Diversity, Equity, and Inclusion (DEI) – A Post-Pandemic Imperative for Companies Across the Globe
Diversity, equity, and inclusion (DEI) are serious topics for businesses everywhere. Building a more diverse, equitable, and inclusive workplace was a pre-COVID priority, as many companies had already created positions and initiatives to address DEI issues, including discrimination in talent acquisition, lack of race and gender diversity in teams, departments, and management, as well as equity of performance assessments, pay scales, and promotability.
The coronavirus caused setbacks to many of these
efforts, as companies went remote and many businesses downsized. Women and
minorities have been disproportionately impacted, experiencing higher
percentages of job loss. The concurrent rise of the Black Lives Matter movement
across the globe has heightened sensitivities to inequalities in the workplace.
Employees expect DEI to be discussed and addressed, making it a post-pandemic
imperative.
Talent Management and DEI
Viewing DEI through the lens of talent
management is useful when developing actions to produce results. A recent
McKinsey podcast entitled “The Elusive Inclusive Workplace” (3/23/2021)
emphasized the importance of creating initiatives throughout the “talent life
cycle.”
Diversity
To address diversity, companies should focus
on where talent is sourced, and which skills are actual proven indicators of
performance success. Technologies such as artificial intelligence can provide
deeper insights but only if built on data which accounts for human bias in existing
norms. If an attribute or skill is not supported by data as an accurate
indicator, it has no place in the assessment conversation.
According to IMSA Denmark
Managing Partner Jens Christian Jensen, “We see a continuous and growing trend
in executive search for larger companies to ensure diversity through a
non-biased process. This begins with the initial job analysis, and continues
with the job description, making sure it is gender neutral and that the process
focuses exclusively on competencies, not gender, ethnicity, religion, etc.
There is also an effort to ensure diversity on the hiring committee.”
Equity
In its “2021 Predictions on DEI” (Deloitte.com,
1/22/2021) Deloitte suggests fairness in compensation is today’s greatest
equity issue, as employees demand transparency in this hyper-connected,
hyper-data-driven world. Perceptions about fairness affect employer brand,
employee engagement, and workplace well-being. Statistics reinforce this
perception: Pay inequity is significant between similarly educated Black and
white men (22%) and similarly educated Black and white women (8%) for the same
work.
Inclusion
It is not enough for companies to offer talent
development such as support mechanisms and sponsorship programs to foster an
inclusive work environment; they must activate these initiatives across the
entire employee population. McKinsey reports while 87% of companies surveyed
had some form of a sponsorship program, fewer than half of their employees
reported having a sponsor, indicating a gap between program offerings vs.
implementation. (McKinsey.com 3/23/2021) Assessing the workplace environment is
critical, asking questions such as what’s the current environment for women and
people of color? And are we having open conversations about what it takes to
succeed?
The Millennial Effect
Due to the influence of millennials, the
definition of diversity in the workplace is broadening. The traditional list of
demographic differences such as race, religion, gender, sexual orientation, and
age has expanded to include lifestyles, backgrounds, and personal experiences.
This allows for more in-depth understanding of employees’ unique perspectives
and contributions when conducting DEI conversations, which can enhance
inclusiveness.
According to Gallup, millennials now make
up over 70% of today’s workforce, and over 44% of millennials are nonwhite. So
DEI resonates deeply with today’s workforce, and as millennials continue to
replace retiring boomers, with today’s emerging management, as well. Millennials
value purposeful work, professional development, and consistent feedback from
managers. Through coaching managers form authentic relationships with
employees, engaging in open, honest communication which is the foundation for
creating an inclusive environment.
Yet according to Boston Consulting Group in
a February 2021 Gallup.com article, less than half of managers (41%) and their
employees (42%) report having attended DEI training. Companies have a lot of
work to do to if they are to close this education gap and empower top-down and
bottom-up DEI discussions.
DEI A Global Conversation
Diversity,
equity, and inclusion is part of the workplace conversation in companies around
the world. IMSA Portugal Partner Pedro Hipólito reports a growing focus on inclusive recruitment
of people with disabilities: “We’ve built a database specifically for these
candidates. We identify their main inclusion problems and work to integrate
them into the workplace.” Hipólito adds, “They feel they are being recognized
for their skills and capacities, not their disabilities. And we have had
success in their recruitment by major companies.”
Country-specific dynamics such as
discrimination against religious or ethnic minorities can affect international
business. Definitions of diversity, equity, and inclusion, and what constitutes
meaningful demographic groups may differ from country to country. Global teams
must establish common ground and allow for employee resource subgroups.
Adapting to regional cultures and customs within a global mindset is critical
to success when operating across borders and geographies.
IMSA Search Global Partners President
Monika Ciesielska confirms the criticality of DEI: “Now more than ever, as we
search for senior executive candidates on behalf of our clients worldwide, we
see a demand for leaders who value and can create a diverse and inclusive
corporate culture. It’s an essential component of today’s top managers.”
Corporations will continue to benefit by closing the DEI gap and harnessing the
power of included and engaged employees for long-term success.
