 35% more likely to outperform their competitors in terms of profitability.

Businesses have several options to measure their current diversity and inclusion program’s effectiveness. However, the most effective way is to measure more than just a person’s presence in the organization. True diversity is revealed by more than just numbers. For example, you could compare each employee’s title to discover how much relative power they have or measure their involvement in key business decisions.

Basic diversity quotas no longer show a comprehensive representation of a company’s diversity; companies need to dig deeper. As the leadership team learns more about their employees, they can make better decisions to support and foster diversity and inclusion.

Implement Employee Resource Groups (ERGs)

Next, we will get into some ways companies can expand on their diversity and inclusion initiatives. First is implementing employee resource groups. Employee resource groups, also known as ERGs, are voluntary, employee-led groups whose aim is to foster a diverse, inclusive workplace aligned with their organization’s mission. Oftentimes, ERGs are employee-led groups whose members share a common characteristic, whether it is race, religious affiliation, gender or affinity.

Additionally, these networks provide employees a support system, offer professional development opportunities and foster workplace diversity and inclusion. They help create a culture of connectivity and can have a positive effect on any organization.

In any industry, employees want to work with an employer who invests in their employees. When companies invest in ERGs, employees have a more concrete way to share their interests and unique attributes with customers to establish more personal relationships.

Promote flexibility within the workplace

Many companies believe prospective employees’ only interest and motivation is money. But, that’s not always the case. Job seekers often want positive company culture, incentives and perks, as well as a company interested in developing them.

For example, full-time working mothers may consider it more important to have flexible working hours to spend more time with their children. As a company, it is important to identify employees’ unique motivators. Your human resources department can set up one-on-one meetings with staff or have employees complete an anonymous survey to learn what motivates them. It can provide your leadership team insight into what your employees expect out of the company and can also potentially decrease employee turnover.

The case has already been made that businesses with more diverse teams are more successful. By properly evaluating your company’s workplace diversity, you can confidently take the necessary steps to grow it. With employee resource groups and employee feedback, you can help advance your company while improving your bottom line.

For more information about how to add diversity to your company, check out our blog 3 Tips for Building Diversity in Your Workplace!