Equity, diversity and inclusion (EDI) is fast becoming an area of focus for organisations worldwide, with many employers striving to create inclusive workplaces for every individual in their workforce.
Yet, in the CIPD’s research into Inclusion at Work, it found that less than half of employers had an EDI strategy or action plan in place. So, how can employers authentically and proactively drive equity, diversity and inclusion in their organisation?
In this guide, we look at:
- What is EDI?
- Why do we need Equity Diversity and Inclusion in the workplace?
- How does EDI impact organisations?
- What to consider when creating an EDI strategy
- How to implement an EDI strategy
- How to embed and sustain Equity Diversity and Inclusion in the workplace
What is EDI?
EDI stands for ‘equity, diversity and inclusion’, sometimes referred to as ‘equality, diversity and inclusion’. In the workplace, EDI doesn’t just refer to the legal obligations an organisation must adhere to in order to be compliant with legislation, but also encompasses the ethical and moral standards employers should strive for. Promoting equity, diversity and inclusion in the workplace brings huge benefits to an organisation including increased innovation, profitability and engagement to name just a few.
Here is how EDI is defined:
Equity:
Although the ‘E’ is sometimes used for equality, meaning that everyone should be treated equally, equity goes a step further. As employees may need different types or levels of support, it’s not enough to simply treat everyone in the same way. For example, an employee with a disability may need different support to another colleague so it’s important that the difference is acknowledged.
Diversity:
This relates to the composition of the workforce. The Equality Act 2010 outlines which characteristics are protected by law, meaning it is illegal to discriminate against someone because of certain characteristics including: sex, age, gender, sexual orientation, race and belief. The proportion of individuals with these different backgrounds determines how diverse your workforce is. Diversity can also refer to someone’s life experiences, such as whether they went to university.
Inclusion:
This is how we treat people in the workplace. It refers to making sure everyone is supported, welcomed and has access to the same opportunities. Every individual, regardless of their background, should be treated with respect and feel safe in the work environment.
Why is Diversity, Equity and Inclusion important?
EDI is a legal requirement; to ensure compliance with the Equality Act 2010, organisations must be able to demonstrate they are acting correctly in this area. If care isn’t taken, an organisation could end up at tribunal in connection with a discrimination claim so it’s very important that employers understand their responsibilities.
But ultimately, having equity, diversity and inclusion in the workplace is the right thing to do and this should be the main driver for any organisation promoting it.
How does EDI impact the workplace?
Implementing an effective EDI strategy in the workplace goes beyond a box ticking exercise. When EDI is actively promoted and embraced, it can bring about numerous significant benefits to the organisation. Let’s explore some key areas in which EDI can have a positive impact:
Engagement
EDI in the workplace creates a sense of belonging among employees. When individuals from diverse backgrounds feel valued and respected, they are more likely to be engaged. By creating an environment in which everyone’s voice is heard and considered, organisations can tap into a wealth of diverse perspectives, leading to increased collaboration, productivity, and overall employee satisfaction.
Recruitment and retention
A strong EDI focus can enhance an organisation’s ability to attract top talent from diverse backgrounds. A Glassdoor study found that 67% of jobseekers prioritised workplace diversity when considering employment opportunities.
People are naturally drawn to companies that demonstrate a commitment to creating an inclusive and equitable workplace. By actively promoting diversity and providing equal opportunities, organisations can widen their talent pool, improve their employer brand, and ultimately increase their chances of retaining skilled employees in the long run.
Discover how we helped Compass Box Whisky create a diverse workforce.
Wellbeing
EDI initiatives contribute to the overall wellbeing of employees. When individuals are allowed to bring their authentic selves to work, without fear of discrimination or bias, it creates a supportive environment that promotes mental health and overall wellbeing.
Organisations that prioritise employee wellbeing through EDI initiatives experience reduced absenteeism, increased morale, and a positive work culture.
