An authentic, intentional approach based on stakeholders and audiences will transform your DEI initiative.

Shareholders are saying, ‘If you’re not as diverse as we want you to be, there are going to be economic consequences.” Margaret Neale, an organizational behavior professor at Stanford Graduate School of Business

According to a 2020 report by the Society for Human Resource Management, DEI roles increased by 55% following the murder of George Floyd. But, by the end of 2022, the attrition rate for DEI roles was 33% compared to 21% for non-DEI employees. Revelio Labs, a company that uses data to analyze workforce dynamics and trends, determined that Amazon, Applebees, and Twitter lead the way with DEI layoffs from July 2022.

Why DEI hires are among the first to be laid off

Monster reported that only 5% of recruiters see DEI as one of their top three priorities for 2023. In the same report, 10% of respondents said diversity initiatives are among the “first to go” in the unstable economy.

A lot of people who were hired as a result of DEI initiatives are seen as expendable. But the employees are not to blame; a lack of support from higher-ups has set many employees up for failure. Companies have also put little care into hiring people with the right qualifications and skills.

Gap between intention and execution

Organizations which implemented DEI “efforts” for optics are learning the hard way that the lack of authentic, intentional efforts to improve DEI only makes them look worse. Reyhan Ayas, a senior economist at Revelio Labs, says, “I always say it is so easy to make public statements and commitments because no one will eventually check if you’re committed to the things that you committed to.”

Many other DEI experts have pointed out the problematic performative nature of diversity efforts. “It’s going back to checking the box versus hiring and keeping qualified workers who can impact change in the company,” says Chris Metzler, senior vice president of corporate DEI and environmental, social and governance strategies at the National Urban League. He adds, “They have the title; they don’t have the authority. In some cases, they don’t have the budgets, so it’s difficult to navigate that terrain.”

Tai Robinson, a Human Resources Professional in Houston, notes that, even though these employees were being paid high salaries, “they were wearing golden handcuffs, unable to do but so much because the organization’s leaders didn’t want much done.”

Inauthentic DEI efforts destroy trust

The inauthenticity exhibited by executives who care more about image than real diversity, inclusion and equity has consequences, especially in terms of trust. If employees do not trust their employer to have their best interests at heart, they become disengaged and dissatisfied with their positions, which is costly for organizations.

Paul J. Zak, CEO of Immersion Neuroscience and founding professor of the Center for Neuroeconomics Studies at Claremont Graduate University, has found that, compared to those who worked for a “low-trust” organization, employees who worked for a “high-trust” organization experienced 76 percent more engagement and 50 percent higher productivity.

When employees feel truly valued by their employer, they not only stick around, thereby avoiding costly turnover for the organization, but they also do better work.

Representation where it matters

A recent survey found that Black employees represent only 3.8% of Chief Diversity Officers overall, while White people make up 76.1% of the roles; meanwhile, those of Hispanic or Latino ethnicity make up 7.8%, and those of Asian ethnicity make up 7.7%.

Wade Hinton, founder of Hinton and Co., a DEI firm in Chattanooga, Tennessee, noted the importance of ensuring DEI leadership “reflects the diversity of our communities and this country.”

Most DEI professionals report to non diverse HR colleagues, who are often White men and women. These HR Professionals are not fully trained to handle the nuance and wide spectrum of DEI issues. This is why many argue that C-suites should hire Chief Diversity Officers and give them the same authority as CFOs.

Evidence shows that, when non-white employees do not see people who look like them in leadership positions, they have reason to believe they are in a dead-end job. Tai Robinson, a Human Resources Professional in Houston, points out, “When a White Human Resources person listens to African Americans voice their concerns, they can end up sounding like complaints, although they are just concerns. And that’s a problem.” When non-white employees see other non-white people in leadership positions, they feel comfortable and safe voicing their concerns and sharing their ideas.

DEI is not dead, it’s transforming

Old approaches to DEI may not be working, but that doesn’t mean DEI is dead. To see real, lasting change, leaders need to reassess what authentic DEI efforts look like.

Changing faces

Many experts believe that DEI efforts have failed because many people, whether consciously or not, are put off by the “wokeness” associated with the movement. This has led some to wonder if DEI should shapeshift, or “change faces” as HR Drive puts it.

Changing the face of DEI means changing the language. Cinnamon Clark, McLean and Company’s practice lead of diversity, equity and inclusion services, says, “I think that – and there’s lots of evidence to prove that – ‘employee experience’ is the new way of saying inclusion without being off-putting to some audience.” Clark suggests an authentic, intentional approach based on stakeholders and audiences.

DEI implementation that better reflects the way we work today

Adapting to today’s workplace landscape is necessary for all organizations, especially for those looking to implement real DEI efforts.

Evidence suggests that employees are more engaged when their employer provides them with learning opportunities. Asynchronous work can yield remote learning opportunities, including in-depth training for DEI professionals.

Employers should also explore updated ways of hiring and onboarding – looking for appropriate soft skills, for example. Organizations like Gallup have developed research-based methods for finding candidates with appropriate skills for different roles. Soft skills for DEI professionals may include communication, emotional intelligence (EQ), conflict resolution, and stress management.

Conclusion

DEI touches all components of a business, not just employee well-being and not just public relations. Authentic, intentional DEI efforts is about hiring qualified professionals from diverse backgrounds into leadership positions, providing them with enough financial and developmental resources, and fostering trust between employees and higher-ups.

For work landscape to benefit from DEI efforts, leaders need to hold each other accountable. “I’m optimistic because I consult with clients every day,” says Hinton. “I know first-hand that there are organizations that truly want to see progress made. But collectively we’ve got to make sure that we’re encouraging those organizations to encourage their peers to work with them to advance this work.”.

Tulika Mehrotra Chopra is the Chief Digital Officer of Peterson Technology Partners in Chicago, Illinois, US.