A Successful Company is One Which Implements DEI Not Only as a Moral Obligation but also as a Business Imperative

The global market for Diversity and Inclusion (D&I) estimated at US$7.5 Billion in the year 2020, is projected to reach a revised size of US$15.4 Billion by 2026, growing at a CAGR of 12.6% over the analysis period. Employee Resource Groups (ERGs), one of the segments analyzed in the report, is projected to grow at a 12.1% CAGR to reach US$5 Billion by the end of the analysis period. Employee Resource Groups (ERG) are employer-recognized workplace groups voluntarily led by employees. ERGs, also known as affinity groups, business resource groups or employee/team member networks, are popular in many big companies today. These groups offer a unique, employee-driven way to achieve a cohesive work environment. Growth in the External Partnerships segment is readjusted to a revised 11.5% CAGR for the next 7-year period. The market in the U.S. is estimated at US$3.8 Billion in the year 2021. The country currently accounts for a 45.5% share in the global market. China, the world`s second largest economy, is forecast to reach an estimated market size of US$1.8 Billion in the year 2026 trailing a CAGR of 11.4% through the analysis period. Among the other noteworthy geographic markets are Canada and Europe, each forecast to grow at 9.7% and 12.4% respectively over the analysis period.

We live in an increasingly complex and interconnected world where shaped by globalization and technological advancements diversity has become the fabric of modern society. Companies eager to establish a strong presence in a variety of emerging new markets have initiated the global gold rush for multicultural markets, diverse employees, and untapped consumer bases. Success in global markets requires multicultural initiatives and a sustained effort to integrate distinct demographic and cultural diversity into an inclusive environment that fits into the broader vision of the company`s growth and advancement. This is opening up rich opportunities for companies to spearhead growth by leveraging their access to a diverse talent pool. While global diversity of the labor force is good and beneficial for companies to enhance creativity and drive innovation, the same also challenges long held traditional business ideas and assumptions. Companies are being forced to effect major structural reorganizations spanning all key areas of business operations, marketing, talent recruitment and retention functions.

Even from a business standpoint, the case for diversity in workplace is overwhelming given its ability to foster innovation, creativity and empathy in ways that homogeneous environments can never do. As markets evolve to become more competitive than ever before and the business environment gets tougher amid the crisis, companies need to remain alert, aware, agile and responsive to remain afloat, profitable and successful. To be successful in a world that is constantly changing, companies need to be leading the change rather than responding to it. Companies with more diverse teams and inclusive are better able to lead change than those with a more homogeneous workforce. A strong organizational culture and robust structural foundation are critical for achieving agility that comes from internal strength. Diverse companies earn 2.5 times higher cash flow per employee and inclusive teams are productive by over 35%. High-diversity environments and all-inclusive culture has clear benefits and advantages.

Yet, global DEI initiatives are particularly challenging to successfully implement and measure. Achieving real equality and inclusion is a challenging task and over 65% of employees are of the opinion that their managers do not foster an inclusive environment. Achieving greater diversity in the workplace is relatively easier as it represents the mix or the make-up of an entity. However, the inclusion piece of the puzzle is more complex and ensuring the same is immensely tough as it involves integration of the contributions, presence and perspectives of different groups of people into the environment. Inclusion is all about making the mix work together as a cohesive whole by respecting, welcoming and valuing the diversity of every individual`s unique background, experiences, race, ethnicity, sexual orientation, gender identity, faith, tradition, and most importantly perspectives. An inclusive culture allows for collaborative daily learnings, full freedom to decide and experiment, provides excellent mobility across the organization, and encourages long term thinking. Diversity without inclusion can create a toxic culture and similarly inclusion without diversity can create an uncreative and infertile environment where a company can stagnant.