The State of DEI in the Hospitality Industry.

Introduction

Diversity, equity, and inclusion (DEI) have become increasingly important topics in the hospitality industry worldwide. The concept of DEI revolves around recognizing and valuing differences and creating an inclusive environment that encourages and supports all individuals regardless of their race, ethnicity, gender, religion, or sexual orientation. The hospitality industry, which is known for its diverse customer base, has a unique opportunity to showcase its commitment to DEI by promoting a culture of inclusion that welcomes and embraces diversity. In this write-up, we will discuss the importance of DEI in the hospitality industry and how it can be implemented. We will also provide our analysis of a few countries and regions globally with examples of hospitality companies that have successfully implemented DEI practices in their operations.

Why we need DEI in Hospitality

The hospitality industry is a people-centered industry that thrives on customer satisfaction. The industry's success depends on its ability to create an environment that is welcoming and accommodating to all customers, regardless of their backgrounds. In today's increasingly diverse world, customers are more likely to seek out businesses that reflect their values and beliefs. Therefore, companies that embrace DEI are better positioned to attract and retain customers from diverse backgrounds.

Moreover, DEI is not only about attracting customers but also about creating a work environment that is inclusive and respectful of all employees. The hospitality industry is known for its high employee turnover rates, and a lack of DEI can contribute to this trend. Employees who feel undervalued or excluded are less likely to be engaged and committed to their jobs, leading to increased turnover rates and decreased productivity. Some major issues of DEO we are facing are :

Racism

Racism in the hospitality industry poses significant challenges due to its diverse customer base and reliance on cultural stereotypes for marketing strategies. The lack of diversity in leadership positions is another contributing factor to perpetuating stereotypes and discriminatory practices. Discriminatory hiring practices, customer service, racial profiling, and harassment are some examples of how racism can manifest in the industry. One notable incident occurred in 2018, where two black men were arrested at a Starbucks for sitting without ordering, leading to a national outcry and temporary store closures for racial bias training. To combat racism, businesses must prioritize diversity, equity, and inclusion through policies that promote active recruitment and promotion of underrepresented groups and education on issues of racism and discrimination, including implicit bias training. It is crucial for businesses to address this issue proactively.

Gender Inequality

Gender inequality is a pervasive issue in the hospitality industry. Women face significant barriers and challenges in career advancement, including a gender pay gap of 77 cents for every dollar earned by men in the sector. Women of color are even more affected, earning just 54 cents for every dollar earned by white men. Sexual harassment and discrimination are also prevalent, with 40% of women in the industry reporting experiencing sexual harassment at work. The underrepresentation of women in leadership positions further compounds these issues, limiting mentorship and networking opportunities. To address these challenges, businesses should implement initiatives such as equal pay policies, training to prevent harassment and discrimination, and mentorship and sponsorship programs for women. Creating a more equitable workplace can attract and retain talented employees and foster a more diverse and inclusive industry for all. (References: World Economic Forum, National Women's Law Center)

LGBTQ+ Equality

The LGBTQ+ community has faced significant discrimination and marginalization in various industries, including the hospitality industry. The industry has often failed to provide an inclusive environment for LGBTQ+ employees and guests, resulting in discrimination, harassment, and a lack of opportunities for the community. To address this issue, hospitality businesses must prioritize LGBTQ+ equality and create policies and practices that promote inclusion and respect.

One way to promote LGBTQ+ equality is to implement nondiscriminatory policies in hiring, training, and promotions. Companies can also provide diversity and inclusion training for their employees to understand the issues and challenges faced by the LGBTQ+ community. Additionally, businesses can offer benefits and support programs that cater to the specific needs of LGBTQ+ employees, such as gender-neutral restrooms, gender-affirming healthcare, and supportive work environments.

Moreover, hospitality businesses can demonstrate their commitment to LGBTQ+ equality by participating in community events and supporting LGBTQ+ organizations. By doing so, they can not only create a welcoming environment for LGBTQ+ employees and guests but also attract a diverse range of customers who value inclusivity.

