If you’ve been reading the news about the future of diversity, equity, and inclusion (DEI) being in jeopardy, let us begin by acknowledging that DEI being under fire is not new.
Just last year, we defended comments from Andy Kessler, who suggested the collapse of Silicon Valley Bank (SVB) may have resulted from the team “being distracted by diversity.”
Yet, it’s when pressure is applied that change happens.
Take COVID-19 as a recent example. Employee demand to work from home and flexibly was growing, yet companies were painfully slow to respond. Then, a global pandemic took hold, and we saw an unprecedented acceleration in the enablement to work remotely.
Post-pandemic, we commented on this trend, wondering what significant event could put a rocket up the stagnant progress happening in the DEI space. Enter the legal battles in the U.S., placing the whole industry under fire.
This presents us with an opportunity and we need to make the most of it. Below are three ways organisations can safeguard and optimise the effectiveness of their DEI efforts.
1. Evolve from DEI initiatives to DEI integration.
DEI efforts are most impactful when embedded in the organisational strategy; they become much easier to defend when they are integral to a business’ success.
Don’t silo DEI in HR, it impacts every aspect of an organisation. Placing it solely under HR can diminish its impact, often making it the first to be overlooked. HR traditionally focuses on risk mitigation to safeguard the organisation, but DEI thrives on risk-taking for value creation. It should be treated as an essential function that is a key contributor to business performance.
To achieve this, DEI should be owned by business leaders, with key metrics embedded into business unit KPIs. Further, it needs to be woven into the way of working for all teams, with inclusive behaviours being the status quo and equity being top-of-mind across all hiring and promotion decisions.
2. Walk the walk before talking the talk.
To date, DEI has primarily been treated as a tick-the-box exercise, with efforts focusing largely on brand image rather than lasting and impactful change. As external promotion of DEI efforts becomes increasingly scrutinised, it encourages us to move beyond surface-level initiatives that focus more on external perceptions and towards those that drive impact and progress internally.
Organisations can take the opportunity to assess the current initiatives they have in place and what their expected outcome is. Every initiative should be closely linked to a business priority, with mechanisms for measurement of effectiveness in place. Activities that are just for show should be challenged; they are taking money, effort, and resources away from actions that drive true and lasting progress.
Gone are the days of being able to bluff our way out of DEI scrutiny. In Australia, we’re on the brink of gender pay gap data being publicly released. Organisations will have the opportunity to release a statement to defend existing gaps. Still, for them to be regarded, they will need to demonstrate tangible steps that are being taken and the expected outcome of these.
3. Tweak positioning and messaging, not effort.
Responding to DEI backlash has been a requirement for as long as the discipline has existed due to the redistribution of power, the inevitable resistance to change, and the “perceived” threat it brings. The focus and sensitivity we should have is on how efforts are being communicated and positioned with a consistent talk track and rationale across the board.
When launching or rolling out a new DEI initiative or project, organisations must be clear on how it has come about, how it’s intended to support the business, and the role all employees play in supporting it. Consider employees’ different perspectives, anticipate the threats they may perceive as a result of suggested initiatives, and address these proactively in your communication strategy.
It feels like DEI as an industry is dealing with one new challenge after another. Still, we’re optimistic about the opportunity this time presents for realising what we’ve all been working towards for years: for full DEI integration to be the natural and expected way of doing business.