Fi Dei Balance

DEI Strategy: Business Case Vs. Moral Imperative

As HR professionals, we typically frame the imperativeness of diversity, equity and inclusion (DEI) around the business case for it. Research will show you that decisions made and executed by diverse teams delivered 60% better results, and inclusive teams make better business decisions 87% of the time. However, this approach, whilst rooted in the language of hard numbers which many employers prefer to speak in, erases a fundamental aspect of the importance of creating DEI strategies.

DEI is good for business, but it is a force for good, too. There is a moral imperative for employers to be threading DEI into their business decisions and their ESG agendas, as it does more than just strengthen their company’s profitability, it also makes them role models for the betterment of wider society.

However, more often than not, the effectiveness of DEI is measured on a monetary metric; employers will receive a cashflow analysis at the end of the year and the number that comes out determines how effective their DEI efforts have been.

But having an effective DEI strategy is more than just the binary of ones and zeros – it requires key qualitative considerations to offer context to this data, which will ultimately inform how a company adapts and evolves their DEI strategies in the face of change. This then results in a more robust strategy that is much more effective, much better for the employee experience, and overall much better for business.

So, what are the key trends that companies should be considering to inform their approach to DEI?

  • The Rise of Globalization – America is more diverse than it has ever been, with 39% of the US population categorized as people of color. With the increase in immigration and free-flowing movement all over the world, we are seeing increasingly diverse markets in countries with a key economic influence. And with this comes the need to diversify; more diverse populations mean more diverse talent, more diverse productization, and more diverse consumers. Those employers who are considering this data – especially being free of the restraints of place and time in the wake of a remote working world – are going to be able to translate these findings effectively into their DEI strategy, making it more accurately tailored to their workforce and consumer base.
  • Increase in Younger Generations – in the US right now, 55.16% of the population is made up of younger generations (Millennials, Gen Z, and Gen Alpha). In terms of the working population, this is now dominated by Gen X, Millennials and Gen Z, with the last of the Baby Boomers set to hit retirement age at the beginning of the next decade. And with this influx of new and younger generations comes an influx of evolved norms and values. We know that Gen Z are the most diverse generation to date – primarily due to the increase in immigration mentioned above – and with them come a kaleidoscope of new DEI considerations that employers need to be considering in order to attract and retain this talent – especially as Millennials and Gen Z combined now make up the largest chunk of the working population.
  • Technological Advancements – a report from Goldman Sachs discovered that 7% of current US employment would be fully substituted with artificial intelligence (AI), with 30% being unaffected and 68% being complimented by its introduction. AI has been a hot topic over the course of the last few years, and now that its capabilities are being widely realized, many employers will need to consider the implications these advancements will have on their DEI strategy. There is now an expectation for leaders and boards to have a certain proficiency for new technologies, as well as ensuring that learning and development opportunities around how to effectively use these new technologies are being made available for all employees. Whilst younger generations are known to be more digitally native, older generations may need developmental training to ensure they are able to keep in stride and remain included in the changing ways of working.

Those employers that are infusing their DEI strategies with the contemporary trends of the working world are going to be the ones with the most resilient and most sustainable DEI practices that will continue to yield long-term results – both from a moral standpoint and a business one.

If you would like to discuss this topic in more detail, and how we can help strengthen your DEI strategy, please get in touch with me at ken.merritt@orgshakers.com

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