Diversity and inclusion in the workplace: why it’s important and strategies to promote DI in the workplace

Building a more equal, diverse and inclusive organisation is a continuous journey. And at Reward Gateway, we believe we should always strive to be better.

But achieving diversity and inclusion isn’t about box-ticking or one-off training sessions. Real progress takes an ongoing commitment and a genuine intention to learn and improve.

So whether you’re beginning your journey towards an inclusive workplace or looking to scale your existing strategy, our employee experience experts are here to help.

In this guide, we explore both the benefits and challenges of fostering workplace inclusivity and share strategies for creating an environment where all your employees feel valued, respected and supported.

What is Diversity, Equity & Inclusion?

D&I stands for diversity and inclusion, while DEI stands for diversity, equity and inclusion. They’re similar concepts, with DEI including an additional focus on creating equal outcomes for all.

What are the differences between diversity and inclusion?

While diversity and inclusion share the common goal of devising a welcoming and progressive workplace, they differ in their meanings and outcomes.

Diversity focuses on representation - onboarding employees from different backgrounds and experiences to broaden the perspectives and ideologies present within the workplace. While the concept often focuses on gender and race, true diversity also encompasses age, ability, sexuality, class and location.

Inclusion focuses on building an environment where every employee is valued and integrated into the workplace culture, regardless of their background. This ensures nobody feels excluded or discriminated against.

For example, a company can be diverse in its employees, but without measures to ensure everyone feels valued and respected, it’s not inclusive.

What are the benefits of diversity and inclusion in the workplace?

While creating a diverse and inclusive workplace should be for the benefit of the employee, it also makes good business sense.

DEI is proven to increase talent attraction and retention. And diverse companies outperform their competitors by 36%, according to data from McKinsey. But why?

Diversity and inclusion efforts contribute to many workplace benefits, including:

Curating a more productive team

Diversifying your hiring process to include people from all backgrounds and experiences hugely expands the talent pool - increasing your chances of finding the perfect candidates for your roles.

And once you’ve assembled your team, retention is crucial. Workhuman research recorded that 72% of employees consider D&I as an important factor in how long they stay at an organisation.

Employee attitudes

81% of employees working in an inclusive culture claim to be happy in their job - three times more than those who don’t feel included. Feeling valued at work also positively impacts mental wellbeing, which is a key driver for employee engagement.

A study by Deloitte found 83% of employees are actively engaged when they feel their organisation fosters an inclusive culture.

In addition to mental wellbeing, feeling included at work can also be linked to improved physical health. According to Harvard Business Review, organisations where employees feel a sense of belonging in the workplace boast a 75% reduction in sick days.

Innovation and performance

Data also shows innovation and performance are hindered by regressive attitudes in the workplace. Research shows women, people of colour and LGBTQ+ employees are over 20% less likely than others to have their ideas supported.

A significant benefit of a diverse workforce is the breadth of unique experiences and perspectives it brings.

A team composed of people from different backgrounds prevents meetings from becoming echo chambers - driving richer conversations and generating greater levels of creativity and ingenuity.

Valuing and backing all employee contributions equally delivers measurable profit for businesses and can boost productivity by up to 30%. Similarly, management teams with above-average diversity report a 19% increase in innovation.

Diverse companies are also 70% more likely to capture new markets, and decisions made by diverse teams deliver 60% better results.

What are the challenges with workplace diversity and inclusion?

With so many evident benefits that diversity, equity and inclusion bring to the workplace, why are there still barriers to roll-out?

Creating a truly inclusive work environment can come with several challenges.

The most prominent of these is fears of ‘tokenism’. This is the idea that diversifying your workforce to solely meet quotas, without genuine inclusion efforts, can actually leave employees feeling excluded and undervalued. This has the potential to damage morale and create a stressful work environment.

Below, two of our senior employee reward and benefit experts explain some of the other common challenges and pitfalls they’ve encountered in the roll out of DEI efforts – and how to overcome them.

Robert Hicks, Group HR Director:

• Inertia – Resisting change and failing to take initiative leads to missed opportunities. Organisations stuck in their old ways risk falling behind as more inclusive businesses reap the benefits.
• Ignoring employee guidance – Surveying and actively listening to staff is key to effectively advancing your DEI efforts. Open communication will help to identify what’s working and what isn’t.
• Overpromising – Achieving meaningful DEI takes time, commitment and consistency. Making promises without the necessary resources or strategies can lead to employee disappointment and a loss of trust in the organisation.

