Diversity, Equity & Inclusion
When diversity in the workplace is discussed today, it encompasses entry-level positions through the C-suite.
True diversity transpires when systematic diversity and inclusivity are evident at all workplace levels, from leadership, and managerial positions, to staff.
Today, only 25% of companies exhibit leadership diversity, and many don’t consider leadership diversity a boardroom priority.
The lack of workplace diversity in the U.S. remains a slow process since the passage of the Civil Rights Act over 50 years ago.
Individual preferences, experiences, and employer expectations have also changed with time. No longer do most people entering the workforce separate work and personal values. Now, employees want to feel more included, respected, and equal. Therefore, along with good salary packages, employees nowadays look for a work culture providing them with a team voice.
That is why, as a leader, it is essential to establish a work culture attentive to true diversity and inclusivity in the workforce.
Diversity Demographics
In 1964, the Civil Rights Act was passed. The act prohibited discrimination in the workplace and society based on color, race, gender, and nationality.
But what are we experiencing after more than 50 years have passed since the enactment of the Civil Rights Act?
How often do you see leaders promising to encourage workplace diversity?
Have you heard any leaders say they are committed to building a culturally diverse workplace?
Unfortunately, not often. Maybe occasionally. Even if some leaders promote diversity, they do not implement strong workforce policies.
A McKinsey survey reflects that over 85% of U.S.-based executives are white. Moreover, 83% of the managers in U.S. companies are white. At the same time, 64% of people employed in the operations and management levels are white.
If we talk in terms of gender, then 71% of senior managers worldwide are male. The McKinsey survey shows that 77% of the top executives in companies globally are male. However, women constitute 47% of the workforce in such companies.
These numbers imply employment discrimination is evident in the workplace. Though we may not hear about discrimination cases publicly, 80% of employees internally feel various forms of employment discrimination at their company.
Today we live in an era where we should not have to fight for equality and inclusivity. But, since diversity is lacking in the workplace, it is incumbent upon company leadership to incorporate DEI strategies in their organizations.
The data above should encourage people to promote diversity at the executive level. But not every company includes leadership diversity in their priority list.
In a DEI survey by Workable, 64.8% of the respondents cited that diversity throughout the company is a priority in their DEI strategy. While approximately 25% of companies say they started considering a DEI strategy.
If leadership starts at the top, it is essential for the C-Suite also to reflect diversity.
Historically, DEI strategies seemed like an unimportant strategy to consider for companies, ignoring the benefits it could accrue to the organization.
Importance of Leadership Diversity in a Company
Leadership diversity in a company is important for several reasons:
Representation
Diverse leadership equally represents most, if not every, group of people in the company. If the top executives represent personnel from different races, gender, nationality, and culture, they may better understand the pain points of distinct groups. The insight of a diverse executive group will then formulate policies and inculcate a work culture that benefits everyone.
Therefore, no employee will feel left out and unheard. Everyone will be given equal opportunities, respect, consideration, and team representation. A diverse leadership creates an inclusive and supportive work culture.
Talent Attraction & Retention
A diverse leadership team can foster supportive work culture directly related to talent retention and acquisition.
Today employees expect much more than a good salary package. They look for a supportive and indigenous work culture where they get equal growth opportunities. Moreover, they also prioritize work and personal life balance.
Further, they look forward to working in a team where their views, suggestions, and proposals are considered and given equal importance as others.
Therefore, by bringing diversity into leadership, you will retain your talented employees and attract other talents to work for you, enhancing your workforce’s efficiency, performance, and productivity.
Innovation
Diverse perspectives can lead to innovative ideas and approaches to problem-solving. When people from different backgrounds and experiences come together to solve a problem or plan, they can bring unique insights that may not have been considered otherwise.
Market Awareness
Leaders who want their companies to progress should start by creating representative leadership at the executive level.
Today businesses are not restricted to local regions but aspire to expand globally. Companies with offices in different areas of the world offer products and services per the demands and preferences of the people of that region.
Moreover, to understand the preferences of the people of a specific region, you should have to have a leader belonging to that region.
For instance, a U.S. citizen as an executive will not be able to completely understand the culture, likes, needs, and pain points of the people of India. Without clear customer insight, a non-native leader cannot build products that become successful in other countries. On the other hand, if you have a native executive on your team, they can suggest better products for non-domestic customers.
Therefore, a diverse executive team will consider the experiences, preferences, likes, and customer demands of a broad cross-section of the population.
Data To Prove the Positive Impact of Leadership Diversity on Businesses
According to a study by McKinsey, having diverse leadership has a significant positive impact on business success.
The data shows that companies in the top quartile for gender diversity in executive positions are 21% more likely to generate higher profits and 27% more likely to create superior value.
