DEI Shift: HR’s Opportunity to Focus on Inclusion

Remember when the killing of George Floyd got companies talking about policies to increase opportunities for groups that have historically faced discrimination?

But then HR-facilitated diversity, equity and inclusion (DEI) initiatives started losing momentum after the Supreme Court struck down affirmative action admissions practices at colleges and universities. The ruling suggested that corporate policies that focus on diversity and equity can be legally challenged.

Then Mark Cuban and Elon Musk had their online war of words. In various boardrooms, there are surely similar exchanges taking place involving internal or external concerns about DEI initiatives straying from their original intent.

Several well-known companies have been re-evaluating their strategies — perhaps consulting with lawyers — and moving away from using racial and gender considerations in hiring and promotion, according to The Washington Post.

For example, after successfully defending itself against a lawsuit claiming its diversity fellowship program was discriminatory, the pharmaceutical company Pfizer reportedly made modifications to its DEI program.

But even with the effectiveness and measurable impact of DEI programs coming into question, it’s hard to ignore the 2023 study by McKinsey & Company that concluded companies with a wide representation of race, ethnicity and gender are 39% more likely to outperform their competitors.

Also, check out the on-demand webinar “The ROI on DEI: The Business Benefits of a Successful Strategy.”

“The truth of the matter is that people who give a care about their employees, and actually want to see productivity, and recognize that if they want to be successful and continue their company with any kind of longevity, they’re going to have to embrace this. It’s not going away,” said workplace culture consultant, executive advisor on diversity strategies, and founder of Rework Work, Stacey Gordon.

Calling DEI Something Else?

But because the DEI acronym is getting a bad rap from some these days for being politically polarizing, it may be the time to consider either rebranding your diversity program or adjusting policies so they prioritize inclusion for all.

SHRM CEO Johnny C. Taylor refers to IE&D – Inclusion, Equity and Diversity – putting the emphasis on inclusion.

“While diversity may bring people in the door, it is inclusion that truly welcomes them,” he wrote on LinkedIn.

Or how about IDEA — inclusion, diversity, equity and access? Adding the accessibility angle means you care about creating a workplace that’s more than simply Americans with Disabilities Act-compliant.

Gordon commented in a phone interview that DEI has gone by different names over the years, and the action you take matters much more than just rearranging the letters.

“[When] I tell people, ‘I’m here to talk about inclusion and belonging,’ for some reason they’re more interested in hearing that than if I say, ‘I’m here to talk about diversity,'” she said.

In an episode of HRMorning’s podcast “Voices of HR,” Mita Mallick, the head of inclusion, equity and impact at financial software company Carta, offered this suggestion for getting the ball rolling on inclusion: “I want everyone to go back to work tomorrow and think about, can you be the reason that someone feels included at work? Is there somebody on your team who seems disengaged, who seems more quiet, who seems less excited about work? What’s going on with them? How can you help out? I want to see more of us intervene in our workplaces. We spend too much time at work not to.”

Next Steps for HR

Regardless of what you call it, what’s required now is a careful, thoughtful, balanced and nuanced approach to diversity, equity and inclusion that also addresses legitimate concerns about discrimination.

Gordon recalled an instance when one company disbanded its Employee Resource Groups (ERG) in favor of “inclusion councils,” stating that ERGs were divisive. “If your employee resource groups are divisive, you’re doing it wrong. You don’t throw them out because they’re not working — you fix why they’re not working,” she said.

Here are some key considerations for fixing friction around DEI:

• Conduct comprehensive assessments. Regularly evaluate the effectiveness and impact of your organization’s DEI programs through data-driven analysis and employee feedback. Identify areas for improvement and any potential problems.
• Prioritize transparency and communication. Be transparent about your DEI goals and strategies. Clearly communicate the rationale and benefits to employees, addressing concerns and misconceptions head-on.
• Promote an inclusive dialogue. Create safe spaces for open and respectful dialogue about DEI issues. Encourage diverse perspectives and listen to concerns. Gordon suggested asking questions in a non-confrontational way, such as: Why is this problematic for you? What about the conversation is making you uncomfortable? What are you thinking is going to happen? What are you fearful of?
• Align DEI with organizational values. Walk the talk by demonstrating how an inclusive, equitable and diverse workplace contributes to the company’s success.
• Remain agile and responsive to the DEI landscape as it changes. Be willing to adapt your strategies and initiatives based on feedback, data and internal best practices.

If your organization is still serious about creating an inclusive, equitable, diverse workplace, these moves will make it possible to navigate shifting attitudes toward DEI (or whatever you decide to call it).