DEI is divisive and dynamic. Here is what's next.
Insights
DEI
October 28, 2024
1. After almost a year of anti-DEI rhetoric and backlash, where do we stand?
With many news headlines highlighting DEI cutbacks and the “anti-woke” narrative, it can be challenging to discern between clickbait and constructive criticism.
In this newsletter, we discuss the current state of the dialogue, considerations for ongoing employee engagement, and how strategic communicators can prepare their organizations for the future.
What’s happening:
- Several Fortune 500 companies, including Ford, John Deere, and Lowe’s scaled back their DEI commitments in response to anti-DEI activists like Robby Starbuck.
- Other companies, including Jack Daniels’ parent company Brown-Forman, scrapped them entirely following “anti-woke” boycotts (which, following an ad featuring a transgender influencer, cost Budweiser’s parent company 13% of U.S. revenue).
- On the flip side, CEOs of companies like JPMorgan Chase, Cytokinetics and e.l.f. Beauty have asserted that DEI is a business driver, and advocates including NAACP, National Organization of Women, Human Rights Campaign and others have issued statements in defense of DEI.
Why it matters: Research consistently demonstrates that diverse and inclusive teams are more innovative and achieve higher profitability. At a time when stakeholders are increasingly divided, companies will need to define an approach that best supports their business goals.
What’s next: We are seeing more nuanced, less publicized approaches to DEI emerging. Strategic communication is crucial to engage key stakeholders, maintain trust in an organization’s commitments, and safeguard reputation.
2. Take stock: What are stakeholders saying?
The big picture: In a hyper-politicized environment, with just 11 days until the presidential election, many employers, civil rights advocates, and employees are standing firm: DEI is good for business.
What employers are saying:
- In September, JPMorgan Chase CEO Jamie Dimon said: “It’s good for business; it’s morally right; we’re quite good at it; we’re successful,” speaking about the company’s outreach to minority groups. (Dimon also clarified that he’s not “‘woke.”)
- Robert Blum, president and CEO of Cytokinetics, earlier this month said, “We cannot ensure the health of our population by taking a one-size-fits-all approach. We are a diverse nation with different health needs, and our health care system must reflect that.”
- “Today, more than ever, diversity is essential for strong corporate governance,” said Tarang Amin, chairman and CEO of e.l.f. Beauty, surrounding the launch of the Not-So-White Paper, which underscores the business case for diverse boardrooms.
What civil rights leaders are saying:
- The NAACP, the National Organization for Women, the League of United Latin American Citizens, Asian Americans Advancing Justice and the Human Rights Campaign Foundation issued an open letter to leaders of Fortune 1000 companies. The letter cautioned that “abandoning DEI will have long-term consequences on business success.”
- The Congressional Black Caucus Foundation called for continued action through its Corporate Accountability Report on Diversity, Equity and Inclusion.
What employees are saying:
- 61% of adults think DEI programs in the workplace are “a good thing,” according to a 2023 Washington Post-Ipsos poll.
- 72% of LGBTQ+ workers reported that a rollback of their employer’s DEI efforts would make them feel less included or accepted.
4. To sustain employee engagement, lean into proven approaches that foster inclusion.
Companies with diverse and inclusive workplaces are 8 times more likely to achieve better business outcomes. DEI fuels creativity and helps meet the demands of a market where demographics are changing rapidly.
As organizations refine their DEI strategies, experts emphasize the importance of inclusive workplaces where employees are seen and heard.
- Mentorship: Employees with formal mentors are 75% more likely to believe their organization offers a clear career development plan.
- Employee affinity groups: Companies have started to compensate leaders of employee affinity groups with pay, time, and stock – recognizing their critical role in fostering belonging.
- Mental health: Deloitte’s 2024 Women at Work survey highlights the growing concern around mental health in the workplace. Communicating openly about mental health and reducing stigma can build trust.
- Allyship: Allyship involves actively supporting, amplifying, and advocating for others. Successful allyship programs bridge education and action, giving companies a competitive advantage.
What’s next: Some companies have partnered with organizations like Seramount to measure inclusion and belonging through employee sentiment surveys, and then use the data to tailor their approaches.
5. Here’s what strategic communicators should know.
Even companies that double down on their DEI initiatives should acknowledge that long-term success will require continuous learning and adaptation.
