Done right, DEI is good for business—the debate should end there
Here’s what business leaders need to know about the current state of DEI, and why building and sustaining a DEI program is worth the effort.
August 21, 2024 published on Fast Company by Dr. Rosina L. Racioppi.
DEI (diversity, equity, and inclusion) has been grabbing corporate attention lately, largely based on the Supreme Court’s decision to strike down affirmative action in colleges and universities. While the decision doesn’t apply to corporations, dangerous generalizations are taking hold in the workplace.
Here’s what business leaders need to know about the current state of DEI, and why building and sustaining a DEI program is worth the effort.
DEI: WHAT WORKS AND WHAT DOESN’T
First: a few reality-based pointers on what works when it comes to DEI:
- Take A Look At Current Corporate Culture: Successful DEI programs are organization-wide and involve shifts in both policies and attitudes. What and who may be standing in the way of change are much-needed questions, followed in quick succession by, “What do we do about it?”
- Start At The Top: As with any initiative, the greatest buy-in happens when it comes from the top. C-suite leaders must make it clear that DEI is a necessity, not a nicety.
- Assess Current Procedures For Attracting And Hiring Diverse Talent: Increasing the number of employees across gender, race, and ethnicity is critical to feeding the talent pipeline throughout an organization. An honest assessment of whether current practices or attitudes are impeding diversity is vital to a sustainable DEI program.
- Create Mentorship Programs: Mentoring programs that pair diverse mentees with those who understand the barriers they face and who can help them navigate the corporate environment are key to retaining and advancing diverse talent.
- Communicate The Benefits: Because there’s so much back and forth about DEI, it’s important that all managers and employees understand its benefits. On-going communication to highlight how DEI can increase profits, foster growth and innovation, and expand opportunities to express individual points of view will go far in achieving buy in.
Here’s what doesn’t work:
- Failing To Differentiate: For example, women are often categorized into one homogenous group. However, the differences across races and ethnicities are vast. They account for the various ways individuals perceive the organization, and must be addressed if DEI initiatives are to be successful.
- “One And Done”: Looking at DEI as a single initiative, program, or strategy is an invitation to failure. DEI is a marathon, not a sprint.
- Lack Of Accountability: Unless there are specific DEI measures for which managers are held accountable, there will be no sustainable results.
- Poor Listening: Organizations must listen to the varying voices in their companies; they cannot presume they know what diverse populations want and need. Failure to ask and listen can be interpreted as arrogance or indifference, and will sabotage attracting and retaining diverse talent.
5 WAYS DEI IS UNDOUBTEDLY GOOD FOR BUSINESS WHEN DONE RIGHT
DEI in corporations isn’t about quotas. It’s about attracting, promoting, and retaining top-notch talent across gender, race, and ethnicity. When applied to these areas, DEI results in organization-wide benefits.
As President and CEO of WOMEN Unlimited, I work with Fortune 1000 and other leading organizations to develop diverse female talent. I have had many opportunities to help forge sustainable DEI initiatives and to see the powerful results.
1. DEI Ups The Bottom Line
Study after study show that corporations with diverse leadership at the top outperform. For example, McKinsey’s “Delivering through Diversity” report found that organizations “in the top quartile for gender diversity on their executive teams” were 21% more likely to experience above-average profitability than companies in the fourth quartile.
2. DEI Creates Satisfied Employees Who Stay Put
A number of studies show that women are significantly more likely to leave organizations if they don’t see chances for advancement. When talent leaves, so does the money invested in them, their future contributions to the organization, and the funds needed to find and train replacement talent. DEI helps halt that costly cycle.
3. DEI Serves As An Inertia-buster
With senior corporate leadership primarily occupied by white men, there can be a tendency to stay stuck in “same old, same old” approaches to products and problems. By including diverse talent in the C-suite and on corporate boards, that barrier to new ideas and new solutions is attacked head on.
For example, women’s spending power is reportedly around $31 trillion. Nielsen predicts that by 2028, women will own 75% of the discretionary spend, dramatically pointing to the importance of more women’s voices in leadership.
4. DEI Makes The Whole Greater Than The Sum Of Its Parts
A solid DEI program benefits all employees. It provides opportunities for majority employees and managers to broaden their horizons through interactions with those of varying backgrounds and perspectives. As a result, they can begin to see problem solving, customer relations, and corporate opportunities in new and more diversified ways.
5. DEI Signals A More Appealing Organization
As companies rev up their DEI initiatives, the word gets out and organizations become magnets for diversified talented. These companies enjoy a strong competitive edge in attracting, promoting, and retaining talent, whose diverse competencies and perspectives foster new approaches to growth and creativity. Additionally, the company’s standing in diverse communities often goes beyond PR to increased purchasing of products and services.
DEI: WORTH THE CHALLENGE
Building and sustaining a DEI program isn’t easy. It takes corporate muscle. It forces companies and their employees to exit their comfort zones. It requires shifts in attitudes, which can trigger fear and resistance. But DEI is worth the effort, and research proves it. It makes for better companies and better employees. End of debate.
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