In the current dynamic socio-political environment, inclusion and diversity have emerged as key components of organisational strategy. However, attaining true diversity frequently faces challenges, from financial restraints to internal resistance.
The Black Lives Matter movement has contributed to the recent rise in popularity of diversity, equity, and inclusion initiatives. However, in recent times, there has been a reevaluation due to political opposition and corporate cost-cutting, especially in the US. A few businesses have already reduced their personnel or expenditures for diversity.
Understanding the importance of diversity
Not only is it morally right for businesses to embrace diversity and inclusion in the workplace, but it also gives them a competitive advantage. Companies can draw in and keep top talent while promoting innovation and creativity by establishing an atmosphere that recognises and celebrates diversity. Hence, it’s imperative for businesses to recognise diversity as a strategic asset rather than a mere compliance requirement.
Resistance and budget cuts
Initiatives promoting diversity and inclusion may encounter opposition from a variety of sources. Some people could fear that their own possibilities would be jeopardised or see such activities as reverse discrimination. Moreover, budget constraints often pose a significant hurdle, especially when organisations face economic downturns or competing priorities.
This opposition may foster an antagonistic atmosphere that impedes the development of a truly inclusive culture. It will take strong education, communication, and an emphasis on the advantages of diversity for each and every employee in the company to overcome this opposition.
Consequently, pressure is also mounting on UK consultants who specialise in providing advice on DEI policy. However, a few of them report a more nuanced picture, with clients asking for more sophisticated engagement with the topic and demand shifting rather than declining.
Verity Creedy, Vice-President for Product at leadership consultant DDI, stated: “We’re seeing a reframing.” According to her, ringfenced diversity initiatives—like having a separate DEI department or budget—are losing favour. Rather, “it’s becoming purposely woven into their everyday leadership responsibilities,” at least for DDI’s clients.
For instance, while teaching employees how to coach or delegate, it covers how to make sure employees from a variety of backgrounds are included “through the lens of inclusion”.
Navigating the diversity and inclusion divide
Several businesses were “on the brink of a serious backslide on DEI progress”, according to DDI’s warning from last year. Based on the poll conducted in 2023, the percentage of businesses without diversity initiatives had risen from 15% in 2020 to 20% in 2023. Additionally, throughout that time, there had been an 18% decline in the number of leaders endorsing their company’s efforts in this field.
Senior DEI Consultant Lucy Brown of the UK-based human resources consulting firm Mercer noted that she has seen more people discuss “DEI fatigue”. However, she noted that DEI was placed third among the priorities of international organisations in Mercer’s most recent talent survey.
“That’s the highest it’s ever been,” Brown said, pointing out that interest is being sparked by heightened regulatory scrutiny and growing rivalry for talent.
However, according to Brown, a distinction may be making itself between “more mature companies… pushing the envelope” with comprehensive policies and those whose primary goal is to comply with legal requirements.
“As consultants, we need to work even harder to reshape perceptions, to show that [DEI] needs to be [part of] business as usual and not a tag-on,” she argued.
So, here’s how to handle the pushback we’re seeing
Redefining DEI as an inclusive and respectful culture
According to recent research from HR Dive, almost half of the executives genuinely think that their company is committed to DEI. Budget cuts and the absence of DEI accountability are consistently mentioned as the main causes. We are currently discussing with senior leaders who are worried that individuals are not fully comprehending what DEI actually entail.
The most common misconception regarding DEI is that it has something to do with religion or politics. People make assumptions to fill in the gaps in their knowledge because they are afraid of what they do not comprehend. Friends, relatives, and other people may frequently propagate the myth that DEI goes against their values due to the biased news sources they follow. Regardless of your stance, DEI is about human issues and is not about politics or religion.
Reiterating that DEI is about honouring different viewpoints
DEI can also be divisive for individualists. For those whose ideas are novel and contradict conventional wisdom, resistance may initially seem understandable. They may simply not understand it yet. It’s crucial to move from a cancel culture to a coaching one. DEI is essentially about two very basic human needs: respect and justice. We are social animals by nature, and as such, we are happiest in inclusive settings that treat everyone fairly.
It’s not a guarantee that the great majority of the organisation is represented by someone who is irate or outspokenly opposed to EI. Seventy-five percent of individuals endorse DEI and show their support by giving it their jobs and business.
Allan Schweyer, Principal Researcher at The Conference Board, emphasises the importance of focusing on worker retention amidst tight labour markets. Beyond competitive pay, fostering a positive company culture is essential.
This includes offering flexible work arrangements and prioritising elements like engaging work, manageable workloads, and opportunities for professional growth. DEI efforts should centre on support, equity, and justice, rather than imposing values or views on others.
Reactivating early supporters and preventing the strongest, furious voices from being heard
The DEI early adopters are worn out. They had been conversing in the same way for years. When individuals started arriving at work in large numbers in the summer of 2020, just to leave again a few years later, many were cautiously optimistic. Give the early adopters tools, resources, and encouragement to get them back involved.
The Kelly Global Rework Report for 2023 states that 28% of workers believe they will most likely leave their workplace in the upcoming year; this percentage rises to 72% for senior executives. Only 23% of workers who are considering leaving their current companies cite frequent training and development opportunities as their employer’s top worries, along with a lack of work-life balance. This disengagement has a price: According to 45% of artists, they are merely performing the bare minimum of what is required of them by their contract.
The expense of this lack of participation exceeds most DEI budgets. It is important to keep in mind that, in spite of opposition, most people do support and cherish DEI during these trying times. Prioritising DEI initiatives and fostering an inclusive and respectful culture can pay off in the long run by improving customer loyalty, employee retention, and overall business success.
Final thoughts
Redefining its goals, reiterating the need for inclusivity and respect, and re-engaging early proponents are all necessary for managing criticism against DEI. Organisations can reap long-term rewards and reduce the expenses linked to disengagement by dedicating resources to building a healthy work environment and embracing digital employee engagement.
(Tashia Bernardus)