From a young age, most of us are taught it’s important to respect and embrace differences. Sometimes that translates into meaningful inclusion and sometimes it’s just lip service. But, as a result, most people have at least some understanding that being inclusive at work is simply the right thing to do. There is, however, also a strong business case for equality, diversity and inclusion (EDI).
“There have been many studies done on this,” says Dr Mary Collins, a chartered psychologist and senior coach practitioner who works in leadership development and talent management.
“The top 25 per cent of companies for ethnic and cultural diversity are 36 per cent more likely to achieve higher profitability, according to a study from McKinsey. Research from the same company also shows that companies in the top quartile for gender diversity at executive level were 25 per cent more likely to have higher profits than companies in the bottom quartile.”
EDI may seem like a particularly contemporary concern but Caroline Cummins, managing director of the Irish Centre for Diversity (ICFD), says it has been a consideration for companies in Ireland since as far back as 1973, when a law that forced women to leave a civil service job upon marriage was repealed.
“Inclusive organisations excel because they are more representative,” says Cummins. “They boost employee morale and engagement, and [have] improved employee retention. They drive profitability and innovation, increase productivity and enhance a company’s reputation.
“They also unearth a larger talent pool: 50 per cent of job applicants look for an organisation’s EDI policies when researching a new employer, according to the Hays annual diversity and inclusion report.”
Cummins says everyone benefits from progress in the workplace.
“Fairness, inclusion and equality all influence your people’s wellbeing. Diversity of thought and approach brings different ways of overcoming difficulties and challenges. There is a direct correlation between productivity and a diverse workforce.”
In 2018 the Central Bank criticised Ireland’s banks for a lack of ambition in improving diversity. Last year, however, Bank of Ireland was awarded the gold investors in diversity EDI mark from the ICFD in recognition of actions, policies and processes to improve EDI at all levels across the organisation.
Deirdre Gavin, HR director and head of inclusion and diversity at Bank of Ireland, says EDI makes moral and business sense.
“Our primary driver is to be a company that welcomes anyone who wants to join us, enable fair progression for everyone and reflect the diversity of the communities and customers that we serve,” she says. “We want to attract the best talent, and companies that hire people with different skills, backgrounds and abilities are more successful.
“It’s also about creating the right culture to support colleagues so that we can retain them. If people from all backgrounds have a positive experience, they are more likely to want to stay here.”
Bank of Ireland has recently commissioned research on how it can increase ethnic minority representation in the workplace and is also focusing on increasing the number of women in senior roles.
“We have also launched a strategy on neurodiversity, because up to 20 per cent of people around the world are neurodiverse, and that means many of our customers and employees are too. We have more work to do but we see it as a good test of an organisation when employees can talk about what they need to be successful, without feeling it is taboo, and knowing that they will be met with empathy and respect.”
For all the work that companies are doing, how is any of this measurable?
The ICFD has used the data it collects from companies and organisations across all sectors, to benchmark EDI performance both nationally and by sector. The research involved almost 100 organisations employing more than 60,000 people, Cummins explains.
“Our data establishes a national average for the diversity and inclusion of workplaces in Ireland, with our findings detailing how fairly and respectfully workers in Ireland feel they are treated and the extent to which they feel their organisations promote fairness and equal opportunity,” she says.
“It also explores perceptions of fairness and equality for diverse groups – such as people with disabilities and those from a different ethnicity or race.”
The data showed that, while 90 per cent of workers in Ireland feel respected and valued by their immediate colleagues on a day-to-day basis, 40 per cent don’t feel that their organisation advances equality of opportunity.
Just over half (51 per cent) of employees said that their organisation is doing enough for diverse groups, while a third did not feel that their organisation treated everyone fairly.
“When it comes to diversity, over two-thirds (69 per cent) of workers report that diversity among non-management colleagues is reflective of society,” Cummins says. “However, there is still a journey to travel when ascending the management ladder: 62 per cent of workers report that while junior managers reflect an accurate picture of diversity, this drops to 51 per cent for senior management and falls further to 41 per cent at board level in Ireland, indicating a significant disparity when moving up the management hierarchy.”
Cummins says this benchmarking is increasingly important where companies are mandated to report on EDI as part of their regulatory obligations, and adds that it is a valuable mechanism for tracking and assessing impact.
“Being able to compare and chart progress is a big enabler for employers seeking to build great workplace environments and retain talent,” she says. “Benchmarks give employers additional context to prioritise goals and allocate resources more effectively.
“Really importantly, for larger enterprises, integrating benchmarked comparisons will enhance their ability to monitor and report on culture, aligning with regulatory requirements.”
Collins, meanwhile, says EDI needs to be considered in a broader sense.
“We should go beyond the nine grounds of discrimination. Companies should also consider different personality styles, including introversion and extroversion, as well as neurodiversity. We need to be inclusive for all. It can be challenging, and may require training and support. It is so important that we look around the room, and ask: who is not at the table?”
Presented by Irish Centre for Diversity, the National Diversity & Inclusion Awards 2025 #NDIA2025 – Ireland’s only dedicated celebration of D&I excellence – are open for submissions across 12 categories. Closing Date: Friday, 18th October 2024. NDIAwards.ie
EDI statistics: How diversity makes a difference
- 15 per cent: how much gender diverse organisations outperform peers on key financial indicators, according to Ibec
- 60 per cent: better results when teams are diverse, according to research carried out by Forbes
- 87 per cent: better business decisions when teams are inclusive, Forbes also found
- £24 billion (approx €28.5 billion): the annual loss to the UK in failing to bring black or minority ethnic professionals into the workforce, according to UK research
- 3.5 per cent: the rise in earnings before interests and taxes for every 10 per cent increase in gender diversity, according to research by McKinsey