Amplifying Overlooked Stories: DEI as a Way to Supercharge Marketing and Performance

Magnet’s CEO Megan Cunningham recently cited DEI as a growing trend and competitive advantage. Yet DEI can be tricky to navigate, as brands try to appease a wide consumer base who have different opinions on how to approach the matter. In the wake of the Supreme Court’s ban on affirmative action, some corporations have been struggling to integrate diversity goals without ruffling feathers.   

An article by the WSJ claims that diversity goals are vanishing from annual reports. Companies like Kohl’s and GameStop have notably taken out clauses about their desire to hire and foster diverse work environments. 

Despite this, this article cites survey data that suggests that diversity initiatives are not on the decline. Between 2022 and 2023, approximately 93% of employers said their diversity efforts increased or remained constant. 

This change in the wording of companies’ annual reports may be reflective of an effort to comply with new laws or political pressure, and less so a matter of how companies are actually hiring and promoting. 

Nevertheless, fostering diversity remains super important because, in addition to advancing and communicating moral values, having a diverse and equitable work environment can bolster public goodwill, improve brand image, supercharge performance, and help companies connect with a range of consumers.  

Boosting Performance

Diversity in the workplace can help a company’s performance by increasing productivity and adding to a positive company culture. By creating an environment in which employees feel seen and heard, it can help lower turnover and burnout rates, and help improve recruitment. 

A diverse workforce can also support an environment of innovation. Research suggests that increasing diversity can boost innovation anywhere from 20% to 70% depending on a company’s starting point. The heterogeneity of the workforce naturally leads to a diversity of ideas. 

Research reports that when a company nails inclusion, shareholder returns skyrocket. This increase in returns is found to be anywhere between 10% and 30%.

Gender diversity is a prime example. Evidence shows that all-male teams outperform individuals a mere 60% of the time. For multi-gender teams, this number shot up to 75%. Having more women in a company’s leadership has also been shown to be great for risk management. 

As such, Goldman Sachs’ announcement that it would no longer be taking companies public that have a board of only straight, white men makes sense. 

Connecting With Audiences

Beyond the performance-enhancing benefits, increasing diversity can help companies connect with their audiences, inadvertently helping drive revenue. 

Having diverse leaders can aid companies in eliminating gaps in knowledge and oversights, helping them appeal to and resonate with more people. Featuring diversity in marketing campaigns helps to communicate these priorities to consumers. People always say they want to see themselves in ads, and doing so is a great way to improve ad reception. As Megan cited in her latest article, a recent Nielsen report indicated that advertisements showcasing diverse talent received a 50% higher likability rating from consumers. 

When it comes to increasing diversity, it pays to be on the leading edge. For example, female athletes have long been an untapped demographic, and they are now being featured in more ads and brand partnerships than ever. 

From an economic perspective, it makes sense to give female athletes more airtime, as 70% of people watch women’s sports, while a mere 16% of sports media is dedicated to their coverage. For brands, it also makes a lot of sense to partner with female athletes, as they have 14% more social media following than their male counterparts. 

Diversity and inclusion efforts have also seen a huge uptick in the fashion industry, with an increased recognition that consumers will not only respond better to being sold clothes modeled on multiple different types of bodies, but that they as a brand have a social responsibility to expand a narrow definition of beauty their industry traditionally helped propagate. 

The Bottom Line

The bottom line is that it’s important to look at what actually engages your consumers, tap into diverse brand representations, and amplify overlooked stories. From a performance perspective, it’s equally as important to foster diversity because doing so will ignite innovation, returns, and workplace culture.  

Stay up to date on our latest posts by subscribing to our newsletter and following us on LinkedIn and Instagram.