Are employers truly optimising their diversity, equity and inclusion initiatives?

Embracing diversity, equity and inclusion (DE&I) can deliver significant benefits for an organisation and its employees. But, with signs that it has fallen off the radar, employers must look at how they can reinvigorate their strategies.

Research by the Chartered Institute of Personal and Development (CIPD), Inclusion at work 2022 published in December 2022, found there was huge variation in employer commitment to DE&I. Just under half (48%) of those surveyed said they have a stand-alone strategy or action plan, with 36% saying they are not planning to focus on any inclusion and diversity areas in the next five years.

These findings do not surprise Dr Jill Miller, senior policy adviser, diversity and inclusion at the CIPD. “In the UK we still have a long way to go before we can say we have an equitable workplace;” she says. “DE&I is falling off the radar for all sorts of reasons but it’s essential that we reenergise organisations’ approach to it.”

Off the radar

For some organisations, there is not the time or money to implement DE&I initiatives. Jane Bradshaw-Jones, HR business partner at AdviserPlus, says: “The current economic climate means many employers are in survival mode. Sadly, financial constraints often mean all the niceties go out the window.”

There is also some reluctance to engage with DE&I due to the risk that it might uncover something undesirable. Sarah Maskell, founder of Inclusion Insights Group, says that organisations are more conscious of the potential backlash now. “The risk of being found to have been discriminatory or institutionally racist means some employers are prioritising other things,” she says.

Greater awareness of DE&I is also fuelling perceptions that it is challenging. When faced with the list of protected characteristics, the complexity and sheer volume of work required can feel daunting.

More DE&I regulation could be having unintended consequences too. Fiona Jackson, founder of Fiona Jackson Consulting, explains: “It’s good to see regulation improving in this space but the danger is that it also encourages a tick-box mentality. Organisations need to see it as a value-add rather than just a regulatory requirement.”

Positive spin

In spite of these obstacles, there are some positives. In Gartner’s Q2 Chief HR officer survey, which was conducted in May and June 2023, 75% of respondents said they would increase DE&I spend over the next two years, with none expecting to reduce it.

Given these findings, Chandra Robinson, vice president in Gartner’s HR practice, believes there has been a shift in the way organisations approach DE&I. “Employers are taking a quieter approach, carefully considering the right level of information to share to avoid unintended attention and potential lawsuits,” she explains.

Advocates also point to the benefits of DE&I, many of which overcome the perceived obstacles. “Once employers quantify these benefits, whether that’s greater innovation or lower staff turnover, it’s really powerful,” says Jackson. “Replacing an employee typically costs one and a half to two times their salary so it makes sense to have a culture where everyone feels valued and that they belong.”

Employee expectations

Creating the right culture requires data. “Organisations need to understand their workforce,” says Miller. “Without this insight, it’s impossible to tackle any inequalities.”

Some information will already be held on employee databases but employers should involve employees in this data-gathering exercise. “Organisations should speak to employees, either anonymously through annual surveys or by approaching the employee networks,” says Bradshaw-Jones. “Be blunt and ask whether the organisation hits the mark.”

Exit surveys can be particularly enlightening, but, as these can be reactive, employers could run retainer surveys for all employees, says Maskell. “Asking questions such as what’s been good over the last year and what’s making them stay can provide valuable insight,” she adds.

Organisations need buy-in from senior leaders too. This backing can transform DE&I from an HR-led strategy to an organisational one that becomes part of the culture.

Laws of attraction

Recruitment is a key area to consider from a DE&I perspective. Where an organisation is failing to attract a diverse workforce, Jackson recommends looking at the data. “This can show an employer where the pain points are and help them change processes,” she explains. “Does the [organisation] attract diversity? Are biases stopping some groups from getting on the shortlists?”

The way the organisation presents itself to potential employees also matters. This includes the job advertisement, both in terms of using inclusive language and where it is posted, but also the information that is available on social media sites such as Glassdoor.

As a robust approach to DE&I will reduce the risk of alienating potential candidates, Bradshaw-Jones recommends constantly reviewing and updating policies to keep them fresh. “If the DE&I policy was written five years ago, it’s probably out of date,” she says.

Motivation mantras

It is equally important to ensure that DE&I is part of the organisation’s approach to engaging and motivating employees. Employees will spot any incongruencies, however small, potentially undermining the entire strategy.

As they have regular contact with employees, line managers have a key role to play. “Line managers need to have the time and space to get to know individuals and their strengths and needs,” says Miller. “This line manager support is fundamental for inclusivity but it may require training or a rethink on role design.”

Flexible working can also help employees feel supported in the workplace. Being able to shift working hours, job share or work compressed hours can be a major advantage for many employees. Further, being able to balance work and life commitments can stop an employee from having to leave, which benefits the organisation too.

Holidays also offer a good opportunity to recognise employees. While many organisations closedown or have a lull around Christmas, few recognise other faiths’ holidays such as Eid, Passover and Ramadan, says Maskell. “Employers should be mindful of these holidays, especially where their data shows they have employees with these religions. Changing opening or working hours for Ramadan can really benefit employees observing it,” she says.

Benefits punch

Benefits also have a powerful role to play in demonstrating the organisation’s commitment to DE&I. As part of the reward for working there, they are a very visible indication of the organisation’s philosophy and the value it places on its employees.

Employers should consider the roles that employees do, especially given the shift to remote working. This, or a role out in the field, can make onsite benefits such as gyms or health check-ups worthless. “Employers need to step back and think,” says Jackson. “Is it a benefit that everyone can access? Engaging the employee networks can provide valuable insights.”

Health and wellbeing benefits can be a particularly important part of an organisation’s DE&I strategy. Increasingly organisations are democratising benefits but there are opportunities to take this further, says Maskell. “Health inequalities are on the rise in the UK but, by taking an inclusive approach, organisations could be pivotal in changing the availability of health resources,” she explains. “Health benefits such as virtual GPs and virtual dentists could help to ensure employees and their families have access.”

Whether it is introducing a new health benefit, advertising a vacancy or redesigning line managers’ roles, ensuing DE&I is a consideration in every decision will deliver significant benefits for organisations and their employees.