DEI - pretty much everyone in the modern working world has heard the term before. It's become a rallying cry for many organizations, and a focal point for HR departments across the globe.
But what exactly is DEI? What does it involve? And why is its current state so problematic? We'll take a look at those questions and more in this article.
What is a Diversity Program?
Diversity programs are workplace initiatives, practices and policies implemented for the purpose of improving organizational inclusion. They're all about enriching positive dynamics within teams so that their collective actions are fair, equitable, and reflective of different demographics.
Diversity programs are often designed to improve the experiences of certain minorities in the working world, such as BIPOC individuals, women, and members of the AAPI community. The idea is that by taking proactive steps to recognize and address the disadvantages these groups face, businesses can create a more welcoming and engaging environment in which all staff can reach their full potential.
Defining "Diversity in the Workplace"
As a relatively broad term, the word 'diversity' can have different meanings in the world of business. Not all organizations define it the same way, nor design programs with the same goals in mind.
In general, though, workplace diversity initiatives are about creating an inclusive environment in which employees feel comfortable bringing their whole selves to work. This includes feeling respected and valued for their unique perspectives, backgrounds, and experiences.
Diversity Program Anatomy
While they all have the same goal - fostering inclusion within the workplace - diversity programs can be very diverse in and of themselves. Many employers take their own approach to designing initiatives, and it's not uncommon to work for one company where diversity is promoted a certain way and then another where it's tackled with a completely different approach.
The way these programs are structured simply comes down to the specific circumstances of the employer at hand, their staff and what practices hold the most meaning and/or effectiveness.
Some of the most common elements of diversity initiatives include:
Diversity Workshops
An already-common occurrence in the professional world, workshops are a popular choice for employers looking to boost their internal inclusion efforts. They'll usually be centered around some form of education, whether that means familiarizing staff with key issues like unconscious bias or providing more general information about the different demographics represented within the company.
Workshops can be conducted in-person or virtually, and led by internal HR staff, outside consultants, or a mix of both.
Mentorship Programs
Mentorship programs are another way to encourage learning and inclusion in the workplace. By teaming up staff members with someone who shares a similar identity, these initiatives aim to create supportive relationships that can act as a resource for both parties.
Mentorship programs can involve one-on-one pairings or larger groups and may be organized around specific topics or projects.
Employee Resource Groups (ERGs)
Employee resource groups (ERGs) are yet another means workplaces can support employees of all backgrounds. These groups are voluntary and typically made up of staff members who share a common identity - such as being BIPOC, LGBTQIA+, women, etc.
ERGs typically meet on a regular basis to discuss relevant topics, share resources, and support one another. Many also work on company-wide initiatives related to their area of focus.
The Rise of DEI in the Modern Workplace
Diversity hasn't always been the staple of workplace initiatives that we know it as today. It's a relatively newer concept, which while having been originally conceptualized in the 1960s, has only gained widespread adoption in more recent years.
The civil rights movement and the social paradigm shift it caused popularized the idea of inclusiveness, which soon began to make its way into many different aspects of society - including the workplace.
From there, the business world slowly began to catch on, with more and more employers seeing the value in promoting diversity within their organizations. This was driven both by changing social norms and a growing body of research highlighting the benefits of diverse workplaces.
In recent years, diversity initiatives have become more commonplace and well-rounded. They've expanded beyond simply promoting racial and gender inclusion to encompass other demographics as well - such as LGBTQIA+ employees, neurodivergent staff, and more. 'DEI' (Diversity, Equity and Inclusion) has become the umbrella term used to describe these efforts.
The Goals and Benefits of a Diversity Program
Although their general purpose is in the name, diversity programs can be implemented for all kinds of reasons.
Increased Growth
Besides it simply being the right thing to do, many businesses see engaging in DEI as a way to boost their bottom line. A 2018 study conducted by McKinsey found that companies in the top quartile for gender diversity on their executive teams were 21 percent more likely to experience above-average profitability than those in the bottom quartile.
The study also found that ethnically/culturally diverse companies were 33 percent more likely to outperform their peers on profitability.
This makes sense when you think about it - a diverse team is likely to bring a greater range of skills, perspectives and experiences to the table, resulting in more innovative ideas and better decision-making.
