Diversity and inclusion (D&I) have become a buzz topic amidst small and large businesses over the recent years. Every company must focus and implement D&I programs to capture new markets, gain higher profits and financial returns. And to prove this point, we are here to mention 15 diversity and inclusion statistics that will help your business grow.
You might have overheard the term diversity and inclusion in meetings and HR workshops. But are you familiar with the terms? You might be wondering what relevance these terms have in a business context and why it is important for organizational success.
Below we have mentioned a few amazing diversity and inclusion statistics that you must know to achieve a great company culture and a diverse workforce. But before we begin, we would like to speak about the basics:
What is Diversity in the Workplace
Workplace diversity refers to who is at work. Who you recruit, hire, promote, recognize, and how you practice equality in the workplace. In simple words, diversity is the representation of underrepresented groups in a company’s workforce. These groups include people from different races, castes, ethnicity, religion, gender, sexuality, socio-economic backgrounds, etc.
Gallup describes diversity as “the full spectrum of human demographic differences.”
What is Inclusion in the Workplace?
In simple words, inclusion refers to people’s feelings at work. A company might be diverse, but if the employees do not feel safe, valued, and welcomed, the company lacks inclusion. This also leads to a drop in productivity and employee performance.
Inclusion is the threshold where employees must feel secure, valued, respected, accepted, and encouraged for who they are in their workplaces.
Benefits of Diversity and Inclusion in the Workplace
Let’s be real and honest; implementation of diversity and inclusion has only benefits and no downfalls. From attracting top talents from various backgrounds and identities to fostering diverse teams, diversity and inclusion lead a company towards success with high job satisfaction and employee retention.
Following a strict diversity and inclusion program needs introspection about company policies, values, and unconscious biases. When it comes to business decisions, leaders must think about the best D&I practices. So, we have gathered some of the best diversity and inclusion statistics for you to get inspired. You must know them, implement them and avail the benefits of diversity and inclusion.
It is time to embrace diversity accepting individual differences, to promote workplace equity!
15 Diversity and Inclusion Statistics you must Know for Business Growth!
According to Gallup, gender-diverse companies strengthen a company’s financial performance. Indeed, diversity and inclusion play a major role in the success of a company. And to validate this statement, we have more such diversity and inclusion statistics. Let’s take a look at them one-by-one.
Employees demand Diversity
1. Millennials and Gen-Z are the most diverse group of people.
According to CNN Money, 56% of the millennials are white compared to 72% of baby boomers.
The workforce population in the U.S is now becoming diverse. The white working population is said to have declined from 83% of the nation’s total to 63%, while the minority population of workers will have doubled. And this statistic holds relevance from 1980 to 2020.
This is because of two main reasons. One, the baby boomer generation is retiring and leaving the workforce scenario. Second, young Americans mostly belong to the minority groups who want equal rights at work and respect irrespective of their identity.
2. Workplace diversity is important for job seekers.
According to Glassdoor, 67% of job seekers feel workplace diversity is imperative while looking for job opportunities. Also, 50% of working employees want their companies to focus more on increasing workplace diversity.
To sum it up, a diverse workplace is what job seekers and potential employees look for while considering a job offer.
Thus, implementing and upgrading the diversity and inclusion program at work attracts talented employees, ultimately reflecting on your company’s bottom line.
Diversity and Inclusion Statistics related to Work Environment
3. Workplace Discrimination and Harassment
The national demographics are changing, yet workers seek more and more diverse and inclusive workplaces; Why? Gallup has an answer as it says 45% of American workers have faced workplace discrimination and harassment at work.
When studied further, around 55% of employees agreed to have a D&I policy in their workplace, and this is the majority. Yet, companies have failed to create and safe and secure working environment for workers. This can harm employee wellbeing, employee retention strategies, and the company’s reputation.
4. Women in Decision-Making
According to Culture Amp, only 40% of women (compared to 70% of men) are satisfied with the decision-making criteria at work. Whereas most women feel they have no significance in the decision-making process and do not feel comfortable expressing their opinions. And they think they have no scope of success.
This has led to increased job dissatisfaction and poor employee retention amongst women workers.
Only 2/3 of women feel they can have a dissenting voice or a difference in opinion at work. Around 60% of women think that gender-diverse companies can succeed in the long run.
