Diversity and Inclusion in Today’s Market: Is Your Company Poised to Succeed?
While many organizations have Diversity and Inclusion programs in place, or have been working toward that goal, last year’s explosion of racial injustice and protests put a match to those efforts, insisting that they be even more inclusive, more substantial…and addressed now.
Where do your D&I initiatives stand in this new environment? Are they showing any real change? Is leadership languishing at the lack of engagement? Less than inspiring? Not expanding your company culture in the way you imagined? Perhaps it’s time to look at how trends have changed in the present climate and better understand how D&I impacts business.
Examining the numbers
In examining leadership:
12.5% of the U.S. population is Black, yet only 3.2% of senior leadership positions are held by Black people.
In the Fortune 500, only 4 CEOs are Black (all men), representing only .08%.
18.3% of the US population is Hispanic, and yet only 4% of company executives are Hispanic.
The Society for Human Resource Management finds that:
59% of Latino men and women experienced slights and snubs in the workplace; when looking at Latinas specifically, this number jumps to 67%.
46% of Black workers say their manager does not support discussion of racial justice issues at work.
Black workers are four times more likely than White workers to feel they are treated unfairly because of race.
Black workers are two and half times more likely than White workers to observe race-based discrimination in their workplace.
63% of Latino men and women do not feel welcome and included, do not feel invited to share their ideas, or do not feel confident their ideas are heard and valued at work (78% when Latino women alone are considered).
And women? Their experiences may seem especially demoralizing. As noted in the Harvard Business Review, research done by Coqual into the dynamics of gender and racial dynamics found that:
72% of Black women, 53% of Latinas and 52% of Asian women who want to be leaders feel they must compromise their authenticity (conformity in presentation and communication). Only 44% of White women felt that way.
46% of Black women feel their ideas are not heard or recognized. Their ideas are also less likely to be endorsed than those of straight white men.
Compared to White women, Black women are more likely to feel their talents aren’t recognized by their superiors (26% vs 17%).
Black women are far more likely than white women to feel stalled in their careers (44% vs 30%).
Does D&I affect your bottom line?
Indeed, it does.
The business case for organizations to embrace best practices related to diversity and inclusion is simple: the nation’s demographics will continue to change and businesses must adapt.
If your marketplace is growing in diversity, your employee pool should as well. And who better to reach your target customers more effectively than workplace teams and leaders who have a fuller understanding of shared experiences and end-user needs?
Early adopters are already reaping benefits. Johnson & Johnson’s approach to their D&I initiatives have been shown to be:
Eight times more likely to achieve better business outcomes.
Six times more likely to be innovative and agile.
Three times more likely to be high performing.
Peter Fasolo, J&J’s EVP and chief HR officer, stated in a press release, “We believe that only when our employees can be their true, authentic selves can they spark innovative solutions to the problems facing our world.”
In addition to launching a campaign for employees to share their unique stories and experiences and hosting TEDTalk events within the company, Johnson & Johnson offered unconscious bias training that (in 2019) had been completed by 105,000 employees, 95% of managers and more than 85% of all employees.
D&I initiatives can impact revenue, profits, recruitment and retention, and employee satisfaction:
Companies with the most ethnically diverse executive teams are 33% more likely to outperform their peers on profitability. (McKinsey, 2017)
Companies that reported above-average diversity on their management teams also reported innovation revenue that was 19% higher than that of companies with below-average leadership diversity — 45% of total revenue versus just 26%. (Boston Consulting Group)
Diverse management teams are 70% more likely to capture new markets. (Human Resource Executive)
Glassdoor data-gathering shows that 67% of job seekers value diversity when evaluating companies and job offers.
First steps and programs with the most ROI
Teams, horizontally and vertically, must walk the walk. For D&I to be an effective ROI tool, you’ve got to bring everyone into the conversation.
When it comes to business, organizations set goals, collect data and examine change over time. They compare themselves to other organizations. Why not do the same for D&I?
Diversity and inclusion messaging issued from leadership without input from employees — and even clients or customers — holds little credibility. It’s window dressing and will not, in the long run, improve your business or company culture in a positive, tangible way.
Tactics for greater, more authentic, lasting inclusion should include:
Leadership programs that put high-potential employees on the management track
Mentoring/Sponsorship programs that move beyond advice to meaningful advocacy (American Express and Bank of America created programs that paired women and people of color with more experienced colleagues who helped them “learn the ropes” over the long haul, rather than the first weeks or months on the job. Research finds that women of color are 81% more likely to be satisfied with their career progression when they have sponsors than those without.)
Training programs designed to call out and mitigate unconscious bias (such as the inclination to promote candidates similar to current leaders — the homogenous status-quo)
Practicing mindful, active inclusion. Create a welcoming, safe environment for speaking up. Embrace input from employee of diverse backgrounds and expertise. Use it. Provide feedback — and keep the conversation going!
Establishing metrics by which to measure I&D goals and progression
Holding leadership accountable for those key performance indicators. (Time Warner launched a tracking and reporting system to measure their I&D progress; leader bonuses were tied to their divisional goals)
Communication is the key to consistent, positive impact
The endurance of the D&I shouldn’t be surprising: powerful forces of human nature, changes in society and talent management all weave together. More surprising, perhaps, is how often leaders still embark on large-scale change efforts without seriously focusing on building conviction or reinforcing it through formal mechanisms.
While these priorities sound like common sense, it’s easy to miss one or more of them amid the myriad activity that often accompanies significant changes in organizational direction. Leaders should address these building blocks systematically and over time, will see a bigger impact.
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Photo credits: Arlington Research, Christina @ wocintechchat.com, Spencer Davis, DISRUPTIVO