10 Reasons Why You Need a DEI Consultant
When Should You Hire a DEI Consultant?
Experts in the field of diversity, equity, and inclusion (like CultureAlly!) can perform the following tasks for your organization:
📃Conduct a DEI Audit
Administer assessments of the organization's current diversity data. This will involve analyzing workforce demographics and reviewing policies and procedures by using a combination of research methods like surveys, focus groups, and 1-on-1 interviews to identify areas of improvement.
💡Develop a DEI Strategy
Create a robust short-term and long-term DEI strategy in collaboration with organizational leaders, employees, and other essential stakeholders. This involves creating an actionable implementation plan complete with timelines and measurable objectives to ensure successful execution.
📈Build DEI Metrics and Reporting
Establish metrics and data collection processes to measure the organization’s progress in achieving DEI goals. This allows for leadership to be updated with regular reports on KPIs specific to DEI initiatives.
🎤Facilitate DEI Training
Provide training programs to educate employees and leadership on various topics related to DEI. This may include workshops on unconscious bias, cultural competence, inclusive leadership, and more.
10 Reasons Why You Need a DEI Consultant
To Build a Solid Foundation for Your DEI Program
For organizations initiating DEI efforts from scratch, consulting with a DEI expert is crucial for strategic guidance, tailored solutions, and a holistic perspective.
Bringing in a consultant at the outset allows organizations to proactively address challenges, learn from shared experiences, and navigate potential pitfalls efficiently.
Consulting early on with a DEI expert establishes a strong foundation for sustainable and effective DEI initiatives, saving the organization from potential setbacks and ensuring long-term success.
2. To Increase Community Engagement
Consultants can guide organizations in building positive relationships with the communities they serve. Community involvement is an effective way to establish a favorable reputation, increase brand awareness, forge meaningful connections, and contribute to larger social causes.
Beyond these external benefits, community involvement contributes to a positive workplace culture. A study on volunteerism revealed that 92% of employees believe work volunteer activities improved their teamwork skills, with 77% noting strengthened relationships as another outcome.
Community engagement takes various forms, including outreach, partnerships, volunteering, and other initiatives. DEI consultants can facilitate connections with local organizations and causes that align with your organization’s values and missions.
3. To Ensure Legal Compliance
A DEI consultant ensures the organization's compliance with DEI laws and regulations, offering guidance on legal best practices. The repercussions of a discrimination lawsuit, both financially and in terms of reputation, can be severe for an organization.
An example of this is the class-action lawsuit against Abercrombie & Fitch in 2003, where the company was accused of discriminating against Black, Latino, and Asian American applicants and employees.
The lawsuit highlighted Abercrombie's alleged refusal to hire qualified minority applicants and their placement in undesirable positions when hired. Following a settlement, Abercrombie paid $40 million in damages, implemented diversity-promoting policies, appointed a VP for Diversity, established an internal complaint procedure, set benchmarks for minority hiring and promotion, and hired recruiters to meet these benchmarks.
This case shows the importance of prioritizing diversity in organizational culture to prevent discriminatory employment practices and associated legal consequences.
4. To Boost Retention and Employee Engagement
Disengagement has a significant negative impact on an organization's financial performance, with employees who perceived bias at work being nearly three times as likely to experience disengagement, resulting in an annual cost of $450 to $550 billion for U.S. organizations.
This trend extends to retention, as those who experience or witness bias at work are over three times more likely to express intentions of leaving their jobs within the year.
To prevent your organization from falling in line with these statistics, proactive changes are required to improve work environments and foster inclusive cultures that actively address unconscious bias in the workplace.
DEI consultants play a pivotal role in helping organizations make DEI a sustained commitment by evaluating data on employee sentiments and representation. They develop customized strategies, which may involve implementing initiatives like employee resource groups, leadership training, and mentorship programs to create an inclusive culture and mitigate the costs associated with disengagement and high turnover.
One of the largest advertising agency groups globally, WPP, has enlisted DEI advisors to form a task force dedicated to improving the experience of Black employees. WPP's commitment to fostering an inclusive organizational culture for all its employees is a significant factor contributing to its global success.
5. To Foster Innovation
The impact of workplace diversity on organizational success is not just a theoretical concept but has tangible effects on the bottom line.
According to a study by the Boston Consulting Group, companies with more diverse management teams experience 19% higher revenue due to increased innovation.
This is further proven by research from the World Economic Forum which revealed that companies with above-average diversity scores generate 45% of their revenue from innovation, while those with below-average diversity scores report only 26%.
This connection between diversity and innovation is unsurprising, as prioritizing diversity and inclusion cultivates varied perspectives, driving innovation and aiding recruitment efforts to attract top talent.
DEI consultants play a vital role in ensuring organizations can harness the full potential of DEI to enhance business performance.
6. To Increase Market Share
While it may not be immediately apparent, hiring a diversity consultant has a direct correlation to increasing market share.
