EQUITY IS BETTER BUSINESS

I was deep in research mode, looking for evidence to point at when I promote diversity in hiring practices, to clients and nonprofit boards that I’m on. I came across a LinkedIn article by Wendy Veloz, “What Good Does Focusing on Equity Do Me Anyway?” One line grabbed my attention: “As professionals, we have to commit to doing everything we can to make sure things are equitable and accessible.”

This got me thinking about my role in DEI, as a white woman and a professional. I consider myself to be an ally of BIPOC and LGBTQ communities; and want to play an active role in real change. Still here I was searching for reasons that prove why equity at work affects equality elsewhere in society.

It occurred to me that there is a lack of understanding about how equity impacts people and organizations. Leaders need to be educated (or educate themselves) on the potential of equity in HR to strengthen all aspects of the business, including profit.?

DEI has become trendy in the past several years, and plenty of trainings, resources and definitions are available. The vocabulary of inclusion is becoming commonplace: DEI practices, unconscious bias, embedded systemic racism, but these terms don’t move the dial toward systemic change.?

Privilege allows many people to believe that social equity is right because it’s fair, and still fail to grasp why it is also essential. The burden of change belongs to organizational leaders and organizations/companies to demonstrate the ROI of efforts for Diversity, Equity, and Inclusion.

THINK ABOUT IT!

We all know the playing field isn’t even, right down to basic daily activities. If you are in the minority, you will have a different experience than the majority at work.

Here are some illustrations of differences that you may not even think about unless this happened to you. ??

Have you ever not been hired because you are female? … or felt your ideas and suggestions were ignored because you are from a different culture?

Has the thought of being refused a mortgage or small business loan ever crossed your mind??… or have you lacked the network connections you needed to get a recommendation for a job or an invite to an exclusive university?

UNDERSTANDING ‘ANYWAY’

There are a lot of firms with personnel dedicated to DEI specifically. HR departments receive training and try to change hiring practices. But how much it is embraced is less measurable. Sometimes it gets lip service, and even those who support diversity, equity and inclusion don’t necessarily understand the direct impact on a business or our society.?The education or connection to daily activities like being heard, getting a house or building a business are impacted.?DEI matters to people who experience these barriers personally and professionally in access to education and employment or lack the resources needed to succeed in their career goals.

Measurable improvements and evidence-based practices are important to proving the value of DEI in mainstream society. Arguments should be made for the positive impact of DEI across all levels of an organization, including those who are the primary target audience, and it’s influence on business ecosystems.

Different perspectives provide innovative solutions, disruptive business strategies, and essential elements of communication that leads to healthy growth.

Groupthink happens within homogenous teams and organizations. Companies that lack diverse people and perspectives are handicapped when it comes to evolving and growing.?

INDUSTRY BIAS IS BAD FOR BUSINESS

A pharmaceutical company spends its R&D budget on developing drugs for men because most of their leaders are men who hire other men to develop health questionnaires for the consumer market. So the surveys end up being biased toward the needs of men, even though the total consumer market is evenly split.?

A cosmetic company with a team of product developers who lack diversity or representation, they can be blind to a market opportunity.?There are whole segments of population who need products that cater to their needs, this is a huge revenue loss if we don’t respond to it.

A well-resourced organization with a diverse workforce will be stronger, evolve to meet market demand, and see opportunity to help a company grow their market share.

Bias causes R&D dollars to be unevenly spent. More products are created for 50% of the population. Market share is lost, and the undervalued segment lacks necessary drugs and solutions to health challenges.?

REAL EXAMPLES OF EQUITY IN ACTION

If you are not being discriminated against, why does this matter to you??We don’t just believe in DEI because it’s right but because it impacts some directly and impacts everyone in the end.

The right to a living wage and fair pay is about more than equal pay for equal work!

Better paychecks enable consumer spending and access to parts of our economy from mortgage loan rates to college savings accounts. More money and PTO give workers the disposable income and days with which to spend it on social or self-care activities. ?This strengthens our entire monetary economy across our society.

As purchasing power increases so does the value of the consumer markets that companies target. This seems like pretty strong evidence in favor of diversity in hiring and DEI initiatives for equity as a guiding principle in policy making. The company that creates more inclusive policies, hires candidates outside of the norm, and promotes the unacknowledged, stands to benefit in the real terms of a P&L sheet.

ASSESSING WHY & HOW

It starts with an assessment; where are we now and what do we believe?

In Re-Inventing Diversity by Howard Ross, you can find guidelines for an organization to assess its current-state mission statement, policymaking, and cultural values. Ross stresses the importance of DEI being written into organizational DNA, rather than a laser focusing it on hiring practices.

Education is a big part of the how and I believe this is where organizations need to drive engagement and comprehension. Understanding that the why is more than social nicety is essential for people to connect the dots to how and ultimately become producers of innovative solutions that everyone can enjoy.

Build a business case for DEI to break down and remove discrimination from our workplaces and world

RESOURCES

An interesting article by Globoforce talks about the multi-tier impact from new hires to leadership. I recommend circling back to read it!?

This case study from the Minnesota Department of Labor and Industry is a good example of measurable and evidence-based practice.

Of course, Forbes magazine has weighed in on the topic. Convening a panel of human resources experts to compile a list of benefits from DEI on communication within a team.