Equality and Diversity – the business impact
There are many reasons for considering diversity and inclusion in your business decisions. It is of course the right thing to do, and in many cases also a legal requirement. But less obvious, perhaps, is the fact that it will have positive benefits for your business. Simply put, diverse businesses are more successful.
We all have a part to play. At Fujitsu, we’re raising awareness of diversity and inclusion issues this week with events and activities organised by our four inclusion groups: Cultural Diversity, Gender, SEED (Support & Engage Employees with a Disability) and Shine LGB+.
Along with much else this week, we have been giving out rainbow lanyards for building passes, and educating employees about issues that LGB+ employees might face. It’s intended to make people feel more welcome, included and valued. You can find Shine, our LGB+ group, on Twitter.
Fujitsu is a Global company. We operate in over 100 countries across the world, and communication between these countries is a necessary part of every-day business. Having a more culturally diverse work-force can be useful in dealing with the different cultures and backgrounds of our global customers. Our customers work globally, so we need to too.
Diversity and Inclusion is one of our key business values. When we respect and value each other’s unique experience and ideas we can create an open, friendly and supportive working environment that benefits everyone.
Employees work better if they’re happier. Although the obvious benefits such as salary and bonuses do have an impact on happiness, it is less than you might think. Happiness correlates strongly with feeling valued; feeling like part a team; and feeling respected. This in turn drives productivity, and also increases employee retention.
Often simply implementing and communicating a diversity policy makes a big difference by letting people know they are accepted and valued; it is equally important to put this into practice and ensure all employees are protected from discrimination.
Other research suggests a very direct impact on profits. The American Sociological Association found that every 1% rise in the rate of diversity is associated with an increase in sales revenue of between 3% and 9%. This is a significant increase, and an easy win for your business.
We’ve also seen some striking results from a recent study by McKinsey & Co looking at the relationship between diversity and company performance. For example:
– The companies in the top quartile of ethnic diversity were 30% more likely to have financial returns that were above their national industry median (and 15% for companies in the top quartile of gender diversity).
– Organisations with three or more women in their senior management teams had higher average scores on measures of organisational excellence than teams with no women. Scores increased significantly once critical mass was reached at about one-third women
“Every 1% rise in the rate of diversity is associated with an increase in sales revenue of between 3% and 9%”
Looking to the future
Making our organisations more diverse now helps set the foundations for future success. Other surveys have suggested that diversity is becoming more important to each successive generation; so they will be attracted to organisations that are more diverse. This is certainly reinforced by the views we hear from our own Apprentices, Graduates and placement students.
If your business seeks to identify and attract the best of young business talent, then diversity cannot be ignored.
Clearly, the research supports all businesses taking equality and diversity seriously. Find out more from the links below, and think about what changes your organisation can make – before the competition overtakes you!
To find out more about diversity and inclusion, visit the ACAS website. It has some great learning resources and information about relevant legislation: http://www.acas.org.uk/equality
They also provide a selection of free e-learning modules: https://elearning.acas.org.uk/ including Equality and Diversity; Mental Health Awareness for Employers; and Bullying and Harassment.
Find out more about Fujitsu’s diversity strategy: http://www.fujitsu.com/uk/about/local/jobs/diversity/
Latest posts by Nicola Holt (see all)
- Congenital Heart Defects – how a supportive employer makes all the difference - February 10, 2016
- Supporting & engaging employees with a disability - September 18, 2015
- Manchester – supporting technology SMEs and innovation - May 29, 2015