Great Lakes Wire

When small business owners hear about Diversity, Equity, and Inclusion (DEI) programs, they often think, “I’m not a large enough company to benefit from this type of initiative.” However, if larger profits, more innovation, increased creativity and productivity, better customer and community engagement, and lower attrition rates are appealing, then DEI initiatives could be highly beneficial.

The business case for DEI is a strategic playbook for successful businesses in the 21st century, regardless of size or industry. It relies on data-driven approaches that drive growth and profitability. According to research by McKinsey & Company, companies that are gender, ethnic, and culturally diverse outperform their peers by more than 36 percent profit margin.

By 2025, millennials will comprise 75 percent of the workforce. Seventy-eight percent of workers say it is important that businesses prioritize diversity and inclusion. U.S. Census data shows the population identifying as “two or more races” increased by 276 percent from 2010 to 2020. Companies with diverse cultures have a 5.4 percent higher retention rate than those without inclusive practices.

To foster a diverse and inclusive culture that embraces societal changes:

1. **Visible Commitment**: DEI efforts must start with visible commitment led by top-level employees.

2. **Internal Data**: Understand your internal data to guide your direction.

3. **Education**: Provide education at every level within the company to foster an inclusive culture.

These steps are crucial for achieving success in DEI initiatives.

Whether a business has ten or ten thousand employees, engaging in DEI ensures profitability, sustainability, and employee satisfaction. It is essential to follow proven strategies practiced by successful companies in DEI without being intimidated by company size.

As a consultant in DEI for over two decades, I have worked with various organizations. The principles mentioned above produce impactful outcomes when applied correctly. Common reasons for failure include minimal patience, deficient education, and limited understanding of effective strategies.

Efforts such as hiring diverse candidates or starting employee resource groups may feel progressive but can be temporary without a solid strategy. Successful companies apply strategic approaches to sustain these efforts.

By Darlene King Turner; originally published in SBAM’s July/August 2024 issue of FOCUS magazine

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