SUSTAINING DE&I PROGRESS AMID FINANCIAL UNCERTAINTY: WEAVING DEI INTO THE FABRIC
The dynamic trio of diversity, equity, and inclusion has been making significant waves in today’s business world. A study by the Harvard Business Review disclosed that companies with greater-than-average diversity had 19% more innovation revenues – demonstrating that DE&I aren’t merely buzzwords but rather the very cornerstone of innovation and enduring success for many companies.
However, amidst the ongoing uncertainty in the global economy, highlighted by the International Monetary Fund’s (IMF) forecast of a shift from 2022’s robust 3.4% global growth to a more cautious 2.8% In 2023, businesses are at a crossroads and left with the question of where budget cuts are feasible.
As the saying goes, tough times call for tough measures, and this has led some companies to make the tough decision to trim their DE&I budgets. This decision, however, raises the fundamental question – is it a prudent move?
In 2018, Google was hit with a gender pay gap lawsuit, to which Google responded by scaling back on its DE&I programs. This decision was widely criticised as a short-sighted approach and resulted in prolonged negative publicity and increased scrutiny over its DE&I practices. Additionally, the company incurred a whopping $118 million in losses due to the lawsuit.
According to a recent Benevity survey, 62% of employees agree that DE&I should remain a high priority, especially in the face of economic uncertainty.
McKinsey’s research further underscores this point, revealing that 39% of job applicants have rejected or refrained from pursuing job opportunities due to a perceived lack of inclusion within an organization.
All of this begs the question – how can businesses sustain their DE&I momentum during an economic downturn?
WEAVING DEI INTO THE COMPANY’S FABRIC
In a bid to maintain DE&I momentum, companies are advised to make DE&I the “golden thread.” – This means that DE&I initiatives should be woven into every aspect of a company’s operations, from hiring and promotion to product development and marketing.
One way of doing this is by establishing employee resource groups (ERGs). ERGs allow employees to connect, share experiences, and contribute to company-wide initiatives. These groups provide valuable feedback and ideas to further enhance DE&I efforts.
Another area where DE&I can be woven into the company’s operations is in supplier and partner relationships. When companies take the initiative to work with women-owned and minority-owned businesses, they support economic diversity in their industry.
By ensuring that DE&I is incorporated into the core operations of their business, companies can show that they are fully committed to DE&I and are not merely following the trend. This positions DE&I as a vital piece of the puzzle, and it becomes less vulnerable to budget cuts during tough economic times.
Companies can also demonstrate a strong commitment to DE&I by actively investing in these three areas: data collection and analysis, intervention design based on data-driven insights, and accountability.
Yes, creating an effective DE&I strategy is vital, but more importantly, companies must hold themselves accountable for implementing that strategy and achieving set goals.
One of the biggest obstacles to DE&I’s progress is the slow path toward gender equity in asset management. According to Citywire’s Alpha Female Report 2023, women fund managers make up just 12.1% of the total, and their share only edged up a mere 0.1 percentage point over the past year. This lack of gender equity is not just a moral issue; it’s also a business issue.
To successfully weave DE&I into the fabric of a company, everyone must be on board, from new hires to C-suite executives. Staff at all levels must recognize the importance of DE&I initiatives and understand what strategies are being developed and implemented.
Creating a more inclusive work environment is about employees and leaders throughout the organization adopting new mindsets, changing behaviors, and learning to operate and adapt to new and different systems. Consistent and effective DE&I training, along with repeated practice, are key to making these happen.
As we navigate these economic challenges, it becomes increasingly evident that incorporating DE&I practices in your organization is a wise and enduring investment, one that poises your business for sustained growth and positive impact. It is a pathway to better employee productivity, adaptability, innovation, and overall success, regardless of economic uncertainties.
At Migasuto Global Services, we stand unwavering in our commitment to weaving DEI into the fabric of your organization. We invite you to join us in this incredible journey toward a more inclusive and prosperous future for your company.
