Creating an inclusive culture: why (and how) to go beyond diversity in the workplace

There is a great deal of talk about diversity, equity and inclusion (DEI) in today’s corporate circles. Although many companies have recruitment programs to encourage diversity in the workplace, studies show that employers must think beyond hiring practices if they wish to create an equitable, inclusive work environment.

What can companies do to recruit a diverse workforce and, more importantly, retain their hires? It all begins with an organization’s vision and values and from there both the company and its employees can reap many benefits.

A few definitions

What is DEI, exactly?

Diversity: Variety in individuals’ backgrounds and experiences, e.g., one’s ethnicity, gender, sexual orientation, language, religion, age, disability, etc.

Equity: Treating each individual or group fairly. This means taking into account their unique situation and recognizing differences with a view to providing everyone with true equality of opportunity.

Inclusion: Creating a workplace that respects diversity. An inclusive environment not only integrates people with diverse backgrounds and experiences but also supports each employee in a way that nurtures their personal growth and sense of belonging. Such an environment allows individuals to contribute to their full potential.

Inclusion and the benefits of leveraging everyone’s full potential

Many companies regard diversity in the workplace not only as an imperative of social justice but also as an asset in terms of generating growth and creating value.

A competitive edge in a global economy

A study by McKinsey & Company that tracked 1,000 companies from 2014 to 2019 reveals an increasingly robust correlation between DEI and strong business performance. For example, companies that rank in the top 250 for ethnic diversity were shown to be 36% more likely to generate above-average productivity.

Diversity of profiles, diversity of talents

By having people with diverse backgrounds in their ranks, inclusive companies are able to leverage all types of talents to overcome challenges. They are more agile and innovative. For example, the McKinsey & Company study shows that companies with at least 30% of women executives were more likely to outperform those where women held only 10% of such positions.

A safer workplace for all

Every company should institute a zero-tolerance policy for harassment of any kind. By opening up a dialogue about diversity in the workplace and showing openness toward others, employers foster a welcoming work environment rooted in respect for differences. Ultimately, this can help reduce the risk of harassment.

A strong organizational culture to better manage labour shortages

As skilled employees are few and far between, they are in high demand among employers. When making career decisions, these individuals increasingly look beyond salary and benefits and consider a company’s culture. For instance, they may ask themselves whether the company shares their values and whether they will feel respected as an individual in their new role. They may also consider whether they would be able to express their true self without fear of repercussions.

As a leader in diversity in the workplace, the Canadian bank BMO is a case in point. It is committed to eliminating all barriers to inclusion by 2025 and has made Waterstone Human Capital’s annual list of Canada’s Most Admired Corporate Cultures for two years straight. It is no surprise that the company boasts a high level of employee engagement.

How to increase diversity in the workplace and foster equity and inclusion

Set measurable objectives. And measure performance.

If you don’t know where you’ve come from, you don’t know where you’re going. What is the percentage of women, people with disabilities and visible minorities in your company? What percentage of your employees identify as members of the LGBTQ2+ community?

By getting the whole picture of the situation, your company can establish performance indicators for equity and inclusion.

Don’t be afraid to talk about it.

The first step to a truly inclusive culture is to discuss inclusion with the people most affected by it. Instead of avoiding the matter, address it head-on by asking how the company could provide a more inclusive workplace for these employees. Some of the solutions that emerge from these discussions may be simple and easy to implement. For example, employees may wish to form affinity groups based on their social identity, such as an LGBTQ2+ affinity group.

Also known as employee resource groups, affinity groups are being established in more and more companies. They can have a direct and lasting impact on an employee’s sense of belonging. When these groups are managed effectively and align with a company’s values and objectives, employees are provided with a safe space, where they can share their experiences with coworkers facing similar challenges. They can, moreover, develop solutions as a group and ultimately help their employer move toward a sustainable inclusive culture. The benefits of affinity groups go far beyond DEI, and it is worth noting that such groups are in place at 90% of Fortune 500 companies.

Involve your managers in the process from Day 1.

Your approach to DEI will depend on what kind of company you run. For example, a factory and a marketing department are likely to face different challenges in terms of DEI. Before you take action to foster diversity and inclusion in your workplace, get your management team on board. This will give you a better perspective of the situation on the ground and will help ensure that your DEI initiatives are widely adopted.

This issue was raised in a study conducted by BCG among 5,000 employees in Canada with diverse backgrounds and experiences. Nearly half of the respondents did not see consistent leadership from their employers in matters of diversity, equity and inclusion. Even if senior management seems committed to addressing these issues, middle managers do not always mirror this attitude.

Be aware of your unconscious biases.

As human beings, we all have unconscious biases, and they inevitably seep into the companies that hire us. These biases are born of the prejudices (positive or negative) that we form toward an individual or group, and they have real-world consequences (positive or negative). We unconsciously tend to prefer people who resemble us.

By being aware of our biases and our prejudices, we can better minimize their influence and make informed decisions based on facts rather than perceptions. To this end, companies may benefit from scheduling training sessions or group workshops with an outside firm that specializes in this kind of work. As a company, you should also take the time to examine your own processes. Do they result in systemic discrimination despite your best intentions?

Do it for the right reasons.

Be authentic. How can you integrate diversity, equity and inclusion into your company in a way that aligns with your mission and vision? Demonstrate your commitment to making a difference and to supporting diversity in the workplace. And don’t just pay lip service to it: take immediate action.