A Beacon Gainer article, written by Ally Goldberg, Ethical and Social Impact Business Manager for Beacon Gainer private client advisory services group, and edited by Hannah Martin.
What’s the difference between diversity and inclusivity?
The terms diversity and inclusivity are often grouped together or used interchangeably, but they are actually two very different things. And if your goal is to run a truly ethical business it is important that you understand that difference.
So in this blog we’ll explore both concepts, and discuss how you can support diversity and inclusion in your workplace.
Of the two concepts, diversity is generally better understood. Diversity means having a workforce that is not homogenous, but instead employing a variety of people from different backgrounds, cultures and experiences.
Of course, there is a clear moral argument for diversity in the workplace; but there is also an important business argument. There has been a lot of research into the benefits of a diverse workforce and it is clear that varied workforces produce more creative ideas and are able to see a wider picture than their non-diverse counterparts.
A report from McKinsey found that companies in the top quartile for ethnic diversity had financial returns that were 35% higher than the industry average. And those in the top quartile for gender diversity were 15% higher than the industry average.
How can you create a more diverse company?
Creating diversity in a company starts from the top and works downwards, and it is a process. It is not as simple as just hiring more diverse people for the sake of diversity – that is called tokenism, which is a very important word to understand as an employer.
Tokenism in this case would mean hiring people on the basis of their diversity in order to create the appearance of being a diverse business. This is, unfortunately, fairly common in businesses who want to appear ethical but don’t wish to invest the time into actually becoming ethical. Or businesses who have good intentions but lack the knowledge to properly fulfil those intentions.
Tokenism is not just morally dubious but also it’s very damaging to employees, who will feel used and unappreciated.
Inclusivity creates a level playing field for all
This is where inclusivity comes in. While diversity in business means simply having a varied workforce, inclusivity is creating a level playing field to facilitate that diversity in an ethical way.
For example, you may say that your workforce has gender diversity because 50% of your staff are women. But if your management are all male, that is not an inclusive workforce. Technically there is diversity in a literal sense, but you can’t call yourself inclusive if you are not creating an environment where everyone has the same opportunities for career progression.
To explain this further, there are two other words used in diversity and inclusion (D&I) – equality versus equity. Equality meaning to give everyone the same, and equity meaning to give everyone what they need.
Why you need to strive for equity, not equality
As a business owner, you should be striving for equity, not equality. This means recognising that not everyone has had the same opportunities in life, and adjusting your barriers to reflect that. This cartoon demonstrates the issue very simply:
In D&I consultancy, it’s not uncommon to hear people saying that they want to improve diversity, but they don’t have a diverse range of people applying to their business. This is where you have to work hard to create an environment that is attractive and appealing to diverse range of people.
If a woman, a person of colour, an LGBTQ person, or any marginalised group looks at your team, and doesn’t see anyone like them, that’s a red flag. If they look at your website or social media and see no mention of diversity or inclusivity or support of marginalised groups, that’s a red flag. And if your job listing doesn’t explicitly state that you are an equal opportunities firm that is actively seeking to diversify, how will they know?
It’s also important to remember that the need for inclusivity predates hiring and goes back to people’s childhoods. For, example, if there are no women applying to your firm, there’s a good chance that is because women have been actively discouraged from entering your industry since they were children.
What can you do to promote D&I in your workplace?
In financial services, it is estimated that less than 20% of the entire industry workforce is female and approximately the same amount are people of colour. To help tackle this issue at a systemic level you can go into schools and universities to speak about your career and encourage more marginalised groups to pursue it. Demonstrating this kind of commitment to diversity is a great way to cultivate an inclusive culture.
Something else that is important is D&I training for staff. You need to ensure that as you become a more diverse business, your current staff behave appropriately. I regularly hear from employers that they are confident that their staff treat everyone with fairness and equality, but even if people aren’t doing anything intentionally malicious, it doesn’t mean your staff are being fair.
Often just being ignorant or uninformed about a particular group can lead to some problematic behaviours or comments. Over 80% of LGBTQ+ women surveyed in 2019 reported experiencing microaggressions in the workplace, and over 50% experienced sexual harassment.
In addition, over 60% of LGBTQ people are not ‘out’ in the workplace due to fear of harassment. If your staff are educated on these issues, you are a lot less likely to experience problems and a lot more likely to create a healthy environment where people are free to be themselves.
To learn more about how you personally can improve diversity and inclusivity in your business, please email us at welcome@beacongainer.com
