8 Reasons DEI Efforts Fail
Today, many companies are striving to be more diverse and inclusive. Studies show that more than 70% of job seekers are looking to work for a company with a dedicated commitment to DEI (diversity, equity, and inclusion).
However, most companies are still falling short. Why?
There are 8 impediments to success (reasons for failure) to proactively consider when it comes to DEI.
First, lack of executive buy-in. It is critical that the top executives and sponsors (CEO, COO, CHRO, etc.) fully support DEI initiatives. This includes believing the extensive data that shows a positive relationship between DEI and innovation, better decision-making, and more favorable financial outcomes.
Second, not making DEI a priority. It’s not enough to just see the value of DEI. It needs to be an essential component of the company's top-level strategy and a business imperative. DEI should be a strategic lever to achieving business goals. Viewing DEI as a “nice to have” instead of a “need to have” will stall progress.
Third, the CEO is not a visible or vocal advocate and role model. When the CEO is chief advocate and storyteller, more people believe that DEI matters. When they are not, it can indicate to the workforce that DEI is just a “check the box” activity. Data has shown that there’s a disconnect between what the CEO says about DEI and what employees actually believe when there’s no behavior or advocacy to back it up.
Fourth, not setting DEI goals or targets. Set concrete goals and measure progress towards these goals by using clear metrics. For example, who is getting hired? Who is getting promoted most often? Who is leaving the company and at what point? What types of roles do men and women hold? Track gender, race, age, disability, and LGBTQ employees, if possible. Create graphs to help paint a picture.
Fifth, lack of resources allocated to DEI. This includes people, time, and money. Where a company spends its time and money is a key indicatorof its priorities -- and employees pick up on that. I consult with companies to establish executive sponsors, DEI committees, new policies, hiring practices, accountability, training, and even establish their first ERGs. All of this sends strong and positive signals to employees.
Sixth, not providing adequate support to middle managers. Middle managers often struggle to implement DEI and create environments that are psychologically safe. It helps to provide definitions and examples of what good managerial involvement and inclusive leadership looks like.
Here's an interesting article from Harvard Business Review on Why Middle Managers Struggle to Implement DEI Strategies (HBR - Oct 13, 2022)
Seventh, lack of leader accountability. As mentioned above, it's critical to establish DEI goals, targets, and metrics. Then, develop action plans to meet the goals of specific business units and hold managers accountable by linking diversity performance to compensation or promotion. Some companies shy away from this step, but it's essential if you really want to move the needle on DEI.
Eighth, lack of DEI communication. Not communicating enough or not providing transparent diversity-related communications internally and externally is another reason for failure. For example, communicate hiring and promotion rates, affirmative action plans, survey results, new or ongoing DEI initiatives, DEI goals tracking, and messages from leadership.
To do DEI well, you need to play the long game and be willing to evaluate key aspects of your business -- and take action where needed. I find that most companies are not doing the right kinds of activities, not doing enough activities, or are only addressing one piece of the issue.
If you are interested in helping your company become more diverse, equitable, and inclusive, don’t hesitate to reach out.
Dr. Shawn
Want to learn more? Check out my website drshawnandrews.com or bestselling book, The Power of Perception: Leadership, Emotional Intelligence, and the Gender Divide
