The benefits of diversity to businesses’ bottom line have been well established. More diverse companies have been shown to have higher cashflow, revenue and profits than less diverse companies. Diversity improves decision-making, collaboration and innovation. 

Diverse companies are also better at capturing new markets and relating to a broader customer base. And they are more likely to experience higher employee engagement (particularly among millennials and Gen Z), which means higher productivity. 

But what about recruitment and retention? How important are principles like diversity, equity and inclusion (DEI) to attracting and retaining staff? 

We recently asked our network of current and potential job seekers the following question: When it comes to accepting a job offer, how important are a company's diversity, equity and inclusion policies and practices to your decision? 

The response was decisive: 73 per cent rated DEI as important or very important to their job seeking decision making. This compared with only one in five who did not consider it a significant factor. 

Diversity, equity and inclusion: What’s the difference? 

These are distinct, albeit interrelated, concepts. It can be useful to understand the specific meaning of each, and how they work together for the good of employees and employers alike. 

The Diversity Council of Australia (DCA) defines diversity as “the mix of people in your organisation”, referring to “all the ways in which we differ”. This includes racial or cultural background, age, education, religion, gender or gender identity and sexual orientation. It also includes having an experience of disability, mental health issues, and neurodiversity.

Inclusion, says DCA, is about “getting the mix to work”. “Inclusion occurs when a diversity of people are respected, connected, progressing and contributing to organisational success.” (Diversity Council Australia, Diversity & Inclusion Definition, Sydney, Diversity Council Australia, 2017.) 

Equity, meanwhile, has been defined as “the glue that holds diversity and inclusion together”. DEI professional Daniela Herrera told LinkedIn: “Equity in the workplace means to intentionally and purposely and consciously ensure that everyone in the company has access to the support, resources, treatment and the opportunities they need to succeed in the workplace.” 

More than a one-size-fits-all solution, equity emphasises the specific needs of individuals and intentionally addresses historical and systemic equalities. It also needs to consider things like intersectionality, i.e. when an individual possesses more than one “diverse” characteristic that can expose them to overlapping forms of discrimination.

DEI matters to job seekers and employees 

The figures from our poll track with similar studies globally. An American 2021 study reported on in the Harvard Business Review saw 86 per cent of employees and 66 per cent of HR directors assert that diverse workforces would become increasingly important as an organisation’s needs evolve. 

Meanwhile a 2020 Glassdoor study found more than three quarters of job seekers and employees considered diversity an important factor when evaluating job offers. According to the study, nearly a third would not apply at all to a company where there is a lack of diversity. 

The trend goes beyond the recruitment stage however. Thirty-nine per cent of respondents to one Deloitte study said they would leave their current organisation for a more inclusive one. For millennials, that number ballooned to over 50 per cent. 

What’s more, a lack of inclusion can have significant impacts on employees’ mental health. DCA’s Inclusion@Work Index 2021-2022 found that workers in inclusive teams were “seven times more likely than those in non-inclusive teams to report their workplace has positively impacted their mental health”, as well as “seven times more likely to report their workplace is safe and supportive for those with poor mental health compared to those in a non-inclusive team”. 

Those figures point to significant benefits, considering that nearly a third of Australian workers have said work has a negative impact on their mental health. 

In short, good policies and practices around diversity, equity and inclusion are good for individuals and for businesses, in more ways than one. Achieving diversity and inclusion is a journey, and often a difficult one. But it’s worth the effort. Rather than just corporate buzzwords, more and more DEI needs to become increasingly central to the way business is done.  

If you’re looking for diverse talent, Bayside Group’s specialist consultants can assist you. Contact us today.