Since its roots in the civil rights movement and affirmative action in the 1960s, diversity, equity, and inclusion (DEI) has evolved. Today, it is one of the most salient business concerns, with virtually every company in different jurisdictions all over the world looking to reap the value of DEI principles.
In its broadest sense, DEI revolves around fair treatment of people, regardless of race, gender, ability, and other identity characteristics. Yet, it has gone through numerous shifts during the years, as businesses and experts continue to determine how to achieve its goals.
According to Marilyn Nagel, DEI Expert and Partner at business and governance advisory firm BoardWise, the topic of DEI has undoubtedly evolved, moving away from the view of it as a compliance issue towards it being beneficial for the business’s bottom line. This evolution is continuous, and the gains of the past will have long-lasting positive impacts on the DEI situation of the future.
Nagel says that, in a climate of political polarization in the US and many other countries, the DEI platform is a way to strengthen company culture and create an environment of respect for one another. This does not mean everyone will agree on every position or that the organization should take a stand on all geopolitical issues. Good DEI initiatives are integrated into the fabric of the business, connecting employees with customers and the business goals, showing employees their company is making a positive impact on their communities and the environment.
There are many misconceptions about DEI today, including that it is about being overly progressive or “woke”. Nagel disagrees, saying DEI is about facilitating an environment where everyone can work at their full potential, with the organization leveraging everyone’s contributions to succeed. To achieve this full potential, the organization must include a broad range of identities, across race, gender, age, religion, physical ability, neurodiversity, introversion/extroversion, and many more qualities that each person brings to their job.
“More and more employees are saying, ‘We want to know that our company is doing
good. If it’s not doing good, then at least it should be doing no harm’,” Nagel says. “Employees are also now concerned about whether the company is environmentally sound and making a positive difference in the community. DEI work helps connect people to the company’s culture and to their work, reflecting the values the company puts on the wall or their employee badge. Employees today want to work for a company whose values resonate with them.”
“This point will become even stronger in the future, as young people entering the workforce today are exposed to DEI concepts from the very start of their careers” notes Donna Hamlin, CEO of BoardWise. “They are champions of rights and benefits that are equitable, and adamant about everyone being given what is due. They are more likely to demand equity for their underrepresented colleagues like mental health benefits and paternal leave, and want better work-life balance than they saw their parents had. Many of these are now non-negotiables for the younger generations, and they won’t work for a company that doesn’t share their value or offer extensive equitable benefits.”
Dr. Hamlin believes this will have an even greater impact once these younger workers move into management roles, giving them the power to change organizational cultures and remove any entrenched obstacles to full inclusion and equity.
When working with clients, BoardWise meets with their leadership team and presents them with the results of an engagement survey of the workforce, giving them a picture of the situation of representation, inclusion, and the weaknesses and opportunities across the organization. BoardWise will then share a roadmap to make the organization more inclusive. It ensures accountability permeates at all levels, and it shouldn’t end at the CEO or HR level. BoardWise’s solutions also go beyond unconscious bias training, which has been proven multiple times to be ineffective. Simply being aware of biases isn’t enough. While some biases are impossible to remove, organizations can inhibit these biases from influencing decisions.
While D comes before I in the acronym DEI, BoardWise says it is important to put the focus on inclusion. Hiring merely based on diversity is ineffective, illegal, and short-sighted as it will only increase representation but not give minorities a voice.
“Diversity is indeed important, but it’s what you do with it that’s even more so,” adds Marilyn Nagel. “It’s not enough to just bring people to the party. They need to feel welcome and encouraged to participate, and systems must be in place to ensure they are not marginalized. Tokenism only widens the divide and it backfires. Real success lies in breaking down silos. Many people are brought in just to represent their race, gender, disability, etc. but one person does not represent the entire group, and it is unfair to give them that responsibility, setting them up only for failure.”
BoardWise advises organizations to focus on developing the diverse people within the organization who are individual contributors or first-line managers and help them move up through the ranks. By being able to develop, retain, and engage these individuals, the organization can get the maximum potential from the current members because they feel included, heard, and valued. This does not preclude adding diverse qualified candidates when openings arise, but companies should first look at the talent they have and ensure they are being fully developed.
“Often, it’s more important to stop the drain of talent before looking to bring in new talent. Over the years, we’ve seen organizations develop an inclusive culture and end up becoming more diverse than those who try to force it by hiring quotas. This is what we mean by putting I before D,” Marilyn Nagel notes based on her work across industries and companies.
