From the course: Inclusive Leadership (2022)

Employer brand, recruitment, and retention

From the course: Inclusive Leadership (2022)

Employer brand, recruitment, and retention

- What do companies such as Google, Zappos, AT&T, Twitter, and Southwest Airlines have in common? They are examples of inclusive cultures that are fostering an environment where employees feel encouraged to contribute and that are achieving business success. Today's workers consider workplace culture as much as they consider salary and benefits when considering employment. In fact, a welcoming and inclusive company culture is almost expected along with other traditional benefits. Working in an inclusive work environment and for an inclusive leader can have tangible benefits for the company, such as financial performance, a stronger employer brand that attracts top talent, and a company's ability to retain that talent. So let's look at these in a bit more detail. First, financial performance. There is a significant relationship between having a more diverse leadership team and better financial performance. Much of this is due to receiving broader perspectives on product innovation and in serving diverse customers and to identifying creative ways to solving business challenges. According to a study by McKenzie, companies in the top quartile of gender diversity were 15% more likely to have financial returns that were above their national industry median. Companies in the top quartile of racial and ethnic diversity were 35% more likely to have financial returns above their national industry median. Second, employer's brand. The reality in today's competitive job market is that top talent has options of what kinds of jobs they want, what types of leaders they want to work for, and what kind of culture they will thrive. If organizations want to set themselves apart from their competitors who are seeking the same top talent as well, they must focus on building a strong employer brand and tout that. Companies that do this will showcase their employer brand on their website via employee testimonies or videos and photo highlights of the company events. They also do it in their newsletters and publications, on job boards, on social media, and during the interview process. Leaders should be well versed in sharing what it's like to work at the company and selling themselves as great leaders. As an HR professional, I've observed that today's candidates are doing their background checks on your company as you are doing background checks on them. They reach out to their connections on social media and websites, such as glassdoor.com to inquire about what it's like to work at your company and to see if anyone in leadership looks like them. They ask bold questions in the interview and they demand certain conditions and benefits in job negotiations. Third, retaining talent. Companies that embrace inclusiveness not only attract top talent, but they retain that talent as well. It's often been said amongst HR professionals that people don't lead bad jobs. They lead bad bosses and toxic cultures. Having conducted a number of employee surveys and focus groups and exit interviews, I have found this statement couldn't be truer. Employees consistently reported that they had concerns with the way that their bosses treated them or how unfair and inconsistent practices and policies were administered. Take a minute and reflect on the main reason that you left your last job. Was it one of the above reasons? And now reflect on the kind of leader that you are. Are you the kind of leader that makes people want to stay or leave the company? Do you empower people to want to do their best work or do just enough to complete the task. Companies that focus on recruiting more diverse talent into their leadership ranks enjoy stronger financial returns and outperform those companies that do not. Additionally, inclusive leadership plays a significant role in how an employer's brand is formed, whether an employer can attract top talent, and whether that talent stays.

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