Business Case for Inclusion and Diversity: A quick guide

Diverse workplaces are a priority for job seekers

In today’s competitive recruitment market we need to work hard to attract the best candidates to our organisations. People are considering organisational culture more than ever before and 76% of job seekers report that a diverse workforce is an important factor when evaluating companies and job offers.

If you are attracting diverse talent but they’re not staying, you need to find out why. Cultural inclusiveness in the workplace is crucial. There is little point in attracting people into a culture that won’t include or support them; the culture shift needs to come first.

Attract LGBTQ+ talent

Studies have shown that the LGBTQ+ talent pool is well-educated, more engaged than average, and often highly empathetic. Clear LGBTQ+ inclusion is an increasingly powerful business differentiator for organisations and more than 60% of LGBTQ+ employees believe that being ‘out’ at work has improved their ability to do business and engage with customers.

In a competitive labour market, LGBTQ+ inclusion is also a talent differentiator – more than 80% of employees believe that having an openly supportive focus on LGBTQ+ has provided their organisation with wider access to the best talent.  Look at your internal and external communication platforms – be really honest with yourself – does your organisation have an authentic supportive LGBTQ+ focus?

Why is I&D important to Millennials and Gen Z job seekers?

The expectations of Gen Z and Millennials and their expectations in terms of inclusion and diversity are different from previous generations. These groups will actively look at employers through an inclusion lens, with 83% of Gen Z candidates stating that a company’s commitment to inclusion and diversity is important when choosing an employer.

In addition, these generations are reported to be more actively engaged with an organisation that fosters an inclusive work environment and has a corporate diversity plan, increasing productivity, and developing trust and loyalty.

It’s estimated that around half of the working population is now made up of Gen Z and Millennials so the business case for taking an authentic approach to inclusion is clear.  Does your organisation give colleagues from these generations a voice? Are you willing and able to listen, adapt and flex to make your organisation truly welcoming to all generations?

Meet the need for safe spaces and environments

Having a culture where people feel included, appreciated, and safe will have a positive impact on productivity. We encourage employers to create safe spaces where everyone can be included and bring as much of themselves to work as they choose.

As well as improved productivity and profitability, providing a psychologically safe environment can bring other benefits for organisations, including improved engagement, increased trust, and better teamwork.

The relationship between mental health and inclusion

When it comes to mental health challenges, the business case for inclusion could not be clearer. According to Mind, work-related mental ill-health costs the UK economy up to £45 million every year through lost working days, employee turnover, and lower productivity.

Every inclusive employer should see accessible, inclusive mental health as essential for both business and ethical reasons. Many organisations have really increased the awareness and support around mental health during the pandemic. It’s vital that this focus continues so all employees can perform at their best by being comfortable to share how they are feeling and what is going on in their lives.

Inclusion and The Equality Act

We can’t talk about the business case for inclusion and diversity without mentioning the Equality Act. As an employer, you are responsible for people employed by you and people following your instruction (even if they are not employed by you) in terms of discrimination complaints.

There has been an increase in employment tribunals for protected characteristics such as race, age, and sex. Taking steps to prevent employees from acting unlawfully, including policies and regular inclusion and diversity training, is essential for all organisations.

Of course, alongside the business case and the legal case for inclusion, there is also a compelling moral case to be an inclusive employer.

Ensuring everyone is treated equally is simply the right thing to do.

Despite an increased focus on inclusion and diversity in many organisations, women and people of colour remain seriously underrepresented in many industries and in most organisation’s senior ranks.

We also know that increasing the numbers of traditionally underrepresented people in your workforce does not automatically produce business benefits. Being an inclusive employer is about so much more than data.  It’s about how you bring this data to life and use it to evolve your inclusive culture.

Inclusive Employers can support you to embed inclusion

If you need to understand more about how inclusive and diverse your organisation is at the moment, our Inclusive Employers Standard is a great place to start. You will finish the process with a robust understanding of the work you have done so far and the impact it has had, along with an action plan for your inclusion and diversity strategy.

Our Inclusion Experts can support with I&D Strategy, Inclusive Recruitment, Mental Health at work, creating psychological safety – all of the topics discussed above and more. If you’re an Inclusive Employers member, please get in touch with your account manager. For non-members, get in touch to find out how we can support you best.