At Global Gateway Advisors, we partner with clients to understand the landscape and determine when and how they can show up for stakeholders in a meaningful way.
Go deeper:
- Prioritize your audiences’ needs: Collect data that will shed light on employee, consumer, and stakeholder sentiment.
- Evaluate language: Explore whether alternative language approaches are needed to advance your business/organizational goals.
- Mitigate risk: Shape an issues management strategy that helps your organization prepare for potential legal or external pressure.
- Focus on inclusion: Develop communications and programs that ensure employees feel they belong and that all viewpoints are heard, respected, and valued.
- Demonstrate commitment: Transparently share progress updates on DEI to build trust and bring more people along.
- Stay informed: The DEI landscape changes daily. Establish monitoring and insights processes to help your organization think ahead.
Want to know more? Connect with Global Gateway Advisors on LinkedIn.
Featured Insights
The state of mental health equity at work
Insights
DEI
May 30, 2024
The escalating mental health crisis impacts all of us in different ways.
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Mental health is the chief health concern among U.S. adults, surpassing cancer, stress, obesity, and drug abuse.
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But the U.S. is not alone. It is part of a global trend. Across 31 countries recently polled, an average of 44% said that mental health was their country’s top health concern.
Why it matters: Work amplifies broader societal issues that negatively affect mental health, especially among diverse communities, including discrimination and inequality. Yet, stigma and shame remain around discussing or disclosing mental health in work settings. Prioritizing mental health equity for employees is a critical forward-looking talent strategy.
Go deeper: During Mental Health Month, Global Gateway Advisors and CommPro convened a group of business, government and advocacy leaders to exchange ideas about how to address mental health equity in the workplace. The event featured special guest and workplace mental health advocate, Natasha Bowman, JD, SPHR.
Here are our key takeaways.
1. Mental health is essential to thriving workplaces.
By the numbers:
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One in five employees globally manage a diagnosable mental health condition in any given year.
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One in three U.S. workers said their jobs had a somewhat negative or extremely negative impact on their mental health.
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Poor mental health at work can contribute to a decline in productivity, toxic workplace culture, higher rates of attrition and economic loss.
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Mental health issues cost the US economy $47.6 billion annually in lost productivity (up to 12 unplanned absences a year).
What they’re saying:
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“If your employees are mentally happy, they will stay longer, they will work better. We must think about mental health as an investment in our organizations.” – Jackson Budinger, Senior Director of Communications, Trevor Project
2. There is no one size fits all solution.
Every employee has unique experiences and identities that shape their perspective and affect how they approach mental health.
Employees experience significantly better mental health and engagement outcomes when their unique social identities are acknowledged and supported.
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34% of employees aged 18-29 and 28% of employees 30-49 reported that they considered quitting work due to the impact on mental health. Only 21% of employees aged 50-64 said the same.
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Neurodivergent, LGBTQIA+ and Hispanic employees want more preventative support when it comes to their mental health.
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Only one in three Black adults in the United States who need mental health care actually receive it.
What they’re saying:
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“We are all on different mental health journeys. Creative and flexible accommodations empower employees to manage their mental health and wellbeing – and show up effectively at work.” – Natasha Bowman
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“Carefully look at the composition of your team. For generation Alpha, it is easier to talk about mental health than Boomers. If you have a team with more Hispanic men, it will be tougher to talk about mental health, because it is not a part of their cultural ethos. It’s important to have a bespoke approach because people have different generational and cultural challenges.” – Event participant
3. Lack of communication and stigma stand in the way.
By the numbers:
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74% of full-time employees in the US say it is appropriate to discuss mental health concerns at work, yet only 58% say they feel comfortable.
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79% say that their work experience would be better if their leaders communicated they care about mental wellbeing.
What they’re saying:
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“As I started to share my experience navigating bipolar disorder, one of the common themes I heard from people is that they thought I was brave and courageous to share my story. Many said they wanted to, but were afraid of what their employer would say. The stigma surrounding mental health at work prevents people from talking about it at all.” – Natasha Bowman
4. Strategic communications can improve mental health and foster thriving workplaces.
Measure mental health. In the same way employers measure employee engagement, they can also measure employees’ mental health at work. Data can reveal how mental health impacts employees differently depending on where they’re based, their socio-cultural background and other demographics.
