The management of diversity risksthe use of inclusion indicatorsthe construction of a inclusive culture consistent and measuring the ROI of belonging are not isolated themes. They form a whole that drives the growth and sustainability of any business.
You, the HR analyst or manager, play a fundamental and strategic role in execution e development of these initiatives. By adopting this perspective, you protect the company from significant risks and also position it for financial and reputational success.
Diversity risks in practical cases
Organizations need to integrate DEI into strategic planning as a guideline for areas, in order to guide and measure actions during the year, with a focus on development and implementation. Companies that disregard inclusion are exposed to a series of risks that can directly impact their results. We're talking about
- Reputational risks: Cases of discrimination, lack of representation or unsafe environments for people from minority groups can lead to devastating image crises. Remember the case of Dolce & Gabbana, which faced a massive boycott in China in 2018 after positions considered racist and sexist, resulting in millions in losses and damage to its brand at the time.
- Legal and financial risks: Discrimination lawsuits, fines and compensation costs can be extremely high. In October 2024, the automaker Mercedes-Benz of Brazil was ordered to pay R$ 40 million in a collective moral damage lawsuit for discriminating against and morally harassing injured workers at the company's factory in Campinas (SP). The decision was made by the Regional Labor Court of the 15th Region (TRT-15) and can be appealed to the Superior Labor Court (TST).
- Operational risks: The lack of different perspectives can lead to wrong decisions, products or services that don't suit different people's profiles and a loss of innovative capacity. A homogeneous team tends to think in a homogeneous way, missing out on the exchange of ideas that the diversity of backgrounds and origins provides.
- Risks of retaining and attracting talent: In an increasingly competitive market, diverse talents are looking for companies with inclusive cultures, which promote belonging e psychological safety in everyday working life. The absence of this can drive away the best professionals and increase turnover, i.e. employees coming and going. A Bain research found that employees who feel less included are eight times more likely to look for another job and are 17 times more likely not to recommend the company they work for.
A application policies and practices, for example, is a good practice that structures the organization against significant losses. For you, in the HR area, understanding and mitigating these risks is a strategic delivery that protects the company and demonstrates the commitment of its area to the culture e business results.
Inclusion indicators to measure before acting
How do you know if your DEI initiatives are really working? With inclusion indicators. They are your guide for mapping the current scenario and guiding the tactical plan HR. We need to move forward, intentionally and consistently, and measure, for example:
- Representativeness at all levels: How many women, black people, LGBTQIA+, people with disabilities are in leadership positions, not just at the bottom? What are the career development processes like?
- Promotion and retention rate by demographic group: There are unconscious biases in promotion processes? Are certain groups more likely to leave the company?
- Perception of inclusion: Climate and engagement surveys can reveal whether employees feel valued and respected, with an impact on the business.
- Accessibility: Is your company truly accessible to different profiles of people? This includes physical and digital structure, such as software, processes and communication, and directly influences their delivery.
A practical example: If your indicators show a low representation of women in senior leadership, you can, on the basis of this data, propose and execute a gender-focused talent pipeline. The focus is on a robust action plan, based on data.
Consistent inclusive culture at the heart of HR delivery
One consistent inclusive culture is the basis for the relationship with customers and all their value chain. It is a routine practice in the organization that connects values with the development of people and products. It involves:
- Engaged value chain: Management needs to practice inclusive conduct and involve suppliers and others stakeholders. When the network demonstrates commitment and identifies the influence on deliveries, the impact is transparent to the entire organization.
- Well-defined policies and processes: From recruitment and selection (removing bias) to performance evaluation and dismissal, all processes should be designed and guided by inclusion indicators.
- Open and secure communication: Creating an environment where everyone feels safe to express themselves contributes to IED risk management e innovation of inclusive culture and belonging programs.
Your implementation inclusive culture translates into ROI of belonging and tangible results evaluated by DEI metrics. According to an analysis by Fast CompanyAccording to the report, "companies that fail to invest in DEI policies run the risk of losing customer loyalty, seeing their market share fall and facing distrust. The fall in Target's shares and the decrease in the flow of customers into its stores following the drop in these shares show that the impact is real, and costly." It's your application strategy that can promote the value of effective inclusion.
Ownership ROI for value execution
Now we come to the key point for you, the HR professional: the ROI of Belonging. How can you turn all these initiatives into measurable financial results for your company? And how can you demonstrate this to the board and solidify your strategic role?
The ROI of Belonging is not just an estimate, it can be calculated and presented in a concrete way:
- Improved decision-making: Diverse teams consider a wider range of perspectives and tend to make more assertive and effective decisions, reducing the risks and costs of errors.
- Attracting and retaining top talent: An inclusive environment attracts and retains better talent with diverse backgrounds. This means lower recruitment and selection costs and lower turnover.
- Increased customer satisfaction: Diverse teams are better able to understand and meet the needs of a customer base with different demands, which leads to greater customer satisfaction and, consequently, more sales and brand loyalty.
For you in HR, the demonstration The ROI of Belonging is the definitive argument for justifying investments and leveraging your sector. By quantifying the financial impact of inclusionWhether it's reducing turnover costs, increasing revenue through innovation or improving brand image, you're elevating HR to a truly strategic level. A delivery generates direct value for the business.
Strategic HR in the development of the journey
Invest in diversity risk management, in the use of inclusion indicators, measure your results and communicate your impact. The impact you generate can be an engine of profitability and innovation for your organization.
Ready to turn inclusion into your strategic asset?
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