Does diversity really serve business?

The short answer is no; diversity is merely a one-legged horse. A diverse workforce with no equity, inclusion and belonging is nothing short of a disaster. Diversity does not drive engagement and innovation, inclusion does. Diversity does not drive employee wellbeing, equity and belonging are key. It is not about having a diverse workforce; it is about embracing a diverse workforce. The same rules cannot apply to everyone, and some might need more encouragement than others to contribute fully. With a diverse workforce you can choose to have either a dog-eat-dog environment where only the fittest (and often the most privileged) survive or you can have a well-choreographed production where everyone moves to the same music, but their steps are different, adding the layers that make for a truly rich and engaging business.

The call for inclusion
The fundamental demographics that include race and gender are still tough nuts to crack, as we are often reminded by continuous assessment of global progress, showing that the scales are still far from balanced. But the call for inclusion in a work environment echoes much further than demographic data. People don’t only have different skin colours, gender identities and sexual orientations, they have different needs, different demands on their time and a myriad of manners in which they engage.

We can’t cater for everything, and a position can’t be tailored to a person. The business also has needs and demands, as do fellow colleagues. We all know the old saying “it takes two to tango”, usually indicating that it’s never only one person’s fault, but there is another meaning to that, which is that there should be shared responsibility and commitment between partners. After all, the tango is a beautiful thing, and engagement can be too if it truly is a partnership between the employee and the business. Everyone can be made to feel heard and empowered to make the decisions that are best for them. The relationship is a partnership and mutual respect is fundamental.

Let’s face the facts
So, now that I have been all lyrical about engagement and inclusion, let’s look at whether this can be backed up by real facts. The newly released Gallup State of the Global Workplace report is a good place to start.

The concerning news is that the report unpacks the second-ever decline in employee engagement, standing at a mere 21% and bringing engagement to its lowest point since 2021. There seems to be a widening gap between what employees expect from their employers – and how far employers are willing to go to satisfy the growing need for fulfillment, flexibility, belonging and wellbeing. It appears employers and employees are moving further away from each other because both are less and less willing to compromise. Businesses are under pressure to stay abreast of a rapidly changing and competitive market, while employees are trying to juggle the increasing demands from work and home life. The report indicates that middle-managers are bearing the brunt of this struggle for compromise as this group is the main cause of the overall decline in engagement.

Even more concerning is the fact that Gallup estimates that this 2% decline in engagement cost the global economy $438 billion in lost productivity. They further estimate that a fully engaged global workforce could add $9.6 trillion to the global economy. Startling numbers, but now what?

In related research, Gallup explores five underlying findings that shed more light on the decline:

  1. Only about two in 10 employees strongly agree that their leaders make them enthusiastic about the future: They further explain that sincerity and genuine care is fundamental to successful engagement.
  2. 24% of employees strongly agree that their organisation cares about their overall wellbeing. They also share that wellbeing significantly enhances engagement efforts.
  3. 41% of employees cite issues related to engagement and culture as the primary reason for leaving their previous job: Here they emphasise the importance of inclusion by valuing the unique gifts of each employee.
  4. 20% of employees strongly agree that their performance is managed in a way that motivates them to do outstanding work: They note that regular feedback and recognition is vital for this to improve.
  5. 31% of employees strongly agree that there is someone at work who encourages their development: They further share that organisations that strategically invest in development see 11% higher profitability and are twice as likely to retain top talent.

Now what?
There are two strong trends: It seems that relationships and growth are at the core of it all. And that is exactly what a partnership is: A relationship where both parties can grow. Imagine this being our definition of inclusion and belonging…doesn’t it make it that much more practical and measurable? And doesn’t it speak to the compromise needed for both employees and the business to thrive? Ok, but really, now what do we do?

We need to break it down one step further and ask what the foundation is of any relationship. I would argue that it is trust and communication. Having facilitated countless team sessions, I confidently speak from experience when I say that nothing makes rapid strides towards inclusion like sincere feedback does. Whether positive or negative. Exchanging meaningful, well-intended and timeous feedback adds depth to any relationship. And Gallup data agrees that 80% of employees who say they have received meaningful feedback in the past week are fully engaged.

What’s more, when you are honest with each other, you know how to support each other and get the best out of each other. To which Gallup adds that “employees with just one collaborative relationship are 42% more likely to intend to stay with their employer for their entire career”.

Giving meaningful feedback to bolster both relationships and business performance takes time to learn but the good news is that baby steps will go a long way. Most of us have some fragile relationships at work that only hold together because of niceties. Perhaps start there. How can you reach out today to deepen one of these relationships? What feedback can you offer that would contribute to this person’s growth and enhance the way you work together?

So, if you remember nothing else from this article, I hope you see the connection between feedback, inclusion, and business success. If we want to chase that $9.6 trillion, I think we better start with showing care and being honest with each other. If we don’t, diversity will remain cut off at the waist.

By Brian Eagar, CEO @ Towerstone
As published on: African Business Quarterly

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