Diversity, equity, and inclusion (DEI) are hot topics in the workplace, but DEI is more than just a handy three-letter acronym to tick off the onboarding checklist. Nearly half of employees (45%) say a workplace that values diversity, equity, and inclusion is very important.

The Oxford Languages dictionary defines equality as “the state of being equal, especially in status, rights, and opportunities.” Workplace equality is protected under the Constitution, but our recent employee unhappiness survey found that workers don't experience equal treatment in practice. 

Almost half of the workers (46%) we surveyed think discrimination, prejudice, and harassment are problems at their workplace, with 19% indicating that they've experienced personal attacks or unkind remarks from their managers. 

It’s no wonder 60% of workers report some negative emotions about their job, with 25% expressing only negative emotions. Unhappy employees are fueling the Great Resignation that's spreading throughout American workplaces, and inequality is at the heart of the problem. 

Managers need to learn the characteristics of effective leaders if they want to create a fair workplace and retain their best employees.

Workplace Discrimination Is a Problem for Half of the Employees

Employees report three main areas of discrimination at their workplace:

• Pay gaps 
• Racism 
• Sexism 

Pay Gaps

Approximately 35% of all employees say pay gaps are a problem at their workplace, but Black workers (26%) are twice as likely as white workers (13%) to report poor salaries. This trend mirrors national data that shows unequal pay between Black and white workers. Black men make 87 cents for every dollar a white man earns, while Black women make even less — 63 cents for every dollar a white man earns. 

Racism

In addition to discrimination that plays out along the pay scale, 33% of survey respondents cite racism as a problem in their workplace. 

Black workers are 58% more likely than white workers to report that their workplace doesn’t value diversity, equity, and inclusion. They are also 31% more likely to say their workplace doesn’t have many opportunities for career advancement — an assertion supported by studies showing they are underrepresented in senior roles.

About 1 in 8 workers (13%) say discrimination isn't a problem at their workplace because it's very homogeneous, but they missed the fact that a homogenous office may itself be a form of discrimination. 

Sexism

Female respondents are more likely to experience sexual harassment and hiring prejudice, as well as missed opportunities for promotions. As a result, women are 17% more likely than men to cite sexism as a problem in their workplace. Nearly one-third (30%) of the overall respondent says it's a problem in the workplace. 

75% of Employees Receive Fewer Than 12 Weeks of Recommended Paid Family Leave

For families welcoming children, a lack of paid parental leave makes the stress and pressure of the workplace even more intense. The U.S. is the only developed country in the world without a national paid leave policy for mothers, and it’s a major factor contributing to employee unhappiness.

Lack of paid parental leave is a form of discrimination that hits women particularly hard. The “motherhood penalty” can cost women up to $16,000 a year because of bias that perceives women as less committed to their jobs. It results in lower salaries and fewer promotions compared to fathers and women who aren't mothers. 

Even though paid family leave promotes healthier infants and stronger family ties, only 24% of employees receive at least 12 weeks of paid family leave. About 46% of workers receive one month or less, while 20% have no paid family leave at all.

Some U.S. workers are entitled to 12 weeks of unpaid leave under the Family and Medical Leave Act, but many don’t take this time off because they would risk living paycheck to paycheck.

What’s striking is that 56% of workers would take a pay cut to improve their work-life balance, with nearly 1 in 6 (16%) saying they'd accept a salary reduction of $20,000 or more a year. 

Additional Resources

• How Leaders Can Promote Happiness in Teams
• Benefits of a Diverse Workforce
• Inclusive Cultures Have Healthier and Happier Workers
• The Link Between Employee Wellbeing and Diversity, Equity & Inclusion
• How to create a happy workplace
• Does Gender Diversity Affect Workplace Happiness for Academics? The Role of Diversity Management and Organizational Inclusion

Author Bio

Luke Babich is the Co-Founder and CEO of Clever Real Estate. Luke is a licensed real estate agent in the State of Missouri and his research and insights have been featured on BiggerPockets, Inman, LA Times, and more. Connect Luke Babich Follow @LukeBabich

 
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