Enhanced Collaboration
In addition to promoting growth, diversity programs can also improve collaboration within an organization. A lack of diversity often leads to 'groupthink', where employees conform to the opinions of those around them rather than thinking for themselves. This can limit creativity and make it difficult to find solutions to problems. Simply put, diversity breeds innovation.
Compliance with Equal Employment Laws
Apart from the moral and business case for diversity, many employers are legally required to take steps to promote it.
For example, in the United States, covered employers are prohibited from discriminating against employees on the basis of race, color, religion, sex (including pregnancy, sexual orientation, gender identity, and sex stereotyping), national origin, age (40 or older), disability or genetic information.
Employers who don't comply with these laws can be subject to civil suits and government investigations, which can result in significant financial penalties. In some cases, having a DEI program in place is a simple way to mitigate these risks.
Improved Recruitment
A strong diversity program can also help with recruitment and retention, as it signals to potential employees that they will be valued and included in the workplace. This is especially important for marginalized groups, who often face discrimination and exclusion in their everyday lives.
A 2019 study by Ziprecruiter found that 86 percent of job seekers consider a company's diversity to be an important factor when considering whether or not to accept a job offer.
Similarly, a 2020 survey by Glassdoor found that almost one in three job seekers would not even apply to a company if it had a poor reputation for diversity. Sadly, this means that 67% of people would apply to work at the same company.
Diversity Programs: Valuable in Theory But Not as Much So in Practice
Diversity, Equity and Inclusion programs are a cornerstone of the modern workforce. They represent the inter-generational culture shift of North American business and serve as a promising bellwether for the future of social equity. Well, at least in a symbolic way.
Although they have promising benefits, diversity programs have largely failed in achieving their goals and serving their purpose.
Low Perceived Value
A data review by McKinsey analyzed sentiment on various topics of DEI among financial services, technology, and healthcare professionals. They found that although the topic was relevant to those surveyed, a slim majority (52%) had a positive outlook on diversity. Even worse, when asked about the notion of inclusion, only 29% had a positive response while 61% had a negative one.
Slow Growth
It's worth noting that DEI programs are technically effective. The only problem is that they are to such a minimal degree that it barely makes a difference.
Facebook, for example, has made promoting diversity a priority through various initiatives for as long as can be remembered. The company's share of Black staff between 2014 and 2020? 3% to 3.8%.
Tech giant Apple’s workforce has become slightly more inclusive since committing itself to DEI as well, with about 9% of its staff being Black. The only problem is that this number drops to a mere 3% when it comes to actual leadership roles. As far as technical positions go, the company's share of Black workers remained stagnant at 6% from 2013 to 2017.
Why Failed DEI is a Problem
Despite the purported value of workplace DEI programs, real-world implementation has shown us that they're not inherently effective. In fact, many have become train wrecks of sorts, failing in everything from policy and management to overall strategy.
This has caused problems in a number of ways. The first, and perhaps most obvious being the lack of respect it causes for diversity programs in general. When employers fail to take due time to design and administer DEI initiatives in a valuable way, the outcome is often an ineffective at best, and insulting at worst. This breeds resentment and skepticism from employees of all backgrounds, not just those the programs are designed to help.
The second way these failures create problems is by damaging the relationships between employees and management. In order for a DEI program to be successful, there must be a high level of trust between employees and management. When programs are not designed or executed properly, it erodes that trust and makes it difficult for employees to feel comfortable coming to management with issues related to diversity and inclusion.
The third, and perhaps most disappointing, issue with ineffective DEI programs is that they often do more harm than good. In many cases, they simply reinforce the very biases and prejudices they're supposed to be addressing. This is due to a number of factors, but the most common is a lack of understanding of the issues at hand, more clearly stated – problem identification (focus on the wrong problem). Without a proper understanding of the problem, it's impossible to create a solution that doesn't just perpetuate the cycle.
The Signs and Symptoms of a Broken Workplace Diversity Program
It's quite obvious that workplace diversity programs are not working as they should. But how can you tell if your company's program is in need of a serious overhaul? Here are some of the most common signs, symptoms and causes of problematic DEI initiatives.
Cause: Under-Budgeted Programs
One of the most common problems with workplace diversity programs is that they're simply not given the resources they need to be successful. This can manifest in a number of ways, but the most common is a lack of funding.
