{"id":4005,"date":"2024-05-27T06:35:59","date_gmt":"2024-05-27T06:35:59","guid":{"rendered":"https:\/\/verso.de\/blog\/diversity-in-companies-why-and-how\/"},"modified":"2024-08-05T13:10:25","modified_gmt":"2024-08-05T13:10:25","slug":"diversity-in-companies-why-and-how","status":"publish","type":"post","link":"https:\/\/verso.de\/en\/blog\/diversity-in-companies-why-and-how\/","title":{"rendered":"Diversity in companies: Why and how?"},"content":{"rendered":"\t
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27.05.2024<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t

Diversity in companies: Why and how?<\/h1>\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t

\n\t\t\t\t\t\t\t\tNo company can avoid the word “diversity” these days.\nBut diversity is much more than just adding “m\/f\/d” to a job advertisement.\nRead this article to find out why diversity is so important in companies, what it actually brings and what you can do to promote diversity in your company in a targeted manner. \t\t\t\t\t\t\t<\/p>\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/section>\n\t\n\t

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Why do companies need diversity?<\/h2>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t

Every person is different<\/span><\/h3>\n

Let’s start by defining what “diversity” actually means.
\nBecause – spoiler – diversity is more than just sexual orientation and skin color.
\nTo be more precise, there are seven dimensions of diversity.
\nThese are almost unchangeable characteristics that every person has.
\nAfter all, each of us has a different personality and a different history: <\/span><\/p>\n

    \n
  1. Age<\/span><\/li>\n
  2. Ethnic origin & nationality<\/span><\/li>\n
  3. Gender & gender identity<\/span><\/li>\n
  4. Physical & mental abilities<\/span><\/li>\n
  5. Religion & worldview<\/span><\/li>\n
  6. Sexual orientation<\/span><\/li>\n
  7. Social background<\/span><\/li>\n<\/ol>\n

    According to the Diversity Charter<\/a>, these seven diversity dimensions have the greatest influence on whether we feel included or excluded in society.
    \nIn theory, the Basic Law and the General Equal Treatment Act already stipulate that no one should feel excluded.
    \nDiversity is also important for many companies in the context of sustainability reporting. <\/span><\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\n\t\t<\/div>\n\t<\/section>\n\n\t\n\t

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    Diversity in the company is surveyed in the ESG report<\/span><\/h3>\n

    Above all ESG regulations, the ESRS – the CSRD reporting framework – has required disclosure of the diversity strategy since 2024.
    \n ESRS S1<\/strong> in particular asks how your company lives and promotes inclusion and diversity. <\/span><\/p>\n

    However, diversity was already an ESG reporting criterion before that.<\/span>The German Sustainability Code, or <\/strong><\/span>DNK<\/a><\/strong>emphasizes the importance of diversity and has included it in its 20 criteria for report content.
    \nCompanies must state how they comply with the General Equal Treatment Act.
    \nThey should also show how they promote equal opportunities, pay everyone appropriately, avoid discrimination, make a positive contribution to the integration of minorities and promote the compatibility of family and career. <\/span><\/p>\n

    Of course, the globally recognized reporting standard of the Global Reporting Initiative (GRI<\/a>)<\/strong> also deals with the topic of diversity.
    \nThe focus here is primarily on GRI 405.
    \nHere you report, among other things, on the distribution of gender, age or the proportion of people with disabilities among employees and management.
    \nThere is also GRI 406, which relates to incidents of discrimination and asks how your company investigates or prevents them. <\/span><\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\n\t\t<\/div>\n\t<\/section>\n\n\t\n\n\t

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    Decision support: Which ESRS data points are relevant?<\/h3>\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t

    Use our ESRS checklist to filter the disclosure requirements and data points relevant to your sustainability report.<\/p>\n\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

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    Diversity in the company as a cross-section of society<\/span><\/h3>\n

    The diversity dimensions also show how different we all actually are.
    \nIf we zoom out to Germany, we get an incredibly diverse picture of society.
    \nNow a question for you: With this image in mind, is it close to reality if the company is made up of 80% white, 30 to 50-year-old, Christian or atheist, heterosexual men?
    \nOr would it not be much better, conversely, if a company reflected the diversity of society? <\/span><\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\n\t\t<\/div>\n\t<\/section>\n\n\t\n\t

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    Advantages of diversity in companies<\/h2>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t

    Of course that would be much better.
    \nAnd there is even solid evidence for this.
    \nWe have compiled a small selection for you below. <\/span><\/p>\n