Religious Equality

Religious equality is another critical issue in the hospitality industry. With a diverse range of customers and employees from different religions and cultures, hospitality businesses must create an inclusive environment that respects and accommodates religious beliefs and practices.

To promote religious equality, hospitality businesses can implement policies and practices that are sensitive to religious diversity. This can include providing options for halal or kosher meals, accommodating prayer times and spaces, and respecting religious dress codes. Companies can also provide religious sensitivity training for their employees to understand the customs and practices of different religions and cultures.

Moreover, hospitality businesses can demonstrate their commitment to religious equality by participating in interfaith dialogues, supporting religious organizations and events, and creating inclusive marketing and advertising campaigns that represent different religious and cultural communities.

In conclusion, promoting LGBTQ+ and religious equality is not only the right thing to do but also beneficial for hospitality businesses. By creating inclusive and respectful environments, businesses can attract diverse customers and employees, enhance their reputation, and improve their bottom line.

What is the present coverage of DEI in hospitality?

The hospitality industry has made progress in recent years in terms of embracing DEI. Many companies have implemented policies and programs aimed at promoting diversity, equity, and inclusion. For example, Marriott International, one of the world's largest hospitality companies, has established a Diversity and Inclusion Council that is responsible for creating and implementing strategies to promote diversity and inclusion throughout the organization. The council has established several employee resource groups, including groups for women, people of color, and LGBTQ employees, to provide support and networking opportunities.

Similarly, there are many other examples of hospitality companies that have successfully implemented DEI practices in their operations, Hilton Worldwide has a Diversity and Inclusion Committee that is responsible for creating and implementing programs aimed at promoting diversity, equity, and inclusion. The committee has established a mentoring program for women and people of color, as well as an employee resource group for LGBTQ employees.

Hyatt Hotels Corporation has received numerous awards for its commitment to diversity and inclusion. Hyatt has established several employee resource groups, including groups for women, people of color, and LGBTQ employees, to provide support and networking opportunities. The company also provides unconscious bias training to all employees and has implemented a diversity scorecard to track progress in promoting diversity and inclusion throughout the organization.

Another example is AccorHotels, which has implemented several programs aimed at promoting diversity and inclusion. The company has established a Women at AccorHotels Generation program, which provides leadership training and networking opportunities for women employees. AccorHotels also partners with local organizations to promote diversity and inclusion in the communities where it operates.

However, despite these efforts, the hospitality industry still has a long way to go in terms of promoting DEI. A study conducted by the Center for Hospitality Research at Cornell University found that racial and ethnic minorities and women are underrepresented in management positions in the hospitality industry. The study also found that women and minorities are paid less than their white, male counterparts. These disparities can be attributed, in part, to a lack of DEI practices in the industry.

DEI in India

India is a diverse country with a population of over 1.3 billion people, comprising different religions, languages, castes, and ethnicities. However, the hospitality industry in India has been criticized for its lack of diversity and inclusivity, especially in leadership positions. According to a 2021 study by the Indian School of Business, women hold only 7.5% of leadership positions in the hospitality industry, and there is a significant under-representation of people from lower castes and minorities. The industry still has an open bias for the LGBTQ+ community and except in very few states, they are not visible in the industry.

However, some hospitality companies in India have taken steps to promote DEI in their operations. For example, the Taj Group of Hotels, one of India's largest hospitality companies, has focused on creating equal opportunities for employees, fostering a culture of respect, and promoting diversity in leadership roles. Taj group is targeting 25% of women in the workforce.

DEI in Iraq

Iraq is a country in the Middle East with a diverse population of over 40 million people, comprising different ethnicities, religions, and languages. The hospitality industry in Iraq has faced numerous challenges due to political instability, economic sanctions, and security concerns. However, some hospitality companies in Iraq have taken steps to promote DEI in their operations, such as providing job opportunities for women and people with disabilities.

