Numerous studies cite the benefits of diversity and inclusion for companies. Some of the data presented by a number of reports highlights that companies with above-average levels of diversity are 2.4 times more likely to financially outperform their competitors. At the same time, 66% of participants said they would not choose the company if its culture and values did not match their own. So why are so many companies lagging behind in their efforts to improve diversity, equality and inclusion?
A step back
According to a DDI report, there are several reasons why companies are taking a step back on diversity and inclusion. Among them are economic uncertainty, talent shortages and a pandemic-depleted workforce. The result is a negative impact on talent retention, the ability to meet customer needs, and the company’s bottom line.
Business leaders are increasingly skeptical of diversity and inclusion goals, yet, those under the age of 35 tend to be the most optimistic about their organization’s commitment to diversity, equality and inclusion. Their older counterparts (46–55) expressed the greatest reservations in this area.
Recent mass layoffs in the United States have hit tech companies’ diversity, equity and inclusion programs. The Twitter DEI team has shrunk from 30 people to two. Analysis by Revelio Labs reported 33% attrition for diversity-related roles as of February 2023.
Prone to burnout
Another reason DEI efforts are lagging is that diverse talent is more prone to burnout than their non-minority counterparts. While some of this is likely due to their family care responsibilities, they also feel enormous pressure to perform well at work. The report shows that younger people feel pressured to achieve perfection and are afraid to reveal personal flaws that they fear could be used against them or create a sense of weakness.
Managers can address these challenges by setting a good example, showing vulnerability, and empathizing with younger workers. This could take the form of periodic ‘stay interviews’ where they get feedback on how they are doing. It can also be more informal, with managers simply asking team members what’s going on in their lives, how they feel about their current workload or their progress toward goals.
Too much focus on hiring
Many organizations focus their DEI efforts on just one stage of the employee experience. When the focus is only on hiring people from diverse backgrounds but neglects to foster a culture that supports them, companies end up with a workforce where people may think, look and work differently, but are not able to use their differences to support company initiatives. If structures are not put in place to support them, talented people, regardless of their background, will leave.
In recent months, HR executives have been giving indications about the changing nature of DEI’s initiatives and what might happen for the rest of the year. Programs may need to be revitalized and incorporated into employee engagement initiatives.
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