While instinctively we understand that intentional DEIB measures are the right thing to do, they often fall to the back burner of priorities when a crisis is at hand, and money and resources need to be shifted elsewhere. And 2020 has seemed one giant crisis. However, keeping DEIB priorities in focus may obviate relevancy problems in the long-term. Here’s how to make the financial business case for DEIB.
Many DEIB initiatives focus on getting the right talent in place internally, and rightly so. Companies who have intentional strategies to hire, retain, and develop diverse talent in leadership see an increase in innovation and are 45% likelier to report a growth in market share and 70% likelier to capture a new market relative to those who don’t. That’s not revolutionary. We all know diverse perspectives drive a better solution.
What’s increasingly more pressing is that companies need to focus outwardly on their own brand relative to diversity: employment and consumer. According to the Harvard Business Review’s Brand Report Card, the best brands remain relevant by intentionally cultivating the “different perceptions, beliefs, attitudes, and behaviors customers associate with their brand.” Again, that’s well known. What is new is the shifting demographic and demands of those brands.
Follow the Money
- Millennials are projected to spend $1.4 trillion in 2020
- ~70% of millennials are more likely to shop for one brand over another if that brand demonstrates inclusion and diversity in terms of its promotions and offers
- ~ 85 percent of millennials say it’s important that the companies they buy from share their values
Follow the Talent
- By 2025, 75% of the workforce will be millennials
- Approximately 43% of millennials come from a diverse ethnic background
- 86% of female and 74% of male millennials consider policies on diversity, equality, and inclusion when deciding where to work
- 86 percent of millennials would take a pay cut to work for an organization whose values and mission align with their own
Connecting these dots, millennials more than any previous generation want to see their values surrounding DEIB reflected in the brands they associate with, both as consumers and employees. And this isn’t a passing phase, Gen Z is even more focused on brand commitment to diversity and inclusion, with 83% citing it was important in choosing an employer and increased their likelihood to stay. So while the turmoil surrounding COVID may have diverted attention elsewhere, ignore DEIB at your organization’s peril.
This blog was written by PeopleResults Partner Barbara Milhizer