In the context of a global economy, organizations require employees who possess an understanding of the markets they serve or aim to enter. Diverse teams, as studies indicate, are 70% more likely to successfully capture and penetrate new markets.
A workforce that mirrors its customer base encounters fewer obstacles when implementing strategies that resonate with the target audience.
Achieving and sustaining a diverse workforce necessitates ongoing and reinforced learning and efforts, a process in which experts such as DEI consultants play a crucial role. Their guidance ensures that organizations are equipped to navigate the complexities of a diverse global marketplace, ultimately contributing to increased market share and business success.
7. To Improve Recruitment Strategies
If you observe a lack of minority representation in your workforce, it may be time to reconsider your recruitment strategy.
Diversity in the workplace is a critical necessity in today's business landscape, directly correlating with improved financial performance, innovation, and employee retention.
Numerous organizations have established diversity goals as part of their commitment to fostering inclusivity. For instance, Intel has pledged to raise the representation of women in technical roles to 40%.
DEI consultants play a pivotal role in helping organizations realize greater diversity by implementing various strategies. This includes utilizing diverse job boards to reach a wider pool of candidates, creating more inclusive job postings and hiring processes, and incorporating other best practices into your DEI recruitment strategy.
8. To Develop Leadership
The effectiveness of diversity efforts ultimately depends on an organization's leadership. Sustaining a commitment to diversity is crucial long after a DEI consultant leaves their advice.
Unfortunately, many organizations still exhibit homogeneity in their leadership teams. Recent data highlights the persisting imbalance, with only 6 CEOs of Fortune 500 companies being Black and women constituting a mere 8.8% of CEOs.
This lack of diversity at the top can inadvertently lead to the implementation of biased practices within influential organizations.
To drive meaningful change, it is imperative for leadership to prioritize DEI practices. DEI consultants play a vital role in this process by identifying blind spots, raising awareness, and educating leaders on the significance of diversity and how to embody inclusive leadership principles.
9. To Build an Inclusive Culture
McKinsey's research reveals that even highly diverse companies encounter difficulties in establishing inclusive work environments. An analysis of employee sentiments across three industries showed that while overall sentiment regarding diversity was 52% positive, it dropped significantly to 29% for inclusion.
This shows that diversity alone does not always guarantee inclusion. Many organizations grapple with fostering workplaces characterized by inclusive leadership, accountability, equal opportunities, and freedom from bias and discrimination.
Consultants play a crucial role in addressing these challenges by reinforcing leadership accountability, implementing processes to ensure equality in advancement and opportunities, and addressing discriminatory behavior through effective training and policies.
To truly cultivate a culture where everyone feels a sense of belonging, organizations must adopt a systematic approach and take bold actions to promote inclusion.
10. To Reduce Ineffective Projects
Performative actions that are simply to check a box can be more harmful than waiting to roll out a well-intentioned plan. The ineffectiveness of DEI programs often comes from companies treating diversity training as a singular, isolated event without considering its integration into the broader organizational culture.
This doesn't imply that DEI programs are inherently ineffective but rather emphasizes the importance of integrating them into organizational processes and ensuring that the broader systems and leadership support the DEI strategy.
This is where DEI consultants play a crucial role—they work to develop a comprehensive strategy that goes beyond treating DEI as a one-off event, ensuring sustained and meaningful integration into the organizational framework.
Case Study: How Airbnb Used a DEI Consultant to Address Discrimination
Several years ago, reports of guests facing discrimination from hosts surfaced on Airbnb’s platform. In response, Airbnb brought in Laura Murphy, an external civil rights consultant, to conduct an audit of Airbnb’s practices to identify and address potential cases of discrimination.
This proactive approach resulted in the implementation of 3 immediate changes:
Open Doors: Airbnb committed to finding alternative accommodations for guests who feel discriminated against during booking or interactions with hosts. If a similar listing is available on the platform, it will be offered; otherwise, accommodation will be arranged elsewhere.
Instant Book: This feature enables hosts to offer their homes for immediate booking without prior approval, avoiding cases of discrimination based on guest’s names and profiles.
Anti-Bias Training: Collaborating with bias experts, Airbnb introduced anti-bias training for its community members. Recognition is given to those who complete the training.
Airbnb has actively continued its fight against discrimination, with Laura Murphy serving as a senior advisor. The company has transparently shared detailed reports on their ongoing initiatives, including Project Lighthouse, a series of product interventions designed to make the booking process more equitable.
This case illustrates how Airbnb leveraged external DEI consulting services to conduct a thorough review of their practices, implement meaningful changes, and commit to ongoing efforts to promote DEI on their platform.
Want to learn more about how DEI Consultants can assist your organization?
Final Thoughts
In conclusion, the decision to engage a DEI consultant is a strategic choice for organizations navigating the complexities of developing an inclusive and equitable workplace.
The multifaceted role of DEI consultants extends from devising customized strategies with proper reporting metrics to mitigating biases, ensuring legal compliance, and promoting a diverse and engaged workforce. These collective efforts significantly contribute to an organization’s financial performance and market competitiveness.
