Prioritize DEI to Strengthen Revenue

In nine years of working professionally on diversity, equity, and inclusion (DEI), I've witnessed many organizations consider these values as beneficial but inessential.

They gave no strategic thought, planning, or sustainable action to execute DEI initiatives thoroughly, and in doing so potentially cost themselves revenue.

There is hard data showing a connection between diversity and revenue. In a 2023 report encompassing 1,265 companies spread across 23 countries, McKinsey found that businesses in the highest quartile for ethnic diversity in executive leadership were 39% more likely to financially outperform than those in the lowest quartile.

“At a time when companies are under extraordinary pressure to maintain financial performance while navigating a rapidly changing business landscape, creating an internal culture of transparency and inclusion, and transforming operations to meet social-impact expectations, the good news is that these goals are not mutually exclusive,” the consulting firm said in the fourth edition of its Diversity Matters report. “On the contrary, our research suggests a strong, positive relationship between them. And in an increasingly complex and uncertain competitive landscape, diversity matters even more.”

Furthermore, a 2021 study by research firm Forrester Consulting found that “sales teams with leading DEI practices have an average lead-to-opportunity conversion rate of 54%, whereas sales teams with lagging DEI practices are at 26%.”

Building a Producer DEI Playbook

My experience in DEI began and developed nearly a decade ago in Florida’s higher education and corporate sectors. Among the most challenging yet important tasks was getting buy-in from the entire organization for advancing the goals of diversity, equity, and inclusion. My approach was to present DEI as a strategic business goal—values that should not be politicized or strategized, but instead embedded in every department and business unit. I did this by presenting supportive research and successful efforts from companies and institutions in the same business. From there I developed example strategic plans for the organizations present, showcasing how DEI could be embedded into their department or business unit.

After I presented stakeholders with this information, many would ask, “How does DEI contribute to the bottom line?” At the time, I hadn’t given the question much thought. I then learned that while DEI contributes to psychological safety, retention, recruitment, career advancement, and much more, it also makes companies more profitable. Not only is DEI morally right, but it increases overall production and helps your organization to achieve financial goals.

As DEI program manager at Newfront, I understand that revenue is a primary focus for many businesses. I also understand that clients care about DEI, and for certain businesses it is a deciding factor in which companies they conduct business with. Some prospective clients want information on our DEI activities when we respond to a request for proposal (RFP) for their business.

I want to ensure our sales team is equipped with resources that positively contribute to their conversion rates with clients. In 2024, Newfront Director of Client Services Angie Lopez and I recruited a group of emerging and senior producers to form a DEI focus group titled “Sales Enablement.” The group featured a member of the Producer Steering Committee, which communicates directly with executive leadership.

Our efforts go beyond this. Earlier this year, we hosted a virtual panel with three top producers focused primarily on how DEI directly contributes to Newfront’s revenue. Among the questions asked of these DEI champions was “Explain how you have successfully leveraged our DEI Program as a competitive advantage in the marketplace.” For an audience of more than 70 Newfront producers, the panel discussed how they introduce the conversation in pitch meetings, how to have the conversation about DEI, and how to engage with clients who don’t focus on it.

Producers often ask me about our internal DEI strategies and programs in relation to Newfront RFP submissions. They also invite me to their pitch meetings to discuss Newfront’s DEI program. Based on their interest, I joined several colleagues in creating a DEI sales deck detailing the information we are often asked to provide when responding to RFPs. That includes our DEI Council mission statement and members, important Newfront demographic information, our Human Rights Campaign Corporate Equality Index score and DEI values, and our organizational and DEI-centered partnerships. Producers are encouraged to use this deck during pitch meetings to help clients understand Newfront’s DEI program.

The Sales Enablement Team has also prepared a DEI sales tool kit, a more detailed version of the sales deck that addresses the importance of correct pronoun usage; how DEI and revenue are connected; and partnerships with organizations including the Trevor Project, San Francisco Pride, and the Chicana Latina Foundation. It also features an extensive DEI glossary and answers to common questions potential clients may ask our producers. Our goal is to help all producers understand DEI language and assist them in their education when discussing these topics with clients.

The terms diversity, equity, and inclusion have been weaponized to reference ideas and policies leaders may not agree with, specifically regarding race, sex, and gender. DEI is under pressure today from economic uncertainty and virulent campaigns to dismantle diversity efforts through court rulings and legislation. But we should not lose focus on these values, and company leaders can prioritize revenue while still prioritizing DEI. The data supports that connection.

While executives may not see the holistic benefits of DEI, they can be persuaded of its importance to establish a starting point for weaving it into the fabric of their business.