Innovation
Diversity of thought is a powerful driver of innovation. When people with different backgrounds, experiences, and perspectives come together, they bring unique ideas and insights to the table. EDI encourages diverse teams to collaborate, challenge assumptions, and think outside the box. This diversity can fuel creativity and innovation, enabling organisations to find unique solutions, anticipate market trends, and stay ahead in a rapidly changing business landscape.
Performance
EDI has a direct impact on organisational performance. Research by Deloitte found that EDI can raise employee performance by 17%. Studies have shown that diverse teams outperform homogeneous teams in terms of decision-making, problem-solving, and overall business outcomes. Organisations can leverage the varied skill sets and perspectives of their employees, leading to improved decision-making processes and better outcomes.
Profit
It’s not just a moral obligation; EDI also makes good business sense. Companies that have EDI strategies in place tend to outperform their competitors financially – research shows that these organisations are 120% more likely to achieve their financial goals.
A diverse workforce also enables organisations to better understand and cater to a broader customer base, resulting in increased customer satisfaction, loyalty and, ultimately, profitability. Added to this, diverse teams are more adept at identifying and capitalising on emerging market opportunities, giving organisations a competitive edge.
What to consider when creating an EDI strategy
First, think about the challenges in your organisation. Ask yourself – what do I want to change? The answer to this question will be unique to each business and will help shape your strategy. Here are some crucial areas to consider when creating your EDI strategy:
Recruitment
One of the fundamental aspects of EDI is ensuring a fair and inclusive recruitment process. Therefore, you should:
- Examine your current recruitment practices and look out for areas where biases may exist.
- Consider bringing in measures such as using inclusive language in job postings and adverts to attract a diverse pool of candidates.
- Review your screening and selection methods to eliminate any unconscious biases and ensure fair evaluation of applicants’ qualifications and potential.
Employee lifecycle
Equity diversity and inclusion should be embedded throughout the entire employee lifecycle, from onboarding to offboarding, using these steps:
- Evaluate each stage and identify opportunities for improvement.
- Provide comprehensive and inclusive induction and onboarding programmes to make sure all new employees feel welcomed and supported.
- Develop initiatives for continuous learning and development that cater to the diverse needs of your workforce.
- Consider implementing mentoring or coaching initiatives to foster inclusivity and support career advancement for underrepresented people.
Policies and procedures
Create a suite of policies that clearly address EDI principles and promote a culture of inclusivity. These policies should cover areas such as equal opportunity, discrimination, accommodation for disabilities, and support for neurodiversity. Employers should:
- Review and update existing policies to ensure they align with EDI goals and practices.
- Incorporate measures to support employee wellbeing, recognising that diverse individuals may have unique needs here.
- Regularly communicate these policies to employees and provide resources for understanding and implementation.
Leadership
It’s essential for leaders to have strong commitment and accountability for EDI initiatives. This includes:
- Encouraging diversity within the executive team and board of directors to bring varied perspectives, as well as developing inclusive leadership competencies and behaviours.
- Looking at the composition of your organisation’s leadership team to make sure it reflects the diverse backgrounds and experiences of your workforce and stakeholders.
Wellbeing
Make employee wellbeing a key part of your EDI strategy by:
- Reviewing your existing offerings that support the unique mental health and wellness needs of diverse individuals. This could include providing access to support networks, mental health resources, and employee assistance programmes.
- Regularly assess the effectiveness of wellbeing initiatives.
Supplier diversity
Although external suppliers don’t have an impact on your internal EDI metrics, who you interact and do business with is an important aspect of promoting EDI. So, what might this look like? Striving for supplier diversity involves actively engaging with and supporting businesses owned by underrepresented groups.
By incorporating supplier diversity into procurement processes, organisations can create opportunities for historically disadvantaged suppliers to thrive and contribute to economic equity. Evaluating supplier diversity policies and inclusion criteria is crucial to ensuring a diverse and inclusive supply chain. Collaborating with diverse business partners not only aligns with EDI values but also fosters innovation, drives economic growth, and strengthens relationships with external stakeholders.
