What is DEI?

Written By Desiree Jonek

WHAT EVERY LEADER needs to KNOW ABOUT Diversity, equity & inclusion IN 2023.

The term Diversity, Equity, Inclusion and Belonging has been strongly coined especially in the USA. Much of the mainstream literature comes from the 'Big 5' consulting firms, e.g. McKinsey's 'Women in the Workplace Report', Deloitte, BCG and co. In Austria, I am currently working in cooperation with my partners from commonground on the FFG-funded research project 'DEInow!' to support Austrian SMEs (small and medium-sized enterprises) to establish a culture of belonging in the longer term, with results expected in summer 2024.

Back to the basics: What should managers (and of course employees as well) actually know about the topic in 2023? Here's a quick 1x1 of diversity and inclusion:


WHAT DOES DIVERSITY MEAN?

The practice or quality of including and involving people from different social and ethnic backgrounds, gender, sexual orientation, etc. (Oxford Language Dictionary definition). These multiple manifestations relate (among others, but not exclusively) to 6-7 internal dimensions (see image below). In addition, there are more, external dimensions of diversity, e.g. on the organizational level such as departments, affiliation to trade unions etc. First, however, it is sufficient to know the 6-7 inner dimensions (based on Gardenswartz & Rowe):

Diversity Dimensions

Inner Dimensions of Diversity

  1. Age

  2. Gender

  3. Sexual identity

  4. Disabilities

  5. Ethnic origin

  6. Religion/belief

  7. Social origin (not part of the original definition)

 

WHAT DOES INCLUSION MEAN?

The German translation 'Inklusion' used to refer mainly to the integration of people with disabilities. 'Inclusion', however, refers to the creation of a culture of belonging, expanded to include all dimensions of diversity. It is important to understand that diversity is a fact that corresponds to the reality of our society (unfortunately, not necessarily the reality of every company).... Inclusion is an attitude where the supposed 'others' are equally valued and actively included. Inclusion is therefore a decision that companies must actively make and drive forward; it usually does not happen on its own. The result of this decision is (in case of success) a feeling of belonging, which leads to employees feeling up to 70% psychologically safer at their workplace and therefore staying there longer, thus better retention. (see sources below).

 

WHAT DOES EQUITY MEAN? (EQUITY.)

Equity means, in contrast to equality, that NOT all people receive the same, but that they are put on an equal footing, in terms of their individual needs. The graph (by Female Quotient) illustrates this well: In order for a person in a wheelchair to participate equally in working life, it must first be possible for them to get there, e.g. through accessibility. A woman, on the other hand, has different needs, as does, for example, a man who cares for his relatives. These needs must be addressed on an individual basis.

 
Diversity, Inclusion & Belonging
 

WHAT DOES INTERSECTIONALISM MEAN?

It is very important to understand that discrimination overlaps and reinforces each other. A person can be discriminated against several times, e.g. not only because of their gender, but also because of their skin color or religion. In 2016, a study by the University of Linz found that a woman of Turkish origin who wears an obvious sign of her religion (such as a headscarf) has to apply up to 4.5 times more than a person with a German name - with the same CV and qualifications. This example illustrates very well how discrimination is reinforced.

Bias in applications and recruiting
 

WHY INVEST IN DEI, WHAT DO WE GET OUT OF IT?

Many studies now also demonstrate the business case for fairness and the positive effects of investing in an inclusive organizational culture, e.g.:

  • 2 × higher likelihood of meeting or exceeding financial goals.

  • 3 × higher likelihood to perform at a high level.

  • 6 × higher likelihood of being innovative and agile.

  • 8 × higher probability of achieving better business results. 


Source: Voß, Württemberg (2023).

Besides the motivation not to miss out on this promising business case in the face of skills shortages and 'run for talents', there are other reasons why companies decide to invest in DEI:

  1. Ethics: Anti-discrimination, equal opportunities

  2. Profitability: Increased revenue and innovation potential

  3. Innovation: learning and organizational development

A culture that encourages, and above all promotes, all people of different backgrounds equally is an important criterion for 'Generation Z' when they choose (or even against) an employer. Don't let this opportunity pass you by.

Getting to grips with these concepts is the first step towards making a conscious decision to drive diversity within your company. Feel free to contact me for more information on how a strategic consulting process towards a more inclusive organizational culture works.

→ Prefer podcasts? Click here to listen to my podcast interview with Trending Topics.

(German only)

→ Read more in the interview with my leadership development partner, MDI.

→ Time for a Long Read? Here's to my 2023 white paper '5 effective measures for an inclusive and performing corporate culture', where I interviewed executives and HR experts as well as Gen Z's on their assessment of workplace culture in 2023.

Here is an excerpt from my white paper:

CREATING AN INCLUSIVE AND ENGAGING CORPORATE CULTURE TO ATTRACT AND RETAIN DIVERSE TALENT

Most interviewees agreed that diversity is not a trend, but a fact that had always been part of society. 

Diversity is much more than a trend, 30 years ago people already knew that a heterogeneous team is superior to a homogeneous team.

Gunther Fürstberger, CEO MDI Management Development International, Gen X

Diversity is not a trend! It has always been there. It's not a fruit basket that you buy and then you can check off. It is rather becoming more work, than less. The return on investment comes, but it comes much later.


Victoria Schmied, COO ÜBERALL scene development, Gen Y




It is important to me that I set the framework conditions so that my employees feel comfortable and can come out - whether sexual orientation or headscarf. There has to be room and acceptance.

Anonymous, Gen Y

Even though the theoretical importance of diversity is high to all interviewees, the strategic implementation of effective tools is less common. Interviewees with awareness of DEIB (because it is either part of their role, or because they belong to a minority) were more engaged in or aware of current DEIB measures in the company. Another differentiator is the degree of internationalization of the companies - especially the companies with subsidiaries in the United States were more advanced in terms of DEIB awareness and the implementation of effective measures.

Why invest in DEIB? Various studies have proven the positive effects of diversity and inclusion on the company. To only name a few effects: Employees report 70% more psychological safety and sense of belonging at work . In terms of performance, 19% increased revenues with innovative products and services by diverse teams can be expected. In terms of employer branding, 60% of millennials see diversity as a determining factor in their decision for an employer.

It is important to understand that DEIB is not a luxury for an organization anymore - it is crucial in order to create a performing and engaging culture!

Mariann Bencze, Head of Culture, Engagement & DEIB, Adverity




All reported DEIB measures, additionally highly effective ones, that have not been mentioned, have been categorized into four categories. The differentiation is made whether measures are being pushed in a bottom-up process (employee-driven, most often without budget or strategic anchoring) vs. leadership-driven (coming with a budget and strategic anchoring), whether the measures are rather communicated externally (marketing) or driving internal change (strategy & implementation).

(....)

Sources


Desiree Jonek
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