Industry Research: The High-Impact DEI Actions That Matter

As companies recognize the importance and urgency of advancing diversity, equity, and inclusion (DEI), they face a new challenge – determining the best approach. While many companies made racial justice commitments in the summer of 2020, few companies have gone beyond small investments to take the high-impact, meaningful actions that actually push the needle on DEI.

The need for DEI progress has never been greater: the workforce of the future is more diverse than ever, and the next generation of talent heavily prioritizes company values in their employment decisions. From existing employees to job candidates and even customers, people are looking to invest their time, labor, and money into ethical, socially conscious businesses. In that sense, putting DEI first isn’t just the right thing to do – it’s the smart thing as an organization, especially with the Great Resignation still in full swing.

So, the question becomes: What actions can companies take to achieve effective and measurable change? 
 

Culture Amp’s latest Workplace DEI report, Understanding the DEI Landscape reveals how companies can maximize their  DEI investments to drive true, structural change. By collecting data and crunching the numbers from hundreds of companies globally, Culture Amp’s People Scientists uncovered which DEI initiatives make an impact and which ones don’t.

The Benefits of DEI in the Workplace

While business outcomes should never be your main reason for investing in  DEI, quantifiable outcomes are helpful for gaining leadership buy-in for strategic initiatives. A focus on DEI has proven to drive tremendous benefits to almost every part of a company. 

For example, diverse workplaces experience a host of benefits including: 
 

• New perspectives. Hiring people from diverse backgrounds, nationalities, and cultures brings a fresh array of insights and ideas to the table. 
• Wider talent pool. Diverse companies are more likely to attract the best talent, with a 2020 Glassdoor study finding that 76% of employees and job seekers consider a diverse workforce an important factor when evaluating companies and job offers.
• Better employee performance. When you create a work environment where employees see a representation of a variety of cultures, backgrounds, and ways of thinking, they’re more likely to feel comfortable being themselves. This, in turn, leads to happier, more productive employees.

Fortunately, it appears that the majority of companies already recognize the importance of strategic DEI. Culture Amp’s People Scientists found that 81% of respondents believe that DEI initiatives are beneficial to their organizations. 

The business case for investing in DEI is clear, but what actions can companies take to unlock the benefits of a diverse, equitable, and inclusive workplace?

DEI Initiatives that Make the Greatest Impact

In the report, Culture Amp’s People Scientists leveraged two types of analyses to evaluate the success of certain DEI actions. Comparing what DEI practitioners reported  they were doing with how their employees reported they were feeling offered insights on which initiatives are the greatest drivers of diversity, equity, and inclusion.

Diversity
Diversity refers to the range of human differences that make each person unique, such as race, gender, and socioeconomic background. When it comes to DEI, diversity refers not to individuals (i.e.., “a diverse person”), but to the composition of teams and organizations (i.e., “a diverse company”).

Increasing representation is a key goal of DEI. It demonstrates to employees that the organization genuinely prioritizes having a diverse workforce.

Culture Amp’s study found that the greatest drivers of a more diverse workforce are:
 

• Having a diversity policy
• Implementing a strategic DEI plan
• Using DEI data to make decisions

Though these activities are necessary for almost every other type of organizational priority as well, the research showed that less than half (49%) of companies have a strategic diversity plan and only 34% share data with all department leaders.

This is problematic, because in order to make progress on representation, companies need to collect data on the demographics and experience of their workforce and use it transparently to help drive leader awareness and action.
However, it’s not surprising that so few organizations are collecting data, as the research also shows that only 40% of organizations are conducting DEI-specific surveys (as opposed to a general engagement survey with Inclusion questions). This low number speaks to the broader deficit of data collection for companies pursuing DEI, but the problem is relatively easy to remedy. If your company falls into this category, jumpstart your DEI progress  with a DEI survey. 

Inclusion
Inclusion is the act of making a person part of a group or collective so that each member feels valued and is afforded the same rights and opportunities. Differences exist, even in diverse workplaces. Inclusion honors those differences while involving  everyone, from team members to end-users, in policies, processes, physical spaces, products, and more.

While some companies have launched efforts to foster inclusion in the workplace, the data shows that more can and still needs to be done. For example, half (48%) of organizations Culture Amp surveyed have at least one employee resource group (ERG). Findings show these groups are most often centered on identities like race/ethnicity, gender identity, and LGBTQIA* status. 
Employee resource groups are a powerful contributor to inclusion, as they help build community and foster psychological safety for employees. Additionally, ERGs are often responsible for leading (or participating in) DEI-focused discussions and DEI events – two of the most impactful initiatives for driving inclusion. 

However, ERGs can also deepen structural inequality instead of solving it – especially if your ERG leaders are doing ERG work without pay and on their second shift. As a matter of fact, research shows that only about 5% of companies compensate ERG leaders, despite  the very tangible benefits their work brings to the organization. To ensure that your inclusion efforts are driving change in an equitable way, prioritize paying your ERG leads. 

Equity
Equity is the process of recognizing that advantages and barriers exist that create unequal starting places and addressing and mitigating that imbalance. The concept of equity acknowledges that everyone has different needs, experiences, and opportunities. Instead of treating everyone as if they’re exactly the same, equity is about giving people what they need as individuals.

IBuilding, a diverse and inclusive workplace starts with fair and equitable processes. Culture Amp’s People Scientists found that improving the transparency and consistency of core organizational processes is the best way to drive equity. The following initiatives are particularly effective at driving equitable outcomes:
 

• Implementing employee recognition programs
• Having formal mentorship or sponsorship programs
• Creating clear advancement processes

Greater investment in these areas helps companies develop a more equitable work environment. For instance, formal mentorship or sponsorship programs are helpful because they often provide greater transparency around the criteria and process for advancement. 

Take a Data-Backed Approach to DEI

If your company is serious about advancing its DEI efforts, now is the time to take actions that will drive real, structural change. By focusing on initiatives that have proven to be successful, you can ensure that your investments will help your organization make measurable progress on diversity, equity, and inclusion.

The 2022 Workplace DEI Report shines a data-backed light on current DEI trends, providing valuable insights. It identifies where to deploy resources for the greatest impact and reveals which initiatives drive certain components of diversity, equity, and inclusion. Read the full report to explore how you can progress in your journey to building a better world of work for all.
 

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