Catrin Lewis, Head of Global Engagement and Internal Communications:

• Staying static – Language changes, and so do societal norms. DEI efforts should reflect current thinking and adapt accordingly and constantly. I see so many places that still don’t differentiate sex from gender or race from ethnicity. Stating only Male/Female as your gender options is not inclusive. 
• Fear of saying the wrong thing – Many hesitate to engage with DEI in fear of making a mistake. It’s okay to make mistakes, what matters is intent and a willingness to learn.

Strategies for promoting diversity and inclusion in the workplace

So, how can you balance your D&I efforts with practical application, to reap the rewards?

Once you’ve developed an understanding of the benefits and challenges of D&I in the workplace, you can begin shaping your long-term plan.

Building an effective diverse and inclusive workplace requires ongoing reflection and consistent effort.

Our recommended strategies below offer a practical foundation for embedding DEI into your workplace culture:

1. Define your goals

Before you start planning your DEI strategies, you’ll want to clarify exactly what you want to achieve and how you’re going to achieve it.

Use the SMART framework to define clear, considered goals - and share these transparently, company-wide to align all employees on the steps you’re taking.

2. Anonymous surveys

Gaining input and feedback from your employees is key to understanding their experiences and identifying the unique areas of improvement specific to your organisation.

Use anonymous surveys to ensure employees give honest feedback without fear of repercussions.

3. Transparent mission statement

Your company mission and values should reflect your commitment to diversity and inclusion.

Make DEI a visible and foundational aspect of your statement to highlight to prospective employees that you are a company that values inclusion and equality.

Also, include clear and strong anti-discrimination policies within your organisation and brand messaging to reinforce that prejudice won’t be tolerated.

4. Inclusive hiring practices

Eliminate any potential unconscious bias by blocking personal identifiable information (name, age, location) from CVs during the hiring process.

This creates an objective assessment of someone’s experience and skill.

5. Hybrid working

Define your remote or hybrid working policy, to allow equal opportunities for people in different locations and those with accessibility needs.

This also combats proximity bias, where interviewees who are closer to the office premises may be favoured over those further afield.

6. Offer consistent DEI training

DEI can’t be covered in a one-off workshop. Regular training helps employees stay informed about evolving language and cultural sensitivity.

It’s important for everyone in your organisation to understand different cultures and experiences to create a respectful and empathetic work environment.

7. Employee Resource Groups (ERGs)

Employee Resource Groups are voluntary, employee-led communities that create a safe space for people with shared experiences, interests or backgrounds to connect at work.

Encourage employees to establish ERGs and support them with a budget to host events and strengthen their internal network.

Bringing it all together - Implementing your DEI strategies

Once you have a clear plan of how to better foster diversity and inclusion in the workplace, you need to consider how to implement these strategies.

The way you go about this is just as important as the strategies themselves. It requires buy-in from staff, details of how each element will be introduced and a long-term plan for sustaining your efforts.

Below, we look at some important steps in taking your DEI plan from idea to execution:

Phased approach

You might be eager to introduce all of your DEI strategies to the organisation at once. But rolling these out in a phased approach can be much more effective.

By gradually implementing these strategies, you can gather feedback at each stage and identify areas for improvement.

This method also means that you can focus on one initiative at a time. Instead of spreading resources thinly across multiple strategies, you can dedicate time to make each initiative as effective and impactful as possible.

Measure and monitor

As you introduce new policies, it’s not enough to just assume your positive efforts are having a real-world impact for your employees.

To ensure each initiative is effective and achieving your intended goals, it’s crucial to measure and monitor.

Possible metrics for measuring the success of DEI efforts include:

• Increases in representation within the company
• Pay equity and a reduction in pay gaps
• Employee retention rates
• Participation in ERGs
• Employee feedback

Hire an Innovation Officer

Any successful initiative needs a project manager – and DEI is no different.

Appointing or hiring an innovation officer responsible for implementing and measuring DEI practices signals that inclusion is a priority and a long-term commitment.

Lead by example

Businesses don’t just become inclusive by implementing DEI strategies. You have to practice what you preach.

One way to do this is by using inclusive language across all company communications and encouraging others to do the same.

Promote open communication throughout your team and support the diverse needs of your employees. This could include introducing accessible workspaces and prayer rooms, creating a workplace where everyone feels heard and valued.

For example, here at Reward Gateway, we’ve publicly committed to Business in the Community’s (BITC) Race at Work Charter - joining hundreds of other organisations in taking action to become more inclusive and equal for racial minorities. 

Feeling inspired? Put your initiatives into practice with our Reward & Recognition platform.

We’ll help you create a recognition strategy tailored to improve employee engagement at your organisation.

Or, if you’d like to learn more about how diversity and inclusion can strengthen your organisation – as well as other ways to support your employees through benefits and rewards – schedule a free demo and chat with one of our engagement experts today.