What Makes an Effective DEI Strategy?
Human Resource professionals and Employee Resource Groups play pivotal roles in developing and implementing effective DEI initiatives. It is a challenging task to incorporate all of the various voices within an organization to ensure that everyone feels both recognized and included in the process.
We hope that the following 3-Step DEI Strategy Framework assists your organization in creating the most effective strategy. We will explore key principles, provide real-life examples and actionable tips and help you avoid common pitfalls.
In this article we will outline:
Step 1 - State What Your DEI Strategy Will Achieve
Set Your DEI Goals
Every organization has different goals set out for them. Yours may include:
Enhanced employee engagement and satisfaction
Improved innovation and problem-solving
Expanded talent pool and increased recruitment success
Enhanced organizational reputation and brand image
Compliance with legal and ethical responsibilities
Specify the Metrics to Address
These metrics may include aspects such as representation, promotion rates, pay equity, employee engagement, and diversity in leadership positions.
By defining specific metrics, you can assess our progress and make data-driven decisions to drive meaningful change.
Set Clear and Measurable Goals
Define your specific, attainable, and time-bound DEI objectives, just like the other projects your organization sets.
For example, Buffer, a social media management company, has demonstrated a commitment to diversity, equity, and inclusion by setting clear and measurable goals. They set out to Increase the representation of women in technical roles by 30% within the next two years.
State How Deliverables Will Be Measured
Quantitative measures need to be set by the DEI committee. Otherwise, the people creating the strategy will be in the difficult position to defend the effectiveness of the initiatives based on their subjective opinions.
Data can be collected through Net Promoter Scores (NPS) yielded from employee surveys, feedback from surveys specific to diversity initiatives. analysis of current retention rates, average tenure, turnover rates and more. To measure our progress towards your DEI goals, you can employ various measurement methods. Regular reporting and tracking of key metrics will provide insights into the effectiveness of our strategies and help identify areas that require further attention or adjustment.
Set Your Benchmarks
Benchmarks serve as reference points against which you can measure your progress and determine whether you are on track.
Internal benchmarks work as a straightforward way of ensuring that your DEI strategy will improve some portion of your organization’s processes.
External benchmarks are based on industry standards, best practices or your own internal aspirations.
Where to Find Data to Set Your Benchmark:
Society for Human Resource Management (SHRM): SHRM is the world's largest HR professional society, and their website provides a wealth of information on various HR topics, including diversity and inclusion. They offer research reports, articles and tools that can help organizations assess their diversity benchmarks, create inclusive workplaces, and measure progress over time.
Equal Employment Opportunity Commission (EEOC): The EEOC is a federal agency in the United States that enforces laws against workplace discrimination. Their website provides data, reports, and resources related to diversity and equal employment opportunities. They offer information on diversity benchmarks, workforce demographics and legal guidelines to ensure fair and inclusive workplaces.
By setting ambitious yet attainable benchmarks, you challenge yourself to continuously improve and raise the bar for diversity, equity, and inclusion within your organization, for example:
đź“ŚExample Goal #1: Increase Employee Satisfaction
Measurement: Employee Survey sent out semi-annually.
Benchmark: March Employee Net Promoter Score (NPS) overall was 4.
Milestone: Increase the September Employee NPS by 10% to 4.4.
đź“ŚExample Goal #2: Increase Employee Retention
Measurement: Exit Interviews completed in previous 6 months.
Benchmark: March Exit Interview Net Promoter Score (NPS) overall was 3.8.
Milestone: Increase the September Exit Interview NPS by 10% to 4.
Align DEI Initiatives With Your Organization’s Mission
For example, Salesforce's DEI strategy focuses on four key pillars: representation, equal opportunity, education, and accountability.
They strive for diverse representation at all levels of the company, including leadership positions, by implementing programs and initiatives that promote inclusivity and reduce bias in hiring and promotion processes.
Identify Gaps and Areas for Improvement
Reviews will identify gaps and challenges that organizations can then focus on. This may include the underrepresentation of certain groups, systemic bias in processes and policies, and discrimination experienced by employees.
