The continued importance of building diversity, equity and inclusion principles into the foundations of any company’s business strategy - creating space for greater organisational learning, connection and growth.
For a long time humans thought the Earth was the centre of our solar system. Until Copernicus theorised in 1543 through mathematical models the Sun was in fact the centre. This discovery profoundly changed the way people viewed themselves and the world around them. We’ve seen these paradigm shifts throughout history and recent years have been no exception. 2020 represented a similar shift in our understanding of the world. Through a global pandemic, the murder of George Floyd, a rise in hate against the AAPI community, and far right rhetoric, millions of people rose up to challenge what has been, and work towards a brighter future of what could be.
“More than eight in 10 (83%) of the responding organizations say they have been taking action on DEI initiatives in 2021, a 13 percentage-point increase from 2020.” Now try to imagine a solar system where diversity, equity, and inclusion is embedded in the sun, bringing light to people and issues often left in the dark. With this kind of power we can address systemic inequities across race, religion, disability, education, sexual orientation, gender and many more intersecting marginalised identities. What would that mean for wellbeing, for improving the employee experience, for the global economy, for innovation, and for your business growth?
In this study, 62% of employees believed that employers should dedicate more effort to DEI given the current period of economic uncertainty.
Like Copernicus, challenging ideas and discovering improved ways of living is fundamental to our advancement of humanity. Now is the time to reflect on your values vs your actions, to leverage data and research in order to make our legacy. We Create Space believes now is the time for organisations to recommit to DEI and ask: What could we accomplish if we centred DEI in this manner?
As with anything meant to change our world, we know there is bound to be pushback. The current discourse about whether DEI is being deprioritised across the board is based on the recent actions of a few global brands, despite plenty of evidence proving otherwise.
In a June 2024 study, Littler found that “the majority of the executives surveyed (57%) say their organisations have expanded their IE&D commitments and level of activity over the past year, even while nearly the same proportion (59%) believe backlash toward corporate diversity programs has increased since the U.S. Supreme Court’s decisions to roll back affirmative action college admissions policies in June 2023. More than a third of organisations (36%) have maintained their IE&D efforts, while just 1% reported a significant decrease.” (source)
“A Morning Consult survey released in January showed 82% of business executives think diversity initiatives are critical to their business strategies, and 67% said they expect these efforts to become more important in the coming years” (source)
Addressing DEI Doubt.
At We Create Space, we spend a lot of time speaking with global organisations about the challenges they face in creating, sustaining, and embedding DEI work throughout their business. We work both with brands who have been investing in DEI for 20+ years and those just starting the journey, regardless of industry or company size.
Some of the challenges we often hear are things like:
How do we measure the impact of DEI?
We fear the consequences of having an open dialogue.
We’re short staffed/had layoffs, we need employees to be focused on their role first
We have a lack of leadership support
People are tired of talking about this “stuff”
Our budgets were cut
Employee engagement is low
DEI is too political/polarising
A generic response to these challenges could be: “Organisations that prioritise DEI foster a culture of belonging, enabling diverse perspectives that enhance problem-solving and adaptability, ultimately leading to greater innovation and market share in an increasingly diverse marketplace.” While this sort of statement is true, it provides a limited context on how and why the continued focus on DEI is people and business critical globally.
While many companies are facing similar issues, the context of their situations is different and we know there isn’t a one size fits all approach to solving these challenges. Our ways of working through consultancy, learning and development, training programmes, and coaching are all custom tailored to each organisation.
To further understand how to overcome challenges, we’re going to frame DEI discussion points around the We Create Space values of ‘Learn, Connect, Grow’ - using research, data, and case studies. We would encourage you to do the same with your company values, if they are truly what the company believes, then any obstacle to bringing those values to life should be removed.
1. Space to Learn.
How can we expect things to change if we don’t provide people psychologically safe environments to learn and unlearn? DEI and psychological safety go hand in hand. Psychological safety creates new pathways for people to be curious and open minded, leading to better job satisfaction and engagement.
