In today’s evolving workforce, Millennials and Generation Z are placing a heightened emphasis on diversity, equity, and inclusion (DEI) when selecting employers. Organizations that neglect to cultivate an inclusive environment risk increased turnover among these groups, leading to significant financial repercussions.
The Financial Impact of Turnover Due to Lack of DEI
In Canada, high employee turnover is a costly issue. A recent survey found that 28% of Canadian companies expect turnover rates to rise in 2024, with the average cost of employee turnover reaching $30,674 per employee annually. For some organizations, these costs soar even higher, with 15% estimating turnover expenses to exceed $100,000 per employee each year.
In the UK, discriminatory pay practices in the workplace are costing the economy a staggering £127 billion in lost output each year. This figure underscores the economic impact of inadequate DEI practices.
Millennials and Gen Z: A Demand for Inclusive Workplaces
A survey reported by Benefits Canada found that 63% of Millennials and 77% of Generation Z consider DEI a key factor when evaluating potential employers. This data indicates that younger workers are more inclined to leave organizations that do not align with their DEI values.
The Business Case for DEI
Commitment to DEI not only aids in retention but also enhances overall business performance. A report from HRD Canada indicates that employees who feel supported by their managers in DEI initiatives have a 4% attrition risk, compared to 17% for those who do not feel supported. This support leads to increased employee satisfaction and loyalty.
Strategies to Enhance DEI
At Dignii, we help businesses measure and enhance workplace culture, ensuring that dignity remains at the heart of every decision – the foundation to any strategy enhancing DEI. Ready to mitigate turnover costs and proactively address DEI to attract and retain top talent from Millennial and Gen Z cohorts? Reach out so we can help you drive overall business success.
Let’s Advance Dignity together.
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