Diversity, equity, and inclusion (DEI) is on every organisation’s agenda. No matter the sector or size, it impacts every aspect from culture to performance.
If you talk to almost any senior leader in 2024, they will likely tell you how important DEI is. However, a disparity exists between what leaders believe they are achieving and the reality of how the organisation is performing and the experiences of the workforce. “I just don’t feel it” is something we often hear.
This is the DEI perception gap, and it will have huge implications for future workplaces. That’s because every aspect of how we will work in the future – from talent management to hybrid working, the need to do more with less to an enhanced focus on work-life balance – is all connected by one golden thread: DEI.
A need to stop paying lip service
In recent decades, the movement towards improving DEI has taken two steps forward and one step back. There is much discussion about its importance, and many public commitments made by leaders, but the coherent and well communicated story about why it’s important, together with meaningful actions to meet the ambitions, role modelling from the top are harder to find.
We’ve done a lot of research in this area, and it’s actually very common that at senior levels, leaders believe they are doing much better on DEI than they are.
Fixing the DEI perception gap is not just the “right” thing to do – it’s the best thing for commercial success. Diversity, equity and inclusion are necessary foundations for innovation in the workplace, so creating an environment where team members are confident in being their authentic selves is key.
When people are confident and feel trusted and psychologically safe at work, they are empowered to perform at their best. They feel that they can speak out, their ideas will be welcomed, and their contributions taken seriously. That’s how good ideas emerge.
This innovation is needed to meet the high expectations of both the workforce and an increasingly sophisticated customer base, in a challenging financial environment.
How to identify a DEI perception gap
Understanding whether there is a mismatch between leaders’ views on DEI progress and employees lived experiences is vital. Companies are often already collecting data on DEI, but we know the data is not being used in meaningful and informative ways. The beauty of a third-party objective assessment is that it enables companies to begin this DEI transformation starting with unbiased insights. It also provides employees with the opportunity to speak openly and honestly about their experiences, without fear of repercussions.
There are lots of diagnostic tools that can support this, and carrying out an audit based on industry benchmarking, frameworks, and advice from DEI experts will help to quickly and accurately detect critical actions.
Microaggressions are a key example of where a disconnect might occur, happening regularly, but often going unrecognised. Over time, these instances can spiral, creating a toxic culture. Whether intentional or not, it’s essential that they are identified and addressed, so that all employees can feel like they belong.
It’s often difficult for leaders to hear the truth on this, and they may instinctively become defensive. However, sometimes a wake-up-call is necessary, and identifying challenges and areas to improve is an important first step.
Telling the story
Communicating these findings with employees is important. This is an opportunity for the CEO to clarify the rationale behind the work, outlining the benefits of a workplace culture with embedded DEI. Just telling the story of why and what you are hoping to achieve is not enough. It has to be compelling. Senior leaders need to constantly paint the picture of what good looks like with anecdotes and examples bringing this to life. When people understand the rationale, employees are more likely to be on board with the transformation.
Without this story, people will create their own narratives to fill the gap. These may not be true or positive. The recent riots in the UK show how assumptions and the spread of incorrect information can be societally damaging. People naturally make mental shortcuts, and organisations need to avoid accusations of “agendas”, unfairness, or favouritism.
Whatever action is taken, for example specific training or hiring a wider diverse pool of candidates make sure that employees know why these specific actions have been chosen, and the impact they are expected to have. Prepare to be open and clear about how these decisions support the strategic ambitions. Leaders don’t apologise for strategic decisions, DEI should be no different.
Keeping on top of promises and pledges
There is no one-size-fits-all approach for DEI, and it can’t be treated as a tick box exercise – each organisation will have different needs. So, any chosen actions need to be based on solid data.
The audit exercise will provide a roadmap of what changes are needed, and how to tackle them. Some will have an immediate impact, whilst others are more complex and require longer-term activity.
A governance process to manage this will help to create a smoother transformation and understand progress and hurdles as it happens. This involves deciding in advance how tracking will take place, monitoring, managing, and reporting; Who will be informed of the outcomes? How will the communication with the workforce happen?
Putting these processes in place help to create accountability and overcome obstacles. For example, many organisations have staff belonging groups, such as racial equality networks or a group of colleagues who are all working parents. But, intersectionality – the way that these categories overlap and combine to inform a person’s unique identity – isn’t always considered. The groups then exist in siloes, when they could relate to or help to improve each other’s experiences. With processes to help them collaborate and guidance on reporting into the organisations’ DEI goals, they could contribute to a much more cohesive culture of belonging. Data that comes from these groups can then be used as a powerful tool to inform wider DEI strategies.
Barriers to belonging in a changing work environment
The scope of DEI now stretches far beyond race, gender, and disability; organisations want to understand how socioeconomic background, religion, neurodiversity, sexual orientation, age, mental health or even maternity or parental status factor into how an employee will show up at work. It’s no wonder that it can seem overwhelming to know where to start.
Hybrid working has further complicated things. The rise in remote working has meant that some colleagues may never meet each other physically, and that makes it more difficult to build relationships – which is key for employees to feel like they are part of something bigger.
Belonging is a critical aspect of DEI and without it, employees feel less responsibility or loyalty. It’s also more difficult to look after a whole person – and for them to feel able to bring their whole selves to work – remotely.
So, in a hybrid workforce, it is especially important for managers and leaders to get to know their teams and find ways to bring teams together. This needs to be both virtually and, at times it is important for people to connect in the same physical space.
Future workplaces will require even more efforts to build belonging into an inclusive working environment, as upcoming generations are expected to have five or more careers, new job roles will continue to emerge, and artificial intelligence (AI) will be factored into the management of diverse teams.
Don’t get hung up on creating perfection
For some reason, the whole DEI agenda is fraught with concern about ‘getting it wrong’. The cancel culture has not helped here! A common example is language; nobody wants to be perceived as racist, ableist, sexist, or ageist.
Others may be nervous about drawing accusations of tokenism or virtue signalling. They may have apprehensions about the uncomfortable nature of confronting their personal privileges and biases, or feel uneasy about the emotional impact on those who are directly affected by inequity. It could even be concern over reputational or brand damage if DEI initiatives don’t have the intended impact.
Wanting to avoid saying or doing the wrong thing is understandable, but this fear of having challenging conversations should not slow down or stop progress. By having role models who are prepared to be curious, ask questions and are open, people learn that its ok to make mistakes.
The most important thing is to make a start, and stay committed to the goal. Implementing these changes is not going to be an instant or easy fix. A true culture of DEI requires continuously listening and learning from diverse workforces, staying actively curious and then acting from an informed position.
So, how can organisations get started in tackling the DEI perception gap?
1. Demonstrate commitment and role modelling from the top of the organisation. Communicate why DEI is important and why it impacts all aspects of organisational life.
2. Accurately find out what the perception gap in your organisation is by working with independent third-party experts who can provide an objective assessment.
3. Collect accurate data on DEI, benchmark against other organisations, and use this insight to inform your unique strategy.
4. Set out and share how you will monitor, measure, and report on the success of DEI initiatives.
Leaders need to be bolder and step up and into the spotlight if organisations genuinely want to build successful workplaces of the future.
Lubna is a Director within NSCG’s leadership consulting practice where she develops the consultancy and leadership development proposition, working closely with clients to help optimise their leadership team, culture and organisational design.