    A study by StepStone and the Handelsblatt Media Group<\/a> shows that a diverse management team boosts employee motivation.
    \nAccording to the study, 77% of job seekers are also more likely to apply to companies that are tolerant and diverse<\/strong>.
    \nNot to mention the fact that your company has access to a much larger talent pool<\/strong> if you value diversity when recruiting. <\/span><\/p>\n

    The survey also revealed that 80% of respondents see diversity in management as a major positive influence on the economic success<\/strong> of companies.
    \nOne of the reasons for this is that diverse teams bring a wide range of different experiences, perspectives, ways of thinking and problem-solving approaches to the table.
    \nIncidentally, this also means that decisions<\/strong> are made up to     87% faster<\/a><\/strong> – and not only with half as many meetings<\/strong> as in homogeneous teams, but also with 60% better results<\/strong>! <\/span><\/p>\n

    Diversity in companies is also considered one of the most important drivers of team engagement. Deloitte<\/a> found in a study that millennials are 83% more likely to be engaged<\/strong> when the company promotes diversity and inclusion.
    \nNo wonder none of the employees feel excluded! <\/span><\/p>\n

    In short: diversity in the company makes the company more attractive, increases employee satisfaction and productivity<\/strong> – and ultimately strengthens competitiveness<\/strong>.
    \nAccording to another     Deloitte study<\/a>, diverse, inclusive companies perform up to 35% better than their competitors. <\/span><\/p>\n

    Sounds good?
    \nWe think so too.
    \nBut you should be aware of this: If you want to reap the benefits of diversity, you need to promote diversity in a targeted manner.
    \nHere are a few practical tips from our People team to help you achieve this! <\/span><\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\n\t\t<\/div>\n\t<\/section>\n\n\t\n\t

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    7 tips for diversity in companies<\/h2>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t

    1. diversity starts at the top<\/span><\/h3>\n

    Diversity in companies starts in the boardroom.
    \nMake sure that the management team is diverse.
    \nThis involves obvious criteria such as origin, age or gender, but cognitive diversity also plays a role.
    \nThe management level should also exemplify diversity itself.
    \nTrain your managers to use inclusive language and promote a diverse workforce. <\/span><\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\n\t\t<\/div>\n\t<\/section>\n\n\t\n\t

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    2. make job advertisements appealing to everyone<\/span><\/h3>\n

    This starts with the classic “m\/f\/d” or “all genders” reference in the job advertisement.
    \nYou should also include a diversity statement<\/strong> that emphasizes once again that everyone is welcome here.
    \nUse a gender decoder<\/a> to check whether men and women feel equally addressed<\/strong> in your job advertisement – because certain words only address one gender. <\/span><\/p>\n

    Incidentally, it is also interesting to know how men and women read job advertisements.
    \nWomen tend to want to fulfill all criteria and often do not apply if they do not fulfill one criterion.
    \nSo find the right balance in the level of detail<\/strong> in the job description.
    \nFeel free to encourage applicants with a separate note to apply even if they do not fulfill every single point. <\/span><\/p>\n

    Last but not least: Make sure to write the advertisement in a screen-reader-friendly way. <\/span><\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\n\t\t<\/div>\n\t<\/section>\n\n\t\n\t

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    3. also live diversity in the recruiting process<\/span><\/h3>\n

    Involve as many different employees from different departments as possible in your recruiting processes.
    \nNot only the HR team, but also specialist departments or future colleagues and superiors.
    \nOn the one hand, you will notice more quickly who harmonizes well with the team and who is needed.
    \nOn the other hand, different perspectives ensure less bias and more openness to diversity<\/strong>. <\/span><\/p>\n

    Speaking of bias: offer recruiting staff regular recruiting and interview training.
    \nThese training sessions should identify and reduce potential bias (which we all have!). <\/span><\/p>\n

    Give all applicants a chance.
    \nAnd don’t necessarily base your selection on who is exactly the same as the rest.
    \nIt’s much more exciting to see who would complement the team well<\/strong>. What skills, what personality, what character is still missing? <\/span><\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\n\t\t<\/div>\n\t<\/section>\n\n\t\n\t

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    4. create guidelines on diversity<\/span><\/h3>\n

    If you want to create more diversity in your company, you may have to adapt guidelines and processes.
    \nAs just mentioned, this starts with the job advertisement, which should not exclude anyone and should appeal to everyone.
    \nOther options are <\/span><\/p>\n