Why Companies Are Failing in Their Diversity, Equity and Inclusion Efforts Let's explore why it's crucial for companies to prioritize the success of their DEI leaders and equip them with the necessary resources and authority to foster an inclusive workplace.
By Clair Kim Edited by Kara McIntyre
Opinions expressed by Entrepreneur contributors are their own.
Companies care about diversity, equity and inclusion (DEI) because they know that a diverse workforce leads to greater innovation, creativity and overall success. However, despite this knowledge, many companies struggle to effectively implement DEI initiatives. In difficult economic times, it's easy for companies to cut costs and put DEI efforts on the back burner. However, this can lead to consequences such as a lack of diverse perspectives and diminished employee engagement.
Let's explore why it's crucial for companies to prioritize the success of their DEI leaders and equip them with the necessary resources and authority to foster an inclusive workplace. By doing so, companies can unlock the full potential of a diverse and empowered workforce. Our takeaways will provide practical steps that companies can implement to develop a successful DEI strategy that not only benefits the business but also supports the well-being and satisfaction of its employees.
Related: Not Where You Want to Be with Diversity and Inclusion? Consider a Bite-Sized Approach.
Unrealistic expectations
Unrealistic expectations can also lead to DEI efforts falling short. Companies may expect overnight success or significant changes without providing the necessary support and setup for DEI leaders. It's important to recognize that creating a truly inclusive culture takes time and effort, and setting unrealistic expectations can cause frustration and hinder progress.
To avoid this, companies should work closely with DEI leaders to set realistic expectations and timelines. This means acknowledging the current state of the organization and identifying achievable milestones that align with the company's goals. It's also crucial to communicate openly and honestly with DEI leaders about the challenges and limitations that may arise.
By approaching DEI efforts with empathy and collaboration, companies can empower their DEI leaders to create meaningful change at a sustainable pace. Providing the necessary resources and support, while also being realistic about the timeline, can help DEI leaders overcome obstacles and build a culture of inclusivity that benefits everyone in the organization.
Not giving resources
Another reason why DEI initiatives fail is the lack of resources provided to DEI teams. DEI initiatives require various resources such as funding for training and events, access to data and analytics, support from senior leadership and tools to measure progress and track outcomes. Without these resources, DEI teams may struggle to implement effective initiatives that create a truly inclusive workplace.
During cost-sensitive times such as layoffs, companies often cut corners and DEI efforts can fall by the wayside. However, it's crucial to understand that DEI initiatives are not an indulgence. They're a necessity in today's world in creating a positive work environment that celebrates individuality, fosters engagement among employees and ultimately enhances business performance.
Creating a diverse and inclusive workplace through DEI initiatives can be complex. So to ensure that DEI initiatives are successful, companies need to commit to supporting their DEI teams with the necessary resources. This includes investing in training, funding and giving DEI teams the freedom to make decisions that positively impact the entire organization.
Related: 10 Ideas to Drive Your DEI Initiatives in 2023
A lack of executive buy-in
Gaining support from top executives for DEI initiatives can be a daunting task. Without their buy-in, DEI leaders won't be able to make meaningful changes to the company's culture and processes. Executives need to see that DEI is not just a checkbox exercise but a crucial factor for the company's success. Prioritizing DEI can help us attract and retain top talent, boost innovation and drive better business outcomes.
Leaders should recognize that DEI initiatives are more than just the right thing to do — they are essential for our business's growth. Leaders should be acutely aware of the practical advantages of continued DEI initiatives, including happier employees, more creative solutions and better decision-making. They should also understand the risks of not prioritizing DEI, such as reputational damage and legal liabilities.
To maintain executives' support for DEI, regular communication and collaboration with DEI leaders are critical. It means keeping the conversation open and active by sharing updates, soliciting feedback and working together to come up with solutions. By creating a two-way dialogue, we can establish a shared understanding of the significance of DEI and demonstrate our collective commitment to creating an inclusive culture that benefits everyone in the long run.
Treating it as a sub-function
Organizations that strive for diversity and inclusivity acknowledge the importance of involving their executive teams in the process. However, treating DEI as a mere sub-function, without having its own dedicated department, can obstruct its progress. To make DEI a genuine priority, companies must provide DEI leaders with clear objectives, transfer authority and allocate adequate resources, similar to any other business objective.
Investing in other departments is done as there's a clear understanding of the advantages that come with it. DEI should not be any different. Companies that value diversity and inclusivity are more likely to attract and keep top talent, spur innovation and achieve better business outcomes. Given both people and business outcomes, it is crucial to prioritize DEI like you would with any other department within the organization. This includes providing it with the necessary resources, holding all company staff accountable for its success.
Moreover, treating DEI like any other department implies holding people accountable for meeting DEI goals. When executives buy into the process and are held accountable, it creates ownership of the initiative at all levels of the organization, leading to increased progress and success. By providing DEI leaders with the resources, authority and accountability needed to achieve their objectives, organizations can make significant progress towards becoming more diverse and inclusive.
Related: 4 Ways Inclusive Leaders Can Respond to the Weaponizing of DEI