According to a 2021 report by the International Labour Organization, women make up only 16.3% of the hospitality workforce in Iraq. But they are not represented in leadership positions. However, the report also noted that some hospitality companies have established gender-sensitive policies, such as providing separate restrooms for women and implementing flexible working hours to accommodate women's family responsibilities.

LGBTQ+ communities are persecuted in Iraq and it's criminalized as per local laws and acceptance of the community is highly impossible. Any changes soon are impossible.

DEI in the United Kingdom

The United Kingdom is a diverse country with a population of over 67 million people, comprising different ethnicities, nationalities, and cultures. The hospitality industry in the UK is one of the largest employers, with over 3.2 million people working in the sector. However, the industry has faced criticism for its lack of diversity, especially in leadership positions.

According to a 2021 report by the UK Hospitality Workforce Commission, there is a significant under-representation of people from ethnic minorities in senior management positions in the hospitality industry. The report also noted that the industry needs to take a more proactive approach to promote DEI, including establishing mentoring and training programs for under-represented groups and creating a more inclusive workplace culture.

DEI in the USA

The United States is a diverse country with a population of over 331 million people, comprising different ethnicities, races, and religions. The hospitality industry in the USA is one of the largest employers, with over 15 million people working in the sector. However, the industry has faced criticism for its lack of diversity, especially in leadership positions.

According to a 2020 report by the National Restaurant Association, people of color make up only 24% of management positions in the restaurant industry, despite comprising over 50% of the workforce. The report also noted that the industry needs to take a more proactive approach to promote DEI, including establishing mentorship and training programs for under-represented groups and creating more inclusive workplace policies.

DEI in Europe

Europe is a diverse continent with a population of over 750 million people, comprising different ethnicities, languages, and cultures. The hospitality industry in Europe is a significant contributor to the economy, employing over 10 million people. However, the industry has faced criticism for its lack of diversity, especially in leadership positions.

According to a 2020 report by the European Commission, there is a significant under-representation of women and people from ethnic minorities in leadership roles in the hospitality industry. The report also noted that the industry needs to take more proactive steps to promote DEI, including establishing mentorship and training programs for under-represented groups and creating more inclusive workplace policies.

What we need to do more

To promote DEI in the hospitality industry, companies need to take a holistic approach that addresses all aspects of their operations. This includes recruitment and hiring practices, employee training and development, and customer engagement.

Recruitment and hiring practices should be designed to attract a diverse pool of candidates. This can be achieved by partnering with organizations that serve underrepresented communities and by creating job postings that use inclusive language. Companies should also provide unconscious bias training to recruiters and hiring managers to ensure that they are making unbiased hiring decisions.

Employee training and development should be focused on promoting diversity, equity, and inclusion. This can be achieved by providing training on topics such as cultural competence, unconscious bias, and harassment prevention. Companies should also establish employee resource groups that provide support and networking opportunities for employees from underrepresented communities.

Customer engagement should be designed to create an inclusive environment that welcomes and accommodates all customers. This can be achieved by training employees to be culturally competent and sensitive to the needs of diverse customers. This includes providing language translation services, accommodating dietary restrictions, and ensuring that the physical environment is accessible to all customers. Companies can also promote diversity and inclusion through their marketing campaigns, by featuring diverse models and showcasing the cultural diversity of their offerings.

Conclusion

In conclusion, the promotion of DEI is imperative in the hospitality industry, as companies that prioritize DEI are better equipped to attract and retain customers from diverse backgrounds. However, despite recent advancements, the industry still needs to make significant progress in promoting diversity, equity, and inclusion. Businesses should adopt a comprehensive approach that addresses all aspects of their operations, including recruitment and hiring practices, employee training and development, and customer engagement. This will enable companies to establish an inclusive environment that accommodates and welcomes all customers and employees, resulting in increased customer satisfaction, employee engagement, and business success. Therefore, it is vital that hospitality companies worldwide take proactive measures to promote DEI, such as implementing mentorship and training programs, creating more inclusive workplace policies, and fostering a culture of respect and equality.

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