How One Organization is Pursuing a More Diverse, Inclusive Workplace
“Diversity, equity, and inclusion are three closely linked values held by many organizations that are working to be supportive of different groups of individuals, including people of different races, ethnicities, religions, abilities, genders, and sexual orientations.”
Background
Our client’s demographic profile is very typical for its industry - 69% are men while 31% are women; 52% are White while 7% are Black and 31% are Asian.
The company’s board and leadership team are concerned about incidents of overt and subtle racism and inequity. Anecdotal data suggests that historically, opportunities for women and minorities have been limited. Unless DE&I is clearly embedded in its strategic direction, the organization believes the productivity, competitive advantage, and long-term success of the organization are threatened.
What is the Business Case for DE&I Programs?
While it can be difficult to quantify the exact ROI of DE&I programs, investing in such initiatives can lead to tangible benefits for both employees and the organization. Four benefits are shown here.
The State of DE&I Initiatives
This company is not alone in its quest for a more diverse and inclusive workforce. MM+M’s 2022 Diversity Survey, (conducted in partnership with IPG Health), concluded that the industry’s commitment to DE&I appears to be stronger than its progress.
This backdrop is echoed in a more recent study commissioned by Workday sought to better understand the current state of DE&I globally. Entitled Global Blueprint for Belonging and Diversity, the report examines the business case, drivers, strategic approaches across the globe, investments in initiatives, and the role of technology. The study concluded that in spite of a stated commitment to DEI, it’s clear that there’s a lot of progress still to be made in creating lasting change and improving outcomes across the globe.
“Diversity is not about how we differ. Diversity is about embracing one another’s uniqueness.
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Source: Global Blueprint for Belonging and Diversity by Workday.
“At its core, a sense of belonging speaks to the human, emotional need to be an accepted member of a group … belonging is the outcome of when organizations understand the diversity of the people within the organization, drive equitable processes, and create an inclusive culture.”
A Strategic Approach to DE&I – Our Client’s Journey
Our client’s board, including its CEO, believes this initiative is critically important to its future success, measured in part by its ability to win the war for talent, achieve a competitive advantage, and create a workplace that attracts employees and clients. Working with the leadership team, we proposed a three-phase approach to ensure that its DE&I journey is clearly embedded in the organization’s strategic direction. Collectively, these three phases are designed to:
Unearth and define the shared vision, mission, and a set of strategic priorities
Assess the current state and needs to achieve the end goal
Phase 1: Formulating DE&I Culturalization Strategy with the Executive Leadership Team
This phase has been completed recently. The goal was to develop a DE&I Culturalization Strategy that can be socialized within and outside the organization. Our DE&I subject matter experts shared best practices and leveraged their experiences and thought leadership to facilitate individual and group discovery among members of the ELT. Our consultants were also able to assist with the construction of the DE&I vision, mission, and priorities. The ELT developed a statement of intent, focusing on the strategy necessary to create a strong DE&I culture.
Phase 2: DE&I Data Gathering with the Management team (executive/senior/middle)
This phase is about to begin and will involve data gathering by way of virtual 1:1 interviews with members of the ELT to explore DE&I experiences and behaviors, followed by focus groups with homogenous senior and middle management members from different physical locations. Finally, insights will be collected from all non-management/non-leadership employees using a survey tool and a small set of questions. All data will be collected anonymously and incorporated into a database of general responses for analysis.
Phase 3: Bridge the gap between present and aspiration – DE&I Training & Development
There are many ways to design and deliver DE&I training and development. Upon the completion of Phases 1 & 2, we will assist our client to plan an approach that addresses identified needs, moves the needle in the direction defined by the ELT’s stated intent, and achieves a sound return on investment.
If your organization is considering embarking on a DE&I journey, we would be pleased to share our insights and experiences to help you get started.
To learn more, contact me, Jonathan Parker at: jonathanlparker@journeycounts.com
Finally, the Global Blueprint for Belonging and Diversity report identified three key internal drivers behind DE&I initiatives (shown in the heading of the chart below). We invite HR and other organizational leaders to consider the questions posed for each driver, and we can also help too with this process.
Source:Global Blueprint for Belonging and Diversity
Research
Dixon-Fyle, Sundiatu, et al. “Diversity Wins: How Inclusion Matters.” McKinsey & Company, McKinsey & Company, 19 May 2020.
Global Blueprint for Belonging and Diversity | Workday. Workday, Inc., 2023. A free download. “In fall 2022, Workday commissioned a survey of global HR and business leaders to better understand the drivers behind diversity, equity, and inclusion, as well as the current state of global DEI. Respondents came from a group of 3,114 HR professionals and business leaders across 23 countries.”
Fleming, Melissa. “The State of DE&I: Moving the Needle from Commitment to Progress.” MM+M - Medical Marketing and Media, 2 Aug. 2022.
“The Future of Diversity, Equity, and Inclusion 2022.” Affirmity.
Articles
Forum, MIT SMR Strategy. “MIT SMR Strategy Forum: Should DEI Efforts Be Expected to Have a Financial Return?” MIT Sloan Management Review, 31 Oct. 2022. Panelists on the MIT Sloan Management Review Strategy Forum respond to the following statement: “Corporate investments in diversity, equity, and inclusion should be expected to generate a monetary return on investment.”
Maurer, Roy. “HR Roles among the Fastest Growing in US.” SHRM, SHRM, 6 Feb. 2023. HR Roles Among the Fastest Growing in US. LinkedIn’s data reveals a growing recognition of human resources as a business-critical function since the onset of the COVID-19 pandemic. Five of the 25 fastest-growing roles in the U.S. since 2018 belong to HR, according to an analysis of job titles on the site. Emerging areas are represented with positions like human resources analytics manager (No. 2), diversity and inclusion manager (No. 3), and employee experience manager (No. 5), as are traditional HR titles like chief people officer (No. 15) and head of rewards (No. 21).
“Stop Making the Business Case for Diversity.” Harvard Business Review, 15 June 2022. The authors studied the impact of company messaging around DE&I and concluded that it’s better not to justify your commitment to diversity at all. Across our studies, they found that people felt more positive about a prospective employer that stated diversity simply as a value, without any explanation.
“What Is Diversity, Equity, and Inclusion?” McKinsey & Company, McKinsey & Company, 17 Aug. 2022.