DE&I: Perception vs. Reality

Diversity, Equity and Inclusion (DE&I). The concept has been part of the workplace since the mid-1960s. It grew in importance and scope during the 1980s and 1990s to incorporate a far broader interpretation of diversity, including multiculturalism, disability, religion, and the LGBTQ+ community as well as race and gender, which had been the initial focus.

Starting around 2000, DE&I became significantly more professionalized. Dedicated resources and Chief Diversity Officer roles were established. In 2020, particularly after the death of George Floyd in Minneapolis, a lot of companies that didn’t have a dedicated DE&I strategy reacted quickly and rolled out programs as fast as they could.

?In some cases, this non-strategic approach led to a lack of meaningful change and defensive reactions against DE&I, including unwillingness among many employees to actively participate leading to backlash against anything labeled “DE&I.”

DE&I is now under attack

Diversity, Equity and Inclusion is facing extreme pressure from groups that feel the initiative has actually been demeaning, created unfair advantages, or displaced certain groups, and that it is perpetrating a false narrative that is over-controlling.

That pressure includes newly passed state laws in Alabama, Florida, Kentucky, and Texas, among others, that ban DE&I initiatives in public schools, colleges, and government offices. While most of these laws don’t directly affect private employers, several states (Florida and a proposed Utah law) do have an impact on private institutions as well.

The aggressive anti-DE&I rhetoric that permeates some social media platforms and several popular cable television networks has taken a toll on the ability of an organization to create and maintain a workable, effective DE&I strategy. Several companies have dropped DE&I altogether, many seemingly because of the continual pressure.

Why has DE&I become so unpopular?

Three basic reasons why DE&I has not succeeded the way it was intended and why it has come under such strident attack:

?1.????? Too many organizations rolled out DE&I programs without a strategy.

?2.????? Separate DE&I departments with dedicated DE&I officers were created with separate objectives that were not organic to the organizations' strategic business initiatives.

3.????? Poor positioning—a perceived emphasis on marginalized groups only rather than an wholistic approach that includes all identities has helped to create defensive reactions. Paternity leave is one example of what a DE&I mindset brings to life, which has nothing specific to do with race, gender, or religion.?

Why bother to promote DE&I in the face of criticism?

According to research done by McKinsey Consulting, diverse companies earn 2.5x higher cash flow per employee, inclusive teams are 35%+ more productive, 25% more profitable, and diverse teams make better decisions 87% of the time.

DE&I helps attract talent, especially Generation Y and Z. In fact, 74% of all job seekers see DE&I as a priority in choosing where to work. (Glassdoor, 2022)

Organizations not focused on DE&I experience1.6x more voluntary turnover (McLean & Company, 2022 HR Trends Survey) and companies actively working on DE&I are 19% more effective at creating an engaging employee experience. (McLean & Company, 2023 HR Trends Survey)

If DE&I is good for business, why does it have a bad reputation?

DE&I was never meant to favor one group over another and that is the unfortunate misunderstanding that has resulted from years of being a siloed tactical initiative within companies rather than becoming an organic, integral part of the company’s culture.

Public perception of DE&I as a “problem” has now overtaken the reality of what diversity, inclusion, and equity should be and was originally meant to accomplish.

DE&I: Perception vs. Reality

PERCEPTION: DE&I is not a merit-based system and ignores experience and ability, only focusing on our differences and rewarding those in “marginalized” groups.

REALITY: Effective DE&I strategies actually prioritize unique experiences and backgrounds, and that has proven to promote creativity, problem-solving, and, ultimately, innovation. Diversity provides a larger talent pool to draw from, with more diverse opinions and experiences, which delivers skills and perspectives that otherwise might not be accessible to the company.

PERCEPTION: DE&I actually excludes people rather than promoting inclusion.

REALITY: The makeup of most workforces today reflects the multi-culturalism of the United States. It’s now more natural to have teams that are diverse in race, gender, etc. But it is the skills everyone brings to the table that are most important as well as the organization creating space to make sure everyone feels welcome and included.

PERCEPTION: DE&I favors hiring unqualified people simply because of their race or gender.

REALITY: The aim of any good DE&I program should be to recruit the most qualified candidates by broadening the slate of candidates to include diverse backgrounds.

PERCEPTION: DE&I benefits only select groups.

REALITY: Diverse and inclusive workplaces show increased morale, productivity, innovation, problem-solving ability. The approach, when applied strategically, can “float all boats” and benefit everyone in the organization.

PERCEPTION: DE&I is a fad that will just go away.

REALITY: Look around your workplace and compare it to a decade ago. Change has happened and the aim of DE&I is to take advantage of the diversity of perspectives and experience that can help make the organization more successful.

PERCEPTION: DE&I is simply a “nice thing to do.”

REALITY: DE&I is not just a charitable action or something to make everyone feel good. DE&I should be a business strategy, a way of doing business—much like LEAN continuous improvement is woven into the fabric of an organization. Intentionally including a variety of perspectives can help produce significant business outcomes such as increasing productivity and innovation as well as improving engagement across the board.

Here’s a reminder of what DE&I was always meant to be

The concept behind DE&I was developed with the best of intentions—to ensure that all employees were provided with the opportunity to be hired for a job, career advancement, lead a team, or simply have a seat at the table regardless of their identity.

Diversity—Embracing as well as leveraging the unique characteristics that identify us and make each of us special and unique.

Equity—This is simply a pledge of fair treatment, access, opportunity, and advancement for everyone, while identifying and removing barriers that may affect some groups or individuals more than others.

Inclusion—Developing a culture where everyone is respected and encouraged as individuals so that they feel as though they belong and are valued for who they are and what they bring to the company.

Creating a strategic DE&I plan is essential to your success. We can help!

Marsh McLennan Agency offers a DE&I consulting team to help you develop clear strategies and initiatives that will align DE&I with your business goals. We diagnose the current state of DE&I in your organization, work with you to develop the right strategic plan, and help you determine the best ways to execute it.

To learn more, please contact Gary Abernathy at [email protected] .