The importance of diversity and inclusion training

By Andrew Fayad, CEO of ELM Learning, a creative agency focused on designing personalized multimedia and digital learning experiences.

Diversity and inclusion play an important role in creating a welcoming work environment. It is also a way to improve employee satisfaction, retention and productivity. And, as a direct result of implementing effective D&I strategies, organizations also benefit financially!

Employees who feel valued by their employer are more likely to stay with their employer and perform better than employees who do not feel valued. While employee retention shouldn't be the only reason to make D&I a top management priority, there's no denying the perquisite benefits it (D&I) brings.

According to the Society for Human Resource Management, the cost of replacing an employee with an annual salary of $60,000 can range from $30,000 to $45,000. It's 50% to 75% of the employee's annual salary that leaves. This rotation bonus can be up to 213% of the annual salary for highly qualified employees. Retaining employees seeking D&I through appropriate D&I policies can reduce replacement costs resulting from these departures, cost savings that can potentially be used to fund D&I programs.

And that's not all: According to a study by the Harvard Business Review, the most diverse organizations rank higher in innovation (19% higher) and financial performance (9%). Obviously, what matters to the workforce also translates to the bottom line!

Understanding the impact of culture on D&I

A diverse workforce helps organizations succeed because it reflects the communities in which they operate. Benefiting from these (different) cultural perspectives is important for business leaders as they develop customer-focused programs and initiatives. However, it is difficult to recruit and retain people from underrepresented groups. This includes women, people of color, LGBTQ+ people and others.

Business leaders need to understand the opportunities they are missing out on by not integrating D&I into their core strategies. For example, culturally diverse talent pools provide better opportunities to hire the best and brightest individuals. A deep understanding of cultural norms (e.g., social traditions, religious observances, historical perspectives) empowers business leaders to produce more targeted product positioning, branding, and marketing messages /services.

But not being diverse and inclusive also hurts. A