Imagine a world where innovation thrives, creativity knows no bounds, and EVERY individual’s unique abilities are celebrated.
So how is this possible? How are major corporations such as Coca-Cola, Johnson & Johnson, Microsoft, Google, and Salesforce implementing Diversity Equity and Inclusion (DEI) strategies resulting in gains to their profitability, employee engagement and job satisfaction leading to innovative ideas and techniques that are growing their organizations? Can Small Businesses make this shift as well?
Understanding DEI
Before we can break it down and pull strong business strategies from the results first, we must understand DEI, where it originates and the stigma around it. There is a huge push for DEI in the corporate world; however, we find that many businesses have a need for information and training.
The foundation for DEI can be traced back to the mid-1960s, when EEO or Equal Employment Opportunity Act was introduced. While compliance with the act to include all in the workplace was introduced 60 years ago, it is still an ongoing conversation. Preferential hiring practices are still seen to this day all around the world. Conversely, DEI strategies and policies are making an impact in several areas of business.
Why is it an ongoing conversation? In many cases, there is still a stigma surrounding hiring people who fall into this category. For example, some organizations have individuals who feel they would be considered less than by their clients if they were to promote a DEI candidate.
In the workforce globally, DEI is a focus on the inclusion of certain groups, including race, color, religion, sex, sexual orientation, national origin, and abilities. With the implementation of remote work environments and hybrid environments, these groups and populations are much more accessible to businesses.
So, who is this diverse group of individuals that are the gold mine of major corporations? They are people who are neurodivergent, they are individuals with disabilities, they include people from the LGBTQ community, people of color, and people with cultural differences. They are Diversity.
DEI
Diversity: acknowledges the fact that every person in the human race is and have diverse abilities, bringing varied perspectives and experiences, driving innovation and unique solutions.
Equity: Treating everyone equally, fair treatment and providing resources and support tailored to individuals needs. One great example of equity is Megan Rapinoe. She is one of the driving leaders in gaining equal pay for women in the workforce, and it is translating to all diverse groups. (PETERSON, 2023)
Inclusion: Respect and value all individuals’ thoughts, ideas, and encourage authenticity and participation. Some could refer to this as having Zapp… in your organization! (D., 1988)
When considering DEI defined, there are a few key points where one could develop profitable strategies comparable to those of major organizations.
Current Trends in the Marketplace
Considering social movements and legal compliance corporations have adopted specific strategies inclusive of and targeted to DEI. Some strategies include psychological safety, performance initiatives, and targeted recruitment. They promote authenticity, innovation, and employee engagement.
What the Data Says
Hiring for DEI can significantly boost a company’s profitability: The following 6 key points are results of DEI in companies such as Google, Coca-cola, Johnson & Johnson and Microsoft.
1. Enhanced Innovation and Problem-Solving
2. Increased Employee Engagement and Retention
3. Access to a Broader Talent Pool
4. Improved Company Reputation
5. Financial Performance
6. Enhanced Team Dynamics
By fostering an inclusive environment, companies not only do good but also perform better financially. This dual benefit makes hiring people with disabilities a smart business strategy.
Key Strategies for Small Businesses
- Training and Development: Educating and developing leadership, managers and peers on DEI and what that looks like increases acceptance and psychological safety. Ensuring hiring managers understand the process of all aspects of DEI such as competitive versus noncompetitive interview processes and fostering understanding and unique approaches to diversifying the talent pool.
- Inclusive Hiring Practices: Implement hiring goals for targeted inclusivity. How diverse is your current team? Do you seek a larger pool of candidates, what methods are you using to interview candidates? Are you reaching out to your local workforce services and fostering relationships there?
- Creating Supportive Environments: Building a culture of inclusion and belonging. Taking note from Google and their psychological safety strategies, they focus on and prioritize the growth and development of their teams. They reward risk-taking and innovation and promote open communication and active listening. Utilizing this strategy Google has increased productivity, innovation, and created high performance cultures. (Google’s Project Aristotle and Psychological Safety, n.d.)
Measuring Success for DEI Programs:
- Employee engagement. Anonymous surveys assess how you are doing. Retention rates and employee performance are all strategies to measure employee engagement
- Pay equity. Monitor the pay for diversity, what percentages are you rating at?
- Financial performance. Diverse teams foster innovation and increase profitability and financial performance when compared to teams who do not.
Conclusion
Contrary to outdated beliefs, hiring for DEI is not just a moral imperative but a strategic advantage that can transform businesses and boost their bottom line, an untapped gold mine so to speak!
Prioritize DEI, implement unique measurable strategies and expand your talent search!
As noted throughout this article these are some major corporations that have made significant gains by incorporating Diversity, Equity, and Inclusion (DEI) initiatives:
- Microsoft: Microsoft has been a leader in DEI, focusing on creating an inclusive culture. Their efforts have led to increased innovation and market share, as diverse teams bring varied perspectives and ideas.
- Salesforce: Salesforce’s commitment to DEI has not only improved employee satisfaction and retention but also boosted their reputation and financial performance. They have seen significant growth in their customer base and market value.
- Procter & Gamble (P&G): P&G has integrated DEI into their business strategy, resulting in better consumer insights and product development. This approach has helped them maintain a competitive edge and achieve higher sales.
- Coca-Cola: Coca-Cola’s DEI initiatives have enhanced their brand image and customer loyalty. By fostering an inclusive workplace, they have seen improvements in employee engagement and productivity, leading to better financial outcomes.
- Johnson & Johnson: Johnson & Johnson’s focus on DEI has led to a more innovative and collaborative work environment. This has translated into better product development and increased market share
- Google: Google’s DEI efforts have been instrumental in attracting top talent and fostering a culture of innovation. Their diverse workforce has contributed to their success in developing cutting-edge technologies and maintaining market leadership.
These companies have demonstrated that DEI is not just a moral imperative but also a strategic advantage that can drive significant business gains.
References
D., W. C. (1988). ZAPP! The Lightning of Empowerment. New York: Random House Publishing.
Google’s Project Aristotle and Psychological Safety. (n.d.). Retrieved from leaderfactor.com: https://www.leaderfactor.com/learn/google-and-psychological-safety
PETERSON, A. M. (2023, 09 22). Megan Rapinoe’s legacy with US team is bigger than soccer. Retrieved from https://apnews.com/article/megan-rapinoe-united-states-women-nwsl-ol-reign-550a5fa8ed9fc2912743031f86a7f630#
Raffensperger, L. (2019, Oct 24). How Identical Twins Develop Different Personalities. Retrieved from https://www.discovermagazine.com/the-sciences/how-identical-twins-develop-different-personalities