The issue of Diversity, Equity, and Inclusion (DEI) has been a topic of interest for various organizations since 1960s, but for the first time in history, DEI efforts are in the spotlight like never before.
In the United States alone, organizations are investing billions of dollars every year to address the DEI challenges that have come about as a result of racial awakening, social unrest, and public pressure after the tragic murder of George Floyd in 2020.
Companies have made widely adopted DEI pledges with funds allocated to the hiring of consultants and in-house professionals to head towards transformation, and rapidly deploy the policies, programs, and initiatives. Together, these actions suggest that DEI is finally getting the attention it deserves.
However, there is a question of concern! Despite the rising adoption, publicity and financial investment, are the contemporary DEI initiatives moving towards the right direction?
The DEI Detach
Unfortunately, it seems the majority of today’s DEI initiatives are not moving in the right direction. Despite increased awareness, initiatives, investments, and commitment, there is something inseparably broken in the DEI efforts of many organizations. In fact, most DEI programs have failed.
Part of the answer may rest in the fact that at least 80% of People leaders/ Executives feel their organization is simply in inertia when it comes to DEI. Similarly, when it comes to retaining or promoting minority talent, which is often a primary mandate of DEI initiatives, only 34% of employees believe their organizations do it well.
This suggests that the social unrest, public pressure and increased spendings have not yet improved the employment experiences of most minority groups, and most DEI programs are still missing the bull’s eye. In short, there is a fairly large gap between C-suite perceptions of their DEI efforts and the actual on ground reality.
What’s problematic in the realm of Diversity, Equity, and Inclusion (DEI)?
Establishing objectives without a grasp of the prevailing labor market dynamics.
Under the pressure of public scrutiny and potential damage to their reputation, companies make commitments, define objectives, yet these pledges rarely come with quantifiable measures. This generates speculation among internal and external stakeholders about the authenticity and impact of these efforts.
Even if such measures and objectives are in place, it remains unlikely that the goals being formulated are attainable across all organizations. The challenge extends beyond mere validation of feasibility; often, teams lack the necessary resources and expertise to fulfil these goals. Consequently, organizations and leaders might be setting targets that their teams cannot realistically reach.
Overlooking a Comprehensive Talent Experience
Neglecting the amalgamation of Diversity, Equity, and Inclusion (DEI) efforts with comprehensive talent experience strategies contributes to the downfall of DEI initiatives.
Why does this happen? Once diverse talent is brought into organizations, the requisite support to ensure their success throughout their journeys is not given sufficient attention, resulting into a DEI FAILURE!
When shaping your DEI strategy, the aspect of talent experience cannot be an afterthought; it must be a front-and-center consideration, or else employees will depart when the actual experience falls short of the promised one.
In addition, an internal challenge also exists; many organizations likely already possess diverse talent within their ranks whose skills and potential remain untapped. This represents an existing talent pool that isn’t receiving proper mentoring, sponsorship, or support to progress within the organization.
Taking the Global Perspective into Account
DEI inculcation isn’t solely a concern limited to North America; its significance has been steadily increasing on a global scale. Nevertheless, even though the principles underpinning DEI are applicable universally, they cannot be uniformly implemented. Different regions exhibit substantial variations in their cultures, subcultures, and societal norms. As a result, organizations must create tailored DEI strategies that align with the characteristics of their respective markets and the talent they aim to attract.
The Outcome of Ineffective DEI Initiatives
What prompts organizations to invest substantial resources in DEI initiatives? Their aim is to bring about transformative shifts in terms of social justice and to reap rewards like heightened innovation, productivity, engagement, and market presence. Encouragingly, it is now widely acknowledged that such efforts in DEI yield these favorable returns on investment. However, the challenge of effecting this change persists, and the methods employed by organizations that have effectively navigated the complexities of DEI implementation remain somewhat elusive.
Performative diversity initiatives often lead to superficial inclusion.
Many organizations lacking sufficient knowledge or resources tend to implement such initiatives just to fulfill requirements. Consequently, they often fail to achieve the intended impact. Examples of performative diversity initiatives include the appointment of DEI officers, formation of committees and task forces, establishment of employee resource groups (ERGs), and the implementation of mandatory training and workshops. However, without addressing deep-seated beliefs and biases or committing to long-term changes, these initiatives are unable to bring about substantial transformation.
Harvard Business Review highlights that in these instances, diverse employees might find themselves “included” only for the sake of appearances, such as seeking a minority perspective, which can result in them feeling singled out. What these employees truly desire is not to be recognized solely for their social group, but to be acknowledged, listened to, and appreciated for their individual contributions.
Shallow inclusivity results in disengagement and diversity fatigue
A study by Harvard Business Review (HBR) mentioned, employees who encountered tokenism or felt included merely for appearance’s sake experienced a decrease in their sense of belonging. Particularly among minority groups, employees are highly perceptive to subtle cues that indicate their lack of genuine value or belonging within the organization.
The disillusionment with Diversity, Equity, and Inclusion (DEI) efforts extends beyond just minority groups. The prevalence of surface-level inclusion is gaining widespread attention both externally and internally, leading to a decline in public perception and fostering a sense of diversity fatigue. Interestingly, the term “diversity” now often elicits skepticism and eyerolls, regardless of whether one is within the ‘in-groups’ or ‘out-groups.’
As articulated by a HBRarticle, there’s a growing backlash and frustration toward companies that vocally acknowledge racial inequality without demonstrating tangible actions. In essence, even when well-designed and impactful programs are put in place, they are met with reduced attention due to a history of insincerity and ineffectiveness.
