How Two Companies Are Navigating the Changing Landscape of I&D

Ed note: Posts published on From the Workplace are written by outside contributors and do not necessarily reflect the view or opinion of SHRM.

Study after study shows that diverse teams with inclusive behaviors achieve better results. When people with different backgrounds, life experiences, and viewpoints come together with open minds, they collaborate more effectively, and new ideas and ways of reaching goals emerge.

As a result of the social justice movement, companies scrambled to highlight their focus on the issue, with the role of chief diversity officer gaining prominence. In 2018, fewer than half of the companies in the S&P 500 had a role equivalent to a chief diversity officer. By 2022, three out of four companies had created such a position, according to a study by Russell Reynolds.

However, there are now signs that the pendulum is swinging in the opposite direction, with organizations such as Target, Walmart, Tesla, Lyft, John Deere, Harley-Davidson, and Lowe’s announcing they are scaling back their initiatives. This, coupled with recent moves to restrict I&D programs at the federal level, puts the entire future of inclusion and diversity in question.

Where I&D Struggles

The issue many critics have with I&D is the perception that some companies may focus on hiring or promoting diverse talent solely to meet representation goals, potentially disregarding ‘non-diverse’ qualified talent. Very few I&D professionals and business leaders advocate such an approach, as it serves a short-term need (or quota) without addressing systemic challenges.

In contrast, the smartest organizations realize the business value of diversity in inclusive environments. They ensure highly qualified diverse talent is represented in their candidate slates and succession plans and insist on hiring and promoting the best talent available. They leverage the value of diversity and ensure all employees have equal opportunities to develop, thrive, and reach their maximum potential.

A focus on diversity—which encompasses people with a wide range of backgrounds, such as gender, race, ethnicity, socioeconomic status, education, disability, sexual orientation, and geographic location—needs to be more than a “program” or “initiative” to drive sustainable outcomes. There must be an ongoing, systemic approach that permeates the organization, beginning with the organization’s values and senior leaders leading the charge, modeling behaviors, and championing efforts.

The retreat from I&D programs may be due in part to a lack of internal communication to employees—half of the respondents in a recent Hudson RPO survey said they don’t know if their organization has a stated I&D strategy and goals. However, that’s only part of the equation—when efforts are present, they must be ongoing, sustainable, and linked to business value.

Maintaining consistent commitment and engagement with leadership support is where many organizations struggle. They often lose momentum over time and become complacent, especially when new, more immediate concerns arise. The journey toward meaningful change is long and requires sustained efforts to see real progress and return on investment.

'Hardwiring' I&D Into Business Practices

Alcon, the global leader in eye care, has a three-year strategy to continue advancing I&D. Now in its second three-year strategy, this approach creates continuity and expectations that are core to the company’s ethos.

Part of Alcon’s strategy is to ‘hardwire’ I&D into how the company works, ensuring fair and equitable talent practices benefit all employees. Alcon also equips HR and business leaders with the tools and resources to build their capabilities to lead inclusively, reaping the business value of increased collaboration and innovation.

I&D has a specific meaning in regard to talent acquisition. It starts with ensuring a diverse candidate pool during the recruitment process (39% of Hudson RPO survey respondents say a diverse candidate pool is required). From there, it’s about how talent acquisition professionals attract talent and create opportunities for individuals from diverse backgrounds to access opportunities. Beyond access, it’s also about ensuring that the talent acquisition process is fair by monitoring and mitigating unintentional bias.

Care must also be taken to avoid a “one-size-fits-all” approach. Global organizations need to be mindful of nuances in different countries and regions. For example, in some countries or cultures, increasing gender representation may be the biggest opportunity. In others, the biggest challenge may be increasing representation of indigenous populations or individuals with disabilities. In all cases, it’s important to avoid assumptions and understand local nuances and needs.

Lastly, we can’t ignore generational differences and the importance they may play in I&D. Millennials and Gen Zers tend to place a higher value on organizations that prioritize inclusion and diversity than other generations. They are also the most diverse generations and expect to see diversity (along with an inclusive workplace) reflected in any organization they consider working for.

According to a Monster study, 83% of Gen Zers surveyed said a company’s commitment to diversity practices was important when choosing an employer. They want to build a career with organizations that acknowledge and appreciate gender, race, ethnicity, neurodiversity, people with disabilities, and a diversity of ideas, experiences, and backgrounds.

Where to Focus Your Limited I&D Resources

Given the hectic pace of business, when time, resources, and mindshare are limited, where should one focus I&D efforts? Our recommendations are:

• Narrow your focus to the things that will have the biggest impact and focus on systemically embedding them into how your organization operates. Avoid “boiling the ocean” with too many initiatives.
• Align your I&D program to your company’s values, ensuring an ongoing strategic anchor that is celebrated and communicated throughout the year. Foster leadership champions and influential ambassadors and allies to help drive desired outcomes.
• Continue to evaluate and evolve your strategy and the tactics designed to drive change. Participation, employee feedback, and representation results (based on hiring, promotions, and exits) should continue to be key success measures.

Making progress in I&D goals and strategies delivers business value and is demonstrably rewarding. However, long-term success comes through an ongoing emphasis on I&D and the culture of the organization. That means how the organization presents itself to employees, clients, and partners matters. Seemingly small but critical practices such as treating each other with respect, approaching challenges with curiosity and empathy, and recognizing the value that different perspectives deliver to the enterprise are the building blocks for sustainable progress.

Jake Zabkowicz is the CEO of Hudson RPO, a recruiting process outsourcing company. Kristen Weirick is the chief diversity and inclusion officer and VP of talent acquisition at eye care company Alcon.