For example, an organization that exemplifies the identification of gaps and challenges in diversity and inclusion is Airbnb. In 2016, Airbnb conducted an internal review to assess their diversity and inclusion practices.
This assessment prompted Airbnb to take concrete actions to address these issues, such as implementing anti-discrimination policies and introducing measures to increase diversity in their workforce.
Incorporate DEI Goals into Corporate Objectives
Goals can be integrated into an organization’s business objectives, and the progress towards it can be measured through specific metrics, such as hiring rates, retention rates, and promotion rates for women and underrepresented minorities.
For example, Intel has demonstrated a strong commitment to diversity, equity, and inclusion by integrating DEI goals into its overall business strategy. For instance, one of Intel's specific goals is to achieve full representation of women and underrepresented minorities in their U.S. workforce by 2020.
Foster Leadership Commitment
Secure buy-in from senior leaders and executives
Engage leadership in setting the tone for inclusive behaviors and practices
Ensure leaders actively champion and support DEI initiatives
For example, Salesforce exemplifies leadership commitment to DEI. CEO Marc Benioff is known for championing equality and inclusive practices. He actively engages in promoting DEI initiatives and uses his platform to advocate for social change. This leadership commitment sets the tone for inclusive behaviors and practices throughout the organization.
Clearly Communicate DEI Strategy to All Employees
Share progress updates, successes, and challenges regularly
Encourage open dialogue and address concerns in a transparent manner
For example, Microsoft effectively communicates their DEI strategy to employees through various channels, including company-wide communications, intranet portals, and dedicated websites. They share progress updates, successes, and challenges regularly, fostering transparency and open dialogue.
Step 2 - Implement & Execute Your DEI Strategy
Create Specific Deliverables to Reach Your Goals
Breaking down plans into actionable and measurable deliverables helps provide clarity and focus.
For instance, if your goal is to improve representation at the leadership level, specific deliverables could include implementing targeted recruitment strategies, establishing mentorship programs for underrepresented employees, or launching unconscious bias training for decision-makers.
These deliverables ensure that your goals are translated into tangible actions that contribute to our overall DEI strategy.
Conduct a DEI Assessment
Gather data on the current state of diversity and inclusion within the organization. This is generally done through employee surveys or focus groups.
For example, Google gathers data on diversity and inclusion and then shares their findings. They release their Annual Diversity Report that provides detailed insights into the demographic composition of their workforce. The report includes data on gender, race, ethnicity, and representation in leadership positions. By publicly sharing this data, Google highlights their commitment to transparency and holds themselves accountable for progress.
Promote Employee Engagement
Encourage employees to provide feedback and contribute to the DEI strategy. Foster a culture of inclusion where all employees feel valued and respected.
For example, Cisco is an organization that prioritizes employee engagement through its employee resource groups (ERGs). They have various ERGs that provide a platform for diverse voices to be heard. These ERGs foster a sense of belonging, provide support, and contribute to shaping Cisco's DEI strategy.
Provide Diversity and Inclusion Training
Offer education on unconscious bias, cultural competence, and inclusive behaviors. Regularly update and refresh training programs to address evolving needs.
For example, Google offers diversity and inclusion training programs that address topics like unconscious bias, cultural competence, and inclusive behaviors. These trainings are mandatory for all employees, including leaders and managers. Google regularly updates and refreshes its training programs to ensure they remain relevant and effective.
Create Inclusive Policies and Practices
Review and revise policies to ensure fairness and equity. Implement diverse recruitment and hiring practices. Establish inclusive employee development and promotion processes.
For example, Warby Parker actively incorporates diverse recruitment and hiring practices. They strive to attract a diverse pool of candidates by utilizing a variety of sourcing channels, partnering with organizations that focus on underrepresented communities, and attending career fairs and events targeted at diverse talent. They also have inclusive interview processes and aim for diverse interview panels.
Integrate DEI Strategy into Career Development
Integrating DEI strategy into career development involves embedding DEI principles into talent management practices, ensuring that recruitment, retention, promotion, and training opportunities are accessible and equitable for all employees, regardless of their background. It also entails creating a workplace culture that values diverse perspectives and supports the professional growth of underrepresented groups through mentorship programs, bias training, and inclusive leadership development.
