Fact – organizations are falling on the job when it comes to Diversity, Equity, and Inclusion, (DE&I), and the resulting losses are staggering. According to a March 2020 report from global professional services provider, Accenture, “US companies are leaving $1.05 trillion dollars on the table by not being more inclusive.” The opportunity cost goes even further when considering the disconnect between employer perception of fully engaged employees versus employee reality. This is referred to as the perception gap according to Accenture’s findings.
When polling over 1,000 executive leaders and more than 20,000 employees on DE&I factors ranging from being able to be fully authentic in the workplace to growth potential that results from being able to fail without fear of some sort of blowback, the data confirms employers estimate roughly 98% of employees feel fully engaged, included, and welcomed. The reality is that only 80% of employees feel fully engaged, included, and welcomed. That difference equates to the perception gap. Making effective, tangible changes to fill in the gaps and move the needle towards both resolution of issues and evolution of DE&I are worthwhile, to say the least. The work required to get there is both challenging and doable.
The first step in solving a problem is in acknowledging said problem. Employers must acknowledge that their current DE&I initiatives are not working and that there is a persistent Equity deficit. No one wants to say it. But that’s okay – I will say it here. That work nirvana state of a level playing field does not exist in most places. I said what I said. To be clear, the cookie-cutter approach to DE&I does not translate well in every organization. If it worked, there would be no perception gap and no trillion-dollar losses as a result of not getting DE&I right. Fixing it involves a mindset shift, a change in the discussion with more active listening, a change in the approach to recruiting, training, and mentoring. This requires a tailored framework around organizational needs. Executive leadership must be intentional and leave the band-aid approaches off the list altogether. That’s why we’re here in the first place. Change is led from the top.
Recruitment can be a good place to make effective changes. An inclusive recruiting team that collaborates with Historically Black Colleges and Universities (HBCUs) and other under-represented groups would provide access to a robust and diverse talent pool for internships and career development programs in a variety of industries. Equity is another excellent foundational starting place where DE&I is concerned. The upside to successful, tangible change is the intersectionality of increased profits, (hello, $1.05 trillion dollars previously left languishing on the table), and improves the bottom line: a solid talent bench at any level, higher employee retention and satisfaction, along with improved workplace culture.
Ask nearly any business about their most valuable asset and it is likely that you’ll hear different versions of a similar message – it’s the people, the human capital element, the colleagues, and the customers. This common denominator can be seen across various mission and value statements regardless of the industries. While admirable, the data speaks differently. If organizations want to improve their bottom line with a great return on investment, cultivate a deep bench of talent at all levels, increase employee retention and have a great workplace culture, they need to do a much better job at Diversity, Equity, and Inclusion, with emphasis on Equity. When employers get that right, the data will follow to the tune of that existing $1.05 trillion dollar deficit and then some. As employers navigate effective changes and further the evolution of Diversity, Equity, and Inclusion, the changes, or rather the proof, will be in the pudding.
