Balancing Equity and Diversity for a More Successful Workplace

Many companies are under the impression that as long as they have diversity in the workplace, there’s no need to offer equity to their employees. However, this misconception is causing many companies to lose out on some of their most valuable and hardworking employees. So what exactly does equity mean in the business world? And how can your company benefit from it? In this post, we’ll discuss why it’s so important to balance diversity and equity, whether or not you’re looking to attract new talent or retain the current employees you already have.

What are they?

Knowing who to hire is important, but knowing why you’re hiring them is even more essential. While some candidates will have stellar credentials and experience, others may only appear slightly less qualified than those ahead of them on your list—but they could actually be more beneficial to your team once they start working at your company. If you are currently looking to fill an open position, take some time to learn about equity versus diversity, because each one can create more success in a workplace setting.

They are not mutually exclusive

work to create an inclusive environment where employees of different ethnicities, genders, sexual orientation etc are working together. But don’t make it just about their differences—emphasize how their unique perspectives can help drive your business forward. Without both diversity and equity, you won’t be able to hire top talent or enjoy strong productivity. Investors want to see companies where everyone is respected for who they are.m That will have a positive impact on your bottom line. It takes more than tokens: In other words, if you put one woman on stage because she looks like all your other speakers—don’t do that. If you simply diversify by putting people in roles with titles but no real opportunity for growth and influence within your organization, why bother? And lastly, if diversity isn’t a core value of every single employee at every level in every office around the world, then what good does it do?

A good balance leads to more opportunities
This doesn’t just mean that you will have more potential customers—it also means you’ll have more potential employees. Balance in diversity can increase your business appeal, which will attract more customers as well as foster growth within your company by creating a stronger workforce. If they don’t feel like they fit in with other employees, diverse groups of workers are more likely to leave their jobs, decreasing productivity and driving up costs due to constant replacement.

There’s no such thing as too much diversity or equity

As companies continue to tackle diversity, they often feel like they’re taking one step forward while simultaneously sliding two steps back. If you’re seeking out talent, make sure you’re focusing on more than just race or gender—the key is leveraging diversity, equity, and inclusion as a way to promote unity in your workplace. The best way to do that? Make sure every employee has his or her own unique role within an organization; in turn, those individuals can act as ambassadors who help foster cooperation between different groups of people. Plus, when everyone feels like they have a voice within an organization, it increases employee engagement and productivity.

Having Too Much Doesn’t Mean You Have Enough

As it turns out, both too much equity and too little can have negative effects on your organization. An employee with too much equity might feel unappreciated by his/her company, leading them to seek employment elsewhere. An employee with too little equity could feel like he/she isn’t respected or appreciated by coworkers, and as a result will be less inclined to put in extra work on your projects. It’s important to find that sweet spot between over-valuing workers (and thereby under-valuing them) and under-valuing employees (which could make them seek their worth elsewhere). Striking that balance may mean getting feedback from employees who are already happy at your company—and would likely stay even if you made some changes to your equity policy.

The Importance of Ownership

Research suggests that when employees feel like owners, they take ownership of their jobs, make more money, stay with their companies longer and are more likely to boost overall productivity. So how do you make them feel like owners? The first thing is that you have to be committed to ensuring your team has a stake in your organization’s success—and that commitment starts from top down. Take stock of your resources: If you don’t have cash or equity to distribute, there are other ways to encourage ownership among your employees. Building company culture is another great way to get employees invested in company success; it’ll also help attract top talent in the long run.

What You Do Matters Just As Much As Who You Are

In their quest to diversify their workforce, many companies have settled on using diversity as their primary hiring criteria. We think that while diversity is certainly important, it’s only half of what you need to create an effective work environment—equity is just as critical. The best workplaces are those in which each employee feels valued and rewarded based on his or her individual contributions—not simply those of like race or gender. To learn more about how your company can promote equity in addition to diversity, contact us today.

How do you create an inclusive culture?

The best way to create an inclusive culture is to make sure everyone understands why it’s important. There’s no one-size-fits-all approach, but you can start by promoting your company’s mission statement, if you have one. This can help new hires better understand your goals and values. The next step is building trust: Showing people that they matter helps them to better relate to their colleagues on a human level. After all, finding common ground makes people more likely to work together in harmony. Next up is listening to feedback—an easy task that could bring big changes down the road. When employees feel heard and understood, they’re more likely to share even more of themselves with their colleagues and team leaders. Last (but not least) there are benefits from actually celebrating diversity—beyond making your workplace look great in photos! If done right, you may notice retention rates go up as employees feel like they belong at work. Now that everyone feels valued (even though we know differences will never go away), your team will be ready to attack challenges together instead of against each other.