When programs are not given the proper budget, it severely limits their ability to achieve their goals. It also sends a message to employees that the company is not serious about its commitment to diversity and inclusion. This can cause a number of problems, including a lack of buy-in from employees and management, and resentment towards the program.
Symptom: Failed Communication
One of the most notable and negative symptoms of dysfunctional DEI is the culture of distrust and secrecy it creates within an organization. When staff feel alienated and unheard, they're likely to keep their distance from management and avoid talking about important issues. This makes it difficult to identify and address problems early on, which can lead to a snowball effect of failed communication and mistrust.
Sign: Bias is Tolerated
One of the most obvious signs that a diversity program is ineffective is when bias is tolerated within the workplace. What does that look like?
There are a few different ways this manifests itself. One is when employees feel like they have to change or hide their identity to fit in. This could be anything from the way they dress to the way they speak. Another is when employees feel like they're not being given the same opportunities as their colleagues. Things like being passed over for promotions or not being given the opportunity to work on high-profile projects are both examples of this.
An even more blatant sign of bias is when repeat incidents of discrimination are tolerated.
Employees that are given the benefit of the doubt while their colleagues are not, or who are allowed to get away with making offensive comments are red flags that management is not taking diversity and inclusion seriously.
Cause: Wrong Goals
Another common issue with workplace diversity programs is that they're often given the wrong goals. This can happen for a number of reasons, but the most common is that companies simply don't know what they should be striving for.
Without the proper goal in mind, it's impossible to measure the success of a DEI program. This often leads to programs that are either too broad or too narrow in scope, and as a result, are not effective. It also leads to a lot of wasted time and effort, as employees and management try to figure out what the program is supposed to achieve.
Sign: No Insight Into the Problem
When companies have no insight into the issue of diversity, it often leads to programs that are based on assumptions and stereotypes. This can further alienate employees, and create an environment that is hostile and unwelcoming.
It's important to have a clear understanding of the problem before trying to create a solution. Otherwise, you run the risk of making the situation worse instead of better.
Symptom: No Change Before and After
A sure sign that a diversity program is not effective is when there is no change before and after the initiative is put into place.
This could be anything from a lack of new hires that reflect the company's diversity goals to a failure to address the root causes of discrimination.
It's important to track the progress of a diversity program, and if there is no change after an extended period of time, it's likely that the program is not working.
How to Fix a Stagnant Diversity Program
If there's one thing that's sure to kill employee morale, it's a feeling of futility. That's what many employees feel when they see that, despite all the talk of change, nothing actually seems to be happening. It's in employers' best interests to avoid this feeling, because it leads to high turnover rates and a lack of engagement.
There are a few different things that companies can do to turn their diversity programs around.
Define Clear Goals
The first step is to define clear goals for the program. What does the company want to achieve? Is it looking to increase the number of Black professionals in leadership positions? Is it trying to reduce the pay disparity between men and women? Once the goals are clear, it will be easier to measure the success of the program and make necessary changes.
Get Front-line Manager Buy-in
It's also important to get buy-in from front-line managers. They're the ones who are responsible for hiring, promoting, and managing employees on a day-to-day basis. If they're not on board with the diversity program, it's unlikely to be successful.
Seek Employee Feedback
Another important step is to seek feedback from employees. As the individuals who are directly affected by the program, they're in the best position to provide insights on what's working and what's not.
Treat DEIB like a business problem, not a philanthropic project
So many leaders view DEI through the same lens as charity. They donate money, they promote it, smile for the photos, post on social media, and hope for the best. Business problems start with clarity on the problem(s) to be solved, the budget allocated to the problem, a senior project leader, clear timelines, expectations on results, frequent progress assessment, coaching for improved performance, regular updates on progress and issues, and buy-in from all key stakeholders. Too often DEIB initiatives get kicked off without everyone knowing what they are supposed to do. Too many front-line leaders walk away assuming they should do nothing, because they have received marching orders to do anything different.
Although they've had a rough initiation into the mainstream, there remains plenty of promise for workplace diversity programs. By taking the right steps, companies can create initiatives that are effective and make a positive impact on the lives of employees - as they should.