How To Create A Consequence Culture In The Workplace That Protects Your Bottom Line

Tips to help leaders create shifts in workplace culture and leadership

The U.S. is experiencing an era of cancel culture like never before. It seems that every day when we turn on the TV or check our social media notifications, another celebrity’s transgressions and the need to “cancel” them are up for debate.

However, while cancel culture certainly proves a point, it doesn’t teach any lessons about what went wrong or the proper way to behave when it comes to diversity, equity, and inclusion, neither to the person who did wrong nor to the public who is watching. 
 

After the brutal murder of George Floyd just two years ago, the value that Americans place on a socially just world has sky-rocketed, particularly in the workplace. A recent study shows that more than 3 out of 4 workers prefer diverse companies, and 86 percent of women and 74 percent of men seek employers with diversity and inclusion strategies. Company stakeholders agree, many of who are starting a movement insisting that companies publicly disclose data that clearly signals progress for greater diversity, equity, and inclusion in the workplace.

With the understanding that diversity, equity, and inclusion (DEI) are paramount to not only attracting and retaining top-tier talent but also staying morally and financially afloat, business leaders know they must enforce DEI strategies. The problem? As a culture and inclusion advisor for Fortune 1000 companies, I’ve seen cancel culture become the go-to solution for businesses big and small. Most organizations do not have an internal policy surrounding behavior tolerated in and out of the workplace with issues like incivility, homophobia, racism, etc., neither for themselves as leaders nor the employee population, leading to the easiest solution: termination, the workplace version of “canceling”.

But the truth is, “canceling” employees who exhibit poor behavior does nothing to enhance diversity, equity, and inclusion in the workplace, nor your bottom line.

Instead, organizations need to start thinking about how we can create a consequence culture. Building an internal policy that creates a “consequence culture”, a phrase introduced by LeVar Burton, will help business leaders fix the problem rather than put a Band-Aid on it. Without an internal policy that promotes consequences rather than cancelations, businesses will fail in creating an equitable and inclusive culture that also increases financial gain.

As the Founder of 3C Consulting, I help business leaders think through what their culture is - that is, the way in which they do business - that is necessary to deliver on their actual bottom-line business objectives. As the need for organizations big and small to continue establishing DEI efforts and retain top-tier, diverse talent, especially in the era of The Great Resignation, here are some tips to help leaders create shifts in workplace culture and leadership:

Culture Should Consider What and How Work Gets Done

The culture of a workplace has to be looked at as an overarching system that brings in employers who add and gain value. As a business leader or hiring manager, it’s important to think about the qualities and contributions that an ideal employee should have. It’s also just as important to recognize that the expectations of employees have shifted in the last two years. For example, in an organization where you want to create a diverse culture, you can no longer prohibit working from home, time off for sabbatical, opportunities to invest, or the ability to create a side hustle. As an employer, you want your employees to thrive in the workplace, and the best way to do that for your bottom line is to support them financially and educationally. Showing compassion and commitment to your employees’ growth will go a long way.

The Employment Contract Has Changed

Meaning, employees don’t feel the need to stay in organizations as long as they used to because their values have changed, and the definition of an equal exchange of value - which is necessary for retaining diverse employees - has changed. 

These are some of the key values that employees look for when deciding to choose and stay at a company:
 

• Do I genuinely like the people I work with?
• Do I have the flexibility to manage my own life outside of work?
• Can I work and be a nomad? Can I travel all over Europe while delivering on the business I’m being asked to deliver on?
• Do I get to work with interesting people, who respect me and who I respect?

When designing a DEI-first workplace culture, business leaders must have these pieces in place with very clear leadership expectations to help employees not only succeed but thrive.

The “Compensation Talk” Is No Longer Taboo

And contrary to what many people think, it’s not illegal either, though it may be considered a fireable offense in some organizations. Regardless, the definition of meaningful work has changed. Now, employees want to be fairly compensated for delivering high-quality work in an efficient way, and with the ever-changing work world, transparency on everything including compensation is imperative for employee retention and overall happiness. As a business leader, it is your job to make sure that your employees have a clear understanding of what the process is for raises.

Invest In The Mindset Of Employees

When you’re willing to do this, you become a master manifester and allow for the potential of one person’s open-minded thoughts to become things. Who knows, one of those “things” could be your company’s next big concept! 

Understand That Employees Are Leaving Because Of Poor Leadership

Employees are jumping on The Great Resignation bandwagon not because they don’t like the company they worked for, but because they have tolerated poor leadership at that company. Yes, they might have tolerated bad managers, but they likely have also tolerated organizations that tolerate bad management and don’t take action to fix it.

Take An Inward Look At Your Organization’s Leadership

Creating a DEI-focused workplace means looking inward at whether your company’s leadership is reflecting your company’s policies. It’s crucial to train managers to align with these policies, and even more crucial to hold them accountable to uphold these standards. At the same time, ensure you’re providing a supportive space to have crucial and difficult conversations. This will help front-line leaders both attain and retain recruited, diverse talent, which is 100% necessary for the success of you, your employees, and your business as a whole!

Cornelia Shipley Bearyman is a sought after culture and inclusion expert, the founder and CEO of 3C Consulting, and the best-selling author of Design Your Life: How to Create a Meaningful Life, Advance Your Career and Live Your Dreams, a guide to put readers on the track to personal and professional victory. Connect Cornelia Shipley