Do you know what "diversity and inclusion DEI" is? DEI is the abbreviation of three English words, namely Diversity, Equity and Inclusion, this article will take you to understand the correct understanding of DEI in detail!
Woman Fan Editor Maggie
Recently, when talking about corporate governance, in addition to concepts such as ESG and CSR, the term DEI has gradually become a value that business operators care about.
In fact, as early as 2021, companies including Google, Unilever, Amazon and other companies have successively introduced the concept of DEI in their organizations and established DEI-related departments. Open Linkedin's job search information, you will also find that foreign companies will specifically mark the company's importance to DEI when describing job vacancies.
Since diversity and inclusion have become a new workplace culture advocated by major enterprises, Taiwanese companies should not lag behind this global trend. This article will take you to see what DEI is? Why do enterprises need to import DEI?
What is DEI?
DEI stands for Diversity, Equity and Inclusion, which stands for Diversity, Equity and Inclusion, and is a code that promotes fair treatment and full participation for all. An organization with DEI values is one that embraces, embraces, supports, and accepts people of all ethnic, gender, religious, and economic backgrounds.
So far, we have only a very comprehensive understanding of what DEI is, now let's understand more deeply what is the so-called diversity, equity and inclusion?
Diversity refers to seeing the diversity of people and further accepting and valuing these diversity and differences, which may include gender, sexual orientation, race, religion, age, physical and mental ability, educational level, economic status, etc.
When there are members of an organization or society with all backgrounds, characteristics, and perspectives, the goal of diversity is to ensure that these members can show up without fear and without any form of discrimination.
Fairness means that everyone should have the opportunity to play to their fullest and give opportunities and resources according to their differences. It follows that equity is not the same as equality.
"Equality" pursues equal treatment and does not give different treatment according to individual differences, that is, we often call equality at the same time; However, "equity" emphasizes the elimination of structural inequality by giving help and resources according to each person's differences, so an organization that conforms to the value of equity is sometimes unequal.
(Guess what you want to see: DEI's 3 myths: "fairness" does not equal "equality", "inclusion" is better than "inclusion")
Inclusion is about creating an environment that accepts and respects everyone and encourages participants to reach their potential.
To achieve inclusion, organizations must break down barriers, promote cooperation and share power, so that everyone can participate in the decision-making process in a state of respect, acceptance, and feel the value and sense of belonging to which they can contribute.
With three interrelated indicators in DEI that are indispensable to each other, let's take a look at why companies need to adopt DEI. And why is DEI critical to the prosperity of organizations and societies?
Why is DEI important? Two great benefits for you
DEI will become a world trend and must have its existence value, but what is the good thing about DEI? What is the value of enterprise DEI adoption? Let's find the answer in some numbers.
According to the LinkedIn LinkedIn Global Talent Trends Report's 2022 global average talent turnover, it will increase by 25% year-to-year, and if the scope is narrowed to the Asia-Pacific region, the figure will increase to 60%. According to the forecast of the National Development Council, we can also see that Taiwan's digital talent gap will reach 1 million by 2030.
This also shows that in the Asia-Pacific region where Taiwan is located, the trend of labor shortage is more urgent than in the world. At the same time, facing the crisis of labor shortage and low birthrate, the introduction of DEI will be the solution for Taiwanese enterprises.
DEI benefit one: attract talent
According to a survey conducted by LinkedIn, 77% of HR experts worldwide believe that diversity and inclusion are the key to successful recruitment of talent in the future. Looking at Taiwan, according to the 2022 Workplace Diversity and Inclusion Survey of Women Fans, 96% of the subjects believe that whether the workplace is diverse and inclusive will be a key decision-making factor in deciding whether to join the company.
The 96% figure is nearly 20% higher than the global figure, but in the same report, we found that only about 20% of participants said their companies had DEI policies.
When high-paying benefits are no longer the only criterion for attracting talent, the introduction of DEI is not only important for companies looking to effectively attract talented talent.
DEI benefit two: Increase company revenue
McKinsey research shows that companies that actively promote DEI can improve their performance by 31% compared to before adoption. In addition, a Deloitte study found that companies with a DEI culture are twice as likely to meet or exceed financial goals. It's not hard to imagine why this is – a workplace that aligns with DEI values leads to more engaged employees, which naturally leads to better job performance and higher output.
In addition, a study by the Technical University of Munich found a positive correlation between diversity and innovation. That is to say, a company with a DEI constitution has different backgrounds joining, each with different perspectives and experiences, stimulating each other's new thinking, bringing innovative solutions to the company, and therefore having a better opportunity to increase the company's revenue from innovative products and services.
DEI is not only a core value required by modern organizations and society, but also a competitive advantage for sustainable development.
After understanding what diversity and inclusion are, it is time for you to pay more conscious attention to the implementation of DEI in life and workplace, and look forward to each of us being able to become ourselves fearlessly in a diverse and inclusive environment!