Final answer:
Increased employee turnover contributes to the economic cost of diversity and inclusion efforts, while proper management of such initiatives can result in benefits like enhanced innovation and improved morale.
Step-by-step explanation:
One factor that contributes to the economic cost of diversity and inclusion efforts is increased employee turnover. This can occur when diversity and inclusion efforts are not well-implemented, leading to a lack of belonging or value among employees, which in turn can prompt them to leave the organization in search of a more inclusive environment. On the other hand, properly managed diversity and inclusion initiatives can lead to a variety of benefits, including but not limited to enhanced creativity and innovation, improved workplace morale, and more streamlined decision-making processes. It's essential for organizations to understand that embracing diversity and fostering an inclusive environment can help avoid high turnover costs and also unlock the potential for greater innovation, reflecting findings from Economist Lisa D. Cook's research on the economic growth potential when women and minorities fully participate in innovation processes.