Nowadays, the corporate landscape is more dynamic than ever. Organisations are either experiencing performative allyship or a genuine integration of Diversity, Equity, and Inclusion (DEI) into their set of policies and structure.
But numbers are still pointing to a lack of focus in this area.
In 2022, female representation in senior management among charter signatories averaged 35%.
Women hold only 19% of executive positions in banking, capital markets and payments.
Over 100 FTSE250 companies either lack ethnic minority representation on their boards or do not provide data on this.
The number of female fund managers increased to only 12% in the last year.
And the numbers keep on talking. The good question that arises is: are organisations really future-ready and DEI-ready?
DEI efforts and strategies, often perceived as temporary structures, still fail to bring about the deep-rooted change necessary for an organisation's growth and sustainability. For many, DEI initiatives rest on the shoulders of Chief Diversity Officers (CDOs), who are tasked with managing systemic inequities without the power to effect real change. This approach, unfortunately, results in DEI becoming an additive element rather than an integral part of the organisational structure.
A genuine shift towards inclusivity requires moving beyond mere representation to ensuring equitable access to opportunities for all employees. The static diversity "scorecards," while offering a snapshot of progress, often overlook the qualitative experiences of individuals, which can reveal insights into high attrition rates and low promotion velocities.
Promoting a culture of allyship is essential. The invitation is that organisations empower every individual to contribute to an environment of equity, recognising and rewarding behaviours that promote inclusivity.
Public commitments to DEI, while commendable, come with their set of challenges, including pushback from stakeholders resistant to change. The path forward requires organisations to critically evaluate their DEI strategies, asking themselves whether they are ticking boxes or are genuinely committed to fostering an inclusive culture. Metrics and deliverables targeting structural change are essential, yet they must be approached with a long-term perspective that invites all stakeholders to be part of the transformative journey.
How can DEI targets help unlock business growth and memorability?
Access a larger, more diverse pool of talent, bringing in unique perspectives and skills. A poll by SurveyMonkey shows that 79% of job seekers express the importance of working for a company that actively recruits individuals from diverse backgrounds, particularly emphasizing the inclusion of women and people of various ethnicities.
Increase your employee engagement as inclusive workplaces create a sense of belonging, leading to satisfaction, morale, and commitment.
Improve innovation and problem solving, as more diverse teams bring a variety of viewpoints, leading to creative and effective problem-solving and innovation. A study carried out by the World Economic Forum revealed that companies with above-average diversity scores drive an impressive 45% of their average revenue from innovation. Compared with companies with below-average diversity scores who only generate 26% of their average revenue from innovation.
Enhance your employer brand, as companies that prioritise DEI are seen as progressive and socially responsible, improving their reputation and attractiveness to both clients and employees.
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