Why do inclusion and diversity lead to success?

Startup culture has always been about defying convention and thinking outside the box. Startups must be able to compete with established companies from around the world in a rapidly globalizing world. To thrive in this new environment, startups must prioritize diversity and inclusion. Revenue, marketing reach, and customer satisfaction are all boosted by a diverse workforce, and top talent is more likely to be attracted to companies that value diversity.

In homogenous countries like Korea, Korean startups must recognize this importance. During my time as a VC, it was unusual for a company seeking investment, not to mention foreign reference companies and explain how it planned to compete with them in the future. Most companies still do this, and investors accept it as the norm and view the effort as a positive if there are significant opportunities, capacity, and leadership talent behind the dreams. I have sat on both sides of the table and would be the first to admit that I said and heard the same thing because I genuinely believed what I said and heard - or should I say, wanted to believe.

For many years, Korean startups successfully pursued a development model to catch up with more advanced and globalized providers. Despite that, the community must compete in a world where other companies strive ever to improve their competitiveness. The ability to assemble a diverse team, which requires vision, entrepreneurship, and a global mindset, has always been one of the Reference's greatest strengths. Korean startups can compete with established companies from around the world and pioneer and create positive change in their respective industries by leveraging these characteristics and commonalities of successful companies as they first missioned out in their IR decks.

In this article, we will explore the importance of diversity and inclusion in startups, how it can help them succeed, and why Korea should be a leader in this area.

Accountability starts with you

Leaders must set a good example, communicate their expectations, and hold their employees accountable to the team to create accountability in the workplace. This procedure, however, is complex.

Breaking larger tasks into smaller, actionable items is the most effective way to create accountability. This way, the impact is visible, and everyone can accept responsibility. This is critical in a company culture that values accountability. The most common blunder made by businesses is a lack of accountability. Mutual accountability among peers is the most effective form of accountability. On the other hand, leaders should refrain from giving preferential treatment to accountability.

Creating an open and transparent culture is one way to promote accountability. Supervisors must pay attention to questions and concerns. Employees should be encouraged to inquire, which will make them feel more at ease in the workplace. Offering incentives for exceptional performance is another way to encourage accountability. You can encourage employees to take responsibility for their actions by providing incentives, which will boost performance. Employees who accept responsibility for their actions are more likely to succeed.

Another way to encourage accountability is to foster an environment where everyone understands their role. This enables employees to see themselves as company owners. When they believe they own the company, they are more likely to act responsibly. Giving employees the tools they need to succeed is the best way to foster a sense of responsibility. This includes having a well-defined strategy and being willing to think outside the box, and it also has a solid moral compass.

Fostering a sense of responsibility in the workplace can be difficult, but it also allows businesses to gain a competitive advantage. It's also an excellent opportunity to foster a culture of trust, respect, and collaboration.

To create accountability, you must define your goals and track your progress. Then you can figure out what you're good at and what you need to improve on. You can begin to hold yourself and others accountable in this manner, maximizing your business.

What are diversity and inclusion?

The first step in comprehending the meaning of diversity and inclusion is to define these terms. Diversity is frequently associated with the term minority, but it is critical to understand that diversity encompasses more than race or ethnicity. Gender, age, religion, sexual orientation, disability, and social and economic background are all examples of diversity.

On the other hand, inclusion is about welcoming and valuing diverse perspectives and experiences. It is about creating an environment where everyone feels welcome and can contribute to their full potential.

Whether you are a founder or an employee of a startup, you should value diversity and inclusion. If you make sure your company is as diverse as possible, you will have the best possible employees to make your company successful. Including everyone in the decision-making process increases your chances of making better decisions and boosting your company's creativity. Here I am not talking about choosing the color of the office coffee mug but rather business-critical decisions made together with direct reports.

Why are diversity and inclusion important for startups?

Diversity and inclusion are essential for startups for a variety of reasons. One of the most important benefits is that diverse teams are more innovative. Diverse groups foster innovation since they have a variety of skills and mindsets. It can help solve problems faster in crises, bring ideas to life, and give you a better product. A diverse workforce boosts revenue, marketing reach, and customer satisfaction.

Study highlights and takeaways:

According to a Forbes study, companies with more diverse leadership teams are 35% more likely to be profitable. [1] 

Such DNA makeup of a company help attracts and retain top talent. According to a recent Glassdoor survey, more than 3 out of 4, 70% of job seekers consider diversity an essential factor when deciding whether or not to accept a job offer. [2]

Finally, diversity and inclusion assist startups in expanding into new markets. According to a McKinsey study, companies with more diverse leadership teams are more likely to attract new customers and grow their businesses. [3]

Startups need diversity and inclusion for various reasons, and these are only a few of the most significant.

How can startups foster diversity and inclusion?

There are numerous opportunities for startups to promote diversity and inclusion. One of the most important is to ensure that their hiring practices are diverse. This means they consider a wide range of applicants from different backgrounds and ensure everyone has an equal opportunity to apply for open positions.

Establishing employee groups is another action startups can take to promote diversity and inclusion. These groups are open to all employees and address diversity and inclusion issues, providing a forum for employees to come together and discuss these issues.

Finally, startups can promote diversity and inclusion through training on these topics. This can help all company employees understand the value of diversity and inclusion and learn how to be more inclusive in their daily interactions.

 "Diverse" team

A startup is a new business that, like any other, necessitates forming a team of people. Due to our homogeneous society, young Korean entrepreneurs found the majority of local startups in Korea. Still, recently, due to a lack of talent and the rising cost of local talent, the startup community has seen a trend toward greater diversity. Moreover, this article goes beyond talent shortages and high costs, and studies show that diverse teams outperform homogeneous ones.

Heterogeneous groups bring people from various backgrounds, experiences, and perspectives together. This enables startups to access a broader set of skills and ideas. It also improves their understanding of and access to global markets. However, diversity can present challenges. Different cultures can clash, and building trust and communication among team members can be difficult. However, the advantages of a diverse team outweigh the disadvantages. A startup that values diversity is more likely to succeed than one that does not.

The business world has never been more competitive. Startups must be able to identify new opportunities and act quickly to succeed. Success and failure are often a matter of perspective, and a diverse team is likelier to have the broad range of perspectives needed to identify new opportunities. A diverse group also brings fresh ideas and creativity to the table. Startups that want to succeed in the global marketplace must be able to think outside the box. The benefits of diversity are critical for startups that want to succeed in today's economy.

Among the key benefits are the following:

• Innovation can be driven by a diverse workforce bringing fresh, new ideas.
• Startups must be able to identify new opportunities and act quickly to succeed.
• Success and failure are often a matter of perspective, and a diverse team is likelier to have the broad range of perspectives needed to identify new opportunities.

The benefits of diversity are critical for startups that want to succeed in today's economy.

Why should Korean startups lead in diversity?