In the last few years, diversity, equity, and inclusion initiatives have become a major consideration for several corporations in the United States, and in some parts of Europe. Conversations around racial injustice and a lack of inclusivity obligated companies to examine their stance on issues that affect employees and consumers alike. For some companies, there was a need to create a task force that could turn to whenever polarizing issues surfaced. We’ve seen more DE&I positions open now than ever before. In fact, a recent report revealed that DE&I roles within organizations have more than doubled since 2015. While many critics believe that hiring minority leaders to fill such roles is merely a trend, others say it could be a powerful force for driving long-term change and diversifying the talent pool within companies. Reports like the one done by Alex Nesbitt, still showing over 70% of fortune 500 C-Suite leadership as white male in 2021 support the trend route.
These days, failure to invest time and effort in diversity comes at a high price. According to a 2020 study by Mckinsey, diverse companies are more likely to outperform their industry peers. This could be one of the reasons skeptics deem diversity-focused hiring as a game of numbers being played by companies who want to look the part so they can remain profitable. By hiring people-facing employees or more specifically leaders from underrepresented communities, organizations can easily present a false sense of inclusion. The average job seeker might not be aware of this they’re on the outside looking in. For some minority candidates, seeing a CTO who is a person of color could indicate that there is a clear growth trajectory within the company. However, the difficult truth is that representation may or not be enough to guarantee current or future employees a seat at the table.
Studies show that diverse leadership has the potential to boost innovation. This is unsurprising, as people from diverse backgrounds typically come with differing perspectives that have the potential to spark change. Additionally, employees who come from similar environments tend to have greater motivation when they can identify with such a leader. Many go as far as modeling their careers after these leaders or even seeking them out as mentors. Other positive psychological effects of representation include the absence of fear and a greater willingness to actively participate in activities. Employees are less likely to accept that certain biases will exist when a minority leader oversees their organization. On the contrary, they may start to believe that proving their competence could help them land their desired roles within the company.
Despite the positive impact of representation, bridging the diversity gap remains challenging for a few reasons. When it comes to hiring, making a choice on the grounds of diversity alone is never sufficient. Factors such as education, skill, and network will always take precedence; if certain communities are not empowered or given the tools they need to succeed at a local level, it might be difficult for a leader to justify hiring that group solely based on the community they identify with. Furthermore, the responsibility of creating more opportunities for minorities cannot rest on one individual. Then there is the issue of unconscious bias and microaggression, the unwelcoming environment that the diverse hires come into, emphasizing the need of a collective effort to drive the desired cultural shift in the workplace.
Ultimately, how diverse an organization is will be dependent not only on the company’s executive vision, but on the level of commitment to get its existing employees from middle to top positions ready to embrace diversity. As brands seek to present a more diverse and inclusive image, it is important they thoroughly examine themselves and their motives before participating in the cause. Diversity-related activities that are merely public-facing never succeed long term because true inclusion is a culture and not just another vanity metric for organizational success. Consumers see through such intention and will show this by the brands they choose to spend their money on.
Just putting up a diverse ad will no longer do the trick for brands, according to Alex “The most racially, ethnically, and culturally diverse generation, Gen Z — who are also the most queer to date, and the adult consumers of 2032” will need to see representation reflected at all levels of the brand teams as well. So, in not so many words, minority leadership is the least brands can do to showcase true diverse representation.
Written by Elizabeth Ole
Edited by Nnenna Hemeson
