Diversity and inclusion are the keys to beating the next recession
In January 2020, Canadian Equality Consulting (CEC) released a blog post referencing this Fortune Article. The article outlined how Diversity and Inclusion (D&I) is the key to beating the next recession.
Using examples from the economic recession between 2007-2009, it was demonstrated how the deep decline that most companies experience during a recession may be avoided – by cultivating a culture of inclusion. Inclusive organizations enjoy more than three times the revenue growth of less inclusive peers, as Diversity,
(DEI) efforts are a source of strength and resilience for companies weathering tough times.
Historically marginalized groups play vital roles in a business during good and bad times. They are a good source of innovation that many companies overlook. These groups are also often the first to feel the effects of a business running into trouble.
As we move through the COVID-19 Pandemic, there has been a global economic recession as our human workforce is inhibited and supply chains are interrupted. Millions have been experiencing unemployment, and reduced income, and there have been increases in individuals experiencing homelessness. Furthermore, the worst of the larger socio-economic effects of the pandemic have largely fallen onto those within historically marginalized groups.
Now more than ever, it is vital for organizations to prioritize workplace equity and inclusion. Not only is it the right thing to do, it’s also better for business.
Throughout the pandemic, not only has the need for DEI within the workplace been clearly highlighted, the nature of DEI has also evolved. The remote and virtual work environment has pushed organizations to react and respond to the needs of a “Work from Home” structure, including the flexibility of online work, technological accommodations required for people with disabilities, and recruitment less dependent on where employees are physically situated. Hiring irrespective of location can be beneficial in allowing employers to choose from a larger pool of candidates, which produces a larger responsibility for employers to create a diverse team with more perspectives, needs, and abilities.
Socioeconomic pressures have also altered D&I since the start of the pandemic, as the uneven consequences of COVID-19 have disproportionately negatively impacted historically marginalized groups. Organizations that are committed to diversity, equity, and inclusion are more likely to identify specific disproportionate impacts relevant to their work, which allows them to address and mitigate harmful consequences.
Overall, companies that prioritize and integrate DEI into their business outperform their competition, they have greater profitability, greater market performance, greater innovation, creativity, and engagement.
For support in your DEI journey, or to inquire about any of the services offered by CEC, please contact [email protected]. Additionally, CEC posts monthly blogs which we encourage you to stay updated with to understand how you can continue to cultivate an inclusive workplace for all.