The Bottom-Line Benefits of DEI Organizational Culture

More leaders across all business domains are talking about diversity, equity and inclusion (DEI). That’s good. Organizations are increasingly taking tangible actions to cultivate genuinely diverse, equitable and inclusive workplace cultures. These actions have quantifiable links to performance benefits. That’s even better, especially when it comes to the technology profession and industry.

As I mentioned in a recent Tax Matters podcast, when women and specifically women of color are present in leadership ranks, often are the “only one” in the room. This is the case in information technology (IT) departments as well in many C-suite offices throughout the tech industry. So, it’s encouraging to see a technology-focused publications like CIO delve into DEI matters. 

A recent CIO column by Moira Alexander describes the direct relationship between diversity practices and employee engagement. “If employees feel valued and included, they are far more likely to become engaged and remain so,” writes Alexander. “When employees are engaged in workplace activities, they are typically more motivated and do their best work. This is often reflected in their individual and team performance. Typically, companies that can achieve higher employee engagement see 20% higher productivity than the competition, and higher productivity increases team and company performance overall.”

The author of “LEAD or LAG: Strategic Project Management & Thought Leadership,” Alexander has witnessed how DEI strengthens strategic decision-making. “On the surface, it may seem that a team that thinks alike is the best way to make decisions,” she notes. “This is no longer the case: Diversity and inclusion matter. It’s estimated that diverse and inclusive companies are 60% more likely to outperform their peers where decision-making is concerned.”

The CIO article contains several other eye-opening metrics – hard numbers related to the performance of teams, turnover, recruiting and more – that underscore the link between DEI enhancements and bottom-line improvements. 
 
These types of quantifications are surprising and motivating, especially for leaders (including me) in IT groups and throughout the technology industry. As we evaluate DEI investments, this type of research can help us make decisions that ultimately determine whether our companies lead or lag.