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Using data and insights, employers can define what resources are needed – and how communications can help point employees to the right support.
Engage leadership to break down stigma through storytelling. When a senior leader opens up about their experiences with mental health, it can make employees with shared experiences feel seen and heard.
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As Carmella Glover, Vice President, Head of Diversity, Equity and Inclusion at Page Society, said: “It takes one brave person and their story to move people and create a safe space. There is power in storytelling, so people know they are not alone.”
Provide clear, actionable messaging around mental health. “We need a ‘stop, drop, and roll’ for the steps to take when someone in your life needs you. This is one of the important communications challenges in mental health equity,” said Erika Soto Lamb, Vice President, Social Impact Strategy at Showtime/MTV Entertainment Studios at Paramount Global. “That’s why we partnered with Active Minds to launch a.s.k, or acknowledge, support, keep-in-touch.”
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Through creative messaging and employee engagement strategies, we can make resources more accessible to employees and provide actionable guidance for what to do when support is needed.
Ensure that conversations around mental health are inclusive of all backgrounds, cultures, abilities and perspectives.
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“A person may need mental health Tuesday instead of Friday,” said Natasha Bowman. “Off-the-shelf policies do not work because they’re inflexible and not inclusive.”
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The same goes for communications. As we shape communications to advance mental health equity at work, it is important to bring diverse stakeholders to the table, amplify stories that demonstrate the wide array of experiences a person can have with their mental health, and showcase how resources and solutions can be tailored to support employees’ unique needs.
Want to continue the conversation? Connect with Global Gateway Advisors on LinkedIn or get in touch via our website.
Featured Insights
Are corporate DEI efforts actually retreating?
Insights
DEI
March 19, 2024
Recent headlines suggest companies have pulled back on their DEI commitments, reflecting a shift from the social justice movement of 2020 to a muted environment after the Supreme Court struck down affirmative action in 2023. The research shows a more complex reality.
- Businesses are balancing their investments – and how they communicate about these initiatives – to avoid legal issues and unwanted public scrutiny.
- It’s also important to separate workplace DEI, which centers around building an internal culture of inclusion, from ESG, a set of standards geared toward an investor audience.
As other defining issues, ranging from AI strategy to election year politics, capture companies’ attention, this edition will help communications leaders provide better counsel to their organizations on DEI topics.
1. Affirmative action ruling had immediate impact on corporate DEI
The big picture: Fortune 100 companies are navigating a shift in how diversity, equity and inclusion programs can operate.
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In June 2023, the Supreme Court ended race-based affirmative action in higher education. Republican attorneys general have raised concerns about DEI initiatives in corporations and warned against making race-based hiring decisions.
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Companies have since faced complaints and litigation related to their DEI initiatives.
Go deeper: Based on analysis before the SCOTUS decision, legal experts anticipated that a ruling against affirmative action would lead to scrutiny of DEI programs in the workplace.
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This prediction held true. Companies have traditionally argued that diversity strengthens the workforce, similar to affirmative action in universities. The Supreme Court’s decision weakened the legitimate grounds for these programs, so businesses that have maintained their stance on DEI are now working to avoid drawing legal scrutiny.
What else: A new case before the Supreme Court, Muldrow v. City of St. Louis, is worth monitoring. A female police sergeant alleged that she was reassigned to a less prestigious role because she is a woman.
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If the court widens its judgment beyond job transfers, development and retention programs specifically for women or people of color may be subject to change.
Why it matters: Companies are examining their DEI programs more closely to ensure they comply with the changing legal landscape. Employers can proactively adapt to this shift and continue building a diverse workforce and an inclusive culture.
2. Align DEI initiatives to measurable outcomes
The big picture: Companies are more clearly aligning DEI commitments to business goals.
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Mentions of ESG and DEI in shareholder proposals and boardrooms may be down, but a recent Littler study indicates ongoing commitment among most large companies.
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This is further supported by a Purpose Brand finding that 154 Fortune 500 companies released diversity disclosures in 2023, nearly double the 79 produced in 2022.
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All eyes will be on the diversity reports published in 2024, as they will likely reflect the broader industry trend of companies “reassessing verbiage and DEI endeavors that could bring legal risk.”
