D,E&I must be a strategic business priority

Diversity, equity and inclusion (D,E&I) have climbed up the agenda since COVID-19. As trust in governments reach historic lows, the role of corporations in society has changed dramatically, and workers now expect their employers to look after and support them.

A survey of 420 leaders from eight countries by Heidrick & Struggles found that 93% see D,E&I as more important now than three years ago.

58% of the respondents said they currently engage in clear D,E&I programs, and link them to business outcomes – this is up from 20% in 2019.

In addition, 52% noted that D,E&I efforts contribute to business success – this is up from 22% three years ago. Just 4% said they didn’t link D,E&I goals at all to corporate performance.

Credit: Heidrick & Struggles’ Employees at the Center: What It Takes to Lead on D,E&I Now.

The main reason why D,E&I is core to business success is because it increases employee engagement (40% 2022, 36% 2019). Brand reputation with current and potential employees also played a key role (37% 2022, 27% 2019); thereby proving that employers are linking D,E&I success with success in the war for talent dubbed the ‘Great Resignation‘.

Obviously, employers are listening to the needs and priorities of workers when making business decisions – with employees being the main reason why D,E&I is crucial to businesses, according to the study.

Credit: Heidrick & Struggles’ Employees at the Center: What It Takes to Lead on D,E&I Now.

The report stated that the most fascinating insight was “perhaps the connection between DE&I and business success is basic: every corporate leader wants to improve employee engagement, attraction, and retention, and these are the ways in which survey respondents most often saw their DE&I efforts contributing to business success”.

Driving further D,E&I progress

Talking about the study, Heidrick & Struggle’s global management partner of D,E&I practice Jonathan McBride noted: “These findings should give all of us a moment of pause to reflect on the momentum gained in corporate DE&I efforts.

“Nearly every executive surveyed acknowledged a rise in importance of DE&I, which underscores the pace of change and highlights the risk of falling behind.”

So, what must employers do now to continue to stay ahead of the D,E&I game?

According to Heidrick & Struggles, they must treat D,E&I as a strategic imperative, including by dedicating extensive resources and linking it to talent goals.

All managers and leaders must role model good behavior. While the senior leadership team and the board must lead the way and define the scope and vision of the D,E&I policy, it is imperative that employees are consulted and involved in policy formation.

Of course, businesses need to continue to evaluate their D,E&I goals and whether they are actually making a concrete impact.

Communicate your successes to workers, but also ask them for their feedback. This is not a one-time piece of work, it is a continuing effort if you want to remain competitive in the war for talent.

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