Why the USA Retail Industry Needs to Embrace Diversity

research after research shows how important diversity and inclusion strategies are for a company's success. This article looks at what these insights entail for the retail business. In a nutshell, diversity refers to how gender, race, age, sexual orientation, religion, or disability are represented in a group of people, whether in the boardroom, the workforce, a retailer's client base, or the general population. In contrast, inclusion refers to a corporate and workplace culture that welcomes, values, supports, and enables a diverse workforce to thrive. Examining firm leadership, workforce, company culture, marketing, and consumer perspectives through a diversity lens demonstrates the importance of diversity and inclusion in the retail industry. Diverse Leadership makes a difference. The traditional boardroom is still dominated by aging white males, and a lack of diversity is holding businesses back. While the retail sector may perform better in terms of boardroom diversity than many other industries, this does not imply that it is superior. Company regulations, such as a required retirement age and term limitations for directors, or legislative gender quotas for board members, as implemented in Norway, France, and Germany, have an impact.

However, diversity encompasses much more than gender and age, and increasing leadership diversity remains a critical issue in retail.

Who is represented in leadership is important because it influences company culture, values, recruiting practices, product, marketing, and almost every other business sector, as well as public perception. Retail Diversity Boardroom Who is responsible for pulling the strings? (Photo by Rawpixel) Workforce Diversity in Retail In retail, your employees connect with customers face to face, providing shoppers with a visible reflection of the people your firm values. We already know that office diversity is advantageous since it promotes a variety of views and better problem solving. However, a study published in the Journal of Management discovered a similar link between different demographics in shoppers and diversity in retail workers. The researchers investigated ethnic diversity in retail and discovered that the closer a business's labor diversity matches its consumer base, the better the store performs. In fact, every percentage point closer to a perfect match between the diversity of shoppers and the store increases a retailer's revenues by $67,000. However, the study discovered that labor diversity enhances returns for retailers regardless of how varied their consumer base is. Prof. Patrick F. McKay of Rutgers University, the study's co-author, feels "this shows that a diverse staff brings different ideas about how to serve customers more effectively, which enhances overall sales performance." Retail Diversity

How inclusive is your company culture?

Foster an inclusive company culture. An inclusive company culture is founded on lived values that encourage employees from all backgrounds and provide a safe atmosphere in which everyone feels accepted, heard, and empowered to grow and perform their best work. A recent management study discovered that organizations with an inclusive culture are twice as likely to surpass financial targets, six times as likely to be inventive and flexible, and eight times more likely to generate better economic outcomes. Sheree Atcheson, a diversity and inclusion leader, proposes four steps for creating an inclusive workplace culture: Listen: It is critical to grasp the present state of a company's culture. "Be prepared to be comfortable being uncomfortable," since honestly listening to how employees at all levels experience the workplace, whether good, neutral, or bad, is the key to a clear picture of your corporate culture. Take Action: Listening alone is insufficient; yet, it serves as the foundation for taking action toward a more inclusive culture. Make sure your staff feel heard by demonstrating that their feedback leads to actual improvements where applicable. We value all input: People's perceptions of company culture and what it means to belong vary. When selecting where to direct your efforts, "a truly inclusive, positive workplace culture will support both senior and junior employees, creating a sense of belonging with all." Establish two-way communication between leaders and employees.

What do your customers value?

Research indicates that people shop depending on their own values. In a large survey of shoppers in Canada, the United States, and the United Kingdom, 42% of ethnic minority shoppers and 41% of LGBT shoppers say they would switch to a retailer committed to diversity and inclusion, while 55% overall would avoid retailers who handle negative incidents related to diversity and inclusion poorly. Three-quarters of disabled shoppers have also left stores because they felt poorly served. Importantly, buyers do not simply avoid shops who are not committed to diversity and inclusion; rather, they seek out those who are. Customers who are members of one or more minority groups are more inclined to switch brands. Apps like the BUY UP Index enable shoppers to make more educated decisions based on retail diversity policies. Marketing for Diversity. You've probably seen some of the following marketing disasters in the news or on social media. Simply put, don't replicate these companies' marketing mistakes. Do not create racist or sexist marketing materials. Don't use social movements for commercialization. Do not develop culturally insensitive items or advertisements. The single most surefire approach to prevent these and related blunders is to recruit different teams to design your products and campaigns, as well as manage your online presence. And the more diversified your organization's entire hierarchy is, the more likely it is that someone up the chain would notice the problem rather than simply rubber-stamping it.