Diversity, equity, and inclusion (DEI) initiatives are increasingly essential for attracting and retaining talent, as well as enhancing worker productivity and engagement. Read on to learn more about how today's business leaders are responding to the demand for DEI in their organizations.
In the wake of powerful cultural movements and calls for a more heterogeneous workforce, business leaders are uncovering a strong business case for workplace diversity. And as a result, many are launching Diversity, Equity, and Inclusion (DEI) initiatives that set their organizations up for success.
“DEI initiatives are table stakes in today’s business world,” said Deanna Singh, founder of business consulting firm Uplifting Impact and author of "Actions Speak Louder: A Step-by-Step Guide to Becoming an Inclusive Workplace." “Today’s employees are just as motivated by finding a sense of belonging at work as they are by their pay, and leaders should consider DEI an essential component of their business strategy.”
Effective DEI initiatives can prove mutually beneficial to employers and employees, as they support holistic worker well-being, promote a healthy work-life balance, and can boost employee engagement, productivity, and retention. Here's how today’s leaders in DEI are meeting their workers’ needs — and the benefits their companies can gain as a result.
Responding to the needs of younger workers
The largest demographic shift in the workforce is generational, and employers need to prepare to meet the demands of younger millennials and Gen Z. According to Gallup research on the generational preferences of today's workers, that means embracing DEI: Younger workers want to work at organizations with leaders who support a diverse and inclusive workplace and, above all, care for their employees' individual well-being.
Offering benefits aimed at younger workers — such as tuition reimbursement, student loan repayment assistance, and mental health care — as well as competitive pay and opportunities for advancement can help employers attract and retain young talent.
But there are other advantages, as well. “When DEI benefits are clearly and consistently communicated and utilized, they contribute to increased employee engagement, morale, retention, and they drive innovation, better problem-solving of business challenges, and increase the customer service experience,” said Dr. Shirley Davis in her book, "Diversity, Equity & Inclusion for Dummies".
What’s more, shared Davis, president and CEO of SDS Global Enterprises, younger workers who have positive experiences in the workplace are more likely to post enthusiastic comments about the company on social media. By evangelizing the company, they lend authenticity to their company's DEI initiatives and support their recruitment efforts.
Focusing on equity over equality
Leaders in DEI are taking an equity-focused approach to help each worker reach their potential, rather than basing initiatives on equality.
"Workplace equity is intentional, considering the needs of each individual while taking their unique social identity into account," Singh said. Workplace equality, on the other hand, takes a more passive approach by extending the same support to each employee regardless of their needs.
“It is crucial that employers become comfortable with the notion that treating people differently is a virtue," she noted. “Each person has unique advantages and disadvantages in the workplace and will thrive under a different form of cultivation.”
Promoting equity means taking steps to aggressively manage biases in recruiting, she explained, as well as actively encouraging every team member to share their thoughts in meetings.
These equity-focused solutions benefit employers by sparking innovation. Both women and people of color talk less, on average, and face more interruptions in meetings, Singh noted. That means many employers miss out on crucial insight that could solve problems in the organization. Elevating marginalized voices, on the other hand, brings with it new perspectives and solutions to drive innovation and enhance the customer experience.
Supporting remote and hybrid work
The shift to remote and hybrid work has been popular with both employers and employees. In PwC's survey on The Great Resignation, of the 52,000 workers who say their job can be done remotely, 63% say they prefer a mix of remote and in-person work — and 26% say they prefer full-time remote work.
However, employers must support their hybrid workforce to help them work to their potential. “Workers report that they want to see a “reset” of the culture and the benefits offered to those who are remote,“ Davis said. “Staff who are working remotely are now expecting reimbursement of expenses and subscriptions to online platforms. They want to be made to feel a part of the team and not an afterthought.”
When done well, DEI initiatives to support hybrid workers pay off. As reported in a case study by Chartered Institute of Personnel and Development, a European division of a global technology firm had great results when it implemented a “smart working system” with flexible hybrid work schedules and a “smart allowance” to cover some of the costs of working from home. The company noticed an uptick in employee engagement and work-life balance. It also saw these programs served as powerful recruitment tools, and it was able to attract more applicants with higher-quality resumes.
Extending workplace benefits
A shift to remote and hybrid work changed the needs of employees, and companies that adapt to workers’ needs with well-rounded benefits packages are reaping the rewards.
“Workers with well-rounded benefits packages become company ambassadors both internally and externally,” Davis said. “They stay at the company longer, they are willing to go above and beyond expectations, and the employer also experiences fewer employee complaints and realizes greater productivity and performance.”
However, workplaces need to communicate with their workers to ensure that benefits truly meet their employees’ needs. A PwC study on employee financial wellness found that financially-stressed employees are twice as likely to look for jobs elsewhere — and 76% report feeling attracted to another company that cares more about their financial wellbeing.
Soliciting employee feedback can help companies identify (and close) these benefit gaps and reap the advantages of well-rounded benefits packages.
Using technology to capture better data
Unconscious biases drive the need for DEI initiatives, and they can affect their success. As a result, using technology to help identify and mitigate biases can help make DEI efforts more effective.
For example, AI-driven candidate selection can help eliminate bias during recruitment, while technology that identifies biased language in job descriptions and recruiter postings can widen the pool of applicants.
DEI technology can also track each employee across their lifetime with the company, helping the employer gain insight into the effectiveness of their DEI initiatives. It can identify if workers from marginalized backgrounds have higher attrition rates, for instance, allowing the employer a chance to investigate why — and potentially launch new initiatives in response.
This data-driven approach is favored by industry giants such as Google. In 2019, Google broadened its employee demographic data to become more inclusive, allowing it to laser-focus on more intersectional DEI initiatives. In response, it adjusted its hiring strategies by making its workplaces more accessible, sourcing and hiring more employees with disabilities, and ensuring those employees had adequate resources and training programs to help them succeed. As a result, it received a score of 100 on the Disability Equality Index, and the Google Disability Alliance was named Employee Resource Group of the Year at the 2020 Disability:IN Conference.
The bottom line
DEI initiatives can do more than just bolster employee well-being. By meeting employees’ diverse needs, companies help each team member work to their full potential and create an inclusive atmosphere that boosts productivity, drives innovation and sets the company up for long-term success.
Effective DEI initiatives can also empower businesses to have a positive effect on their industry, their local community and the entire business landscape. “Business leaders should know that they have significant power to remedy inequities in our society,” Singh said. “They have financial power, autonomy and agility on their side, which puts them in a unique position to do this work [over slower-moving governments or nonprofit groups]. And there isn’t a moment to lose.”