What are top challenges for HR in boosting diversity and inclusion efforts?
Only a third (37 per cent) of organizations have formal documented strategy on diversity, equity, and inclusion (DEI), according to a new report, revealing stagnation over the last three years.
This is similar to the 38% recorded in 2022 and 2021, according to a report from McLean & Company.
"The number of organizations without a formal strategy has remained stagnant over the last three years.”
Only 35% of businesses have an informal DEI strategy, added the report, while 28% have no strategy in relation to DEI.
According to the report, organizations with DEI strategy are 2.4 times more likely to be high performing at DEI than those without. They are also 1.4 times more likely to report high overall organizational performance and 1.8 times more likely to be high performing at social and environmental sustainability.
Despite these benefits, businesses are still reporting challenges in their DEI, the report revealed. Only 38% of employers believe they are high performing in DEI, among 67% who said they are not experiencing significant challenges in the DEI space.
For those who are reporting challenges in DEI, the top barriers were reported to be:
"A lack of data is emerging as a key DEI challenge alongside a lack of leadership resources, and strategy. More action is needed to tap into the employee voice to understand DEI through data," the report said.
To also address the lack of leadership support, employers could benefit from having "competency-based training offers" to leaders, according to the report, which also found that only half of leaders are provided with DEI-specific training.
"Organizations that leverage competency-based training — including inclusive leadership, anti-racism, and allyship — are 40% more likely to be high performing in DEI compared to those leveraging awareness-based training," the report said.
Making space for DEI is part of McLean & Company's latest HR Trends Report 2023, which surveyed 1,075 business professionals in a bid to assist HR leaders in the planning for and responding to the evolving world of work.
"Employee experience goes beyond the physical boundaries of the workplace," said Karen Mann, vice president, HR research, learning solutions & advisory services at McLean & Company.
"Employees are expecting organizations to provide a safe, engaging, diverse, and progressive work experience, with increased opportunities for personal and professional growth. This will require an employee value proposition that is intentional and actioned by the organization. It will be up to organizational leaders, and their HR teams, to deliver on these expectations."