Pay and benefits
Promoting a diverse and inclusive workplace includes ensuring fairness and equality in compensation. Therefore, organisations should:
- Regularly analyse their compensation practices to identify and address any minority or gender pay gaps.
- Evaluate benefits packages for inclusivity and tailor them to meet diverse employee needs.
In addition to gender pay gap reporting, we are also likely to see ethnicity pay gap reporting become mandatory under a Labour Government.
How to implement an EDI strategy
Rolling out an effective EDI strategy requires careful planning and execution. Here are some essential steps to consider:
1. Authenticity of initiatives
It’s important to be genuine when implementing EDI initiatives. Authenticity involves aligning your actions with your organisation’s values and purpose and ensuring that your efforts are not superficial or driven by a desire to appear inclusive. Have sincere conversations and reflection to understand the specific needs and challenges within your organisation as this will enable you to develop initiatives that address those needs in a meaningful and impactful way.
2. Accountability
Assign clear accountability for the implementation of your EDI strategy to ensure success by:
- Identifying individuals or teams – a dedicated EDI officer or committee, HR professionals, or other relevant stakeholders – responsible for driving the initiatives forward.
- Communicating the importance of EDI to all employees and emphasising their individual responsibilities in creating an inclusive environment.
- Encouraging employees to report any incidents of bias or offensive behaviour and establishing processes to address such concerns promptly and appropriately.
3. Employee resource groups (ERGs)/working groups
These groups can play a vital role in embedding the EDI strategy within your organisation as they provide platforms for employees to come together based on shared characteristics or interests, fostering a sense of community and support.
ERGs can help identify specific challenges faced by different employee groups and propose solutions or initiatives to address them. Empower ERGs to provide feedback, contribute to decision-making processes, and actively participate in the implementation of the EDI strategy.
4. Training and development
Putting EDI training and development programmes in place is crucial to building awareness, understanding, and skills in this area. Take these steps:
- Design training sessions for all employees to address topics such as unconscious bias, cultural awareness, inclusive communication, and respectful workplace behaviour.
- Provide specialised training for managers and leaders to equip them with the knowledge and skills to create inclusive teams and address diversity-related challenges.
- Consider incorporating ongoing refresher training to ensure continued learning and growth in this area.
- Make resources available, such as online learning platforms or reading materials, to support employees’ personal development and deepen their understanding of EDI concepts.
- Regularly assess the impact and effectiveness of training initiatives through feedback surveys and evaluations, and make necessary adjustments based on the feedback received.
How to embed and sustain Equity Diversity and Inclusion in the workplace
Doing this successfully requires ongoing effort and commitment. Here are key strategies to ensure EDI becomes an integral part of your organisational culture:
Measure, monitor and evaluate
Assessing the effectiveness of your EDI initiatives is important. Measure, monitor, and evaluate key metrics by:
- Identifying relevant metrics that align with your organisation’s goals, such as candidate and employee demographic data, turnover rates, and employee relations case statistics.
- Collecting this data through your people operations technology or other tracking mechanisms.
- Regularly reviewing and analysing these metrics to identify trends, areas of improvement, and successes.
This data-driven approach enables you to make informed decisions, track progress, and adjust strategies accordingly.
Develop clear targets
To provide direction and focus, set clear targets for your EDI initiatives. It’s also important to understand that goals are continuous and not quick wins. Develop specific, measurable, achievable, relevant, and time-bound (SMART) targets that align with your organisation’s values and goals. For example, aim to increase the representation of underrepresented groups in leadership positions by a certain percentage over a defined timeframe, then regularly review and update these targets to reflect evolving organisational needs and industry best practices.
Continuous learning and communication
EDI is a never-ending initiative that constantly evolves, so it’s vital to encourage a culture of continuous learning and growth by providing opportunities for education and skills development in EDI-related topics. These could include:
- Offering workshops, webinars, and seminars to increase awareness and understanding among employees at all levels.
