Diversity, equity and inclusion: Taking the right steps

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Globally, organisations have been making much noise on diversity, equity and inclusion (DEI) for some time, but how many of them have implemented these initiatives correctly and reaped real benefits of DEI? Enterprises that prioritise diversity and inclusion have a competitive advantage.

These organisations recognise the value of a diverse workforce in driving innovation, fostering creativity and enhancing business outcomes. There is enough research evidence for this.

A McKinsey study found that companies with more diverse executive teams outperformed their industry peers in terms of profitability and financial performance. Research published by Harvard Business Review (HBR) also found a positive correlation between diversity and innovation, with diverse teams generating more innovative ideas and better business outcomes.

Diversity, equity and inclusion initiatives contribute to higher levels of employee engagement, satisfaction and retention. According to a Deloitte survey, employees who feel included and valued are more engaged and demonstrate a stronger commitment to their organisations.

Another study by the global non-profit think tank Coqual (formerly the Center for Talent Innovation) found that employees in inclusive workplaces are more likely to stay with their current employer and be more productive.

Diverse teams lead to better decision-making. Research published in the HBR says that diverse and inclusive organisations are better positioned to understand and cater to diverse customer needs.

Boston Consulting Group also found that companies with more diverse management teams had higher levels of innovation and captured a larger share of the market.

However, the specific outcomes of DEI initiatives vary depending on factors such as organisational context, implementation strategies, and ongoing commitment. Creating a truly inclusive workplace is not easy.

It requires a commitment from top leadership, as well as a willingness to change the way that people think about and interact with each other.

There are a number of organisations that have done a good job of implementing DEI initiatives. Accenture has a long history of commitment to diversity and inclusion.

In 2022, it was ranked number one on DiversityInc’s Top 50 Companies for Diversity. Johnson & Johnson, which is second on the list, has a strong commitment to diversity. The third place belongs to Kaiser Permanente, a healthcare company.

Here are some of the key learnings from enterprises that have got the diversity mix right:

Leadership commitment is essential. Leadership plays a pivotal role in driving DEI. When leaders actively support and promote diversity initiatives, it sends a clear message throughout the organisation. These organisations establish policies and practices that remove biases, promote equal opportunities, and create a level playing field for all employees. This includes fair hiring processes, transparent performance evaluations, and equitable compensation structures.

Diversity and inclusion are not just about race and ethnicity. Diversity and inclusion encompasses a wide range of factors, including race, ethnicity, gender, age, disability and religion. Organisations need to be inclusive of all employees, regardless of their background.

DEI initiatives should be ongoing. DEI is not a one-time project. It is an ongoing process that requires continuous effort. Organisations need to be committed to creating a culture of inclusion and to continuously evaluate these initiatives.

Data can be used to track progress and identify areas for improvement. Organisations can use data to track their progress on DEI and identify areas where they can improve. This data can be used
to set goals, measure progress, and identify areas for improvement.

DEI training can help to raise awareness of issues and promote inclusive behaviour. Organisations should provide such training to all employees and the training should cover topics such as unconscious bias, microaggressions, and inclusive communication.

Employee resource groups (ERGs) can play a valuable role in promoting DEI. ERGs are employee-led groups that provide support and networking opportunities for employees from underrepresented groups. These groups can play a valuable role in promoting DEI by raising awareness of issues, providing a safe space for employees to share their experiences, and advocating for change.

Pay equity is important for creating a fair and inclusive workplace. Organisations should ensure that all employees are paid fairly, regardless of their gender, race, ethnicity or other protected characteristics.

Work-life balance is essential for attracting and retaining employees from a variety of backgrounds. Organisations should offer flexible work arrangements and other benefits that help employees balance their work and personal lives.

Open communication is critical for creating a culture of inclusion. Organisations should create a culture of open communication where employees feel comfortable sharing their ideas and concerns. This can help to identify and address any potential barriers to diversity and inclusion.

In addition to the above, setting clear goals and metrics to measure progress are also important for proper implementation. By following these best practices, GCC companies can progress fast in their DEI journey. Here are some additional tips for them:

• Partner with local organisations: There are a number of local organisations that can help GCC companies with their DEI efforts. These organisations can provide training, resources, and support.
• Be transparent: Enterprises here should be transparent about their DEI efforts. This means publishing data on diversity and inclusion, as well as sharing stories about the impact of such initiatives.
• Celebrate diversity: Business leaders in GCC should celebrate diversity in the workplace through hosting events, creating employee resource groups, and recognising employees for their contributions.

Dr M Muneer is the co-founder of the non-profit Medici Institute