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The impact of these initiatives is clear. Fostering a more inclusive and equitable environment can have a direct impact on recruiting and retaining top talent. Monster.com found that 62% of job candidates would turn down a job if they didn’t feel the company valued workplace diversity.1
In this vein, many companies are reexamining the work they do to support diverse populations, both among their employees and in the community. Companies looking to foster equity and inclusion should consider starting with a top-down approach—support from senior leadership is essential to alignment of, and commitment to, diversity goals throughout an organization. We have seen some companies encourage leadership to support these initiatives by leveraging diversity objectives in long- and short-term incentive awards. Some notable examples across Ayco’s corporate partners include:
Investors are also pushing boards of directors and senior management to implement holistic approaches for DE&I initiatives. In the continued evolution of ESG investing, the pendulum has swung toward the social and governance aspects in recent years. Investor decisions increasingly are relying on not just how an organization impacts society as a whole, but how inclusive and equitable the organization is as an employer. Read more on ESG investing here.
Company-wide DE&I efforts can help build a reputation for inclusivity, which in turn can serve as an effective tool for attracting and retaining a diverse workforce. This is imperative, especially for millennials, who are projected to make up 75% of the workforce by 2025 and place an increased importance on inclusive company cultures.2
A diverse workforce is made up of individuals with varying abilities, challenges and needs—and those diverse features cannot be effectively addressed using a traditional, one-size-fits-all approach to employer-sponsored benefit offerings. It’s critical for employers to understand the needs of their entire workforce and structure benefit offerings accordingly. Here are some considerations for employers to keep in mind as they evaluate the benefits offered to their workforce.
For more additional information on this topic, read Benefits for the LGBTQ community: What does it mean to be inclusive?
3Willis Towers Watson 2019/2020 Global Benefits Attitudes Survey
4Source – Fidelity 2020
5Department of Education’s Baccalaureate and Beyond 08/12 survey
7Based on data from 200 Ayco corporate partners, as of October 2020
8Educational Assistance Survey, International Foundation of Employee Benefit Plans, Inc., March 2019
9Vanguard, Feb 2018
102020 McKinsey Women in the Workplace study
11National Alliance for Caregiving (NAC) and AARP, Caregiving in the U.S. 2020 (Washington, DC: NAC and Washington, DC: AARP, May 2020).
12Based on data from 200 Ayco corporate partners, as of October 2020
13CDC, National Survey of Family Growth, 2006-2010
15Based on data from 200 Ayco corporate partners, as of October 2020
For disclosures relating to this article, please click here.
By Brandon Ross