Are businesses underestimating the value of equity, diversity and inclusion in their workplace culture?

Creating a thriving workplace culture fuelled by innovation

Collaboration and commitment is a top priority for businesses today. However, one crucial element is often overlooked – the power of equity, diversity and inclusion. Creating an environment where individuals from all backgrounds are represented, supported, and empowered to contribute their unique perspectives is not just a moral imperative but a strategic advantage.

Our research reveals a strong correlation between an excellent workplace culture and the company’s commitment to D&I, now and in future. Those who prioritise D&I see a clear payoff.

The link between diversity and inclusion and workplace culture

In fact, office workers surveyed who gave their employer’s commitment to D&I an excellent rating were over three times more likely to report an excellent company culture than those who gave this only a good rating (59% vs 17%).

This positive impact extends to feelings of belonging. In companies with an excellent culture, office workers surveyed were considerably more likely to say their workplace culture makes them feel like they definitely belong than those who gave their workplace culture only a good rating (88% vs 28%).

What’s more, a culture that celebrates individuality thrives. Over 4 in 5 (84%) office workers surveyed with an excellent culture say their culture celebrates individuality, while none (0%) of those with very poor cultures say the same.

The findings also show that office workers who believe their company prioritises D&I are more likely to view workplace culture as critical for business outcomes.

According to our research, over three-quarters (76%) of office workers surveyed who give their employer’s commitment to D&I an excellent rating, say workplace culture is very important to a business’ overall success. This is compared with just 54% of those who gave this a good rating sharing this sentiment.

However, our findings suggest a potential disconnect. Companies prioritising D&I outperform in cultural strength and employee wellbeing, but D&I’s contribution seems undervalued in many businesses.

Just 26% of office workers believe D&I is a key element that contributes to a positive workplace culture, while less than 2 in 5 (37%) say that inclusivity is a leadership quality that helps shape a constructive workplace culture.

Closing the D&I gap

The research indicates that for many employers looking to improve their workplace culture, strengthening their diversity and inclusion efforts would be a good place to start.

We discovered that just 29% of those surveyed rated their employer’s current and future commitment to D&I as excellent, while the same percentage say that their employer does D&I well.

This isn’t surprising given the relatively low percentage of office workers surveyed who say their employers have implemented various D&I measures:

Just 31% say their company offers transparent pay

Only 29% of employees feel listened to

Only 28% report being offered mental and financial wellbeing and support

The findings highlight a further disconnect. For example, office workers report that only 22% of employees are given DE&I training, which should be fundamental to nurturing D&I in any organisation.

Employers could be doing more to create an inclusive culture where all staff feel comfortable speaking up in the workplace.

The research shows that a surprising proportion of office workers don’t feel completely comfortable airing any grievances (71%)1, providing constructive criticism / feedback (69%)1, expressing their opinions openly in team meetings (62%)1 and sharing ideas for better working practices (56%)1.

On top of this, fewer than 2 in 5 (37%) office workers say their workplace culture makes them feel like they definitely belong.

Meanwhile, just half (50%) of office workers say that their workplace culture celebrates individuality, while just over 1 in 5 (21%) report that this is stifled within their workplace culture.

The findings highlight clear improvement areas for creating a diverse and inclusive workplace culture where all employees feel valued, respected, and comfortable contributing their perspectives and ideas.

In fact, our research shows how efforts to achieve a more robust approach to D&I will garner significant performance benefits.

Our study reveals a link between a company’s commitment to D&I and employee performance.

The benefits of embedding D&I into workplace culture

Those who rated their employer’s commitment to D&I as excellent (53%) are over twice as likely as those who rated this as good (24%) to say that a good workplace culture is very important for successfully navigating mergers/acquisitions.
The findings show that just under a quarter (24%) of office workers who rated their company’s D&I commitment as good say their workplace culture strongly positively impacts their productivity. However, this figure rises to 64% for those who say their company’s current and future commitment to D&I is excellent.
Meanwhile, less than a quarter (23%) of office workers surveyed who rated their company’s D&I commitment as good say their workplace culture strongly positively impacts their desire to go above and beyond for their employer. This is compared with almost two thirds (63%) who rated their company’s D&I commitment as excellent saying the same.

A strong sense of belonging at work is another key benefit of an inclusive culture. Employees who feel they belong are far more likely to want to stay with the company long-term. Almost 4 in 5 (79%) office workers surveyed who say their workplace culture makes them feel like they belong2 agree3 that they desire to stay in their company for the long term. This is compared to just a quarter (25%) of those who don’t feel they belong4 saying the same.

Meanwhile, over 4 in 5 (82%) office workers who say their workplace culture makes them feel like they belong2 agree3 that they are dedicated to their business’ success, while less than 2 in 5 (36%) of those who don’t feel they belong4 say the same.

There is also evidence to suggest that a workplace culture with diversity and inclusion at its core is better equipped to cope with challenging circumstances.

The office workers we surveyed who rated their employer’s commitment to D&I, both now and in the future, as excellent (60%) are almost twice as likely as those who gave a good rating (33%) to say that a good workplace culture is very important for successfully navigating economic uncertainty.

Why inclusive leadership is the key to success

The evidence is clear – embedding inclusion into your workplace culture, as well as nurturing a sense of belonging, can have a profound impact on employee performance and overall business success. However, achieving a truly inclusive environment requires committed leadership that prioritises these values.

To unlock the full potential of your workforce and foster a thriving culture where every voice is heard and celebrated, it’s crucial to have the right leaders in place. Leaders who actively champion diversity and inclusion, create an environment of psychological safety, and empower all employees to contribute their unique perspectives.

Actions to advance executive diversity

01

Commit to transparent goals and metrics

Set clear diversity goals and track progress rigorously. Establish specific, measurable targets to create a sense of purpose and accountability, driving sustained efforts towards achieving these D&I goals.

02

Evaluate your D&I strategy

Is your D&I strategy effectively contributing to a positive workplace culture? Regularly assess the effectiveness of your D&I initiatives in fostering a positive workplace culture. Transparency in reporting outcomes is crucial for holding the organisation accountable and identifying areas for improvement.

03

Invest in inclusive leadership

Develop leadership programmes that empower executives to advocate for diversity. Training should focus on recognising and mitigating unconscious biases, while actively mentoring and sponsoring diverse talent to foster an inclusive environment.

04

Enhance your workplace culture and address cultural barriers

Review and refine recruitment practices, career advancement pathways, and overall organisational culture to remove barriers and promote inclusivity. Addressing cultural obstacles ensures that every employee feels valued and has equal opportunities for growth. By prioritising inclusive leadership, you can pave the way for a workplace culture that drives innovation, enhances employee engagement, and ultimately unlocks superior business outcomes.

To learn more about how we partner with clients to find and attract talent in an ever-changing, globally connected world, contact Naomi Barton.

 

Notes:

1Reverse of ‘Completely comfortable’.
2‘Yes, definitely’ and ‘Yes, somewhat’ responses combined.
3‘Strongly agree’ and ‘Somewhat agree’ responses combined.
4‘No, not really’ and ‘No, not at all’ responses combined.
The research was conducted by Censuswide, among a sample of 2015 Office workers in the UK (18+) (Excluding sole traders). The data was collected between 07.11.2023 – 13.11.2023. Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct and ESOMAR principles. Censuswide is also a member of the British Polling Council.

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