By Dr. Poornima Luthra
DEI efforts are becoming increasingly performative, rather than initiating genuine cultural transformation, argues Dr Poornima Luthra. Here, she outlines the need for leaders to develop their genuine conviction in the purpose of DEI for their organisations in order to cultivate diverse and inclusive workplaces.
While organisations in Europe and the world have increased their focus on DEI (diversity, equity and inclusion) in recent years, there is a growing disparity between perception and concrete action. In fact, only 7% of organisations are genuinely building a diverse and inclusive culture, according to the EY European DEI Index[1].
Approaching DEI with quick-fix quotas and performative efforts may look good on the annual report, but only provide superficial and short-term change. To move beyond performative DEI and achieve meaningful cultural transformation in business, leaders must demonstrate true conviction when it comes to the value and purpose of diverse and inclusive workplaces.
Leading with Conviction – believing in the purpose of DEI
Leading with conviction is about wholeheartedly believing in the purpose of diversity and inclusion. It means being convinced that:
- Inequity and inequality exist, and that they need to be addressed,
- Being more inclusive and equitable is the right thing to do, and finally,
- Your organisation will be better because of it.
Leaders must move beyond regarding DEI as “nice to have”, viewing DEI as a separate initiative that is an “add on” to the organisation’s strategy or considering DEI as something that can be deprioritised, defunded or delegated to HR in times of economic crisis. Leading through conviction is knowing that DEI is a necessary strategic action and priority.
This requires leaders to view the purpose of DEI through the lens of equity, with the main goal to make our workplaces more equitable and fairer for all—to level the playing field and rebalance the power and privilege away from historically advantaged individuals and groups.
From this perspective, the purpose of DEI is fourfold:
1. To mirror the demographics of society
To be equitable and to have adequate representation of the viewpoints of society, organisations need to be representative of the societies in which they operate, at all levels of the organisation. To do this, organisations need to focus on being able to both attract and retain talent, which is what organisations that focus on equity can do. For example, it has been shown that companies with higher levels of gender diversity, accompanied by supporting HR policies, have lower levels of employee turnover.[2]
2. To ensure employee well-being
Organisations with inclusive work cultures have reduced incidents of interpersonal aggression and discrimination, with women experiencing less discrimination and fewer episodes of sexual harassment[3], thereby improving employee well-being. A 2016 report by the European commission shows that having LGBT-supportive policies reduces incidences of discrimination, thereby improving psychological health and increasing job satisfaction, while also improving relationships between LGBT employees and their colleagues.[4]
3. To be a customer-centric organisation
The customers of many organisations today are global and diverse. To truly understand the needs of these diverse markets and customers requires representation internally. Diversity at all levels in the organisation increases the likelihood of representing diverse perspectives and diverse experiences that match a broader and more diverse customer base.
4. To foster creativity and innovation
Innovation flourishes when there is an inclusive culture. Research by Catalyst.org shows us that companies with an inclusive culture and accompanying DEI policies are shown to have a 59.1% increase in creativity, innovation and openness[5], with diverse and inclusive teams making better decisions 87% of the time.[6]
Defining the purpose of DEI for your organisation
The evidence supporting the need for DEI is indisputable. Removing barriers to hiring and promoting talent equitably in a culture of inclusion is the right thing to do – understanding DEI’s purpose and believing in it are crucial.
To lead with conviction, leaders must truly understand the purpose of DEI specifically for their organisations. Leaders can start by creating a DEI purpose statement. Ask yourself the following questions:
- What is the purpose of DEI for your organisation? List what the purpose of DEI is for your employees, team and organisation. Be as specific as possible. Speak to colleagues who have diverse perspectives and experiences across the organisation to understand what they believe the purpose of DEI is.
- Is your list focused on removing barriers and increasing equity?
- What about DEI being the right thing or the equitable thing to do? How would you incorporate that into your purpose statement for DEI?
- Do you think the purpose of DEI is adequately communicated across the organisation? Identify key themes expressed.
Embedding DEI’s purpose
Although it is paramount to have conviction and believe in the purpose of DEI, it needs to translate to changed practices. DEI needs to be embedded into processes, metrics and compensation systems. Leaders need to walk the talk.
With a clear purpose identified, leaders must ensure that:
- DEI is embedded into the organisation’s strategy. Empower the business to prioritise DEI alongside other business KPIs and objectives.
- Make a shared commitment as leaders to role-model purposeful, authentic and inclusive leadership for the rest of the organisation.
- Ensure that the organisation’s board and executive leadership team are diverse, including women, minorities and diverse points of view. Also, engage in creative efforts to diversify the talent pipeline.
- Create an inclusive culture that fully harnesses the benefits of a diverse talent pool and encourages all employees to contribute and constructively challenge ingrained assumptions and perspectives.
- Set the tone that DEI is important to the organisation by keeping it on the leadership agenda, asking the right questions and monitoring the relevant data.
Truly moving the DEI needle
In its simplest form, diversity is about valuing uniqueness, equity is about fairness and inclusion is about belonging. DEI is about dismantling and rebuilding systems that unfairly favour some and not others to ensure a level playing field, so that those who have the competencies have access and a chance to be considered for the role. With true conviction in the purpose of DEI, leaders can drive forward concrete action to embed diversity, equity and inclusion into the foundations of their organisations.
Dr. Poornima Luthra
