Exploring the Financial Impact of Inclusivity on Residential Construction Businesses

Business models may vary, but a common characteristic of many of the most successful businesses is having a diverse staff. Teams comprising professionals with wide-ranging backgrounds and perspectives often provide unique insights and skills that help businesses thrive.

To explore the intersection of business, inclusivity and equity - and their direct impact on profitability - NAHB will launch a new Shop Talk series titled The Bottom Line: People, Practices & Profits on Jan. 15 at 2 p.m. ET. The live, peer-to-peer discussion will be the first of a bimonthly series of similar shop talks throughout 2025.

"We aim to share insights, strategies and best practices that underscore the value of diversity in enhancing business performance, employee satisfaction and community well-being - and, ultimately, drive improved financial outcomes," said Erica Lockwood, a member of the NAHB DEI Taskforce who will moderate the shop talks, and managing director of Joseph Chris Partners, an executive staffing and recruitment firm

NAHB spoke in-depth with Lockwood about the new shop talks and how inclusivity and equity best practices can spark continued growth within the residential construction industry.

What are some of the topics that will be explored throughout this Shop Talk series?

The Shop Talks will cover various components of our industry - from mentorship and its role in personal advancement to driving profitability through inclusivity. We wanted to ensure relevance and value for all participants. Taking this approach reflects how inclusivity and equity is practiced and valued in our industry, making it beneficial for everyone involved.

Why is this an important conversation for professionals in this field to have?

Historically, the home building industry hasn't been as diverse as other sectors. Embracing inclusivity and equity in the workforce helps attract and retain top talent, and supports industry growth and sustainability. Moreover, it can positively impact profitability by promoting:

• Innovation and problem-solving: Building a team with diverse perspectives allows for more creative solutions and improved problem-solving. This can lead to increased efficiency and cost savings.
• Recruitment and retention of top talent: A strong commitment to inclusivity helps attract and retain top performers, reduce turnover costs and ensure a highly skilled workforce.
• Enhanced customer relationships: A diverse workforce better understands the needs of diverse customers, which can lead to improved customer satisfaction and loyalty.
• Positive company culture: An inclusive work culture can boost employee morale, reduce absenteeism and improve overall productivity.

Why should business owners prioritize inclusivity and equity within their companies?

Business owners should prioritize hiring the most qualified individuals through bias-free decisions, focusing on candidate qualifications and potential. This approach fosters diverse perspectives, which enhances creativity and decision-making while creating a welcoming environment. Ultimately, a diverse workforce better understands and meets the needs of a varied clientele, which can lead to increased customer satisfaction and business success.

Conversely, failing to do so can result in a homogeneous workforce, which can stifle innovation. It could also lead to higher turnover, lower engagement and a negative reputation among potential customers and employees - all of which impact long-term success.

What's a common misconception regarding diversity-focused practices in the workplace?

A common misconception is that diversity and inclusion initiatives are expensive and don't pay off. In fact, an example of an effective and cost-friendly strategy is to establish an Employee Resource Group (ERG). These groups are voluntary and comprise employees who share a common interest or characteristic, such as race, ethnicity, gender, sexual orientation or disability. These groups can provide a sense of belonging, support professional development and foster a more inclusive workplace culture without breaking the bank.

What does the NAHB DEI Subcommittee hope participants gain from The Bottom Line Talk series?

We hope participants will gain a deeper understanding of inclusivity's importance, learn practical strategies to implement in their businesses to boost profits, and renew their commitment to fostering a diverse and equitable workplace.

Our goal is for participants to feel inspired and equipped to champion these concepts in their organizations - and recognize the significant financial benefits these efforts bring. I am honored to work with a passionate subcommittee that's focused on positive change and a welcoming world.

Don't forget to register for The Bottom Line Shop Talk on Jan. 15 at 2 p.m. ET. The inaugural discussion will focus on "Boosting Business Performance: Identifying and Overcoming Personal Biases to Drive Profitability and Inclusivity."

View additional DEI resources at nahb.org/dei.

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