Making the cut: Why DEI is critical in a recession

An organization’s diversity, equity, and inclusion efforts affect all employees and all areas of the company. When DEI is embedded in your recruitment, employee experience, and talent management strategies, your organization is more likely to retain your best workers and lead with innovation.?

During tough economic times and a looming recession, company leaders are struggling to identify which programs, budgets, and people will be cut to keep the business afloat. DEI is often on the chopping block.?

In order for your team and organization to stay resilient during a recession, you must define and refine your DEI strategic plan. Our team outlined why this should be a priority in 2023.?

You will attract and retain the best talent.?

Hiring freezes are only temporary and hiring will eventually resume. More than 3 in 4 employees and job seekers say a diverse workforce is an important factor when evaluating job offers, which is critical to take into consideration when trying to attract the best talent.?

Impactful DEI initiatives help build a workplace where employees feel they can be themselves at work without having to deal with microaggressions, isolation, or feeling undervalued. Historically underrepresented groups can see themselves in influential positions, giving them hope that the company will invest in their professional development.?

DEI also affects your employee experience and talent management strategies. When you focus on building a culture of belonging, you build trust with employees. Trust is essential for understanding employee sentiments so that you can provide them with the tools they need to do their best work. This is especially important during a time when quiet quitting and burnout are on the rise.?

Diverse teams are innovative teams.?

A team of people from various cultures, communities, life experiences, and work experiences is bound to bring innovation, leading to higher productivity and profits.?

Here’s what the data shows:

• Diverse companies have 2.5 times higher cash flow per employee.
• Companies with more diverse teams report 45% higher innovation revenue.
• Companies with diverse boards see higher profits. Those with more than 30% of women board members delivered higher year-over-year revenue.

A DEI strategic plan allows you to stay ahead of your competitors simply by having a dynamic team.??

You will help disrupt systemic inequities in the workplace.?

Building a diverse, equitable, and inclusive workplace is necessary in order to break the systemic inequities that prevent historically underrepresented employees from working in a safe environment and moving up in their careers.?

About 58% of Black professionals and 41% of Latinx professionals have experienced racial prejudice at work. People with disabilities are less likely to be employed compared to people without disabilities. Nearly half of LGBTQ+ workers have faced discrimination in their careers. And about 42% of women in the U.S. say they have faced discrimination on the job because of their gender, and this number is even higher for women of color.?

A DEI strategic plan encourages leaders to think about how the company can create a more inclusive recruitment strategy, build belonging communities within the organization, and ensure there is a professional development plan in place for every team member.?

Learn more about how to embed DEI throughout your organization to boost employee engagement, prioritize talent development, and create a culture of belonging.

Perfeqta’s resource guide, The employee lifecycle through the lens of DEI, is designed to ensure you understand how to transform your talent management strategies so that you can attract and retain the best employees in the world.?

Download your free copy today and share it with others in your organization.