Diversity and Inclusion in Recruitment: How To Become An Inclusive Organization?

Have you wondered at one point why such companies are more creative, innovative and outcompeting others as well as earning more profits than others? The answer is very often hidden in how organizations and their leaders support diversity and inclusion. In the globalized economy maintaining the ethnic and cultural diversity in the workplace is not only a question of ethics but of survival.

Studies show that companies with diverse executive teams are 21% more likely to outperform on profitability and 33% more likely to have better-than-average financial performance .

Nevertheless, as appealing as these statistics may sound, the prospect of having diversity and inclusion in an organization’s recruitment process is still quite elusive. Bias still goes unnoticed, many people have limited representation in their networks, and stale methods of sourcing make it hard to find change. Organizations are increasingly aiming at increasing the diversity within their workforce. It is equally important to ensure that such barriers are addressed and appropriate measures that support diversity are put into consideration from the recruitment process itself.

Understanding Diversity and Inclusion At Work

Diversity and inclusion in contemporary organizations and workplaces are not simple random phrases, but rather indispensable for a relevant and competitive company. But what do these terms represent and why are they significant?

Diversity refers to the variation of people’s characteristics such as; colour, sex, age, origin, disability, orientation, economic status, and faith among others. It is about acknowledging that every staff member has a specific input to offer the company.

On the other hand, inclusion involves social acceptance and people’s understanding that they can work together within the company. Equality makes certain that all the communities of people within the organization and its setting have equal chances and privileges, and can assist the organization to the utmost of their capacity. To support this, diversity gets associated with the ‘what’, namely, the differences that people have, while inclusion refers to the ‘how’, the ways in which diversity should be managed.

Why Should A Workplace Be Diverse and Inclusive?

1. Increased Creativity and Innovation: Diverse teams bring a variety of perspectives and experiences to the table, fostering creativity and leading to more innovative solutions. A study by Harvard Business Review found that diverse teams are 45% more likely to report market growth and 70% more likely to capture a new market.
2. Better Decision-Making: When people from diverse backgrounds collaborate, they consider different viewpoints. This leads to a thorough and well-rounded decision-making. Research by Cloverpop found that inclusive teams make better business decisions up to 87% of the time.
3. Enhanced Employee Engagement and Retention: Employees who feel included and valued are more likely to be engaged and committed to their work. A Deloitte survey revealed that employees who feel their company is committed to diversity and inclusion are 83% more engaged.
4. Broader Talent Pool: Embracing diversity widens the talent pool, allowing companies to attract top talent from various backgrounds. This is increasingly important in a globalized job market where competition for skilled workers is fierce.
5. Improved Company Reputation: Companies known for their commitment to diversity and inclusion enjoy a better reputation among consumers and potential employees. This positive perception can lead to increased customer loyalty and a stronger brand.
6. Financial Performance: The business case for diversity is clear. According to McKinsey & Company, companies in the top quartile for racial and ethnic diversity are 35% more likely to have financial returns above their industry medians.

Understanding and implementing diversity and inclusion isn’t just about fulfilling a social responsibility—it’s about leveraging the full potential of all employees to drive innovation, engagement, and success. By fostering a diverse and inclusive workplace, companies can create a more dynamic, productive, and competitive environment.

Challenges in Achieving Diversity and Inclusion in Recruitment

Suppose there is a tech company that always selects its workers from limited reputable universities. However, they realize that even when they plan for a diverse team, the employees they attract appear quite similar in terms of their background and thinking. This scenario highlights a common challenge: it also means that even the best-intentioned recruitment strategies can at some point reinforce the employees’ similarity. However, the process of attaining diversity and inclusion in recruitment entails multiple main challenges that companies have to combat.

1. Unconscious Bias

There is a scenario where recruiters have a tendency of hiring individuals that are most like themselves or come from a similar background. This is normally done unconsciously. This can greatly impact the attempts aimed at broad diversity and inclusion.

 A study conducted by the National Bureau of Economic Research revealed that the initial responses, specifically call backs to resumes containing stereotypically white-sounding names where the details of which were similar to the black-sounding names the receptions provided, got more call-backs by 50%. Such a bias can mean that the available workforce at organizations is not inclusive as the talent pool that is available in the markets.

2. Homogeneous Networks

Employee referrals and personal networking are some of the most common practices used in staff acquisition by many businesses. While this may save time and effort of the recruiters, the end-product is that the companies end up recruiting people who are more or less like them, again culminating in homogeneity. In fact, LinkedIn data shows that employee referrals account for nearly 40% of hires in some industries, yet referred candidates are often demographically similar to the employees who refer them. 

3. Traditional Recruitment Methods

Targeted ads placed through formal job listings on standard online boards and regular interviews will attract non-diverse candidates. Traditional approaches fail to consider potential employees from minority backgrounds who are unlikely to have connections to these networks. This might lead individuals to be dissuaded from applying by such practices. According to the Glassdoor survey, when it comes to the choice of companies and jobs, 67% of job seekers pay special attention to the company’s relations and a diverse workforce. However, conventional hiring practices limit diverse candidates.

