Why Diversity in the Workplace is Important and How to Achieve It

Many Singaporean employers recognise the importance of diversity in the workplace. However, according to a 2021 survey conducted by the Singapore National Employers Federation (SNEF) and Kincentric, seven of 10 Singaporean companies have not yet created formal Diversity, Equity, and Inclusion (DEI) policies. Employers cited challenges such as “culture, compliance, and managerial effectiveness.”

Achieving diversity may be challenging, but it is possible with the proper knowledge and political will. The following guide covers the benefits of diversity, how to achieve it, and how to deal with the challenges brought about by creating a more inclusive (and better) workplace.

What is Diversity in the Workplace

People often mix up diversity and equality. Diversity means ensuring that your organisation is composed of people from various backgrounds. On the other hand, equality is when all employees have the same access to opportunities and do not experience discrimination.

These days, diversity advocates prefer to emphasise equity over equality. While equality ensures equal access to resources, equity recognises that peoples’ circumstances may be different – some may need more than others to thrive as well as everyone else.

Lastly, diversity and inclusion go hand in hand. Inclusion involves ensuring that all your employees, especially those from minority groups, feel safe and valued.

Types of Diversity in the Workplace

Concerning diversity, race is often the first thing that comes to mind. However, diversity can also refer to gender, sexual orientation, marital status, age, people with disabilities, education, religion, culture, etc.

Benefits of Diversity and Inclusion

It promotes innovation and creativity.

According to a 2018 study by the Boston Consulting Group, a diverse workforce is more innovative. After all, people from different walks of life can contribute different perspectives and insights. The study also revealed that companies with higher than average diversity also had 9% higher earnings before income and taxes.

It widens your talent pool.

Avoiding discrimination in your job ads allows you to cast a wider net. In addition, diversity has become critical to attracting the best talent. According to JobStreet’s 2021 Decoding Global Talent report, 54% of Singaporean jobseekers would exclude companies that don’t match their beliefs regarding diversity and inclusion from their job search.

It expands your customer base.

A diverse team can better understand the needs of customers of various backgrounds. This allows your organisation to produce better products and services that attract more customers.

Furthermore, publicly committing to DEI improves your company’s brand reputation in the long term. After all, millennials and Gen Z are known for their commitment to social issues. In line with this, a white paper by Microsoft Advertising reveals Gen Z customers show more trust and loyalty toward brands that are authentically committed to DEI.

It creates a healthy company culture.

When a company prioritises DEI, this benefits employees because they have equal opportunities for training and advancement. They also feel safe expressing themselves, whether it’s contributing new ideas at work, communicating their needs, or simply living out their religious and cultural beliefs. Working in this kind of environment helps employees to become fully engaged and equipped to deliver their best work.

How to Promote Diversity in the Workplace

Get buy-in from the executive team.

An organisation can only sustainably achieve DEI if it commits its leaders. When executives model inclusive behaviour and openness to being held accountable for unconscious biases, their attitudes can influence the entire company.

To achieve true DEI, your organisation should aim to be diverse at all levels, from rank and file workers to the board. When minority groups see themselves represented in the executive team, this gives them a clear picture of where their careers may lead. Lastly, it’s important to appoint a DEI director who is focused on ensuring the success of your diversity and inclusion initiatives.

Assess your DEI situation.

Each company is different, and there’s no one-size-fits-all DEI solution. It’s important to assess the situation both qualitatively and quantitatively. Look at the demographics of your employees, your hiring and resignation data, and exit interviews. Conduct surveys among your employees and listen to what they have to say. This will give you a clear picture of how diverse and inclusive your company is.

Make sure your job ads and hiring policies are based purely on merit.

Evaluate your job ads and hiring policies to make sure they are free from discrimination. In addition to this, make sure your hiring managers are familiar with MOM’s Fair Consideration Framework and TAFEP’s Tripartite Guidelines on Fair Employment Practices.

Invest in DEI training.

This training can help people discover their unconscious biases and avoid microaggressions that can make their coworkers of different races or gender feel excluded. Managers who implement your company's DEI policies must know these practices by heart.

Offer inclusive benefits.

For instance, benefits, such as parental leave and childcare leave, can encourage women to stay with your organisation even after they become mothers. You can also opt to adopt the Tripartite Standards for Work-Life Harmony and Flexible Work Arrangements—these measures are not only attractive to digital workers but working mothers as well.

Listen to your employees.

When you’re aiming to include more women, LGBTQ+, people with disabilities, or senior workers in your organisation, your employees who belong to these groups are in the best position to tell you just how effective your programmes and policies are. Conduct regular surveys, and consider giving your employees the option of leaving anonymous feedback anytime. When you do receive feedback, make sure to act on it.

Integrate DEI into your company values.

This helps integrate diversity and inclusion into your company culture, rather than being just another HR or PR initiative. When DEI is part of your organisation’s mission and vision, it helps your employees to recognise its importance and support your initiatives.

Challenges of Diversity in the Workplace

Retaining poor performers.

Some companies retain employees just so they can tick off their diversity checklist. However, this is ultimately detrimental and can create resentment and low morale among your employees. It is also inauthentic. The best way to sustainably create diversity is to hire and retain employees based on merit rather than culture or background.

Resistance from employees.

Some of your employees may be resistant to your DEI initiatives. Rather than shutting them down, help them dig deeper into their reasons for resisting change and prepare them for it. Kincentric recommends asking these questions:

• Do you understand the changes?
• Are you emotionally ready for the changes?
• Do you have the ability to support the changes?
• Do you intend to embrace the changes in the future?

If despite your best efforts, some employees refuse to cooperate, don’t give up. They will probably realise sooner or later that they are not a good fit for your company.

Miscommunication problems.

When you put people of various backgrounds together, there are bound to be misunderstandings. For instance, a baby boomer may not value work-life balance as much as a Gen Z employee. Millennial employees may prefer to communicate via e-mail, while older managers may request in-person meetings.

You can help your employees resolve these differences by investing in communication and conflict management training. In addition, you can set policies regarding when particular communication channels should be used, and in which situations communication outside of work hours is allowed.

Lack of consensus.

When you have too many people voicing different opinions, this may delay decision-making if they are unable to come to a consensus. Make sure to appoint someone who will make the final decisions, so that they can overcome stalemates.

Companies That Practice Diversity in the Workplace

DBS

DBS has made it to the Bloomberg Gender-Equality Index for five years straight, with women comprising 50% of their workforce and 40% of their senior management.

Marina Bay Sands

Marina Bay Sands earned a platinum tier Enabling Mark for not only hiring people with disabilities but creating an inclusive and supportive atmosphere for them to excel in their jobs.

Singtel

This organisation topped the first Singapore Board Diversity Index in 2020, with 40% of its board made up of women.

Diversity in the workplace has all kinds of benefits in terms of attracting the best talent, gaining customer loyalty, and creating healthy company culture. With these tips, you can enjoy the advantages of DEI while avoiding its pitfalls.

For more information on diversity, visit our Employer Insights page. Then find the best talent via Talent Search.