Are you staying honest to diversity commitments?
7 min read · May 12, 2023
New Power Labs
Over a few months of 2020, openings for equity, diversity and inclusion-related (EDI) roles surged by 55 percent following a global reckoning over long-standing racial injustices.
Chief Diversity Officer hires in particular skyrocketed by 168.9% between 2019 - 2021. But by 2022, these same positions were the only ones across c-suite roles to experience hiring declines according to a LinkedIn report surveying 500,000 C-suite positions in the US.
Overall, EDI roles diminished at a faster rate than non-EDI roles beginning in 2021, with continued acceleration during the mass layoffs of 2022.
And it’s not because we’ve fulfilled our organizational ambitions. BlackRock recently released a third-party racial audit showing that, despite efforts to invest in equitable policies, retention rates for Black and Latinx employees were low. Senior leaders across organizations may believe they’re doing well on embedding equity in practice, but the data on employee experiences tell a different story.
New research from Gallup shows gaps between senior leader perception and employee reality: for example, a majority of HR chiefs (97 percent) report increased investments in EDI, and yet only 31 percent of employees surveyed say their organization is committed to racial justice.
Despite the statements, pledges and investments, we are falling short of our equity goals, and it’s a startling disconnect. Dubbed ‘diversity dishonesty’ or ‘diversity theatre,’ this gap shows up when organizations work hard to look like they’re invested in equity work but fail to make more meaningful shifts to support diverse employees. A Globe and Mail piece notes how this shows up in the representation gap, for example: while many companies employ Chief Diversity Officers (CDO), over 76 percent of CDOs are white, 3.8 percent are Black, 7.8 percent are Latinx, and 7.7 percent are Asian.
Closing the gap between ambition and outcome
Equity, diversity and inclusion present a moral commitment and drive long-term business success. Organizations in the top quarter for racial and ethnic diversity as well as gender diversity were more likely to outperform their peers, according to McKinsey research. Workplace equity is credited with increased revenues and customer base, greater shareholder returns and higher investor confidence. Companies with EDI teams tend to have more diverse new hires and higher employee satisfaction, helping companies trend in a positive direction on equity goals.
Building equitable workplaces requires accountability and transparency.
Embed equity work as part of your organizational strategy, set data-based metrics and allocate resources to reaching articulated goals.
Consistently and frequently share EDI updates and initiatives across your organization.
Track progress by benchmarking policies and data relevant to equity, including promotion rates, pay gaps, and professional development gaps.
Measure what’s working, hold managers accountable for improvements, and learn from external best practices. While the BlackRock audit uncovered some gaps, the release of the report is an important marker of transparency.
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