Line managers especially have a direct impact on engagement with employees: “Gallup estimates that managers are responsible for 70% of the variance in employee engagement, but only 40% of managers feel confident in having discussions about DEI and related topics. (Source)”. Line managers and other leaders play a key role in creating a psychologically safe environment, so providing leadership training and mentorship opportunities for this group is crucial.
Deloitte reports that “Seventy-three percent of business executives expect to continue to experience talent shortages over the next three years.” Alongside job-specific training, training programs must also focus on skills like vulnerability, active allyship, creating cultures of belonging, removing unconscious bias and practising compassion. To truly foster an inclusive high-performance culture, upskilling employees must incorporate mental health support and a holistic approach to well-being.
There is compelling data to prove the effectiveness of offering these types of learning opportunities across all levels, including senior leaders and executives.
"Research in recent years from Gartner, Gallup and Harvard Business Review found that the benefits of a high psychological safety at work include:
27% reduction in turnover
50% more productivity
74% less stress
26% greater skills preparedness since workers learn at a faster rate when they feel psychologically safe
67% higher probability that workers will apply a newly learned skill on the job.” (Source)
In a training programme to be delivered in late 2023 and into 2024 Coventry City Council’s Workforce Diversity & Inclusion Strategy, tasked WCS to commission, design, deliver and evaluate a bespoke Talent Development programme for their LGBTQIA+ employees. This 6 part programme included the below courses to provide a well rounded training across both personal and professional development. We incorporated coaching sessions, as well as participatory learning opportunities for line managers and mentors to provide holistic support across the organisation.
1. Shifting Systems, People and Mindsets 2. Having Courageous Conversations 3. Developing Compassion and Emotional Intelligence 4. My Intersectionality, Power, and Privilege 5. Building Queer Resilience 6. Shaping My Purpose.
At the end of the programme LGBTQIA+ employee participants scored the entire programme with 100% satisfaction as a professional learning curriculum and 97% of the participants responded the content was very to extremely relevant to their role as a leader.
Fostering psychological safety is not just a beneficial addition to workplace culture; it is a fundamental pillar that underpins effective learning. When employees feel safe to express their ideas, take risks, and share their perspectives without fear of judgement, organisations unlock a wealth of creativity and innovation. This environment not only enhances individual and collective learning but also drives a more inclusive workplace where diverse voices contribute to strategic goals. Ultimately, prioritising psychological safety empowers teams to align their efforts with business objectives, creating a resilient and adaptive organisation poised for sustainable success in an ever-evolving landscape.
2. Space to Connect.
DEI is not a single person task. It requires our collective effort to put our principles into practice. There is plenty of evidence that a majority of people connect with DEI initiatives as seen in the 2024 Edelman Trust Barometer, which highlights 76% of people in the US said “when organisations have diverse workforces, they better connect with the public” through three key areas:
1. Build trust with community and customers 2. Products appeal to diverse customers 3. Less likely to make decisions that worsen racial injustice
Connections can form in a multitude of ways and one very effective strategy is creating and leveraging employee resource groups. Through an annual partnership with JTI, We Create Space developed a strategic global plan that accounted for remote working, intersectionality training inclusive of topics like microaggressions, racism, sexism, and disability, consulting on systems, processes, policies and leadership training.
Creating a sustainable and ongoing safe space for ERG members was paramount, as well as finding fresh ways to drive engagement and create new PRIDE ERG chapters across the 127 countries they operate in. WCS developed a four-pronged strategy to address JTI's goals, focusing on Wellbeing & Community Building, Regional Development & Chapter Growth, Diversity within Diversity and Expertise & Thought Partnership.
Benefits of this partnership from year one include:
More local chapters of PRIDE ERG were created across the globe.
Increased participation by women employees across PRIDE's chapters.
Continued Senior Leadership involvement and public support, including a new commitment to ensuring Pride is celebrated 365 days a year.
Higher levels of ERG community engagement and participation.
JTI's PRIDE ERG placed on the 2023 Global Diversity List and was named a Top 10 LGBT+ Employee Network.