Go deeper: The Littler survey also reveals a potential disconnect between chief diversity officers (CDO) and chief legal officers (CLO) regarding how their perspectives and goals for DEI have diverged in the current climate.
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While 57% of CDOs say their organization is defining metrics for DEI progress, just 19% of CLOs say the same. This highlights the need for stronger alignment within top leadership regarding DEI goals and measurement.
What else: 91% of C-suite leaders say the Supreme Court ruling has not lessened their DEI prioritization.
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A survey of organizations for McKinsey’s 2023 Women in the Workplace report showed that 60% of respondents increased DEI staffing and budgets over the past year, and 34% maintained their staffing and budgets. Only 4% reported a decrease in 2024.
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These trends suggest that the idea of a widespread corporate retreat from DEI is likely overstated.
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“For the companies that are very well run in this space … perhaps they changed some of their programs, perhaps they tweak some of their efforts, perhaps they changed some things. But many of them are maintaining significant commitments to this business effort,” said Karyn Twaronite, EY’s global vice chair of diversity, equity, and inclusiveness. “This isn’t a ‘let’s do it for three years and not do it anymore’ kind of program.”
Why it matters: Companies with DEI experts in senior leadership are better equipped to navigate the evolving landscape.
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The top impact measures of DEI programs boost employee engagement and strengthen company culture, leading to greater organizational success and a positive impact on the bottom line.
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Strong DEI leaders bring deep knowledge and core competencies to do the work, so their organizations are doubling down on it because they deliver results. They can also drive focus on the most critical culture and business metrics.
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“Impactful work may sometimes occur quietly, but it’s still happening,” Gusto’s Emil Yeargin said at SXSW. “Celebrate daily wins and successes because the work is never done, and measure relentlessly to show impact.”
3. Build a more inclusive culture
Companies have broadened the definition of diversity, equity and inclusion to ensure that employees – regardless of how they identify – feel seen, heard, and valued.
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They emphasize the importance of fostering a diverse and inclusive workplace where people feel a sense of belonging, which is key to attracting and retaining talent, particularly in a competitive job market.
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“I think instead of saying this is a program for Black employees, it would be more like, ‘this is a program to increase the equity of promotion rates across the firm, and everybody is included in applying to be part of this program, but will play different roles,’” said Porter Braswell, founder of 2045 Studio.
Go deeper: A report from Expanding Equity, a W.K. Kellogg Foundation program helping companies implement DEI initiatives, found that 94% of companies have zeroed in on retention, implementing at least one inclusion and belonging initiative.
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Core DEI initiatives, such as parental leave and accessible facilities, and policies like equal pay and anti-harassment remain in place.
What else: Some firms, like Blackstone, are focusing on hiring for socioeconomic diversity and on changing job requirements to find more diverse talent without targeting a specific race or ethnicity.
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This movement extends to disability inclusion at work: An Accenture report showed companies leading in this area see significant financial advantages, including 1.6 times more revenue, 2.6 times more net income, and 25% higher productivity.
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“For too long, people with disabilities – individuals who are perfectly qualified and overwhelmingly willing to work – face enormous barriers to being offered a job,” said Ted Kennedy, Jr., co-chair of the Disability Equality Index.
Why it matters: The trend toward inclusion and belonging is likely to continue, ensuring employees from all backgrounds feel valued and supported at work.
4. Considerations for strategic communicators
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Be authentic to the organization’s core values: Ensure DEI efforts and communication strategies reflect the company’s values – particularly when it comes to an emphasis on inclusion.
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Reflect on the past + align on the future: Evaluate past public commitments around DEI and assess how the current approach reinforces those commitments. Address any disconnect among key leadership stakeholders to ensure the CEO, CDO, CLO and/or CHRO share a unified understanding and approach to DEI within the company.
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Set a single strategic approach: Create a DEI communications strategy grounded in data and insights, and embed it across all levels of the organization. Engage affinity groups and managers to ensure everyone feels a part of the strategy.
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Be prepared: Track current events and prepare a scenario plan to identify vulnerabilities and help the organization mitigate internal or external challenges.
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Establish clear metrics: Regularly measure and report on progress. Transparently reporting on these metrics builds trust and reinforces the business value of an inclusive workforce.
Share your feedback with us at insights@gga.nyc.