Diversity, Equality, Inclusion

DEI CORNER

Diversity is America's strength, spurring the innovation and creativity that have made the U.S. economy the most vibrant and dynamic in history. When businesses recognize and embrace different perspectives, they are better able to create value, serve customers, support employees and solve problems. By providing opportunities for everyone, businesses help lift communities and strengthen the health, prosperity and competitiveness of our nation and our society. DID YOU KNOW? "Diverse and inclusive businesses have 19% higher innovation revenues, a 35% performance advantage over their homogenous counterparts and are 36% more profitable." By 2024, employees over the age of 55 will make up 24.8% of the working population, as compared to 11.9% in 1994. Women are also expected to make up a larger portion of the overall U.S. workforce, rising from 46.8% of the workforce in 2014 to 47.2% in 2024. And, by 2024, less than 60% of the U.S. labor force is expected to be defined as "white non-Hispanic." What does diversity mean? First, let's start with the basics. Diversity refers to the inherent differences that exist amongst a group of people. Diversity manifests in traits such as age, race, gender, religion, sexual orientation, and even cultural diversity, like socioeconomic status, religious beliefs, and education. Diversity is often mentioned in the same breath as equity and inclusion. Commonly abbreviated as "DEI," diversity, equity and inclusion are separate practices that enable small businesses to be more productive, innovative and successful. Equity refers to giving someone (e.g., a business owner or employee from an underrepresented group) the support they need to succeed. On the other hand, equality refers to giving everyone the same thing. Equity helps fill some of the opportunity gaps that perpetuate broader inequalities in our society. Inclusion has to do with creating a supportive, welcoming and respectful environment at work for people of all backgrounds to participate. Inclusion is about taking action: dedicating resources and time to creating a space that embraces all perspectives and employee needs. This might include founding employee resource groups, offering mentorship programs or requiring employees to participate in diversity training regularly. Diversity, equity and inclusion can all help businesses create vibrant, thriving companies. Beyond a moral imperative, diversity, equity and inclusion can benefit business owners and broader communities alike. Why diversity is important Diversity plays a crucial role in growing our national economy and the success of American business. Increasing diversity in business is projected to have widespread benefits for the country. Consider some of these statistics: According to the National Association of Women Business Owners, one report found that there are 9.1 million womenowned businesses that generate a total of $1.4 trillion in sales. Another McKinsey study found that the national GDP would add $25 billion if just 1% more disabled people were hired. The American economy stands to gain $8 trillion by 2050 simply by closing the racial equity gap. Moreover, businesses that recognize and embrace the value of inclusion consistently perform better across multiple financial metrics. Research shows, for example, a strong correlation between diversity in leadership and quarterly earnings. For every 10% increase in racial and ethnic diversity on a company's senior executive team, earnings before interest and taxes rise 0.8%. What's more, companies in the top quartile for ethnic and racial diversity on executive teams are 33% more likely to have industry-leading profitability. There is also mounting evidence that greater diversity leads to a healthier workplace culture and better business outcomes. Studies show diverse teams are better at problem-solving, decision-making and innovating. Companies with an inclusive culture are not only considered a great place to work by employees, but also highly regarded by consumers. Some of the most diverse companies aren't only successful in their industry. They also score highly on employee engagement, customer brand loyalty and Net Promoter Scores. Building diversity is not only the right thing to do – it is the smart thing for business.