Decoding The Connection Between Employee Development And DEI Progress

Organizations that offer coaching or mentoring to underrepresented groups achieve DEI goals faster

For organizations that want to improve their retention and make progress towards DEI goals, the first step is to invest in developing greater individual and organizational awareness.

A common high-priority demand from customers, C-Suites and increasingly energized Gen Z employees is for U.S. companies to get real with Diversity, Equity, and Inclusion (DEI). Yet when we analyzed the responses of over 500 HR and L&D managers and leaders across the country in June, the majority of respondents were telling us that they had achieved all of their diversity, equity, and inclusion (DEI) goals.

We did a double take. We normally hear from organizations that they are still struggling to achieve goals around building inclusive culture as well as hiring, retaining, and promoting underrepresented talent. And in fact, what was actually going on was a misalignment across these companies, with some groups thinking the DEI problem was more or less solved, but a lot of their colleagues disagreed.

Specifically, we found that executives were more optimistic than managers that all or most of their DEI goals had been achieved. Similarly, men were more likely to report that most of the DEI goals at their organization had been achieved, compared to women who were more likely to report closer to half of the DEI goals being achieved.

Is the Power Paradox Blurring the DEI Picture?

Such a striking disconnect points to a key barrier to achieving DEI goals: lack of real awareness, which operates on both an individual and organizational level. This is an issue, as organizations cannot address problems they are not aware of, or believe no longer exist. And while the kind of culture change required to move the needle for DEI is a ‘whole organization’ effort, it is often spearheaded by the CHRO’s team.  

Disagreement about whether problems even exist, and whether DEI goals have been achieved, makes it harder for HR leaders to secure the necessary budget and support that DEI progress requires. 

So why does this awareness gap exist? Social science research about the impact of power on perceptiveness offers clues. As individuals rise in rank, their ability to empathize and understand someone else’s perspective starts to decrease. This is sometimes referred to as the Power Paradox, a term coined by Dr. Dacher Keltner, a Stanford psychology professor.

Other workplace research has found that those who are more affected by these issues directly are less likely to think DEI goals were attained. Additionally, women holding senior-level positions are twice as likely to engage in DEI work outside of their job descriptions than their male counterparts—and consequently, can have a greater window into the problems present in the organizations.

Our research also suggests that workplace leaders can close these perceptual gaps by:
 

• Increasing transparency of DEI efforts. Making your DEI goals clear and reporting on progress to everyone within your organization will increase the circle of awareness and ensure everyone is on the same page. Offering insight into organizational efforts in this way is an evidence-based strategy to improve DEI efforts.
• Offering opportunities to increase self-awareness. Providing 360 assessments to employees can help increase individual self-awareness by improving leadership skills like perceptiveness, in spite of the Power Paradox. Leaders who receive feedback from other colleagues are more likely to clue into what’s happening with their employees.

Development Opportunities Signify Commitment

Intriguingly, organizations that offer coaching or mentoring to underrepresented groups reported reaching significantly more of their DEI goals. And they were more likely to report achieving most of their DEI goals compared to those who did not offer coaching and mentoring, and who were more likely to report achieving half of their DEI goals.

Why are relationship-centered programs so powerful when it comes to moving the DEI needle? Unlike traditional training and e-learning courses, coaching drives meaningful behavior change for senior leaders because it is personalized to their needs, relevant to their daily work, and makes them accountable over time. In turn, mentorship creates new organizational connections and relationships that help underrepresented employees gain visibility in their organization.

For the latter talent pool, these development opportunities signal an important investment and commitment. Research has shown that formal, democratized mentorship programs in particular support the retention, promotion, and engagement of underrepresented groups. Mentorship programs can offer women and people of color access to institutional knowledge and visibility with leadership, as well as give them the tools they need to both succeed in their current roles and prepare for their next one.

Coaching and mentoring programs deliver benefits at a personal level, as well as an organizational one. Mentoring leads to increased engagement for mentors as well as new perspectives on the workplace, addressing the issue of the perception and awareness of DEI progress. Coaching similarly helps equip underrepresented leaders facing unique barriers in the workplace. 

And research has shown that after receiving coaching, women felt a greater sense of belonging. Coaching and mentorship recipients also report growing in their feelings of legitimacy in their leadership positions, equipping them with the confidence to be successful in their roles, for example.

Who’s More Likely to Fall Short on DEI Targets?

It is not surprising that organizations that do not provide coaching or mentoring are significantly more likely to struggle with their DEI goals. In fact, our study showed that the organizations that do not offer coaching or mentoring were 63% more likely to report struggling with providing equitable pay, and are 58% more likely to report struggling with providing promotions, and 33% more likely to report struggling with retention.

We also found something that may seem counterintuitive at first: organizations that measure their programs’ impact on retention using multiple metrics are more likely to report struggling with achieving key HR goals. 

While this surprised us initially, one way of interpreting this is that measurement is a key way to better understand the nuance of a problem—which often leads, in a virtuous circle, to more accurate estimations of progress towards solving it. 

This reminds us that measurement is a crucial part of any L&D strategy, including- or perhaps especially-around DEI. It is also critical for establishing a broad level of awareness of what is working and what’s not, especially as misaligned perspectives like the ones we have discussed may lead to different perceptions of progress on DEI goals.

Most Successful DEI Initiatives Have Multiple Components

You can’t really change as either a person or a workplace until you know the reality of your situation. That means measurement is essential to providing a window into DEI progress. It is also fundamental to align your progress towards these goals.

Effective and sustainable DEI work requires alignment on problems, solutions, and perceptions of progress. With deeper organizational awareness and alignment, CHROs can get there through the right DEI programs to drive desired behavioral shifts and organizational change.

Amy Lavoie is VP of People Success at San Francisco-based Torch.io.