Society For Human Resource Management (SHRM) Certified Professional Practice Exam

Which of the following is a consequence of poor diversity and inclusion practices?

1. Increased employee satisfaction

2. Higher employee turnover

3. Improved company reputation

4. Enhanced creativity and innovation

The correct answer is: Higher employee turnover

The consequence of poor diversity and inclusion practices is indeed higher employee turnover. When organizations fail to foster an inclusive environment and do not embrace diversity, employees may feel marginalized or undervalued. This can lead to decreased job satisfaction and engagement. When individuals do not feel like they belong or see the organization as supportive of diverse perspectives, they are more likely to seek opportunities elsewhere, resulting in increased turnover rates. In contrast, other outcomes such as increased employee satisfaction, improved company reputation, and enhanced creativity and innovation are typically associated with effective diversity and inclusion practices. A workplace that values and actively promotes diversity is more likely to experience higher morale among employees, greater employee loyalty, and an overall positive perception from the public, which can lead to innovation and creativity through the blending of diverse viewpoints and ideas.