Global Diversity & Inclusion Market to Reach $15.4bn by 2026

The global market for diversity and inclusion (D&I) is projected to reach $15.4bn by 2026, up from this year’s estimated $9.3bn.

The market for D&I is growing at a CAGR of 12.6%, according to Diversity and Inclusion (D&I) – Global Market Trajectory & Analytics, carried out by Research & Markets. According to the report, Employee Resource Groups (ERGs), will grow 12.1% and reach $5bn over the same period. These groups, also known as affinity groups/employee networks, offer a unique, employee-driven way to achieve a cohesive work environment.

BUSINESS CASE FOR DIVERSITY

The D&I market in the US is estimated to be $4.3bn this year alone. The country currently accounts for a 45.5% share in the global market.  China’s D&I market is forecast to reach $1.8bn in 2026; with a CAGR of 11.4%. Other noteworthy markets include Canada and Europe, both forecast to grow at 9.7% and 12.4% respectively over the same period.

The business case for diversity in workplace is overwhelming given its ability to foster innovation, creativity and empathy in ways that homogeneous environments can’t. As markets evolve to become more competitive than ever before and the business environment gets tougher amid the crisis, companies need to be responsive to remain afloat, profitable and successful.

Diversity and inclusion efforts can help, confirmed the report. Companies with more diverse teams and inclusive are better able to lead change than those with a more homogeneous workforce. A strong organisational culture and robust structural foundation are critical for achieving agility that comes from internal strength. Diverse companies earn 2.5 times higher cash flow per employee and inclusive teams are productive by over 35%.

DIVERSITY VITAL FOR HIRING & RETENTION

In short, high-diversity environments and all-inclusive culture has clear benefits and advantages. Yet, global DEI initiatives are particularly challenging to successfully implement and measure. Achieving real equality and inclusion is a challenging task, and over 65% of employees believe their managers do not foster an inclusive environment. 

The growth in diversity and inclusion programmes is attributed to the rise in diversity hiring picking up as more millennials and generation Z job seekers express the desire to work with inclusive companies and a proven commitment to diversity, as reported. Diverse companies earn 2.5 times higher cash flow per employee and inclusive teams are more productive by over 35%. High-diversity environments and all-inclusive culture has clear benefits and advantages.

This is opening up rich opportunities for companies to spearhead growth by leveraging their access to a diverse talent pool. This report echoes the results of other surveys, which reveal that workplace cultures with solid diversity and inclusion policies are critical to attracting the best talent. Click here to read more.