The case for D&I

Diversity and inclusion make good business sense – they deliver a range of positive organisational, team and individual outcomes. Research consistently links diverse and inclusive workplaces with improved profit and performance, innovation, creativity, talent management, engagement and wellbeing.

In line with Australia’s laws on positive duty, employers also have legal obligations and responsibilities to take proactive and meaningful action to prevent unlawful conduct from occurring in the workplace or in connection to work. This includes discrimination, harassment, victimisation or bullying. Taking ‘all reasonable steps’, including preventative action, will help to create safe, respectful and inclusive workplaces.

Every two years, Diversity Council Australia undertakes a national study tracking the state of inclusion in the Australian workforce. This study, the DCA Inclusion@Work Index, sets out a strong business case for inclusion and the benefits it has on the performance and wellbeing of all employees.

DCA’s Inclusion@Work Index 2023-2024 shows that: 

Employees want their workplace to be more inclusive

  • 3 out of 4 support or strongly support their organisation taking action to create a workplace that is diverse and inclusive.

Inclusion is good for wellbeing

Workplace inclusion significantly increases employee wellbeing. For example, workers in inclusive teams are:

  • 10 times more likely to be very satisfied than workers in non-inclusive teams
  • 4 times more likely to feel work has a positive impact on their mental health
  • 3 times less likely to leave their organisation
  • 5 times more likely to have been given feedback they found useful.

Inclusion is good for performance

The Inclusion@Work Index consistently shows a strong link between inclusion at work and team performance. For example, inclusive teams are:

  • 5 times more likely to be innovative than non-inclusive teams
  • 5 times more likely to work effectively together
  • 4 times more likely to provide excellent customer service
  • 5 times more likely to have members willing to work extra hard to help their team succeed.

Inclusion minimises risk 

For employees, experiencing discrimination and harassment can harm their wellbeing and impact their performance. For organisations, it risks costly lawsuits and loss of organisational reputation.

The good news is that workplaces that are inclusive have much lower rates of discrimination and harassment, for example:

  • employees in inclusive teams are 5 times less likely to experience discrimination and/or harassment at work compared to those in non-inclusive teams
  • those with inclusive managers are 4.5 times less likely to experience discrimination and/or harassment compared to those with non-inclusive managers
  • employees in inclusive organisations are 4 times less likely to experience discrimination and/or harassment compared to those in non-inclusive organisations.

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  1. O. Richard, M. del C. Triana, and M. Li, ‘The Effects of Racial Diversity Congruence between Upper Management and Lower Management on Firm Productivity,’ Academy of Management Journal, 2020.
  2. M. Nathan and N. Lee, ‘Cultural Diversity, Innovation, and Entrepreneurship: Firm-level Evidence from London,’ Economic Geography, vol. 89, no. 4, 2013, pp. 367–394.
  3. R. Ludke, Competitive, Integrated Employment: A Driver of Long-Term Value Creation, Harkin Institute, 2022, p. 14, https://harkininstitute.drake.edu/wp-content/uploads/sites/103/2022/06/Harkin-Disability_Inclusion_and_ Long_Term_Value_Creation-design_Final-6.6.22.pdf.
  4. W. Burgess, “A Bad Reputation Costs a Company at Least 10% More Per Hire”, Harvard Business Review, 29 March 2016, https://hbr.org/2016/03/a-bad-reputation-costs-company-at-least-10-more-per-hire