Diversity, equity, and inclusion (DEI) interventions are critical to improving productivity and growth, a new report said, which focuses on how companies in the UK can make sure DEI initiatives don’t miss the mark.
The EY report sets out key recommendations for leaders to build an inclusive and psychologically safe culture in which underrepresented talent can thrive. But building a safe and inclusive culture requires an awareness of the employee experience across all levels of employment, according to the report.
Creating effective initiatives starts with an audit process to identify and resolve “key areas of weakness” and “blind spots” in an organisation’s work culture, the report said, encouraging organisations to engage with what the report identifies as the three pillars of acceptance.
The pillars encourage acceptance of diverse employees through:
- Recognising their unique attributes.
- Providing them with a sense of belonging.
- Encouraging their involvement in organisational communication, decision-making processes, and informal interactions.
For organisations to champion those three pillars, they need to have a clear view of the whole company in order to collect the data-driven insights necessary to implement holistic interventions.
In collaboration with 16 diversity campaigns and DEI specialists, EY found that leadership teams often find it difficult to know how policies are manifesting at more junior levels — if they are not “proactively canvassing views” from across the whole organisation.
Consequently, findings from several research reports (cited in the report) suggest that underrepresented groups often experience lower levels of psychological safety and higher levels of conflict at work than their peers; the report includes data on underrepresented racial and ethnic groups, women, LGBTQ+ employees, and employees with disabilities.
As a result, companies “blind” to inequalities and mistreatment are more likely to struggle to stay competitive in the future, the report said. One study cited in the report found that companies that promote “a sense of belonging” can increase job performance by up to 56%.
Inclusive values are intrinsic to establishing a productive organisation that people want to work for. “Younger generations want to work for companies that align to their values and treat staff well,” the report said. “Fostering a culture of inclusion is, therefore, essential, for companies not only to attract but also to retain talent.”
Meetings: Does everyone have a voice?
As suggested by the report, encouraging diverse employees to become more immersed in organisational communication, decision-making processes, and informal interactions is key to building an inclusive culture.
However, research included in the report found that poor meeting practices can negatively affect employees with diverse characteristics, and, in turn, prohibit employees from sharing their thoughts and experiences.
Similarly, one study found that employees from underrepresented racial and ethnic groups, men with “more reserved personalities”, and women were less comfortable speaking up in meetings, the report said. One reason for this, cited by another study, is a lack of gender-sensitive language, which was the most common regarding formal communication across UK companies.
Neurodiverse employees, research shows, can also be negatively affected by meetings when there is a lack of inclusive communication practices, which includes access to the meeting agenda in advance.
The report recommends that organisations assess and accommodate the adjustment requirements of their workforce and encourage input from all employees.
Promotion process requires ‘significant improvement’
Despite the importance of fair promotion processes, inequalities for underrepresented groups are still commonplace in the UK, the report said, citing findings from an independent review.
The review found that 35% of Pakistani, 33% of Indian, and 29% of Black Caribbean employees feel that they have been overlooked during promotion cycles because of their ethnicity, the report said.
Other research found that “women are typically promoted based on past achievements, whereas, for men, it is based on future potential”, the report said. “Similarly, data shows that people from lower socio-economic backgrounds took 19% longer (over a five-year study) to progress to the next grade than those from higher socio-economic backgrounds.”
Companies should review the behaviours that are “rewarded through progression to see if there is an ‘archetype’ for success that may be excluding certain groups or personality types”, the report said. They should also set targets for representation within the processes of succession planning and promotion shortlisting.
In conclusion, the report encourages companies to target DEI interventions across the collection and analysis of data, recruitment practices, retention (considering flexibility, and inclusive meetings and communications specifically), and progression processes and opportunities.
— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.
