“Diversity is a mix. Inclusion is making the mix work.” – Andres Tapia

Diversity and inclusion (D&I) are commonly used in tandem rather than as diversity vs inclusion. While one certainly is necessary to achieve the other, they’re two distinct theories.

What’s the difference?

Earlier, diversity in an organization was referred to as social variances such as people coming from different cultural background, age group, religion, gender, and other such elements. Nowadays, people who have different value systems, perspectives, preferences, experiences, and even biases form a true workforce diversity.

Contrary, SHRM quoted that “inclusion is the achievement of a work environment in which all individuals are treated fairly and respectfully, have equal access to opportunities and resources, and can contribute fully to the organization’s success.”

How both can lead to Organizational Success

To improve work efficiency and productivity, the brand must focus on leveraging diversity and achieving inclusivity, which in turn also helps employees unleash their potential at its best. There are multiple ways in which diversity and inclusivity can contribute to organizational growth.

• Increased Financial Returns

In the 2015 McKinsey Report called Diversity Matters, it’s stated that the organizations in the top quartile for racial and ethnic diversity are 35% more likely to have better financial returns. It’s 15% for the companies in the top quartile for gender diversity.

• To Attract and Retain Talent

Brands that focus on diversity hiring attract a larger pool of talent and people coming from different walks of life. Moreover, the employees tend to stay longer with a company that makes them feel inclusive and appreciated for their efforts and commitment.

The brand must focus on D&I initiatives to empower its workforce with better opportunities and resources, ultimately enhancing the brand culture and value.

• Driving innovation

A coherent relationship between diversity and innovation directly impacts organizational growth and success.

Deloitte found in its 2018 report that the organizations with inclusive culture are six times more likely to be agile and futuristic. The problem exists in below-average inclusive companies where minorities such as women, people from different color, and LGBTs aren’t motivated to share their ideas, resulting in a lack of potentially great new ideas and market opportunities.

• Huge Impact on Performance & Productivity

SHRM research shows that age diversity can better organizational performance considerably. It also indicated that both adults and younger employees are more productive when working in a mixed-age team.

Both diversity and inclusion walk hand in hand; the latter is crucial to make the former work. In a nutshell, organizations that practice higher diversity and inclusivity within the workforce result in enhanced financial growth, a higher degree of innovation, and improved employee engagement & retention.