Eight billion dollars are spent on diversity and inclusion programs in business companies each year, but the majority of companies are not seeing the benefits from having more diversity and inclusion in their workplace.[i]
While diversity and inclusion go hand-in-hand in the workplace, the difference between them is important to note. Diversity refers to the actual demographic makeup of a group, whether that’s sex, race, citizenship, or another factor. Inclusion refers to the actual behaviors and actions done to ensure that all people feel welcome and comfortable.
This article will show company employers and diversity, equity, and inclusion (DEI) officers how they can improve and enhance their organization by having a better understanding of the following topics:
- The current status of US D&I (Diversity and Inclusion) programs
- The benefits of companies with effective D&I programs
- The specific actions that must be taken now
Current Status of US D&I Programs
To fully understand the urgent need to improve workplaces for minorities, one must take a look at the current data in the United States, which proves that companies are spending billions of dollars annually companies are not seeing the outcomes.
To begin, only 47 percent of current companies in the US have a DEI officer.[ii] While this article will cover actions that need to be taken by both employers and DEI officers, if a company is lacking a DEI officer, that is a clear starting point. After all, each employee is hired for a specific role in an organization. If no one is hired to specifically overlook the diversity and inclusion culture of a group of workers, little to no progress will be made.
After the recent event of the killing of George Floyd in 2020, many African American employees spoke up publicly about acts of racism in the United States. Following these conversations across the nation, the Society for Human Resource Management created a survey that showed “43% of American workers believe discussions about race are inappropriate at work.”[iii] America is currently in a state where discussions on racism are still viewed as something to avoid in professional settings. While employees do not have direct influence of the makeup of their company, the mindset and interactions of each member of the company create the inclusive, or non-inclusive, culture of a workplace. As long as these topics continue to be viewed as inappropriate in the workplace, minorities will not have the space to discuss matters that negatively impact them and their productivity.
Another factor to point out is the lack of diversity in executive positions. As of 2020, while only 59 percent of Americans are Caucasian[iv], 68 percent of overall staff are Caucasian, whereas 83 percent of executive positions remain Caucasian (see Figure 1).[v]
These percentages showcase the lack of diversity in corporate America. Greater representation of minorities in executive positions could significantly increase the efforts to have improved D&I programs in all workplaces.Figure 1: Ethnic Diversity percentages in leadership and staff[vi]
Benefits
Studies show that companies with higher percentages of diversity tend to be 35% more likely to financially overperform.[vii] After all, a homogeneity of opinions will result in decreased innovation and progress. Different backgrounds and viewpoints can greatly improve business product creation, marketing, and other results. Not only will these factors be improved but companies will be able to reach a wider range of consumers.
An example of a company changing its field is Fenty, Rihanna’s beauty brand. Many beauty cosmetic consumers of color have historically been at a disadvantage when it comes to finding the right product for themselves. As a woman of color, Rihanna had the same struggles. This led her to create a makeup line that included beauty products for 40 different skin colors and tones.[viii] Her line now appeals to a broader consumer pool compared to many other beauty cosmetic brands, leading to higher sales and profit. All it took was a person of color in an executive position.
Increases of diversity can lead to these benefits; however, inclusion is the real factor in helping a greater variety of opinions and ideas to be shared. Even if an organization has high percentages of diversity, if the employees that come from diverse backgrounds are uncomfortable or afraid to speak up, their valuable input becomes lost. Thus, equally important to the diverse makeup of a company is the environment of inclusion created by the employees through effective D&I programs.
Actions
Unarguably, diversity and inclusion are crucial to the progress and success in a company. As previously mentioned, having a DEI officer is the first step to take. However, here are other ways that an organization can better use their funds to engage each member in creating a space of diversity and inclusion:
Resource Groups for Minorities
Business resource groups that focus on one of many underrepresented group (see Figure 2) can offer a space of learning, growth, and support. Individuals can come together in a safe space to share experiences and counsel on ways to improve their workspace.[ix]
Figure 2: Possible underrepresented groups[x]
Open Dialogue about Exclusion
Strive to be proactive in educating staff members about topics like racism and sexism. Some companies, like Comcast Corp., choose to play talks by racism experts such as Ibram X. Kendi, who wrote How to Be an Antiracist, for their whole staff. Small actions like this help open the door for productive conversations regarding these topics and are cost-efficient.[xi]
Actively Seek out the Voices of all Members
As previously discussed, diversity requires inclusion to be most effective. In fact, a study was conducted to analyze what makes teams effective at completing short tasks that demonstrate skills such as brainstorming, planning, and logical analysis. One main factor in teams that did above average was that all the members contributed equally, instead of only one or two members dominating.[xii] When holding meetings, pay attention to make sure that each employee is sharing their ideas and opinions.
Conclusion
Increasing and improving D&I programs within organizations will benefit not only the well-being of individuals in minority groups but also all members of the company. In addition, performance and output will progress at more rapid rates, accelerating success. By including worthwhile activities and programs, companies can save money and boost their work productivity. For employers and DEI officers, make sure to take action in implementing effective ways to promote diversity and inclusion in your organization.
[i]“Companies Try a New Approach to Diversity, Equity and Inclusion: Honest Conversations: For Years, Organizations have Spent Billions of Dollars on DE&I Programs that have Largely Failed. But There’s Something Different Going on Now,” HRNews, August 4, 2020, http://erl.lib.byu.edu/login/?url=https://www-proquest-com.erl.lib.byu.edu/trade-journals/companies-try-new-approach-diversity-equity/docview/2430380856/se-2?accountid=4488.
[ii] “Companies Try a New Approach.”
[iii] “Companies Try a New Approach.”
[iv] “Companies Try a New Approach.”
[v] “Workplace Equity,” Tufts Health Plan, https://tuftshealthplan.com/diversity-and-inclusion/workplace-equity/overview.
[vi] “Workplace Equity.”
[vii] Kate Nishimura, “Fostering Diversity and Inclusion Has Become a ‘Business Imperative,’ Experts Say.” Sourcing Journal (Online), January 18, 2021, http://erl.lib.byu.edu/login/?url=https://www-proquest-com.erl.lib.byu.edu/trade-journals/fostering-diversity-inclusion-has-become-business/docview/2478659742/se-2?accountid=4488.
[viii] “About Fenty Beauty,” Fenty Beauty, https://www.fentybeauty.com/about-fenty.
[ix] Rob Westervelt, “Improving Diversity,” Chemical Week 182, no. 26 (November 2020): 3, http://erl.lib.byu.edu/login/?url=https://www-proquest-com.erl.lib.byu.edu/trade-journals/improving-diversity/docview/2469201659/se-2?accountid=4488.
[x] “Mobile Workforce Diversity, Equity, and Inclusion: Online Courses,”, Mercer, https://mobilityexchange.mercer.com/solutions/more-mobility-solutions/mobile-workforce-diversity-and-inclusion.
[xi] “Companies Try a New Approach.”
[xii] Anita Woolley, Thomas Malone, and Christopher Chabris, “Why Some Teams are Smarter Than Others,” The New York Times, January 2015, https://www.nytimes.com/2015/01/18/opinion/sunday/why-some-teams-are-smarter-than-others.html?_r=0.
