Bringing Skin in the Game

Published on: 11.02.2025

A couple of weeks back while speaking in a panel I used a lot of numbers to emphasize the importance of Diversity, Equity & Inclusion in the talent landscape. A Few of these numbers are:

·      Inclusive organizations generate 2.3 times more cash flow per employee.

·      Companies with a diverse workforce are 35% more likely to thrive.

·      25% lesser attrition in Inclusive organizations

I had a thought - do good-looking numbers alone encourage organizations to have 'Skin in the Game'? Perhaps not. It's important to draw attention to the financial impact of 'Lack of inclusion' or the benefits of inclusion to drive the message home. After all, gaining an understanding of the financial implications could be a powerful motivator.

This insightful analysis can help them understand the costs of exclusion and the benefits of inclusion:

1. Quantifying Impact: Quantifying the financial impact of low inclusion levels is crucial in building a persuasive business case for investing in diversity, equity, and inclusion (DEI) initiatives. This approach highlights the fact that promoting a more inclusive workplace is not only a moral responsibility but also a smart strategic move for your business. By investing in DEI initiatives, you can improve your bottom line while nurturing a more diverse and inclusive work environment.

2. Resource Allocation: By understanding the financial costs associated with low levels of diversity, equity, and inclusion (DEI), organizations can better allocate their resources. This understanding helps them prioritize DEI initiatives that are most likely to deliver a significant return on investment (ROI) in terms of improved business performance. Therefore, it is essential for organizations to recognize the importance of DEI and invest in creating an inclusive culture that welcomes and values people from diverse backgrounds. By doing so, they can reap the benefits of a diverse workforce, including increased innovation, improved decision-making, and enhanced employee engagement.

3. Risk Mitigation: It's important to prioritize risk mitigation in today's business landscape. By identifying and addressing financial risks associated with low inclusion levels, we can avoid potential negative impacts on our organization's performance and reputation. Increased turnover and legal liabilities are just a few examples of the dangers we can avoid by taking proactive steps to mitigate risk. Let's work together to ensure we're doing everything we can to protect our business.

4. Enhanced Talent Management: By investing in DEI initiatives while considering financial insights, companies can significantly enhance their talent attraction, retention, and engagement. Inclusive workplaces are more appealing to a diverse pool of talent, resulting in better recruitment outcomes. Therefore, prioritizing diversity, equity, and inclusion initiatives can lead to a more successful and thriving organization.

5. Increased Innovation and Creativity: Research has demonstrated that teams with a diverse and inclusive makeup tend to be more inventive and imaginative. By quantifying the economic advantages of inclusivity, organizations can be motivated to harness diversity as a catalyst for innovation.

6. Improved Organizational Performance: Organizations can enhance their overall performance by fostering a culture of inclusivity and addressing low inclusion levels. This not only helps in improving productivity and profitability but also enhances their market competitiveness.

7. Stakeholder Confidence and Reputation: By prioritizing the measurement and enhancement of inclusion levels, organizations can demonstrate a commitment towards strengthening their reputation and building stakeholder confidence. This helps to foster a positive image both among employees and external parties such as customers, investors, and the community.

By measuring the financial cost of low inclusion levels, organizations gain the power to make data-driven decisions, allocate resources strategically, mitigate risks, attract and retain top talent, foster innovation, enhance performance, and build a positive reputation. These actions contribute to long-term business success and sustainability, inspiring companies to create a better future for all.

By:Thrive & Include