Beyond the Buzzwords and Checkboxes: Real DE&I Business Challenges
Today, embracing Diversity, Equity, and Inclusion (DE&I) is not just a box-ticking exercise, it is essential. Research shows us that diverse teams are more productive, communicate more effectively and. are generally happier than those with teams from the same background, gender, age and race.
Despite regular global campaigns and initiatives, so many businesses face substantial challenges in effectively integrating DE&I across their operations.
Why? Is a question of funding? No, you don’t need budget to set structure and processes to drive the importance and delivery of programs in your business. Is it because of deep-rooted cultural norms in the company/ industry? lack of strong leadership support, resource constraints, and difficulties in measuring and achieving widespread inclusivity.
1. Diversity-Driven Innovation
Innovative solutions often arise when diverse perspectives, opinions and ideas come together. However, creating an environment where diversity leads to significant breakthroughs, can be challenging. A recent study by McKinsey (2022) found that companies with more diverse management teams had a 33% increase in performance. Despite this, many businesses struggle to link diversity directly to innovation outcomes.
Source: McKinsey Diversity Study 2022
2. Cultivating an Inclusive Culture
An inclusive culture allows diverse employees to excel, but creating this environment requires consistent effort and adaptability. Culture needs to start at the top and be authentically driven to all functions and roles within the business. It needs to be the norm, threaded throughout everything that is done including flexible working policies, not just who you hire but where, promotions and extending to 3rd party suppliers. The Deloitte Insights report (2023) suggests that 72% of employees are more likely to stay with a company that values their input.
Source: Deloitte Insights on Inclusion 2023
3. Inclusive Leadership
Leadership plays a crucial role in embedding DE&I principles throughout the organisation. A challenge here is training leaders not only to manage but to inspire and include diverse teams. According to a Harvard Business Review article, only 40% of leaders display effective inclusive behaviours, which is frankly, just not good enough. Leaders need training that goes beyond the classroom, (one and done) adapting their business processes to continually focus on efforts to be inclusive.
Source: Harvard Business Review: Teams Solve Problems Faster When They’re More Cognitively Diverse
4. Cognitive Diversity Evaluation
Assessing cognitive diversity—differences in thinking, problem-solving, and decision-making—is less tangible than other forms, like gender or ethnicity. Companies struggle to develop tools that accurately measure and promote cognitive diversity.
5. Recruiting Diverse Talent
Attracting the right, diverse talent is so important for innovation and market relevance. it goes beyond ticking boxes of resumes and CVs being reviewed, recruiters and hiring managers need to open up to new and different sourcing channels to break from tradition. Mitigating bias in recruitment processes is key, it’s not just about gender, age, race, sexuality but also class and background. It’s easier for businesses to be more open when candidates are scarce but in the current economic climate, hiring managers need to make a conscious effort to address diversity. A LinkedIn report (2022) found that 50% of HR leaders see sourcing diverse candidates as their biggest challenge.
Source: LinkedIn HR Report 2022
6. Preventing Discrimination
Discrimination on the basis of race, religion, sexuality, gender, disabilities, and class remains a pervasive issue. Implementing policies that effectively prevent discrimination is crucial but it’s not just about the policy, it’s about understanding the potential issues within your current processes and teams, particularly in leadership. The Equality and Human Rights Commission offers guidelines and resources to help businesses enforce anti-discrimination policies effectively.
Source: Equality and Human Rights Commission
While the path to effective DE&I in business is fraught with challenges, understanding these obstacles is the first step toward overcoming them. By focusing on these key areas, businesses can not only comply with ethical standards but also harness the full potential of a truly diverse workforce.
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