Workplace Inclusion: KPIs & Cost Benefits to Your Supply Chain

Workplace Inclusion: KPIs & Cost Benefits to Your Supply Chain

The effects of inclusion, once adopted, are far reaching. Not only does it affect the employees of a corporation, but it effects the corporation itself. These effects are constructive, ultimately proving profitable for the business.

Inclusion has an effect on specific company key performance indicators—customer service, productivity, employee turnover, and profitability. All of these key performance indicators benefit immensely from inclusion policies and practices.

Inclusion KPIs

A business's customer service is strengthened when inclusion is adopted. If the diverse customer base is reflected in the diverse employees, the customers can be better dealt with, understood, and accommodated. Not only does it leave the customers feeling satisfied and happy, but they are more likely to deal with your company again and recommend you to others after receiving great customer service.

The profitability of a company is directly linked to customer service. Customer service is an integral part of supply chain management. Horrible customer service means angry consumers, which results is less product being purchased. Happy customers are much more likely to buy multiple times over because they've had an awesome experience with your company. According to the Institute for Entrepreneurial Thinking, "companies with the highest rates of racial diversity brought in nearly 15 more times sales revenue on average than those with the lowest levels." Since diverse employees can meet the needs and wants of a customer base, the customer base will grow.


Productivity and employee turnover are also closely related when it comes to inclusion. Productivity naturally increases when employees are happy with their jobs and work environment. They become more engaged in their work, and their output grows, which benefits your supply chain. An abundance of new ideas can stimulate individuals, motivating them to tackle problems and issues. Similarly, employee turnover decreases when the workforce enjoys their work. This decrease ensures your supply chain will run more smoothly and have less employee related interruptions, such as training new staff. Employees are more likely to stay with the company, recommend it to others, and are less likely to be absent during the work week.

Related: Adapting Inclusion into Your Supply Chain

Cost Benefits of Inclusion

The cost benefits of inclusion tend to have a snowball effect. First, the savings are minimal, but then they grow exponentially throughout your supply chain. A starting cost benefit is the reduced amount spent on recruitment. By including questions designed to understand personal adaptability and willingness to include others in key activities - even when they are different - you can quickly ensure that your new hires will act in an inclusive way. Instead of using recruitment methods designed for a broad audience, HR can narrow it down, spend less money, and see better results.

Now that a company has who they want, they need to keep them there. Organizations that take inclusion and diversity seriously and establish successful integration strategies are more successful in achieving staff retention. If staff are happy, they’re less likely to leave. Eventually, the business will see decreased costs associated with training throughout the supply chain because there will be less new employees to train. 

How to Internally Measure Inclusion

You've recruited diverse employees, integrated them into your workplace, and trained them accordingly. How do you know your inclusion efforts have been successful? The answer is straightforward enough—you need to hear it from them. The easiest way to do so would be to conduct a survey among the company's diverse staff members. Ask them what they truly think about their work environment, company inclusion policies and practices, initiatives, and the attitudes of their coworkers. The results of the survey will give insight into what the business has done right and what it still needs to work on and develop.

The Hitachi Group decided to use a survey to evaluate the diversity in their business. Since 2013, Hitachi conducts an annual survey among female members of staff to observe their career progression and success. The survey gathers data pertaining to their work-life balance, female management appointments, gender equality, and female advancement in the workplace. To date, the survey has revealed advancement and underlying issues that still need to be addressed.

If your organization wants to measure their level of diversity, they can use this free assessment tool.

Inclusion affects many areas of a business, and in the long run, it does generate cost savings and increases the profitability of your supply chain. If a business integrates inclusion correctly, it will reap the benefits. 


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