As a business owner, you know the future of your business comes down to the strength of your team. And building a diverse team — one that includes members of historically disadvantaged or marginalized groups, as well as members of all ages and socioeconomic backgrounds — puts your company on track for success.
Research shows that companies with more diversity financially outperform those that don’t — and the greater the level of gender and ethnic diversity in leadership, the better companies tend to do.
Companies with 30% women executives, for example, were 48% more likely to outperform the least gender-diverse companies. And businesses that had leadership teams with the most ethnic and gender diversity are 36% more profitable than their least diverse competitors.
Embracing diversity comes with other advantages, too. Companies with more diversity also benefit from:
- Innovation: a diverse team brings fresh perspectives to problem solving, and companies with above-average diversity drive a greater proportion of their revenue from innovation.
- Engagement and productivity: A 1% increase in diversity increases productivity by up to $1,590 (USD) per employee each year.
- Customer loyalty: A diverse team builds rapport with a broader range of customers, enhancing the customer experience to drive better retention and growth.
- Team-building: Diversity helps businesses attract top talent. 76% of job-seekers say that diversity and inclusion are important factors when considering companies and job offers, and one in three would not apply to work at a company with a lack of diversity.
Fostering diversity at all levels of your business, though, means strategizing at each stage of an employee’s journey, from finding your job ad to rising through the business, and developing a culture of inclusion. The following 5 best practices can help.
1. Assess, then set goals
Building out a diverse team begins with taking an honest look at diversity in your organization right now. By identifying your company’s unique strengths and weaknesses with respect to diversity, you’ll gain insight into how best to improve.
Assess:
- Diversity at all levels of your organization: How diverse is your company overall? How does diversity in entry-level or junior positions compare to diversity in senior and leadership roles?
- Diversity in your hiring process: Are your job postings attracting diverse applicant pools? How diverse are the applicants you interviewed, compared to those who got the job?
- Diversity in employee retention: How do turnover rates compare between demographic groups in your company? Are any groups overrepresented?
This assessment should identify potential areas for improvement, so you can set goals and make plans accordingly. Companies with less diverse senior and leadership teams might make promoting diverse employees a top priority, for example, while organizations with less diverse applicant pools might decide to broaden their recruitment efforts as a top priority.
2. Embrace inclusive recruitment
An inclusive recruitment strategy lays the foundation for bringing more diversity into your businesses, as well as creating an engaged team.
As you begin, pay particular attention to the wording used in your job postings. Avoid gendered pronouns in job postings, instead opting for “you” or “the successful candidate.” Stick to gender-neutral job descriptions, like “marketing manager,” instead of gender-biased alternatives — like “marketing genius” or “marketing guru” — that can read as male-centered and discourage women from applying. Curate your list of job qualifications to what the role truly demands, since women are less likely than men to apply for roles unless they meet all the listed requirements.
Remember, over three-quarters of job-seekers consider workplace diversity when evaluating potential employers, so use your job postings to highlight your commitment to creating an inclusive workplace. Invite candidates to share their pronouns when applying, and highlight your commitment to being an equal-opportunity employer.
3. Rework the hiring process
Unconscious biases have the potential to creep into your recruitment efforts and sabotage your progress, so take steps to eliminate barriers to diversity in your hiring process.
Consider implementing a nameless application review process, which allows hiring managers to focus on the applicants’ strengths and weaknesses without name bias. Screen applicants using standardized interview questions, crafted using inclusive language, that allow job-seekers to showcase their experience and problem-solving ability.
Use the interview process as another opportunity to showcase your commitment to diversity. Ensure applicants have a sense of the company’s inclusive culture to find the best fit.
4. Make a plan to retain diverse talent
Achieving greater diversity at all levels of the business means having a plan for retention. Clearly communicate opportunities for advancement within the company to applicants, as well as new and existing employees. Create robust mentorship programs — including those tailored toward employees from historically marginalized groups — to help employees develop new skills and prepare to advance.
Set a 0 tolerance policy for discrimination within the workplace, and develop a plan to handle HR concerns. Nearly half of Black or Hispanic employees have quit over experiencing or seeing discrimination, so an HR policy that allows employees to feel safe making reports can help you retain talent.
Offering a competitive benefits package can help encourage retention, too, so design your benefits packages with a diverse range of needs in mind. Disability benefits, floating holidays, remote work options and support for professional development can all help employees from all walks of life thrive in your company.
5. Enhance your efforts through partnerships
Embracing diversity within your company benefits your business, but partnerships with like-minded organizations have the potential to positively impact your entire industry. So look outside your company for opportunities to improve diversity and give back to your local community.
Begin by broadening your supplier base by seeking out diverse suppliers and vendors. You’ll not only drive innovation through exposure to new products and services, but you may also help safeguard your business against supply chain disruptions by working with smaller and more agile partners.
Use partnerships to benefit the communities you serve, as well. Sponsorships, workshops and educational outreach can all prove invaluable for community members, and also help you connect with talent that could help grow your business.
Finally, become a leader in your industry by sharing your progress and communicating how diversity and inclusion have positively impacted your business. Commit to diversity as a core value of your business to make all your efforts feel authentic, and help attract the diverse talent that will set your company up for long-term success.
This article is intended for general informational purposes only and does not constitute legal advice or an opinion on any issue. It should not be regarded as comprehensive or a substitute for professional advice.