Risks and opportunities ahead
There are always uncertainties ahead for Canadian organizations and workers in the future, but there are great opportunities too. So, what if there was an easy way to future-proof your business and put your team in position to reap the rewards of growth? The evidence says that a strong commitment to diversity and inclusion are key strategies for achieving both.
Demographics and your team
Canada’s labour market is set to change in the years ahead, which means that businesses must adapt in order to attract and retain skilled workers. As older Canadians retire there will be a loss of talent, resulting in further labour shortages. These gaps have to be filled if Canada is to stay competitive in the 21st century economy.
While immigration and the participation of young people in the workforce will meet some of the anticipated talent shortfall, it won’t be enough. Canadian businesses and organizations will have to be more diverse and inclusive to find the new talent we need.
Addressing underemployment, meeting skills gaps
According to research by Deloitte, a key challenge for Canadians will be addressing our economy’s ongoing labour market shortage. That shortage has a significant impact on productivity. In 2022 for example, the lack of skilled workers cost our country nearly $13 billion. In that same year, 59 per cent of employers reported difficulty finding qualified employees.
Governments at all levels have responded by investing in upskilling programs designed to boost participation and build the critical skills employers need. It’s part of a strategy to leverage workforce development as a way to build inclusive economic growth.
That’s important, because these programs are an effective way to meet the problem of underemployment among many groups in Canada. Women, Indigenous peoples, newcomers, people living with disabilities and others face barriers to employment. Upskilling can help address this, and at the same time provide employers with a tool for building more diverse teams.
Getting past the business case
Let’s get back to diversity and your team. The business case for diversity has been made. Major consulting firms such as McKinsey have found a clear link between diversity, performance, and profitability. In fact, evidence for the diversity dividend has strengthened over time. Organizations that implement diversity and inclusion at the core of their business outpace competitors that do not. Diversity, equity, and inclusion (DEI) work.
Facing the backlash
Despite evidence for putting diversity and inclusion at the centre of business and workforce strategy, some organizations have walked back DEI initiatives in the face of what has been called a diversity backlash.
This walk-back is sometimes a response to a perceived lack of meaningful commitment and robust implementation when it comes to DEI. For example, when initiatives to build diversity don’t walk the talk, it can lead to concerns about tokenism.
Honest dialogue about building diversity can be hard. But organizations that make the effort not only benefit from the diversity dividend, they are more likely to have work cultures that embrace change and seize opportunity. And both of these factors will be key for the 21st century.
Rethinking diversity
Sema Burney is a DEI expert at Burney Consulting. For her it’s critical that people and organizations take a broader view of what diversity means. In a recent interview, Burney says:
“We hear the word diversity all the time, and sometimes we think about it as related to only a few aspects of who we are. We hear about gender identity, race and ethnicity, sexual orientation. These are all elements of diversity, but diversity is really everything that makes us different from one another.”
Taking a larger view of what diversity means everyone gets included in the conversation. That’s because when we expand the diversity circle, it includes things like our socioeconomic backgrounds, our interests, and even whether we identify as neurodivergent. Everyone is different, but in different ways.
Putting inclusion at the centre
So far we have been talking a lot about diversity and not so much about inclusion. But if businesses want to take advantage of the diversity dividend, they must put inclusion at the centre of workplace culture.
Why is this? Inclusion means making sure that each person in your organization feels welcomed and comfortable. For that to happen, it’s important to have systematic policies and programs in place. These can range from building inclusivity into your organization’s training, recruitment, and hiring to using data and metrics to monitor how comprehensive and effective your workplace’s inclusion policies are.
One of the benefits of taking a systematic and data-driven approach to diversity and inclusion is that it helps build accountability from the top down. And the research suggests that without ownership from leaders, your organization’s efforts to build a nimble and diverse 21st century team will be at risk.
Taking concrete steps
The good news is that it’s easier than you think to take concrete steps towards building the kind of diversity that will benefit your organization right now and in the future. The best place to start is with a diversity needs assessment process to evaluate and understand how diverse your workplace is—and how to do better.
From there, you and your team can start to have authentic conversations to help set your diversity and inclusion goals, and communicate why they are important.
Upskilling as part of your diversity strategy
Another way to help build diversity in your business is to take advantage of upskilling programs like the ones offered by Palette Skills and Upskill Canada. In 2023-24, 92 per cent of Upskill Canada’s participants identified with one or more equity-deserving groups.
As an employer, not only do you get access to a vital new pipeline of non-traditional talent, you’ll also know that participants have been extensively vetted, coached, and mentored. Palette Skills and Upskill Canada are focused on providing industry-led training that’s relevant to you and your business.
Find out more about how to get involved and build the diverse team you need for the 21st century.
