What is Power Distance, and How Does it Affect Your DEI Strategy?
Who feels comfortable speaking up in the workplace, and who stays silent?
While confidence often plays a role, in many cases the reasons employees remain silent are caused by the lesser known, invisible force called power distance.
Dynamics of power are what shape a workplace, and these can range from how comfortable employees feel communicating to who gets promoted, who feels included, and how much diversity, equity, and inclusion efforts fall short.
To help understand power distance, we’re going to explore:
What is Power Distance?
Power distance describes how much people accept unequal power distribution.
That sounds quite simple of course—in any environment where there is a hierarchy, there are naturally going to be levels of power, both fair and unfair.
A Brief History of Power Distance Theory
It started with Dutch psychologist Geert Hofstede.
Born in 1928, Hofstede became interested in culture and the human role in systems of oppression and struggle after World War II. He pursued this interest, moving into the field of social psychology and published his first book, Culture’s Consequences: International Differences in Work-Related Values.
Here, he theorized that power distance is a huge player when it came to societal norms, values, and the ability and speed of change.
High Power Distance vs Low Power Distance
Power distance is divided into two categories: low power distance and high power distance. Each describes the unique makeup of an organization.
Low Power Distance:
💰Narrow Salary Range
The earnings between leadership, management, and even entry-level workers are closer. Smaller pay gaps lead to a less hierarchical organization, with roles and responsibilities distributed evenly. Here, employees perceive less of a divide between leadership, and on-the-ground staff.
For example, Madeline Pendleton, CEO of the clothing company Tunnel Vision, earns the same as her staff: $70k per year. If she was paying her employees minimum wage, Pendleton would be making $418k per year instead.
🛤️Flatter Organizational Pyramids
When an employer adopts a low power distance, their organizational chart appears more like a network than a pyramid. Here, you’ll see managers, mid-level employees, and even entry-level employees distributed more equally rather than beneath a chain of leadership and subordinates.
🌍Equality in the Workplace
Within a low power distance work culture, there is an overall feeling of civility and mutual respect. This might mean staff may feel more inclined to express their opinions or offer respectful critique. Additionally, managers are more likely to operate with an open-door policy.
Equality amongst employees and staff crafts the building blocks of innovation and inclusion.
High Power Distance
💰Wider Salary Range
In a high power distance workplace, CEOs and leadership make significantly more than their lower-ranked employees.
For example, Jim Farley, the CEO of Ford, makes 281 times what his company’s average employee earns.
🏔️Specialized Treatment for Upper Management
High-powered individuals within the workplace may receive performance bonuses, specialized parking, equity and stock options, and more.
🗣️Increased Dependency on Management and Leaders
Here, employees do not have as much authority to act freely for themselves and are dependent on C-suite executives to provide direction on tasks and assignments.
How Does Power Distance Affect Employees?
The core of any discussion about power distance lies in how employees are treated within these environments. Although we may be inclined to prefer either high or low power distances, both have their drawbacks and their advantages.
Low Power Distance and its Effect on Employees
✅The Good:
Increased equality amongst employees means they are more motivated and less likely to resign from their roles.
Teams have a much easier time communicating with one another.
Managers are more likely to cooperate with their employees, asking for support and assistance when necessary.
❌The Bad:
When roles are less defined employees could feel frustrated due to a lack of clarity.
Employees will need to become more effective at self-advocacy to move upwardly in an organization.
Decisions can take much longer to make due to a less centralized approach, leading to increased stress and potential conflict.
High Power Distance and its Effect on Employees
✅The Good:
Clear division of labor amongst employees.
Consistency and predictability mean employees feel stable in their environments.
Streamlined processes mean organization-wide decisions are quicker and simpler.
❌The Bad:
Employees are so dependent on their bosses’ approval and permissions that they are unlikely to contradict leadership, even when it is advantageous.
When leadership and managers are solely responsible for decision-making, they can become easily overwhelmed.
General disconnection between employees.
Power Distance and DEI
Power distance plays a large role when it comes to diversity, equity, and inclusion initiatives. Here are some ways that DEI and power distance work in tandem when it comes to your organization:
1. Advocacy and Allyship
DEI advocacy often takes a top-down approach, with managers and leadership teams playing a critical role in fostering healthy environments. This means crafting DEI policies to ensure equality across the organization and actively listening to employee needs, regardless of their rank or positioning.
For example, in high power distance environments, individuals are less likely to question authority and are therefore hesitant to advocate for their rights and fair treatment.
2. Intersectionality and Power Distance
Marginalized employees already experience difficulties breaking through strict hierarchies. To address both power distance and intersectionality, businesses can provide DEI initiatives. This can include training, mentorship, and implementing DEI policies.
Without actively working to ensure employees who occupy multiple identities (such as women, BIPOC, 2SLGBTQ+ individuals, etc.) are protected, they often experience disadvantages in their workplace.
3. Promotions and Career Advancement
Power distance can have a significant impact on equity within an organization. This includes who gets promoted and how, and whether these opportunities are distributed equally.
In a high power distance workplace where authority is wholly concentrated at the executive level, promotions may be based on relationships with leadership, loyalty, or seniority. This often means leadership is reflected in who they promote, and marginalized employees are overlooked.
Lower power distance work cultures tend to promote employees based on merit. Promotions and feedback are more easily accessible, and marginalized employees advance at the same rate as their coworkers.
High Power Distance or Low Power Distance?
Both high and low power distance have their advantages and disadvantages. The choice between aiming for high power distance or low power distance depends on the organizational goals, cultural context, industry, and the type of workplace environment you want to create. The right approach for you will ultimately depend on what aligns best with your organization's values, objectives, and the needs of your workforce.
Choosing between high and low power distance is generally dependent on your organization’s goals and industry. And, of course, there are advantages and disadvantages to both. However, when it comes to improving DEI initiatives and policies, reducing your power distance is far more favorable.
This is because low power distance tends to foster inclusive environments, equitable distribution, and empowerment. Employees are recognized for their merit, and their leadership makes an effort to support them and provide transparency.
Evaluating Power Distance At Your Organization
Here are some questions to consider when you’re evaluating the level of power difference in your organization:
✅Are diverse voices being considered?
✅How is DEI implemented and developed?
✅How accessible are managers to their employees?
✅Are decisions made with little to no input, or is input sought out and valued?
✅What is the promotion process of our organization?
✅Are there employee resource groups (ERGs) available to advocate for DEI?
✅How are power dynamics considered, and is bias taken into account?
✅Is feedback encouraged by all levels of employees?
Evaluating power distance can give you a thorough understanding of the levels of diversity, inclusion, and equity in your workplace. Asking questions, gathering feedback, and reflecting on the dynamics of power and decision-making can help better your DEI goals.
Dive deeper into your organization’s power dynamics and distance by checking out our article evaluating DEI metrics! It’s our go-to resource to assess accessibility, employee engagement, and equity so you can foster an inclusive workplace starting today.