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How DEI Haters are Hurting Your Bottom Line: And What to Do About It!

Updated: Aug 1



(Don't have time to read this whole article right now? View Video Summary Above!)


Has your company implemented a Diversity Equity and Inclusion initiative to only have it meet employee resistance and ultimately fail to improve organizational culture and productivity? 


You Are Not Alone!

As an Organizational Development Consultant who has helped dozens of companies imrove their Cultural Competence and implement successful DEIB (Diversity, Equity, Inclusion and Belonging) I can tell you that resistance to DEI initiatives is not unique. In Fact, a 2022 global Gartner survey of DEI leaders highlighted that 23% cited employee resistance to DEI-focused change efforts as a top challenge. A 2021 Gartner study found that 42% of employees resented DEI efforts, viewing them as divisive, with 44% feeling alienated. *


Despite the sincerity of most organizations' DEIB commitments, results often lag. Nonprofit benchmarking association APQC’s research indicated low integration of DEI measures within HR functions, and few organizations tied leaders’ and managers’ compensation to DEI goals. Employee resistance, whether due to feeling excluded or a lack of commitment, can negatively impact a company's bottom line.


A Boston Consulting Group study found that diversity enhances innovation and financial performance, implying that less diversity means reduced innovation and lower performance.

Understanding the reasons behind this backlash is crucial. Employees may resist DEI efforts due to perceived loss of control, beliefs that social inequalities have been resolved, or because they do not see DEI as beneficial to them. A part of this resistance often stems from a need to protect self-esteem and a lack of perceived personal benefit.


Common Sources of Resistance


  1. Loss of Control or Autonomy: Employees may feel their independence is restricted, especially in cultures that value autonomy.

  2. Belief That Inequalities Have Been Addressed: Some believe that DEI efforts are unnecessary and create new disadvantages.

  3. Perception of a Lack of Personal Benefit: Employees from “majority” groups may not see how DEI efforts benefit them, feeling excluded from the narrative.


5 Strategies to Overcome DEI Backlash


I. Business Leaders' Ownership and Accountability:

  • Leaders must take visible and active roles in supporting DEIB initiatives.

  • Integrate DEIB goals into leaders’ performance plans and make these measures public.

  • Ensure unwavering support from the CEO and the entire C-suite.


II. Communicate the 'Why':

  • Clearly articulate the importance of DEI to the overall health and success of the company.

  • Highlight the benefits of diverse teams on innovation and profitability.

  • Ensure all employees understand the value of DEI initiatives to EVERYONE. Inclusion of All Employees:

  • Address ALL employees' concerns and provide opportunities for input.

  • Frame DEI goals to avoid perceptions of quotas. Stress the importance of Belonging and employee satisfaction.

  • Focus on actions and behaviors that help achieve DEIB targets.


III. Engage Detractors:

  • Understand and meet detractors where they are, using strategies to bring them along.

  • Encourage interaction and listening to the lived experiences of ALL.

  • Promote new perspectives through engagement and sponsorship of DEI initiatives.

  • Help them identify the WIFM (What’s In It for Me) for themselves.


IV. Promote Positive Roles for All Employees:

  • Frame DEI efforts as opportunities for fairness and allyship.

  • Avoid framing DEI as taking something away from “majority” groups.

  • Foster a growth mindset and collective effort.

V. Measure DEI Like Any Other Performance Metric:

  • Include DEI behaviors and outcomes in performance evaluations.

  • Tie bonuses and compensation to DEI metrics to ensure prioritization.

  • Maintain ongoing communication and education to build transparency and trust.

  • Treat engagement in DEI events and committees as protected time.


Conclusion

Achieving results with DEI efforts requires understanding employees' perspectives through surveys and conversations, creating a safe environment for expressing viewpoints, and maintaining open dialogue. This ongoing communication helps identify concerns and areas for improvement, fostering a culture of inclusivity and belonging.


Organizations that prioritize good inclusive leadership and transparent communication are more likely to engage and retain their teams. Inclusive leadership involves actively involving all employees in DEI initiatives, ensuring they feel valued and heard. Transparent communication helps demystify DEI goals and their importance, making employees more likely to buy into these efforts.


DEIB is not just a moral or ethical obligation; it directly impacts the bottom line. Diverse teams bring varied perspectives, which enhance creativity and innovation, leading to better problem-solving and decision-making. The Boston Consulting Group study highlighted that companies with diverse teams see improved financial performance, as diversity increases the capacity for innovation by expanding the range of ideas and options available to a company. This innovation drives profitability and competitive advantage.


Moreover, companies that successfully implement DEI initiatives attract and retain top talent. Employees are more likely to stay with organizations where they feel included and valued, reducing turnover costs and enhancing overall productivity. A diverse workforce also better reflects a diverse customer base, improving customer satisfaction and loyalty.


In summary, DEI efforts are essential for creating a positive, inclusive work environment that drives business success. By understanding and addressing resistance, fostering inclusive leadership, and clearly communicating the benefits of DEI, organizations can overcome challenges and harness the full potential of a diverse workforce. This not only helps unify teams but also leads to significant improvements in innovation, employee retention, and financial performance, ultimately strengthening the organization's bottom line.


To learn more about how Cutts Consulting can help you achieve your DEI goals, improve employee satisfaction and productivity and increase your bottom line contact us today!


*Some material for this article adapted from: Why DEI Backlash Exists and What to Do About It

 

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