The Tangible Expenses
It has now become widely acknowledged that there are tangible expenses associated with neglecting or inadequately addressing Diversity, Equity, and Inclusion (DEI) efforts. This negligence results not only in the departure of diverse talent, decreased engagement, and productivity setbacks but also in far-reaching and cumulative consequences for the entire workforce. For instance, turnover doesn’t just impact those leaving the organization; it also affects those left behind who must fill the vacancies and carry the extra workload.
Reputational hazards are also at stake. An organization’s reputation isn’t solely contingent on financial achievements—this is especially true since the onset of the pandemic and the entrance of Generation Z into the workforce. According to a 2020 report from the Edelman Trust Barometer, brands and corporations are now expected to express their viewpoints, and those that do are more likely to gain trust than those that remain neutral. Consumers and potential employees seek connections with businesses and employers that exhibit environmental and social consciousness.
This principle extends to investors as well. The incorporation of Environmental, Social, and Governance (ESG) criteria into the decision-making process for portfolio construction is on the rise.
Even a company’s market share isn’t impervious. Research from diverse sources, including Bank of America, Barclays, and McKinsey, has discovered that the greater the diversity within a company, the more probable it is to surpass its less diverse counterparts in terms of innovation, profitability, and long-term performance.
DEIB: Prioritize the Sense of Belonging
While inclusion holds significance, it’s not the ultimate solution. A profound sense of belonging stands as one of the most influential indicators and predictors of engagement in the realm of DEI. Every organization should formulate a comprehensive diversity, equity, inclusion, and belonging (DEIB) strategy that recognizes belonging as an essential component of the framework.
Embed Your DEIB Strategy Throughout the Talent Journey
Taking a comprehensive approach to the talent journey involves addressing the evolving requirements of employees throughout their tenure with your organization, spanning from initial awareness and attraction to eventual promotion or departure. By equally emphasizing both experience and reputation (forming a compelling employer brand), you can ensure two things:
- Crafting and delivering a talent experience that resonates with their foremost values,
- Constructing an employer brand that draws in and motivates new talent.
To achieve this, organizations must initially grasp the core values most cherished by all employees (known as an Employee Value Proposition or EVP), viewed through the lens of each diverse employee’s perspective. Subsequently, efforts should be channeled into dismantling barriers, establishing support mechanisms, and cultivating an environment where talent not only feels a sense of belonging but also recognizes their potential to contribute.
How to Integrate DEIB Effectively
Dedicated efforts are essential to establish a sense of belonging within an organization. These efforts involve specific practices and cultural shifts that are necessary to cultivate workplaces where employees can express their genuine selves, find acceptance, and truly belong.
To ensure widespread endorsement of this endeavor, it’s equally vital to bring your strategy to life in a manner that dismantles barriers, fosters collaboration and empathy, and underscores the advantages that DEI initiatives offer to all employees.
Sephora Canada, a prominent figure in the retail and beauty sector, stands as a prime example of adeptly achieving this. Their brand campaign, labeled #WeBelong, revolves around nurturing a more inclusive and empowered beauty community.
Internally, they prioritize embracing diversity, equity, and belonging while promoting a culture of being “boldly authentic.” Sephora has fully embraced this ethos, not just for its customers but also for its employees. This approach has yielded dividends, including an expansion in market share even during challenging periods in recent history. The company’s initiatives position Sephora as a purpose-driven entity, creating a future where both the beauty community and employees can find their place harmoniously.
Addressing Engagement Challenges
While fostering a sense of belonging is crucial, it’s only part of the equation. The DEIB strategy should seamlessly align with and bolster the employee engagement strategy, which should be rooted in understanding employees’ core motivations, necessities, and their highest priorities in a workplace.
Ultimately, employees (and individuals in general) possess three foundational needs:
- basic requirements,
- the urge for belonging, and
- the aspiration to express their true potential.
The prominence of each need may differ from one person to another and might also vary at different life stages. Nonetheless, everyone possesses a certain baseline requirement within each category for their well-being, functionality, and overall satisfaction as an individual or employee.
Fundamental Requirements
When considering the workplace as our focal point, it becomes inherently clear that employees possess fundamental requirements. These encompass compensation, safety, equitable treatment, and an array of other prerequisites that must be fulfilled for them to become part of or remain within an organization. These are the foundational elements.
Desire for Belonging
Once these prerequisites have been reasonably met, individuals then aspire to attain a sense of belonging within the organization. This involves cultivating supportive relationships with colleagues, trusting their leaders, feeling empowered to be their authentic selves, and being embraced for their true identities (belonging).
It’s crucial for organizations to foster a sense of belonging in employees too, as each employee forms an emotional bond with the organization, thereby positively influencing their sense of psychological security, connection, and commitment to staying.
Unleashing the Best Self
If the journey stops here and efforts don’t extend towards enabling individuals to reach their highest potential, it can be acceptable to some extent.
The acceptability depends on the required performance from employees and their values and needs within their work environment. However, in general, most employees reach a stage where they yearn for empowerment, facilitation, and opportunities for growth—all of which enable them to become their best selves.
If the organization’s objective is to boost employee retention, cultivate a robust talent pool, and nurture high-performance individuals and leaders, then addressing this need becomes imperative. Moreover, this is a need that cannot be solely resolved through DEI or DEIB efforts.
This is where the comprehensive employee engagement strategy enters the picture, underlining the reason for operationalizing genuine inclusion and belonging within the organization. This approach ensures that employees feel engaged, fostering a sense of belonging and advancement within the organization for the long term.
– Shrutika Khedekar
