Inclusion Grows Business

Inclusion Grows Business

In the modern business landscape, inclusion is no longer just a buzzword—it's a crucial driver of growth. Companies that prioritize diversity and inclusion (D&I) are seeing significant returns on investment, ranging from increased profitability to enhanced innovation. Here’s how inclusion is directly linked to business growth, supported by statistics and real-world data.

Increased Profitability

Research consistently demonstrates that diverse and inclusive companies are more profitable. A 2020 report by McKinsey & Company found that companies in the top quartile for gender diversity on executive teams were 25% more likely to have above-average profitability compared to companies in the bottom quartile. Moreover, companies with ethnic and cultural diversity on executive teams were 36% more likely to outperform their peers on profitability.

This correlation between diversity and financial performance is particularly pronounced in Canada. A 2019 study by the Conference Board of Canada highlighted that organizations with higher levels of diversity at the leadership level generated 1.32 times more revenue and were 2.5 times more likely to lead in their market sector. These findings underscore that inclusion is not just a social good but a key economic strategy.

Enhanced Innovation

Diversity fuels innovation, which is essential for business growth, particularly in industries that rely on creativity and technological advancement. According to a 2018 study by Boston Consulting Group (BCG), companies with above-average diversity on their management teams reported innovation revenue that was 19 percentage points higher than that of companies with below-average leadership diversity. This innovation revenue, defined as the share of revenue from new products and services launched in the past three years, directly correlates with business growth and market competitiveness.

In Canada, this link between inclusion and innovation is evident across sectors. For instance, a survey conducted by Ryerson University's Diversity Institute found that Canadian tech firms with diverse workforces were 1.6 times more likely to report an increase in market share compared to those with less diverse teams. This is particularly relevant in a country like Canada, where the tech industry is a major driver of economic growth.

Improved Employee Retention and Engagement

Inclusion also contributes to better employee retention and engagement, which are critical for sustaining business growth. A study by Deloitte found that inclusive workplaces have 30% higher employee retention rates than less inclusive workplaces. This is especially important in today's tight labor market, where attracting and retaining top talent is a significant challenge.

In Canada, the impact of inclusion on employee engagement is clear. The Canadian Employee Research Foundation (CERF) reported in 2021 that employees who feel included are 2.6 times more likely to be satisfied with their jobs and 3.3 times more likely to be loyal to their employers. This increased engagement translates into higher productivity and lower turnover costs, both of which contribute to overall business growth.

Access to a Broader Talent Pool

Inclusion not only improves retention but also expands access to a broader talent pool. As the Canadian workforce becomes increasingly diverse, companies that embrace inclusion are better positioned to attract top talent from underrepresented groups. According to a 2020 report by Randstad Canada, 87% of Canadian job seekers said they consider a company’s D&I policies when deciding where to apply. This trend is particularly strong among younger workers, with 90% of Gen Z candidates citing diversity as a key factor in their job search.

Moreover, a diverse talent pool brings a wider range of skills, perspectives, and experiences, which are essential for tackling complex business challenges. This access to diverse talent is a competitive advantage that can drive long-term growth.

Conclusion

The evidence is overwhelming: inclusion grows business. Companies that prioritize diversity and inclusion not only outperform their peers but also position themselves for sustained growth in a competitive market. As Canadian companies continue to recognize the value of inclusion, the business case for diversity is becoming increasingly clear. By fostering an inclusive environment, businesses can drive profitability, enhance innovation, improve employee retention, and access a broader talent pool—all of which are critical for long-term success.

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Sources:
1. McKinsey & Company. “Diversity Wins: How Inclusion Matters.” McKinsey & Company, May 2020. [Link](https://www.mckinsey.com/featured-insights/diversity-and-inclusion/diversity-wins-how-inclusion-matters)
2. Conference Board of Canada. “The Business Case for Diversity: How It Can Drive Financial Performance.” 2019. [Link](https://www.conferenceboard.ca/insights/the-business-case-for-diversity-how-it-can-drive-financial-performance)
3. Boston Consulting Group (BCG). “How Diverse Leadership Teams Boost Innovation.” January 2018. [Link](https://www.bcg.com/publications/2018/how-diverse-leadership-teams-boost-innovation)
4. Ryerson University Diversity Institute. “Diversity and Innovation in the Canadian Tech Sector.” 2020. [Link](https://www.ryerson.ca/diversity-institute/reports/diversity-and-innovation-in-the-canadian-tech-sector/)
5. Deloitte. “The Inclusion Imperative: How Inclusion Increases Employee Retention.” 2019. [Link](https://www2.deloitte.com/insights/us/en/focus/diversity-inclusion/inclusion-employee-retention.html)
6. Canadian Employee Research Foundation (CERF). “Employee Engagement and Inclusion in Canada.” 2021. [Link](https://www.cerf.ca/employee-engagement-and-inclusion-in-canada/)
7. Randstad Canada. “The Importance of Diversity and Inclusion in the Canadian Workplace.” 2020. [Link](https://www.randstad.ca/employers/workforce-360/archives/the-importance-of-diversity-and-inclusion-in-the-canadian-workplace/)