Transforming Organizations: Leadership’s Role in Advancing Diversity, Equity, and Inclusion

BY Wanly Chen | November 09, 2023

In the past year, the corporate landscape faced a whirlwind of obstacles in its journey toward diversity, equity, and inclusion. From political pushback, corporate austerity, and the U.S. Supreme Court’s ruling against affirmative action in higher education, DEI work has been no small task. All these headwinds have prompted some corporate leaders to wonder: should we still be pushing energetically for DEI in the workplace?

The answer, simply put, is yes, says Katie Mooney, managing director at Seramount.

“There’s enough breaking news right now about DEI having rollbacks and people questioning diversity and inclusion,” Mooney said. “But what isn’t in the headlines is that DEI is very strong right now because there are accountability measures in place, identification campaigns, and ways in which we’re driving this business.”

As a company that provides employee-focused DEI and talent solutions, Seramount has the data to prove it. In its 2022 Inclusion Index Organizations report,  researchers discovered 89% of companies provide anti-racism training compared with 73% in 2021. Additionally, 90% of companies have percentage goals for diverse representation and 67% of companies compensate for DEI results compared to 57% in 2021.

The data shows that companies set more goals and initiatives for DEI than in previous years, supporting an increase in DEI participation. This DEI momentum comes from the value of the true employee experience, Mooney says. “As practitioners, we have to be focused on why DEI is good for all employees. In these volatile times, we have to center inclusion so that all of us have a great place to work.”

During From Day One’s live conference in Philadelphia, Mooney and other leaders joined moderator Juliana Feliciano Reyes, a reporter at the Philadelphia Inquirer, in a discussion on DEI’s role in the workplace and why it remains vital to a company’s success.

The Value of DEI for Employees and Companies

Companies benefit from DEI initiatives in many ways. In a study by LinkedIn, researchers found diverse companies earn 2.5x higher cash flow per employee in comparison to non-diverse companies. Companies that focus on diversity also have employees that are statistically more productive, and have higher retention rates.

The benefits for both companies and employees are apparent, and companies need to lean into the DEI conversation willingly, David Rhoden, vice president of culture and inclusion at insurance company Chubb, said. He points to recent market research on DEI trends as a source for understanding employees.

“McKinsey came out with the Women in the Workplace report and it had a huge focus on the experience of Black women. When that report came out, we began to hear from the Black women in our organization. They wanted to tell us about their experience,” Rhoden said. “So we leaned in to talk about this here at Chubb and we did some listening, surveying, and then we developed the Black Women of Chubb Collective.”

The panelists spoke about “Leadership’s Role in Advancing Diversity, Equity, and Inclusion” at From Day One's Philadelphia event.

Creating a safe environment for employees to discuss DEI concerns and issues can also positively impact other conversations in the workplace. These employees may feel more empowered to voice their opinions on business procedures or projects, which contribute to companies making better decisions.

“Tying DEI to the business is something that even the biggest naysayers can’t argue. If you have psychologically safe teams that are not afraid to speak out, then they can pinpoint when a procedure isn’t working, or a product isn’t ready to roll out,” Jennifer Brunelle, vice president of talent acquisition of development and diversity at energy company NRG, said. “So if it's not working because of someone’s ability status, for example, we’re missing potential customers.”

Getting Over the Fear of Talking About Diversity

Talking about diversity may be challenging and uncomfortable for leaders who may not know how to approach the conversation. However, leaders need to lean into that discomfort instead of avoiding it, Kristie Small, vice president of diversity and inclusion at supply chain and logistics solution company NFI, said.

“When we talk about why leaders aren’t engaging, more often than not, it’s because they’re afraid of making a mistake,” Small said. “As HR and DEI professionals, we have to give people the grace to try and potentially fail at it and to try again.”

Sponsoring ERG groups or supporting DEI initiatives can be a starting place for leaders to get involved in these conversations. From there, leaders need to be visibly involved in leading the charge, Dana Kirwin, director of employer and government relations at Medela, says. As a company that produces breast pumps, products, and support, Kirwin discusses how supporting employees who are parents requires leaders to act on their support as well.

“Executive buy-in is so important. If they aren’t bought in, if they don't believe it, if they’re not talking about it, and if they’re not acting on it in their work, it’s so hard for DEI to succeed,” Kirwin said. “For example, if your company offers parental leave, that’s amazing but do the executives take it? You need your leadership team to signal that these things are okay because what you show your workforce matters.”

Wanly Chen is a writer and poet based in New York City.

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