For example, in order to promote retention, Accenture provides ongoing development opportunities and supports career progression for all employees, irrespective of their background. They have established mentoring programs, networking initiatives, and flexible work arrangements to foster an inclusive and supportive work environment. Additionally, they prioritize pay equity and have implemented measures to address any existing disparities.
Foster the Development of Employee Resource Groups (ERGs)
Provide resources and support for ERGs to foster an inclusive community. Leverage ERGs to generate ideas and contribute to the DEI strategy. Encourage ERGs to collaborate and share best practices across the organization.
For example, IBM provides resources and support for their ERGs, which play a vital role in building an inclusive community. IBM encourages ERGs to collaborate, share best practices, and contribute to the company's DEI strategy. These groups help drive engagement and create a sense of belonging.
Get Feedback on the DEI Initiatives
Surveys, focus groups and interviews are all useful channels on ensuring your employees can let you know if your work is paying off.
For example, Microsoft has implemented various methods to engage employees and understand their experiences. They conduct employee surveys and utilize focus groups to gather feedback on diversity and inclusion. Microsoft also holds listening sessions and town hall meetings to create spaces for open dialogue and collect insights directly from employees. These feedback mechanisms help shape their DEI strategies and initiatives.
Partner and Collaborate with the Community
Collaborate with external organizations and industry networks for insights and guidance. Foster relationships with diverse community organizations to build meaningful partnerships. Engage in knowledge-sharing and collaboration with other companies and DEI professionals.
For example, Procter & Gamble (P&G) collaborates with external organizations and industry networks to gain insights and guidance on diversity and inclusion best practices. P&G also fosters relationships with diverse community organizations to build meaningful partnerships and extend their impact beyond the organization.
Step 3 - Measure and Adjust Your DEI Strategy
Continuously Evaluate and Adapt
Regularly assess progress toward DEI goals and metrics. Ask yourself why you thought a certain initiative missed the mark. Was it the right idea but was executed poorly?
As you collect and analyze feedback from employees and stakeholders, you will see your path. You will be able to adapt the DEI strategy based on lessons learned and changing organizational needs.
For example, Patagonia regularly conducts evaluations to assess the effectiveness of its DEI strategies. They collect and analyze data on diversity representation, employee experiences, and the impact of their initiatives. This evaluation process helps them identify areas for improvement and informs their decision-making for future actions.
Understand This Isn’t The End
No organization is able to come up with the perfect plan and execution on the first try. Getting direct feedback on what went wrong can sting at the beginning but is all part of the process.
For example, according to Boston Consulting Group, diverse teams are more innovative and make better decisions. Companies with inclusive cultures are 2.3 times more likely to be high-performing in innovation.
Common Mistakes in Creating DEI Strategy
Lack of Leadership Commitment. Without leadership support, DEI initiatives may lack resources and momentum.
Tokenism and Superficial Efforts. Implementing symbolic gestures without addressing underlying systemic issues
Failure to Address Intersectionality. Neglecting the intersectional experiences of individuals based on multiple dimensions of diversity
Lack of Employee Input and Engagement. Not involving employees in the development and implementation of DEI initiatives
Insufficient Training and Education. Failing to provide comprehensive education and training on DEI topics for all employees
For example, Starbucks faced a significant incident in 2018 when two black men were wrongfully arrested at one of their stores. The incident highlighted not only the need for improved racial sensitivity but also the insufficiency of the diversity training provided to employees at the time.
In response to the incident, Starbucks closed 8,000 stores for an afternoon to conduct racial-bias education training for its employees. Following the incident, Starbucks made a commitment to ongoing training and development initiatives aimed at fostering a more inclusive and respectful environment.
This example demonstrates the consequences of providing insufficient diversity training to employees. Inadequate training can contribute to misunderstandings, biases, and inappropriate behavior, which can have a detrimental impact on both employees and customers. It emphasizes the importance of continuous and robust diversity training programs to promote understanding, awareness, and inclusive behaviors within the organization.
If you found this useful, check out:
Measuring Progress on DEI: How to Evaluate Your Company's Diversity Metrics