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‘Doing better isn’t complicated’: Businesses struggle to deliver on diversity initiatives

Dishearteningly, but perhaps not surprisingly, new data shows perceptions of diversity, equity, and inclusion (DEI) in global workplaces have declined since 2022.
DEI
Source: SmartCompany

Dishearteningly, but perhaps not surprisingly, new data shows perceptions of diversity, equity, and inclusion (DEI) in global workplaces have declined since 2022. Culture Amp’s 2024 Workplace DEI Report shows employees are less likely to feel valued, their perspective is taken into account in decision-making, and they are safe to voice contrary opinions. The report also shows HR teams are less likely to say that their company builds diverse and inclusive teams or that they have the resources they need for DEI initiatives. 

Let’s be honest: this isn’t a surprise to most DEI experts. We’ve seen it before, when companies proclaim commitment but invest small amounts of resources that don’t yield results, employees are disillusioned and DEI programs fall down the priority list. 

We’re turning away from what we know matters

Let’s just say it plainly: companies are moving away from explicitly measuring DEI in their organisations. For example, companies globally were 10 percentage points less likely to ask their employees whether they believed they were “building teams that were diverse” in 2023 compared to 2022. While that doesn’t mean that there aren’t ways to measure DEI – you can still cut other questions by demographics – it does signal an important shift in how some companies are thinking about these issues in their priority list. 

Put really simply, there’s both a business and a moral risk here. We know that the demographics and expectations of the workforce are changing. More employees than ever come from marginalised groups or those that have been historically underrepresented. Younger workers especially want their employers to reflect their values and take principled perspectives on issues that affect their and their communities’ lives. It’s the basic logic of business that people are an organisation’s most important and valuable asset. And with nearly record-low unemployment numbers, smart leaders will do whatever they need to compete for scarce talent.

We’re letting our organisation become ignorant on how to address predictable issues

As the workforce changes, there are predictable challenges that come with it. There are reams of research that show people from marginalised groups are less likely to be rated, paid, and promoted fairly. This isn’t just an ethical issue: people who are treated poorly are less likely to perform and add value to an organisation. You just don’t get the best out of people who are not listened to. Given that we know the history and potential for certain people to have worse experiences at work, these are entirely predictable, likely problems. It makes very little sense to not proactively address them. And yet, only 58% of HR leaders believe they have support from senior leadership that they need to address DEI issues (a 16 percentage point drop in just two years). 

Even with declining support, HR teams say that their most acute challenge in addressing DEI is that they do not have access to the expertise they need. Only 47% of companies hire external consultants (down from 66% in 2022), and only 39% have a dedicated internal DEI role. And even when a company does have a dedicated role, it’s less likely than two years ago to be a senior-level role.

Doing better isn’t complicated

This all paints a pretty bleak picture, I know. But there is light to be found. The fact is, not all organisations are pulling back from doing the right thing. And “doing the right thing” is far more straightforward than many people make it out to be. 

At Culture Amp, we’ve stated our intention to build an inclusive, equitable company for years now. And holding ourselves accountable for achieving that is absolutely replicable. Here’s what you can do: 

  • Collect data on employee demographics and experience
  • Analyse your data to understand which employees are most marginalised
  • Identify their specific pain points
  • Co-develop solutions with employees

At Culture Amp, that has looked like measuring our employee experience, auditing our talent processes, and making ongoing investments in the specific groups who don’t have the quality of experience we believe should be the standard. For example, we’ve updated our policies and programs to ensure trans employees are supported and included at work. But perhaps most importantly, we don’t see this work as “extra”: an equity lens is woven into every aspect of how we think about the employee experience. This has helped us achieve pay equity, drive greater representation of marginalised groups in our workforce, and get the most out of our people.

The journey to these outcomes wasn’t always easy, but it also isn’t that complicated. We’d love more companies on the journey with us, and we’re here to help.

Aubrey Blanche-Sarellano is the founder of The Mathpath and VP of equitable operations at Culture Amp.

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