Similarly, companies in the top quartile for ethnic and cultural diversity on their executive teams are one-third more likely to have industry-leading profitability.
On the other hand, a homogenous leadership team can have a negative impact on a company’s bottom line. Companies in the bottom quartile for gender and ethnic/cultural diversity are 29% less likely to be above average in profitability.
What are the Barriers To Leadership DEI Success?
There are several barriers to achieving Diversity, Equity, and Inclusion (DEI) in the workplace. Here are some of the most common obstacles:
Bias: Implicit or explicit biases can hinder DEI efforts by influencing decision-making, hiring practices, and promotions. Biases can be based on race, gender, age, or sexual orientation and can be conscious or unconscious.
Lack of diversity in leadership: When leadership is not diverse, it isn’t easy to create an inclusive culture and implement policies supporting DEI. Without diverse representation at the highest levels, attracting and retaining diverse talent can be challenging.
Resistance to change: DEI initiatives often require significant changes to organizational culture and practices, often met with resistance from employees comfortable with the status quo.
Lack of accountability: Without clear goals and metrics to measure progress, it isn’t easy to hold leaders and employees accountable for advancing DEI efforts.
Lack of resources: DEI initiatives require funding, training, and support. Progress can be slow or non-existent if an organization does not allocate sufficient resources to DEI efforts.
Unconscious bias in hiring: Unconscious bias can influence the hiring process, leading to less diverse teams. Often managers hire candidates who look, act, or think like them.
Lack of understanding and awareness: Many employees may not fully understand the importance of DEI or how to promote it in the workplace. Misunderstanding can lead to unintentional actions or statements that are not inclusive.
Overcoming these barriers requires sustained effort and commitment from leadership and includes providing education, training, and ongoing employee support. By addressing these challenges, organizations can create a more diverse, equitable, and inclusive workplace that benefits everyone.
How Can Leaders Resolve DEI Barriers In Workplace?
Here are some ways that leaders can address and resolve barriers to Diversity, Equity, and Inclusion (DEI) in the workplace:
Foster a culture of inclusivity
Leaders can set the tone for the organization by prioritizing DEI and modeling inclusive behaviors. They can establish clear values and policies that promote diversity and inclusion while holding employees accountable for upholding them. Best practices might include regular training and education on DEI topics and celebrating and recognizing diverse perspectives and achievements.
Increase diversity in leadership
Leaders can actively work to increase diversity in leadership positions by implementing targeted recruitment and retention strategies, such as mentoring and sponsorship programs. They can also prioritize diversity in succession planning and create opportunities for employees from underrepresented groups to take on leadership roles.
Address bias and discrimination
Leaders must address implicit and explicit biases within the organization by creating a zero-tolerance policy for discrimination and harassment. They can implement training programs to help employees recognize and address bias and establish clear channels for reporting incidents of discrimination or harassment.
Measure and track progress
Leaders can track and measure progress towards DEI goals by establishing metrics and regularly reporting on progress. This can include monitoring diversity in hiring and promotions, employee engagement and satisfaction, and the impact of DEI initiatives on the organization’s bottom line.
Ensure equitable policies and practices
Leaders can review and evaluate existing policies and practices to ensure they are equitable and inclusive. The process can include assessing compensation practices, providing flexible work arrangements, and creating a workplace that is physically accessible to all employees.
Promote allyship
Leaders can encourage and promote allyship within the organization by creating opportunities for employees to engage with people from different backgrounds and perspectives. Promoting allyship can include cross-functional projects, employee resource groups, and community engagement programs.
To sum up, creating a diverse, equitable, and inclusive workplace requires sustained effort and commitment from leadership. By addressing these barriers and implementing strategies to promote DEI, leaders can create a more inclusive workplace that benefits everyone.
Conclusion
In conclusion, the data clearly shows that cultivating diversity, equity, and inclusion (DEI) practices are critical to the success of any organization. Companies can attract and retain top talent, foster innovation, and achieve better business outcomes by creating a workplace culture that values and promotes diversity. However, achieving DEI in the workplace requires a sustained effort from leadership and a commitment from all employees to create a more inclusive environment. By addressing barriers to DEI, such as bias, lack of diversity in leadership, and resistance to change, leaders can create a workplace that reflects society as a whole and positions the company for future success.
Leaders must recognize that DEI is not just a box to check but a core value that should be woven into the organization’s fabric. It requires ongoing education, training, and support to ensure that all employees know the importance of DEI and are equipped with the tools to promote it in their daily work. By fostering a culture of inclusivity, increasing diversity in leadership, addressing bias and discrimination, measuring progress, ensuring equitable policies and practices, and promoting allyship, leaders can create a workplace where all employees feel valued, respected, and empowered to succeed. Ultimately, by prioritizing DEI, companies can create a more vibrant, innovative, and thriving workplace that benefits everyone.