5. Lack of Diversity in Leadership
A report by Harvard Business Review accounts for 78% of responses from employees who work at companies that lack diversity in leadership roles.
If we look in details, the study further says that “without diverse leadership, women are 20% less likely than straight white men to win endorsement for their ideas; people of color are 24% less likely; and [those who identify as] LGBT are 21% less likely.”
When a company lacks diversity in the leadership roles, it hampers the workplace culture and takes away the chances of recognizing people from minority groups or minuscule society.
Tangible Benefits of Diversity and Inclusion
It is now time to look at some of the diversity and inclusion statistics related to the tangible benefits of implementing a D&I program at work.
6. Representation of Women
According to Fast Company, companies with higher women employees in the C-suite level result in 34% increased returns to shareholders.
It is a known fact, companies with more women in leadership positions constantly outperform compared to companies with lesser women in leadership roles.
5% of Fortune 1000 companies have women as their CEOs. These companies contribute 7% of the total revenue on the Fortune 1000 list. And, for a fact, all of these companies outshine the S&P 500 index. Thus, companies with more women in leadership roles are beneficial for organizational success.
7. Above-average Gender Diversity and Employee Engagement
A Fast Company report says Companies with above-average gender diversity and employee engagement levels outperform other companies by 46% to 58%.
An inclusive culture is an important factor because it makes employees feel valued, respected, and honored. It is not only about acceptance, but it is also beneficial for your company’s bottom line.
It is evident, companies with better diversity and inclusion policies always reach the pinnacle of success compared to companies that fail to recruit and recognize a wide range of diverse talents.
8. Higher Innovation Revenues
According to research by Harvard Business Review, companies with higher diversity experienced 19% higher innovation revenues.
This 2018 study found that the most innovative companies are the most diverse companies. It allows them to curate a great range of exciting products for their customers.
This HBR study accounted for the responses considering six factors: migration, industry, career path, gender, education, and age. The study found industry, nationality, and gender had the highest impact in generating innovative revenues. If we think about diversity in a multidimensional way, companies can lead in innovation.
9. Racially Diverse Teams Perform Better
We are living in a world that is deeply connected and is global. According to a McKinsey report, companies with higher racial/ethnic diversity are 35% more likely to perform better than their competitors. Companies with higher diversity perform three times better than less diverse companies.
Thus, companies in the top places must start focusing on diversity and inclusion to create an equal and fair workplace culture. We know it is difficult, but we must at least make an effort.
This report had 366 respondents throughout America and the Uk and found that the correlation between diversity (racial/ethnic and gender) and profits is robust.
10. Two-Dimensional Diversity
Another report by Harvard Business Review says, companies that implement “two-dimensional” diversity can have winder market capture by upto 45%. And there are 70% chances for them to enter a new market in the past year.
According to HBR, two-dimensional diversity is both inherent and acquired. Let’s explain the difference.
Inherent diversity- it is something that includes a person’s inborn identity (e.g., sexuality, sexual orientation, race, etc.)
Acquired diversity- It is something that includes a person’s lived experiences, like, poverty, discrimination, bullying, rape, etc.
Companies that follow a 2-D diversity have always performed better compared to their competitors. They are more likely to experience higher employee engagement, retention, innovation, and job satisfaction.
Diversity and Inclusion Statistics- Bonus
Here are some additional statistics for you to know about the importance of diversity and inclusion in the workplace.
- 41% of managers and leaders say they’re “too busy” to implement diversity initiatives or hire diverse employees in their company. (Builtin.com)
- 57% of employees feel their companies must ardently focus on diversity and inclusion programs. (Builtin.com)
- 40% of people think companies indulge in double standards while hiring women candidates. (PewResearch)
- Only 4.8% of employees in Google’s tech staff are African American. (WebArchive)
- 50% of Caucasians receive more callbacks compared to African American descent. (EBIINC)
Diversity and inclusion make a workplace equal, fair, and egalitarian. It also contributes to higher job satisfaction, increased retention rates, and financial revenues.
We hope these 15 diversity and inclusion statistics will encourage you to upgrade or implement a D&I initiative at your workplace if you haven’t yet.
Emphasizing diversity and inclusion gives you a competitive advantage. Hence, you must not stay behind in implementing it. If you have implemented it, it is time to revamp!