2 June 2025

Diversity Pays: The ROI of Inclusion

Diversity Pays: The ROI of Inclusion

Let’s get real. Diversity, equity and inclusion (DEI) isn’t just about good intentions. It’s about smart business. Companies that embrace DEI aren’t just creating fairer workplaces, they’re outperforming competitors, tapping into new markets, and building stronger, more resilient teams. In other words, DEI isn’t a “nice-to-have,” it’s a proven driver of business success.

So if you’re still thinking DEI is only HR’s responsibility or a line in the annual report, it might be time for a mindset shift.

Here’s how DEI can directly benefit your business’s bottom line.


Attracting (and Keeping) the Right Talent

Today’s top talent isn’t just looking for a pay check, they’re choosing employers who align with their values. In fact, 76% of job seekers say a diverse workforce is an important factor when evaluating job opportunities (Glassdoor). And they’re not wrong to prioritise it. Diverse teams are linked to better culture, innovation, and performance.

An inclusive workplace also reduces turnover. When people feel a sense of belonging, they’re more likely to stay. Companies that prioritise inclusion see up to 22% lower turnover (Deloitte), meaning fewer hiring headaches and lower recruitment costs. In a tight talent market, that’s a serious competitive edge.


Boosting Innovation and Smarter Decision-Making

Ever noticed how echo chambers kill creativity? Diverse teams challenge each other’s thinking, and that’s a good thing. Research from Boston Consulting Group found that companies with above-average diversity on management teams generated 19% more innovation revenue, that’s the money made from new products, services, and ideas.

Diversity also improves decision-making. A Cloverpop study revealed that inclusive teams make better business decisions up to 87% of the time, and they do it 60% faster. Why? Because when more perspectives are brought to the table, problems get solved more creatively and with fewer blind spots.


Understanding Customers, Growing Markets

Your customers aren’t one-dimensional, so why would your team be? Businesses with diverse leadership are 70% more likely to capture new markets (Harvard Business Review) because they’re better equipped to understand different customer needs and cultural nuances.

Representation also builds trust. Consumers are increasingly loyal to brands that reflect their values, show real inclusion, and walk the talk. If you want to reach new audiences and keep the ones you’ve got, investing in DEI is a direct route to stronger brand perception and higher customer loyalty.


Minimising Risk and Strengthening Culture

Ignoring DEI comes with risks: legal, reputational, and cultural. Discrimination claims, toxic workplaces, and bad PR can all hit your business where it hurts. Proactively embedding DEI into your operations helps safeguard against these risks.

It also sends a strong signal to your staff, stakeholders and the market that your business is ethical, progressive, and aligned with evolving societal expectations. That reputation? Priceless.


The Big One: Profitability

Let’s talk numbers. Companies in the top quartile for gender diversity are 25% more likely to outperform on profitability, while those with ethnic and cultural diversity outperform by 36% (McKinsey, 2020).

And Deloitte reports that inclusive companies are 8x more likely to achieve better business outcomes, with higher employee engagement, customer satisfaction and long-term profitability.

DEI doesn’t just make your workplace better, it makes your business stronger, smarter and more successful.


The Takeaway

DEI isn’t a cost. It’s an investment that pays off in innovation, performance, talent retention, and bottom-line growth. Businesses that lead with inclusion are better equipped to navigate change, drive strategy, and deliver real impact.

So the next time someone asks if DEI is worth it, the answer is clear: absolutely.


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