Part 02: Leadership and workforce implications

Part 02

Leadership and workforce implications

86% of senior leaders say their employer’s approach to DEI impacts whether they stay in their role or leave.

86%

of senior leaders say their
employer’s approach to DEI
impacts whether they stay
in heir role or leave.

This rises to 90% when we look at those senior leaders who also identify with a minority group. While senior leaders feel that some progress has been made, the research indicates there is a growing sense of frustration that organisations aren’t achieving change at the speed and scale they want. Indeed, 78% of director-level people who identify as a member of a minority group believe that employers are talking about DEI more than they are taking action.

Indeed, 78% of director-level people who identify as a member of a minority group believe that employers are talking about DEI more than they are taking action.

minority group believe that employers are talking about DEI more than they are taking action.

Indeed, 78% of director-level people who identify as a member of a minority group believe that employers are talking about DEI more than they are taking action.

For a number of senior leaders, DEI is personal.

The research finds that senior leaders (C-suite and C-1) are generally more positive about the progress that their organisations have made in encouraging greater diversity and inclusion over the last three years, as compared to more junior employees. They are also more likely to feel that their organisation currently does well in treating people equally.

Significantly, the research reveals the extent to which senior leaders have personal experience of diversity, equity and inclusion challenges, and how this is shaping their approach to DEI.

48% of director-level people who identify as being a member of a minority group report that they have felt alienated or unwelcome in their organisation because of who they are.

48%

of director-level people who identify as being a member of a minority group report that they have felt alienated or unwelcome in their organisation because of who they are.

This is compared to 26% for those director-level people who do not identify with a minority group. Clearly, a significant number of director-level people (and particularly those from under-represented groups) have experienced issues or felt held back by their protected characteristics at some point as they have progressed through their career.

This is likely to be a major factor in why senior leaders now attach such huge importance to creating an inclusive culture within their organisation. Not only do they recognise that an inclusive culture is essential to build and maintain a highly skilled and engaged workforce, and to attract people from diverse talent pools in order to meet skills gaps; senior leaders also have more personal drivers.

With many senior leaders having experienced feelings of alienation, they want to work in an inclusive culture.

86% of all senior leaders (C-level or just below) say their employer’s approach to DEI impacts their decision making on whether to stay in their role or to leave the organisation.

While senior leaders feel that some progress has been made, the research indicates there is a growing sense of frustration that organisations aren’t achieving change at the speed and scale they want. Indeed, 78% of director-level people who identify as a member of a minority group believe that employers are talking about DEI more than they are taking action.

Dr Zaheer Ahmad

Global Head of Diversity,
Equity and Inclusion, Haleon

“You can sense a growing feeling of frustration on the frontline. Employees aren’t seeing the level of tangible action that they expect. Employers should be able to demonstrate year-on-year growth on their workforce diversity numbers but, in many cases, this just isn’t happening.

There’s also an issue where employers are focussing diversity efforts on a particular section of the workforce, whether that is senior leadership or entry level, and reporting on that. This is often due to corporate governance and targets that they have set themselves.

But diversity is important at every level of an organisation and employers should be transparent about where there are the biggest gaps. Diversity at a mid-management level is crucial because that creates a more diverse future leadership pipeline – it enables organisations to get more people from minority groups into senior positions.”

John Petter

CEO, Zellis

“Given their position and the privileged access they have to decision making within organisations, senior leaders have a different perspective on DEI compared with more junior employees. They have a unique level of insight into the realities of how organisations really operate – how they recruit people, how they develop and promote people, and how they reward people. And therefore, senior leaders have the most visibility of the gap between a company’s words and its actions – and some of them are telling us they aren’t happy about it.

When you also consider that a significant number of senior leaders have directly felt the impact of a lack of diversity, equity and inclusion within the workplace, this explains the sense of frustration that is now emerging.

Senior leaders want to work in organisations that are making significant strides forward with DEI. And they want to personally be able to make a positive impact and leave a lasting legacy. Where senior leaders feel that they are being held back, whether by processes, structure, investment or cultural resistance, they’re no longer willing to tolerate it.

As it is, representation of minority groups at the most senior level of organisations is exceedingly low. So, employers can ill afford to risk whatever diversity they do have at the top of their organisation because they’re not making people feel welcome or not demonstrating the right actions to improve diversity, equity and inclusion across the workforce.”

Aggie Mutuma

CEO and Lead Consulting Director,
Mahogany Inclusion Partners

“Within many boardrooms, there is a growing recognition that diversity, equity and inclusion can’t be put right in a workshop and ticked off the to-do list. Senior leaders are realising that these issues are ingrained into the fabric of their organisations.

Discrimination and bias, whether conscious or unconscious, are systemic within our workplaces. And tackling these issues is therefore hard. It involves difficult conversations which touch on all of our values, and requires wholesale cultural and behavioural change.

There aren’t any quick wins. DEI is a journey and there is no end point. It requires every corner of an organisation to think about experiences and outcomes for all people, both internally and externally, and how this reflects and meets the needs of different under-represented groups.”

Dr Zaheer Ahmad

Global Head of Diversity, Equity and Inclusion, Haleon

“Tackling DEI within a global business is extremely challenging, not least because the whole concept of DEI changes between countries and regions. Just the interpretation of the three words, ‘diversity’, ‘equity’ and ‘inclusion’, starts to take a different shape, depending on where you are. An ethnic minority in one country isn’t an ethnic minority in a neighbouring country. The starting point for diversity in a European country is very different to a country in MENA or Asia.

So it’s useful to think about fairness and educating and influencing the entire workforce about the need for, and benefits of, fairness within the workforce.

At a broader level, it’s about getting people to think about and challenge the bias, prejudice and the stereotypes that exist within society.

What’s really changed is that senior leaders now know they are completely exposed to questions around diversity. They’re not just answerable to shareholders and investors. Anybody on social media can call them out on a lack of diversity in their boardroom, so organisations are having to proactively manage this risk.”

DEI is critical in the war for talent and succession planning

The research highlights the critical role that DEI must now play within broader talent management and acquisition strategies. Indeed, as many as two thirds (66%) of employees now state that their employer’s approach to DEI has a significant impact on how they feel about staying in their current role.

For employees who identify as being a member of one or more minority groups, their employer’s approach to DEI is even more important.

As discussed in the previous section, 86% of senior leaders consider the organisation’s DEI approach when deciding whether to stay in a role.

This is even higher – around 90% – for those leaders who identify as a member of a minority group. If organisations want to attract and retain diverse talent, right up to the senior level, strong DEI policy and action is crucial.

74% of employees who identify as a member of at least one minority group, and by 66% of all employees overall.

74%

of employees who identify as a member of at least one minority group, and by 66% of all employees overall.

Do your organisations' DEI policies impact your decision to stay or leave your job?

Yes
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