The Business Case for Diversity, Equity and Inclusion: It’s for All Size Businesses!

Often, when small business owners hear about Diversity, Equity and Inclusion (DEI) programs, the first thing that comes to mind is, “I’m not a large enough company to benefit from this type of initiative.” Well, if larger profits, more innovation, increased creativity and productivity, better customer and community engagement and lower attrition rates are of no interest to you, then you’re right. DEI is not for you. If these components are appealing to you, then you’re reading the right article.

The business case for DEI is a true playbook for successful businesses in the 21st century, regardless of size or industry. It carries you down a road of tried-and-true proven data, which drives both growth and profitability. Business-led approaches to DEI that are data-driven help to ensure a solid foundation of sustainability in an ever-changing global economy. According to research conducted by McKinsey & Company, companies that are gender, ethnic and culturally diverse outperform their peers by more than 36 percent profit margin.

If this doesn’t grab your attention, then maybe these other data points will:

• By 2025, 75 percent of the workforce will be comprised of millennials. Do you know what’s important to them?
• Seventy-eight percent of workers say it is important that businesses prioritize diversity and inclusion.
• According to U.S. Census data, the population of people who identify as “two or more races” increased by 276 percent from 2010 to 2020, from nine million to 33.8 million.
• Companies with diverse and inclusive cultures have a 5.4 percent higher retention rate than those who don’t have an inclusive and diverse culture.

The business case is solid, the data is eye-opening and sustainability is the goal! So how do you get there? How do you become more diverse and equitable while fostering a more inclusive culture that embraces the societal changes that manifest a sense of belonging?

Firstly, like any successful company, department or initiative, a systematic approach is paramount. Diversity, Equity and Inclusion efforts must start with a visible commitment that is led by the highest-level employee in the company. Without that, all efforts fail. Secondly, find your own GPS — it is imperative to know your own internal data. You can’t see where you’re going if you don’t know where you are. Seeking support from external resources is always a great place to start, helping guide you in the proper direction and supporting any additional needs as you begin building strategic capacity for this work.

Thirdly, educate, educate, educate! Education must be offered to everyone in the company at every level. The beauty of diverse thoughts, backgrounds, beliefs, experiences, cultures and skill sets being brought together in a facilitated learning environment will help foster a more welcoming culture of inclusion and be- longing. Although there are 10 key benchmarks for strategic success, the previous mentioned are the top three on the list for achieving true success.

Whether you’re a business with 10 or 10,000 employees, the benefits of engaging in DEI pay dividends that ensure profitability, sustainability and employee satisfaction. Note: it is essential to follow the formula and not deviate from what’s been practiced by thousands of companies that have been and are successful in DEI. Don’t be intimidated by your company’s size or number of employees; be driven by the data and success of others, as well as by the changing demographics of your employees, customers and the community. Be encouraged by what is coming and be prepared to embrace all that it has to offer for the betterment of your company.

As a consultant in DEI for over 20 years, I have had the opportunity to work with all types and sizes of organizations and companies. The above data points, benchmarks and principles have been proven to produce impactful outcomes and tangible results. I have seen false starts to this journey, epic fails and leadership frustration in attempts to be successful in this work. Common denominators to the lack of success have been minimal patience, deficient education and limited understanding of how to launch, engage and maintain effective efforts for advancement.

Many times, the approach of grasping low-hanging fruit, such as hiring diverse candidates, starting employee resource groups and engaging in diversity-related community events and initiatives, may feel as if efforts are advancing and creating change, but they are often temporary. I have also seen phenomenal success for all size companies! The truth is, these efforts cannot be sustained without a strategy being applied to the work. Seek the knowledge of what’s best for your company — it could make all the difference in the world for the growth and advancement of your business.

By Darlene King Turner; originally published in SBAM’s July/August 2024 issue of FOCUS magazine

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