A striking trend is the realization of the benefits that diversity and inclusivity bring. Read about it in this article.

The opportunities of the new CSRD directive

Today’s dynamic business climate brings with it a multitude of changes, but one notable trend that is gaining recognition is the growing awareness of the benefits that diversity and inclusion bring. Let’s dig deeper into why these aspects of company culture are invaluable and how companies can embrace them to take their performance to new heights.

The CSRD Directive: A Unique Opportunity

With the upcoming Corporate Sustainability Reporting Directive (CSRD) coming into force in 2024, companies will be required to report on sustainability, social and governance issues. While this may sound like additional regulation, it actually offers an opportunity for companies to position themselves as leading employers.

A specific reporting standard within the CSRD, called ESRS S1, focuses on HR policy. This offers companies the opportunity to distinguish themselves as proponents of good employment practices. Organizations with bold improvement plans and concrete visions of the future can gain a head start on their competitors.

The Benefits of Diversity

Why is diversity so crucial? The Central Planning Bureau emphasizes that true diversity in the workplace manifests itself in people with different appearances and ways of thinking. Diverse perspectives lead to a broader range of solutions to challenging issues, reduce tunnel vision and enable companies to adapt to changing market conditions.

According to the Dutch government, supported by various studies, companies with cultural diversity in the workplace often experience the necessary benefits, namely they have:

• often a higher turnover;
• better chances of survival;
• are more innovative, creative and solve problems better.
• make better use of the labor market because they recruit more talent;
• have more satisfied and loyal employees;
• do better on the market, because they know better what is going on among various customer groups and can therefore respond more quickly to developments in the market;
• get a better image due to cultural differences on the work floor.

Being Transparent About Human Resources Policy

The CSRD requires companies to be transparent about their HR policies. This means not only making promises, but also showing how you intend to deliver on those promises. Working conditions, equal opportunities, rewards, and development opportunities for employees must be explained.

It is a fairer way to judge employers on their HR policies. Companies are judged on facts, not just beautiful promises. This will encourage employers to take their social responsibilities more seriously.

Challenges and Approach

Despite the benefits of diversity, an earlier study by international HR firm Top Employers found that many Dutch organisations consider diversity and inclusion as an area for improvement, but few set measurable targets. It is crucial for companies to address these challenges to ensure their long-term viability.

Hiring diverse employees should not be a superficial obligation. Harvard Business Review emphasizes the importance of sincere intentions and careful integration.

What Companies Can Do Now

How can companies prepare for the CSRD and differentiate themselves in a tight labor market? Invest in people analytics to continuously monitor and correct policy assumptions. Test HR plans for reliability and feasibility. Ensure that promises about personnel policy are kept.

The CSRD Directive offers a useful tool and serves as an incentive for companies to take their HR policy seriously. Employers will soon be able to distinguish themselves on the basis of actual results, not just on the basis of beautiful promises. And…

Motopp: a successful way to embrace diversity!

Motopp plays a prominent role in supporting companies in hiring diverse talent. Over the past 3 years, Motopp has developed a formula to successfully integrate highly educated status holders into an organization. Our full-time training and intensive job coaching ensure that 95% of our trainees find a long-term job where they can use their potential. This initiative not only helps status holders achieve great career paths, but also adds valuable, diverse talent to companies.

Inclusivity and diversity are not only morally responsible, but also a strategic move. Companies that embrace diversity increase their attractiveness to a broader target group, become more agile in dealing with change, and profile themselves as excellent employers. In the future, the labor market will only place more emphasis on these crucial values. Let’s invest in diversity and inclusivity, and together build a prosperous future for both companies and individuals.

Want to know more about CSRD?
Also read the reflection (31-7-’23) by Bastiaan Starink, special professor of Labor Market, Pensions and Taxes at Tilburg University and partner at PwC, in the FD article: https://fd.nl/opinie/1483307/csrd-richtlijn-biedt-kans-in-krappe-arbeidsmarkt

Sources:

https://www.rijksoverheid.nl/onderwerpen/gelijke-behandeling-op-het-werk/culturele-diversiteit-werkvloer

https://www.cpb.nl/column-kosten-en-baten-van-diversiteit-op-de-werkvloer

https://hbr.org/2020/11/getting-serious-about-diversity-enough-already-with-the-business-case

https://www.ad.nl/werk/gebrek-aan-diversiteit-op-de-werkvloer-nederland-loopt-achter-op-rest-wereld~adcc721e/?referrer=https%3A%2F%2Fwww.google.com%2F