DEI has moved from a ‘nice to have’ to a priority for Australian businesses

DEI implementation has increased in workplaces as Australian businesses have now made it a priority, due to the positive impacts it can have on staff and profit margins.

According to research from Workday, improving staff wellbeing (46 per cent) is now the top driver for diversity, equity, and inclusion (DEI) in Australian organisations, surpassing the need to attract and recruit a diverse workforce (43 per cent).

More Australian businesses than ever are prioritising DEI, with three quarters (74 per cent) of respondents stating that DEI has become more important throughout the last year, and 83 per cent of organisations now have a budget put aside for DEI strategies and implementation, which is up from 69 per cent in the previous year.

DEI strategies are becoming more and more popular right throughout various industries across Australia. However, it's paramount that DEI policies and strategies have a unified approach at all levels of the workplace. Only then can it drive meaningful change and promote a more equitable and inclusive workplace.

According to Forbes, here are five ways to ensure that the implementation of DEI initiatives is done smoothly:

1. Changing policies to support DEI: Teams have a hard time changing policies to support DEI when they don't have a full understanding of what it is. Training and development are an important part of creating strong policy and practice.
   
   
2. Implementing unbiased recruitment tools: Overcome workplace DEI barriers by implementing unbiased recruitment tools, educating employees on the importance of DEI and fostering an inclusive culture.
   
   
3. Defining diversity for your company: An often-overlooked barrier is defining what diversity is in the context of your company. Workshopping this, truly understanding what you are overcoming and agreeing on what it takes to transition into that inclusive and equitable firm is foundational for overcoming.
   
   
4. Proactively making an effort to change: Change requires proactive effort. Leadership teams must actively communicate DEI's business and moral imperatives, ensuring all levels understand its importance.
   
   
5. Avoiding the resistance to change: Resistance to change due to ingrained biases is a significant barrier. Leadership can conduct bias training, create inclusive policies and encourage open discussions. Boards play a vital role by endorsing these initiatives, setting diversity targets and fostering a culture of acceptance.

These key attributes are an important factor to adhere to, especially when one considers just how widespread DEI initiatives currently are. Almost all Australian respondents (97 per cent) now have at least one DEI initiative in place, with many seeing results.

The survey found that 72 per cent have seen an increase in belonging and inclusion and 71 per cent in representation since investing in these areas. One-half (51 per cent) even report a boost in profitability.

Jo-Anne Ruhl, managing director and vice president of Workday ANZ, commented on DEI becoming a priority for Australian businesses: “In recent years, DEI has gone from a ‘nice to have’ to a priority invested in by Australian businesses.”

“Australian organisations are moving to a point of maturity in their DEI approach now that they have a strong foundation. There’s potential to do more with a strategic, technology-enabled approach, using emerging tools like AI to track progress, and ultimately create people-driven change,” said Ruhl.

While more than half (58 per cent) of respondents say they’re making progress on DEI, just nine per cent rate their performance as good. To move to the next stage of maturity, Australian organisations believe that along with a larger budget, they need a clear strategy.