Won Gold from the Internal Communications and Engagement Awards for Best Internal Communications Campaign.
JTI Germany received the Global Equality Standard (GES) certification from Ernst & Young, one of the first global DEI awards allowing companies to assess the extent to which DEI is embedded throughout their global operations.
Connections between companies and consumers should not be overlooked either when it comes to DEI. The Human Rights Campaign published this report in September 2024 which shows 75.7% of LGBTQ+ people would have a less favourable opinion about a company that rolls back DEI programmes. The perception and reputation of any organisation can change very quickly in the court of public opinion. This gives way to another important connection that can only exist when we provide psychological safety and learning opportunities internally, between departments and policies.
This is an area where using consultants can bring even more value to your organisation. We regularly partner with marketing departments to build toolkits, provide training, and help develop relationships internally. A multidisciplinary team can be the difference between a campaign driving authentic connections with consumers or it having a damaging effect on the organisation. Procter & Gamble's "The Talk" campaign is a prime example of using inclusive marketing frameworks. By addressing racial bias head-on, they not only improved brand perception but also saw a 10% increase in brand favorability among diverse audiences (Ad Age, 2019).
There is a wealth of evidence to support how centering DEI in your business strategy benefits overall performance:
Workday published their 2024 global survey on DEI this year with findings that show “67% of respondents say their organisation measures the business impacts of DEI, which includes employee engagement, employee diversity, and performance.”
In another McKinsey study on employee resource groups (ERG’s) 66% of employees believe that their ERG is effective at fostering a sense of community.
Research confirms “for a majority of employed U.S. adults (56%), focusing on increasing DEI at work is a good thing.” (source)
A 2018 global study showed diverse management teams increased revenue by 19%.
The path to sustainable growth and the successful advancement of DEI objectives lies in fostering strong connections and coalitions among employees, departments, consumers, and organisations. Compelling evidence from McKinsey underscores that companies with diverse and inclusive workforces not only thrive but outperform their competitors by a remarkable 35%. This correlation highlights the undeniable truth: prioritising DEI is not merely a moral imperative but a strategic advantage.
3. Space to Grow.
When businesses talk about growth, what’s the first thing you think of? For most people it’s not the growth of skills and humanity in their employees. But if we root ourselves in strong DEI principles and practices and emphasise putting people first, we can shift our mindsets to understand that the growth of a business should be tied into upskilling of the employees.
PWC found that “more than a third (37%) of candidates said they’d be willing to take a pay cut for a chance to learn new skills” and within the same study “found 62% of job seekers said they’re more likely to apply for a job where a company is openly committed to improving diversity and inclusion in their workforce”.
In a study by Deloitte, they found skills based organisations are 47% more likely to provide an inclusive workplace and 98% more likely to have a reputation as a great place to grow and develop.
If organisations want to grow, they need to upskill their workforce across technical skills and emotional intelligence, with a foundation built of diversity, equity, and inclusion. Companies like Chipotle have been investing in upskilling their workforce to support minimum wage workers getting into high paying management positions within 3 years as highlighted here by their Chief DEI & People Officer Marissa Andrada.
“This broader workforce to manager pipeline is important to Chipotle,” Andrada said, “because 70% of the company’s workforce is diverse and 70% of the company’s managers come from its broader workforce.”
After working with We Create Space across our consulting service and training programmes, Garnier’s Pride product launch campaign in 2023 reached 60 million people, one of their highest audience reach to date. This project was divided into two distinct pathways to ensure we provided opportunities to learn and connect across internal and external stakeholders. Not only did the campaign contribute to overall company goals, we increased Emotional Intelligence and empowered teams to make inclusive decisions which encourage allyship across the company.