4. Inadequate Diversity Training

This means that the hiring managers can themselves be partial or not know how to counteract such instances when recruiting employees. Another survey as described by the SHRM revealed that even though 69% of the organizations offered diversity-training, most of the programs are not well formatted and not continuous hence not very effective.

5. Absence of Specific Goals towards Providing for Diversity

One major issue that PL and many other organizations face is that they cannot quantify their diversity and inclusion goals and antiracism initiatives. This is because there are no easily identifiable targets to monitor and evaluate. Thus, according to Harvard Business Review, hiring for diversity pays. Firms with clear diversity targets are more effective at delivering on the talent promise. This shows that when there is no focus on these goals, diversity management often becomes a process with very little orientation and drive.

6. Resistance to Change

It is also important to mention that organizational culture and organizational resistance to change can affect diversity work. Managers and subordinates who have worked in a certain way for a long time may decide new ways of working with diversity with disdain. Based on the PwC’s data, 76% of organizations have Diversity and Inclusion policies. However, only 22% of the employees suppose that the policies in place are completely efficient.

Strategies to Enhance Diversity and Inclusion in Hiring

Achieving diversity and inclusion in recruitment requires intentional strategies and practices designed to minimize bias and create equal opportunities for all candidates. Let’s look at some some effective strategies that organizations can adopt:

Make Job Descriptions Bias-Free

Job descriptions are often the first point of contact between a candidate and a company. Therefore, they need to be carefully crafted to avoid unintentional bias. This can be achieved by:

• Using gender-neutral language: Avoiding gendered pronouns and terms that might discourage certain groups from applying. For instance, replacing “he/she” with “they” and avoiding terms like “rockstar” or “ninja” that may be off-putting.
• Focusing on essential skills and qualifications: Listing only the necessary skills and experiences required for the job can prevent deterring qualified candidates who might not meet every criterion. According to a Hewlett Packard study, men apply for a job when they meet only 60% of the qualifications, while women apply only if they meet 100%.

Make Use of Diverse Recruitment Channels

To reach a broader and more diverse candidate pool, it’s essential to go beyond traditional recruitment methods:

• Partner with organizations that support underrepresented groups: Collaborating with professional associations, job boards, and community organizations that focus on diversity can help attract a wider range of candidates.
• Attend diverse career fairs and networking events: Engaging with candidates from various backgrounds at these events can increase the visibility of job opportunities to underrepresented groups.

Structured Interviews and Standardized Assessments

Structured interviews and standardized assessments help ensure that all candidates are evaluated fairly:

• Use a consistent set of questions: Asking all candidates the same questions allows for a more objective comparison of their responses.
• Develop clear evaluation criteria: Standardized scoring systems and assessment rubrics help minimize subjective judgments and ensure consistency.

Blind Recruitment Processes

Blind recruitment involves removing identifying information from applications to reduce unconscious bias:

• Anonymize resumes: Remove names, photos, and other personal details from resumes before the evaluation process.
• Focus on skills and experience: By emphasizing the candidate’s qualifications and achievements, recruiters can make more objective decisions.

Diversity Training for Hiring Teams

Training hiring managers and recruiters on diversity and inclusion is crucial:

• Educate on unconscious bias: Providing training on recognizing and mitigating bias can help hiring teams make more equitable decisions.
• Promote inclusive practices: Encourage practices that support diversity, such as considering diverse perspectives in decision-making and creating an inclusive interview environment.

Leveraging Technology for Inclusive Recruitment

Technology can play a significant role in enhancing diversity and inclusion:

• Role of AI and Machine Learning: AI-driven tools can help reduce bias by automating parts of the recruitment process, such as screening resumes and matching candidates based on skills rather than personal characteristics. Machine learning algorithms can identify patterns and suggest improvements in recruitment strategies to enhance diversity.
• Game-based assessments: Platforms like PerspectAI offer game-based assessments that evaluate technical and interpersonal skills in a standardized manner. These assessments can provide a more comprehensive view of a candidate’s abilities while minimizing bias.

Diversity and Inclusion – A Top Priority For Organizations Today

Several companies have successfully implemented these strategies:

• Unilever: Utilizes AI-driven video interview software to evaluate candidates based on predefined criteria, removing bias from the process.
• Deloitte: Implements blind recruitment and AI tools to ensure diversity in their hiring process.
• Google: Reports a significant increase in the hiring of underrepresented groups after implementing a comprehensive diversity and inclusion strategy.

Enhancing diversity and inclusion in recruitment is a continuous journey that requires commitment and strategic efforts. Embracing these strategies not only helps build a diverse workforce but also drives innovation, engagement, and success in the long run.

Ultimately, prioritizing diversity and inclusion in your recruitment process is a strategic investment. After all, a diverse workforce brings fresh perspectives and innovative ideas to the table. Moreover, inclusive hiring practices demonstrate your company’s commitment to equity. This can enhance your employer brand and help you attract top talent from underrepresented backgrounds, which, in turn, can drive business growth and success.