- Promoting open dialogue and encouraging employees to share their experiences, perspectives, and insights related to EDI.
- Regularly communicating updates, progress, and challenges regarding EDI initiatives through various channels, such as company-wide meetings, newsletters, and internal communications platforms.
- Creating a transparent and inclusive communication strategy to promote engagement and show commitment to long-term EDI goals.
- Actively seeking feedback from employees and stakeholders to gain insights into the effectiveness and impact of your EDI initiatives.
- Conducting surveys, focus groups, or individual conversations to understand their experiences and gather suggestions for improvement. Incorporate this feedback into decision-making processes to enhance the relevance and effectiveness of your EDI strategy.
FAQs about EDI in the workplace
Why should my organisation prioritise EDI initiatives?
There are numerous benefits to implementing EDI initiatives in the workplace. Firstly, it creates a more inclusive and equitable work environment, which enhances employee engagement, collaboration, and productivity. A diverse workforce brings a variety of perspectives, ideas, and experiences, leading to increased innovation and problem-solving capabilities. On top of that, embracing EDI helps attract and retain top talent, improves your employer brand, and positions your organisation as a socially responsible and forward-thinking employer.
How can we ensure that our recruitment process promotes EDI?
Start by evaluating your job postings and adverts. Use inclusive language that appeals to a diverse pool of candidates and avoids gender, racial, or other biases and review your screening and selection methods to eliminate unconscious biases and ensure fair evaluation of applicants. Consider implementing CV reviews where all personally identifiable information is removed, so you are just focussing on knowledge and experience. Additionally, develop partnerships with diverse organisations or networks to expand your candidate pool and ensure a more inclusive recruitment process.
What role does leadership play in driving EDI initiatives?
Leadership commitment is crucial for the success of EDI initiatives and leaders need to set the tone from the top and actively champion EDI efforts. They should demonstrate their commitment through actions, such as promoting inclusive behaviours, holding themselves and others accountable for creating an inclusive culture, and allocating resources to support EDI initiatives. Leading by example and actively involving employees in EDI discussions and decision-making will help leaders to create a workplace where diversity is valued, and everyone feels included.
How can we create an inclusive work environment where employees feel safe to report offensive behaviour or biases?
Creating a culture of openness and safety is essential for employees to feel comfortable reporting offensive behaviour or biases. Start by establishing clear reporting channels and policies and communicate these policies regularly, ensuring employees are aware of the procedures for reporting concerns. Then train managers and employees on unconscious bias, cultural competence, and respectful workplace behaviour to enhance awareness and understanding.
How can we address resistance or pushback from employees who may not understand the importance of EDI?
This requires clear communication, education and transparency. Use these steps:
- Begin by sharing the business case for EDI, emphasising the benefits it brings to individuals, teams, and the organisation as a whole.
- Provide training sessions or workshops that help employees understand the value of diversity, the impact of bias, and the importance of creating an inclusive work environment.
- Encourage open dialogue and actively listen to concerns or questions.
- Highlight real-life examples and success stories from other organisations to demonstrate the positive outcomes of embracing EDI.
Over time, as employees see the positive impact and experience the benefits of an inclusive workplace, their resistance is likely to decline and, ultimately, cease.
How can we ensure that our performance review processes are fair and unbiased?
There are several ways to ensure fair and unbiased performance evaluations, including:
- Implement standardised review criteria and performance metrics.
- Provide training to managers on how to evaluate performance objectively and avoid biases based on factors such as gender, race, or age.
- Encourage regular check-ins and feedback conversations throughout the year to provide ongoing guidance and support.
- Consider using calibration sessions, where multiple managers come together to review and discuss performance ratings to minimise individual biases.
- Regularly review and analyse performance data to identify any potential disparities or biases and take corrective action as needed.
How we can help
If you are seeking a solution to design or implement an EDI initiative within your organisation, please give us a call on 0330 223 5253, or email office@fitzgeraldhr.co.uk.
Further reading
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