How Inclusion Improves Diversity And Company Performance

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'In fact, what many companies have found out is that trying to increase diversity by hiring for diversity at the entry level often backfires, leading to internal strife and high churn rates, as the new employees face incidents that cause them to leave.'

. However, a statistical correlation does not imply causality. Put in plain language, the fact that two variables – in this case, the level of diversity and the financial performance of the company – are correlated, does not mean that one caused the other. The correlation could go in the other direction , or there could be a third variable that is causing an increase in both variables. In this case, I believe that inclusion is that third variable.

There is in fact evidence of situations in which diversity by itself does not correlate with increased performance, and that, in some cases, greater diversity correlates with performance decrements. For instance,, in which the authors looked for correlations between the level of diversity and various performance indicators, found that the only statistically significant correlation linked greater diversity to higher turnover rates – not a good thing for D&I supporters.

But even without data, a simple thought experiment can illustrate why it makes sense that inclusion drives performance. Imagine a team in which each individual performs at their peak, and the individuals collaborate perfectly. Let’s call this the 100% team – performance cannot get any better. Suppose now that one team member feels excluded and becomes dissatisfied. Their productivity will drop, and cause ripple effects as other team members have to deal with the disruption.

The bottom line is that both diversity and inclusion can contribute positively to the success of a company. However, as companies struggle to increase diversity, I would strongly encourage them to consider the critical importance of inclusion, and to assess and increase their level of inclusion before trying to force an increase in diversity.

My work is rooted in the belief that Diversity & Inclusion research can be leveraged to make our society as more inclusive and equitable. I do this through aMy work is rooted in the belief that Diversity & Inclusion research can be leveraged to make our society as more inclusive and equitable.

 

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