Breaking Down DEI: The Many Benefits Are Personal and Financial

The modern workplace’s stance to embrace DEI is a new movement, really only catching fire in 2020 after the murder of George Floyd. Since that time, the numerous benefits of implementing DEI strategies in the workplace have been not just felt and appreciated by employees around the world, but supported by statistics. Companies who celebrate diversity and embrace cultures of inclusivity and equity not only have happier employees, but are also making more money than their counterparts who haven’t implemented DEI policies.  

Every aspect of an organization from recruitment to an executive’s daily responsibilities is affected by DEI strategies. And there is data to support it. According to a survey of more than 2,700 job seekers conducted by Glassdoor, 80 percent of workers say that a company’s commitment to DEI is important to them when looking for a new role. A whopping 62 percent of those respondents said they wouldn’t accept a job from a company that does value DEI. And increased success recruiting in the new job market is just the tip of the iceberg.  

Financial Benefits 

Companies that implement DEI strategies are financially outperforming companies who don’t. A study by McKinsey revealed that companies in the top quartile for racial and ethnic diversity are 35 percent more likely to outperform their respective national industry medians’ financial returns. Diverse companies also earn 2.5 times higher cash flow per employee and are more productive by over 35 percent according to a study done by Global Market Analysts Inc. These statistics can be explained by employees being able to bring differing life experiences, perspectives and skills to the table which help with problem solving and business solutions as a whole.  

The same study found that gender diverse executive teams are found to be 21 percent more likely to perform above the national industry mean on profitability.  Harvard Business Review found that diverse companies are 70 percent likelier to capture a new market. They’re also 45 percent more likely to report increased market share year-over-year compared to companies that have yet to implement DEI practices. The numbers don’t lie, and they add up to increased financial returns when employees feel included.  

More Engagement 

Financial success isn’t the only benefit of DEI that’s supported by statistics. Employees report being happier and more engaged with their work when their basic needs for belonging and safety and met in the workplace. When companies foster a more inclusive work environment, 83 percent of Millennials are found to be more actively engaged in their work according to a report by Deloitte.  

Diverse teams also make better decisions up to 87 percent of the time, according to a study conducted by Forbes. The increase in work quality and productivity are results of a better work environment, and the results of better financial returns are due to the increase in engagement.   

According to a study by Culture Amp, companies with successful DEI policies experience a six percent increase in employee engagement and employees say they feel more informed about what’s going on at work. DEI has a profound effect on employee happiness, satisfaction and engagement, leading to increased returns in revenue, higher retention rates and more.  

The same study by Culture Amp asked more than 1.1 million employees the same set of questions regarding employee burnout rate, belonging, work environment and motivation, among many other factors. Employees who worked for companies with successful DEI policies in place experienced a five to 10 percent increase in positive answers on the survey, illustrating a healthier, happier employee. For example, only 61 percent of employees who work at non-DEI companies felt like they were provided relevant skills and opportunities to advance their careers while 71 percent felt like they were given those opportunities at companies with DEI policies in place.

 Kokomo24/7® Can Help You Achieve These Goals 

Kokomo24/7® understands that every workplace has its own set of unique needs. We can provide your workplace with a robust, yet easy-to-use technology platform that simplifies the complicated work of DEI implementation. Get the health and safety platform that your company needs to navigate the complex and ever-changing circumstances surrounding implementing custom equity strategies in your workplace.  

Ever since Kokomo24/7® was founded in 2018, we have been a leader in compliance and risk management solutions for all things health and safety. Kokomo proudly serves schools, communities, and workplaces. Our mission is to deliver highly effective, easy-to-use, and trusted compliance and risk management solutions that bridge the gap between public safety and technology.   

Whether you work for a small company, a fortune-500, or any institution in between, we want to hear from you.   

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