The Impact Of DEI On Employee Attraction And Retention

28th Jun 2023

Beyond being a moral imperative, DEI has emerged as a strategic advantage for companies, particularly when it comes to attracting, retaining and engaging top talent. A diverse and inclusive workplace not only reflects our society but also creates an environment where employees feel valued and supported to be able to bring their authentic selves to work.
So, what exactly is the impact of DEI on employee attraction and retention? Below, we've outlined 6 significant ways in which DEI positively influences companies in attracting and retaining talented individuals.

1) Access to a larger pool of talent 

By embracing DEI initiatives, you open the doors to an expanded talent pool that allows you to attract a diverse range of candidates with unique backgrounds, cultures, and experiences. A poll by SurveyMonkey shows that 79% of job seekers express the importance of working for a company that actively recruits individuals from diverse backgrounds, particularly emphasising the inclusion of women and people of colour.

This increased diversity in your applicant pool enhances your ability to identify and attract the most qualified and aligned candidates for your teams. Bringing with them fresh perspectives and innovative ideas to drive positive change.

2) Better employee engagement 

When your workplace environment prioritises DEI it sends a powerful message to employees that they are included, valued, and respected. As a result, employees are more likely to feel a deeper sense of engagement and commitment towards their work. 

This inclusive culture supports an environment where all employees feel they have a voice, leading to higher levels of job satisfaction and overall happiness. With a workforce that is happier, more engaged, and supported, your company is set up to benefit from increased employee retention and a stronger sense of loyalty.

3) Improved innovation and problem-solving

Companies that value and prioritise diversity also gain access to a wider range of perspectives and approaches to creativity and finding solutions. The inclusion of different viewpoints and experiences leads to a more innovative and dynamic work environment, where teams thrive. 

In fact, a study carried out by the World Economic Forum revealed that companies with above-average diversity scores drive an impressive 45% of their average revenue from innovation. Compared with companies with below-average diversity scores who only generate 26% of their average revenue from innovation.

4) Enhanced Employer Brand

When your company actively promotes diversity, equity, and inclusion, it creates a positive reputation that resonates with potential employees. As word spreads about your inclusive practices, your company becomes known as a welcoming, respectful, and supportive company that values and embraces diverse individuals. 

This positive perception not only attracts top talent who are seeking an inclusive workplace but also contributes to building a stronger Employer Brand that stands out in the market and positions you as an employer of choice.

5) Stronger client relationships 

The inclusion of individuals from various backgrounds allows companies to tap into a wealth of cultural insights and perspectives. This diversity of perspectives enhances your ability to understand and effectively communicate with a broader customer base. 

By valuing and incorporating these diverse viewpoints, companies can create stronger connections with clients, demonstrating cultural competence and a deeper understanding of their needs and preferences. These enhanced client relationships not only impact loyalty but also contribute to a positive brand reputation and increased customer satisfaction. 

6) Boosted ROI

DEI efforts contribute to improved employee retention reducing the costs associated with turnover and recruitment. It is estimated that to replace a salaried employee it can cost, on average, between 6-9 months' salary.

So being able to retain your most talented employees will save you resources and instead allow you to invest in their development and advancement. 

Showcase your DEI initiatives

Don't just implement DEI initiatives; make sure you’re showcasing them effectively. 

With the help of Flexa, you can elevate your Employer Brand and proudly demonstrate your commitment to diversity, equity, and inclusion. By leveraging your company profile on Flexa, you have the opportunity to increase the diversity of your candidate pipeline by an impressive 65%, just like Amplifi did. And slash your recruitment agency spend to zero - discover how Flipdish stopped spending six figures on recruitment in just 6 months. 

Being on Flexa will allow you access to a broader range of talented individuals who are aligned with your values and mission and are seeking inclusive work environments.