If you ask if diversity and inclusion are important to a business, most readers will say yes. However, this does not necessarily translate to prioritisation through investment and action, which impacts many Australian employees.

In fact, research shows that there is a clear gap between employer awareness, intent and action. Furthermore, a key focus for many organisations is gender. This is why in Diversity Council of Australia’s (DCA) Inclusion at Work Week, we look specifically at the business case for diversity and inclusion. 

So what does diversity and inclusion mean for business? In practical terms, inclusivity and diversity relate to creating environments, organisations, or societies that are welcoming, accepting, and representative of a wide range of people and backgrounds. The DCA defines diversity as the mix of people in your organisation and inclusion as creating a workplace that enables that mix to work. This mix can include ethnicity or cultural background, age, religion, gender, disability, neurodiversity and sexual orientation. 

Attracting and Retaining Staff 

Having a diverse and inclusive workplace helps to attract and retain staff. Companies prioritising diversity and inclusion are often considered more attractive to employees. This means employers can attract top talent from a broader pool of candidates. Moreover, when employees feel valued and included, they are more likely to perform better and stay with the company, reducing turnover and associated costs. 

Several recent studies show that both employees and employers alike overwhelmingly consider diversity as an important factor when evaluating job offers. This trend continues with inclusion, where thirty-seven per cent of respondents to a Deloitte study said they would leave an organisation for a more inclusive one, increasing to fifty per cent for millennials. 

Australia is facing significant skill shortages across a range of professions, which makes strategies that help to attract and retain staff essential for many organisations. 

Improving Productivity 

Successful teams are, by nature, diverse and inclusive. Research shows diverse workplaces enjoy 12 per cent higher productivity than organisations where diversity is not a focus, and teams who are passionate and pursue inclusivity perform 30 per cent better. 

A lack of diversity and inclusion often has an impact. For example, LGBTQIA+ employees can feel the need to hide their true selves at work for fear it will damage their careers. Out Now, a specialist lesbian and gay marketing firm, estimates in Australia the financial benefits of closeted workers feeling safe could be as much as $285 million per year. This includes an 11 per cent increase in staff retention and a 30 per cent improvement in the productivity of closeted workers.   

What Organisations Can Do 

It is important to recognise that becoming a more inclusive workplace is a journey, and every organisation will be at different stages and have different priorities. 

So where do you start? According to the experts, here are a few places: 

• Leadership commitment - start with strong leadership commitment as it sets the tone for the entire organisation. 
• Feedback – get initial anonymous feedback and develop channels for ongoing feedback mechanisms so you can drive change and track progress. 
• Review your policies and procedures – these should reflect the organisation's commitment to diversity and the actions your organisation will take to promote inclusion. If you are at the beginning of your diversity and inclusion journey, it can be helpful to look at how other organisations are approaching their policies. 
• Develop an action plan – whether a comprehensive program with KPIs and objects or simply a list of initial actions, have a plan to work towards. 
• Training and development – this ideally should extend to all employees to raise awareness, reduce biases, and build a more inclusive workplace culture. This is critical to minimise psychosocial hazards in the workplace. 
• Review your recruitment processes – asking your employees to disclose the barriers they experienced in applying can be a great start. Ensure that job postings are accessible, use inclusive language and actively seek candidates from diverse backgrounds. If using recruitment panels, diverse members can help to reduce bias in the recruitment process. 
• Review your flexible work policies - this is a critical factor to engaging a diverse workforce, and may include working from home or anywhere, compressed hours, schedule flexibility, job shares and sabbaticals. 
• Mentorship programs – facilitate mentoring of underrepresented employees to help advance their career. 

This list is by no means exhaustive and how you approach diversity and inclusion will depend on your organisation’s key challenges and objectives. The DCA has fantastic resources available for organisations at every stage of their journey, and it might be worthwhile considering engaging experts if you don’t have in-house knowledge.