Diversity and Inclusion – A must for modern businesses - by Ms Preeti Ahuja

Diversity and inclusion in company culture have become increasingly crucial in the modern business landscape. According to a McKinsey study, companies in the top quartile for gender diversity are 15% more likely to have financial returns above their respective national industry medians.

Inclusivity is not only the right thing to do. It is a strategic advantage for organizations aiming to thrive in today's evolving workplace. By building diverse workforces, organizations can propel innovation, improve company decision-making and create an engaging and supportive work environment. Through leadership commitment, inclusive recruitment practices and cultural development, organizations can unlock the full potential of their teams and position themselves for long-term success.

Diversity and inclusion has a profound impact on shaping organizational culture. These initiatives emphasize the value of different perspectives, backgrounds, and experiences. In turn, these initiatives create a more inclusive and welcoming environment where every individual feels valued. This fosters a sense of belonging and encourages collaboration and innovation.

Furthermore, organizations that prioritize diversity and inclusion initiatives are better positioned to attract and retain top talent. Individuals are more likely to seek workplaces where they feel supported and included. By embracing diversity and creating a culture of inclusivity, organizations can improve employee morale and engagement. Such organizations enhance their reputation as socially responsible and forward-thinking entities.

Building a culture that celebrates diversity and inclusion helps to create a high-trust, diverse company culture. At such workplaces, employees can share ideas, take risks and nurture creativity. Diverse and inclusive environments also help develop compassion and understanding, both in the workplace and in society as a whole, educating employees on meaningful diversity, equity and inclusion initiatives and why they matter.

Innovation: A diverse workforce brings together a wide range of perspectives, experiences, and ideas. This variety can spark creativity, leading to innovative solutions and products. When employees from different backgrounds, cultures, and experiences collaborate, they challenge each other’s thinking, leading to fresh insights and breakthrough ideas.

Decision Making: Diverse teams are more likely to look at facts carefully, consider a broader range of approaches, and remain objective. This thoroughness leads to better decision-making, helping organizations navigate complex business landscapes.

The Role of Inclusion in Employee Well-Being: Inclusion in the workplace is a key aspect of employee well-being. It goes beyond simply having a diverse workforce. As a leader, you want to ensure all employees feel valued, respected, and part of the team. This improves morale and supports employees’ mental health.

Respect: Inclusion fosters a sense of value and respect among employees. When employees feel included, they feel that their contributions are valued and their individuality is respected. This leads to increased job satisfaction and productivity. Employees who feel included are more likely to be engaged in their work, leading to higher performance levels.

Improves Morale: Inclusion plays a significant role in reducing employee turnover because it improves morale. Employees are more likely to stay with an organization where they feel included. They are less likely to seek employment elsewhere, reducing turnover rates. Furthermore, an inclusive environment fosters positive relationships among employees, improving morale and creating a more positive workplace culture.

Mental Health: Inclusive policies and practices are crucial in supporting employees’ mental health. Inclusive workplaces are safe spaces where employees feel comfortable expressing themselves without fear of judgment, discrimination, or reprisals. Recognizing and appreciating the unique contributions each employee brings to the table makes organizations more resilient.

To create a more inclusive work environment, organizations can implement inclusive hiring practices, provide reasonable accommodations, and foster an environment of understanding and acceptance. Such an environment not only benefits employees by making them feel valued and respected but also benefits organizations by driving innovation and productivity. 

Embracing diversity and inclusion is not just the right thing to do; it’s the smart thing to do, and essential for long-term success in a rapidly changing world.

Our Guest Author Ms Preeti Ahuja is a seasoned HR professional with 19+years of experience in shaping the organizational culture, nurturing progressive employee relations, driving inclusive culture, talent & organizational development. She brings diverse industry experience across many organizations like Atlas Copco Group, Alfa Laval, Lear Automotive and Peak AI.

She has done MBA in Human Resources from Indian Institute of Modern Management, Pune and Masters in Labour Laws from Pune University. She has also completed the Executive Development Programme in Human Resources Management from XLRI Jamshedpur.