What Strong Organizations Know About DEI

(Illustration by Anna Semenchenko)

In the aftermath of the national racial reckoning launched by the George Floyd killing, the number of chief diversity officer positions in the US grew by nearly 170 percent. Yet the subsequent political backlash, coupled with a lack of clear understanding of how diversity, equity, and inclusion (DEI) programs can be integrated into an organization’s structure, has led to a drop off nearly as steep as the original rise.

A recent survey from Revelio Lab found that, in the tech industry, one in three diversity programs were cut by the end of December 2022. Thousands of additional diversity, equity, and inclusion (DEI) executives across corporate America have been laid off or left their jobs this year, including chief diversity and inclusion officers at major corporations such as Disney and Netflix. That pace may have only accelerated after the US Supreme Court handed down their decision striking down affirmative action this past June and casting many other diversity programs into doubt.

Despite this ebb and flow, those of us committed to bringing about lasting change must recognize that diversity, equity, and inclusion are much more than a passing fad. They are a framework for engaging an organization’s full strength and range of views, experiences, and capabilities. DEI offers a shared language that organizations can use to talk about people and culture and to explore issues of implicit bias, felt safety, and power differentials. A strong DEI program encourages and develops adaptive leaders, who consider ideas that represent a range of views and options, with an understanding that this broader knowledge base can be a positive when making important decisions. Adaptive leaders are better able to address complex challenges because they are taking into account multifaceted solutions.

Simply put, organizational diversity is a strength, not a weakness. Organizations who grasp that will ultimately show impact in their bottom line, organizational goals, and mission.

Why do some DEI efforts fail? There are a number of internal and external challenges that may stand in the way of fully integrating DEI across all levels of an organization. Internally, these include the rise of telework due to the COVID-19 pandemic, a lack of buy-in across all levels of the organization, employees who may view diversity hiring as a zero-sum game, limited staff capacity, leadership transitions, and the intractability of organizational culture. Externally, the largest roadblock to effective DEI programs is the current political environment which is creating backlash and pressure among organizational leaders to reject and move away from equity as a core value.

To overcome all of these challenges, employers must frame DEI efforts as a means to fixing systemic issues rather than personnel issues. It is not just about numbers or setting diversity hiring goals but rather about changing the processes and policies within the organization that lead to bias and/or a lack of diversity in recruitment. It’s also about demonstrating intentionality in diversity practices with the ultimate goal of building and sustaining an organization that is fair and diverse in knowledge and experience.

What do effective DEI programs look like in practice? Diversity, equity and inclusion must be more than buzz words. Organizations should create a culture of belonging across all aspects of the workplace, ensuring that all employees feel seen, heard and valued. This will require a commitment of leadership, time and resources.

Organizations can start by looking for ways to engage employees in activities that enhance connectedness and strengthen workforce resilience, such as frequent check-ins, peer mentorship, and normalizing discussions around mental health. Employers must also work to ensure their policies and practices are equitable so as to realize the talents and potential of all staff. This can be achieved through ongoing employee dialogues, by addressing implicit bias, by understanding intersectionality, and by emphasizing cultural considerations regarding the relevance and appropriateness of supportive workforce activities.

Organizations must also pay attention to the parallel processes of growth and learning at the organizational and collective levels. Fostering an antiracist workplace culture starts with building insights, skills, and collective strategies that teams, departments, and entire staffs can advance such as an increased understanding of implicit bias, felt safety, difficult conversations, and power differentials across the organization.

This doesn’t happen overnight or by accident. It takes time, commitment, and concrete steps to foster a strong culture of connection and engagement across the workforce. This is in fact a journey and not a race. It starts with a focus on the people and a recognition that employees are happier and more productive when they feel connected and appreciated and when their leaders understand the importance of work-life balance. Employers can help foster those connections through recognizing the diversity of what employees bring to the work. Employers must build the psychological safety muscle allowing their team to show up and represent their identities without thought of retribution or ridicule. And organizations must embed these values across their organizational policies and practices to achieve true sustainability.

How can this impact an organization’s bottom line? The impact of a fully supported and truly engaging DEI program can be significant—both for a corporation’s return on investment (ROI) and for a nonprofit organization’s retention, resilience, and engagement of its workforce. Consider that numerous studies show a strong link between DEI programs and an increase in corporate profitability. Research from firms like Deloitte, McKinsey & Company, Boston Consulting Group, and BoardReady all show gains to corporate bottom lines—companies that are more diverse and inclusive are more innovative and profitable.

For the nonprofit sector, diversity, equity, and inclusion are essential to improving workforce resilience and employee engagement and retention, particularly at a time when many sectors, such as the social service and health care sectors, are experiencing workforce crises. Workforce trend and culture reports consistently show employees are seeking more fulfillment in their work and a greater sense of community, belonging, and well-being.   

It's also important to think of our workforce of the future. Millennials and Gen Zers are increasingly socially conscious. They are more likely to spend their money with companies that reflect their social values and to seek workplaces that are racially diverse and progressive on social issues. They believe the world is at a tipping point on issues related to racial justice, inequality, and climate and they want to be a part of companies that support positive societal change.

Beyond the practical reasons for embracing DEI, it’s important to think about your organization or business in the context of vision and mission. To fully achieve those, leaders have to embrace a culture that supports DEI.

After the tremendous workforce upheavals and disruptions that arose from the COVID-19 pandemic, we have a societal imperative to reimagine a future workforce that truly embraces DEI. One that emphasizes employee engagement, innovation, resilience, diversity, inclusiveness, and productivity. One that is fully invested in equitable systems and solutions that move our nation to a more perfect union. The equity journey is for the long haul but taking that first step should be the priority for all organizations who seek to uphold the values upon which our nation was founded.

Read more stories by Undraye Howard.