Community Upskilling, Education & Awareness
WCS consultancy on build up with core campaign team, and strategy for navigating internal setbacks
Wider inclusion training of Garnier team and cross functional partners
‘LGBTQ+ Intersectional Allyship’ panel discussion for L'Oréal UKI
Inclusion and safeguarding workshop and recommendations for ambassadors
Upskilling Community and Comms teams (e.g. Cheat Sheet/Best Practices for Managing Campaign Feedback)
Inclusive Campaign & Advocacy Strategy
Critical guidance and grass-roots insights for selecting charity partnership
Expert talent curation and content development to spotlight diverse representation
PR and Communications review (e.g. press releases, campaign video edits)
Inclusive production guidelines and toolkit (e.g. pronoun badges on set)
Customer education resources (e.g. Allyship guide creation)
Upskilling can also help increase employee retention, lead to greater engagement, work life balance, and aid in employee mobility. Specifically on the point of retention, the cost to recruit and hire new staff is only growing. For example, some report the average costs to replace an employee are:
On top of the cost of attrition, remaining employees are often overworked and their productivity reduces, it’s estimated this loss of productivity costs $1.8 trillion in the US alone. This devastating effect of not upskilling employees, high turnover, low engagement, and lack of inclusivity can be reduced by diversifying your workforce across all identities. Especially when we know the overall diversity of talent also contributes to revenue growth as McKinsey has seen in a multiyear examination of organisations.
“Our 2019 analysis finds that companies in the top quartile for gender diversity on executive teams were 25 percent more likely to have above-average profitability than companies in the fourth quartile—up from 21 percent in 2017 and 15 percent in 2014”
Everything from accessible job applications, using gender neutral language, removing coded language, offering remote work, flexible schedules, and ensuring equity in policies are some of the areas where utilising an external partner like We Create Space can benefit your business. What’s listed here are all symptoms of DEI not being built into the growth strategy of your organisation.
Another survey conducted in Dec 2023 on Chief HR Officers outlook for 2024, shows “63% plan to focus on attracting a more diverse workforce.” If you have a growth mindset for your organisation, you need to have it for your employees as well. Giving employees access to grow themselves, their skills, and become champions of DEI affords you many more opportunities for increasing your internal mobility rate, decreasing your attrition rate, and improving the overall wellbeing of staff. A business without people focused growth, will constantly find itself running behind in the race. Investing in your own growth and the growth of others is an act of compassion and inclusion in its purest form.
Conclusion.
The journey toward fostering diversity, equity, and inclusion within organisations is not merely a trend but a necessity for sustainable growth and success. As we have explored, historical shifts in societal perspectives underscore the importance of adapting to new realities. Organisations that prioritise DEI are not only enhancing their internal culture but are also positioning themselves to resonate more deeply with their communities and customers. The evidence is clear: a diverse workforce is a powerful driver of innovation and profitability.
Moreover, the commitment to upskilling employees plays a critical role in mitigating the adverse effects of high turnover and disengagement. By investing in training that emphasises vulnerability, allyship, and emotional intelligence, companies can create an environment where all employees feel valued and empowered. This, in turn, leads to improved productivity and retention rates, ultimately benefiting the organisation's bottom line. The statistics reveal a compelling narrative; organisations that embrace inclusivity see tangible improvements in performance and employee satisfaction.
As we move forward, it is essential for leaders to champion DEI initiatives actively and transparently. This requires not only a strategic approach but also a genuine commitment to listening and responding to the needs of diverse voices within the organisation. By fostering a culture of psychological safety, leaders can encourage open dialogue and collaboration, paving the way for innovative solutions that reflect the richness of diverse perspectives.
In essence, the path toward effective DEI implementation is ongoing and requires dedication from every level of the organisation. As we look to the future, let us embrace the transformative power of diversity and inclusion, recognizing that it is not just a moral imperative but a strategic advantage. Together, we can build a more equitable and inclusive world that benefits not only our organisations but society as a whole.
This We Create Space | Insights Report is one of the ways we are supporting communities to Learn, Connect, and Grow through shared research and data. Our upcoming November report will feature discoveries from a series of roundtable discussions with DEI leaders being conducted in September. This report will be a forward looking, action focused guide for practitioners as we approach 2025.
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