Will Companies Even Care About Diversity and Inclusion in 10 Years?

The short answer to my admittedly click-bait title is 'I definitely think so'. But now that I, hopefully, got your attention, lets really dive into how and why that's the case...

The social tidal wave of 2020 has done wonders in advancing DEI to the forefront of corporate priorities. While DEI has become more culturally mainstream, there is groundwork that should be laid to make it more tangible investment that can be easily entrenched in company functions in the indefinite future.

This is great in principle but it becomes hard to tell a tangible numbers-driven story in a space that is nuanced and intangible by nature. However, with the right organizational planning we can give companies the right launch pad to merge their efforts with emerging investment trends tied more closely to social impact. Let's discuss these investment trends and understand how companies can equip themselves to meet their DEI needs through said trends to create long term sustained buy in.

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Constructing Your DEI Strategy Tracked with ESG Reporting

Before executing specific DEI tactics, companies would be smart to start broad. At the very top, companies should focus on an inspiring vision of what a more inclusive version of their workplace should look like. After a broad vision has been established, they should be defined with concrete goals. This combination of vision and goals provides a launch pad for your strategy.

Once you have defined the ‘what’ we must plan out the ‘who’ and the ‘how’. The means by which we set out to achieve our vision for DEI, and the people we hope to leverage to bring that to reality. When all this groundwork has been laid, reporting infrastructure is vital and the last non-negotiable ingredient.

So what are some tactics companies can employ?

Inclusive career and succession planning

Access to skilling opportunities drives income. Motivated professionals are changing their approach to their careers. An inclusive ecosystem has a culture and training that fosters mentorship and leadership development. As more professionals grow and climb the ladder they are equipped to pass on greater career advancement to others. Inclusion is vital to building more adaptable professionals. A recent survey shows more organizations are focusing on multi-skilling to enable employees to complete tasks from different jobs and drive change in their organizations. Building a successful ecosystem of mentorship, career advancement, and growth is no small task. It requires rethinking how we recruit, who we recruit, and what traits we recruit. It also means we must ensure our culture and processes matches this talent to the ecosystem we hope to cultivate.

Invest Heavily in Aligning Leaders with DEI Efforts

Like other ESG reporting and strategies, DEI is not a simple add-on to larger company goals. To ensure DEI takes center stage, companies need true commitment from their leaders.

Most companies have a sustainability group or an individual sustainability officer who issues an annual corporate responsibility report. But as of now, these departments and strategies are not heavily integrated with DEI. DEI decision-makers need to be included in more areas of company operations and decision-making. Inclusion must become a focus in all company strategy development, asset allocation, risk assessment, financial reporting, and investor relations. The presence of a DEI perspective in both decision-making and reporting can carry positive impacts that carry over into better performance within these other departments/focuses as well!

Leadership buy-in is crucial when trying to include a DEI perspective into company strategy and reporting. This buy-in also carries weight with the rest of the workplace which in turn is vital to scale and sustainable DEI efforts over time.

DEI in ESG Reporting

Including DEI principles and voices in every facet of company operations also helps ensure said efforts can be effectively tracked and reported in ESG reporting. Having DEI as a core goal and component of operations also helps all stakeholders better interact with company DEI efforts both good and bad. Technology, AI, and nudge messaging are vital new tools to help companies overcome the challenges of monitoring and reporting on abstract DEI metrics like behavior change, culture, and more. 

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