8 Ways Diverse Companies are Winning

Learn why companies with diverse leadership are performing better than their less diverse counterparts.

Diversity, equity, and inclusion in the workplace have become increasingly important as societal issues, including racial and cultural bias and racism, have been thrust into the forefront of the media. Insert a global pandemic into the mix, and diversity, equity, and inclusion matter now more than ever.  The spotlight has been placed on leadership teams around the world proving to be one of the greatest tests of their ability, efficiency, and transparency.  Not only must leaders act in the manner that best accommodates their employees and customers in a health crisis, they must strategize how to circumvent operational disruption.  With a shifting in priorities, it is crucial that diversity, equity, and inclusion do not take a back seat as these components are actually factors in how leaders respond to these unprecedented circumstances.

Diversity, Equity, & Inclusion

While each of the terms have their own respective definitions, together they represent a concept focused on fairness in the workplace, in education, and in the market.

The term Diversity encompasses the ways in which people or groups differ from one another, the differences that make them unique. Diversity is not limited to race, culture, and ethnicity. It also includes the items you may be used to seeing when asked to complete demographic information. These demographic items include age, gender, national origin, sexual orientation, disability, socioeconomic status, religion, marital status, and often times, education level.  Diversity can also describe differing worldview, thoughts, ideas, perspectives, and values. 

Equity refers to the fairness in treatment, access, opportunity, and advancement for everyone despite all of the differences that make the population diverse.  In addition, equity involves the identification and elimination of existing barriers that have prevented access or opportunity to certain groups of people.  In order to improve equity, institutional systems must become just and fair with respect to processes and procedures, as well as in the accessibility of resources. Addressing equity means addressing root and systemic causes for disparities within our society.

Lastly, the term inclusion refers to the act of creating environments where all individuals and groups are welcomed, respected, supported, and valued. Inclusive spaces encourage full participation of all. An inclusive and welcoming environment embraces the differences of individuals and groups while showing respect in, not only words, but most importantly actions.

Simply promoting diversity does not yield a culture of inclusion. It’s important to note that while an inclusive group is by definition diverse, a diverse group isn’t always inclusive. Increasingly, recognition of unconscious or ‘implicit bias’ helps organizations to be deliberate about addressing issues of inclusivity.

Investment in diversity, equity, and inclusion can be significant when done the right way. However, the return on investment will be well worth it as organizations benefit in a multitude of ways, from a more engaged workforce to a positively impacted bottom-line. The following list shows 8 evidence based ways that diverse companies are winning in the market place.

  1. 36% More Likely to be Profitable

Companies with diverse leadership teams respective of experience, age, industry background, and gender have proven to show increased profitability. However, cultural and ethnical diversity in leadership teams has been proven to hav the most significant impact on profitability. These companies are 36 percent more likely to be profitable than their less diverse counterparts.  This can be due to innovation as there are differing viewpoints, backgrounds, and ideas at the table.

2. 28% More profitable with gender diverse leadership. 

Higher representation of women in C-suite level positions results in 34 precent greater returns to shareholders. Increasing the percentage of women on a leadership team strengthens skills diversity amongst the organization to improve management performance. Women in upper management positions may also motivate women throughout an organization’s workforce, creating a pipeline of talented women leaders.

3. Innovation through diverse ideas

Companies that have diverse leadership are able to unlock innovation for market growth in a way that less diverse leadership can’t. A diverse leadership team encourages an environment where forward thought, and “out of the box” ideas can be brought to the table to create compelling and innovative initiatives. Leaders who bring diverse voices to the table are nearly twice as likely as their counterparts to yield value-driving insights.

4. Outperform less gender diverse companies by 58%

Gender diverse organizations help attract and retain quality talent. Organizations with above-average gender diversity and levels of employee engagement outperform companies with below-average diversity and engagement by 46 to 58 percent.

5. Engaged employees

Diversity, equity, and inclusion are closely linked to employee engagement. Studies have provided evidence that diversity, equity, and inclusion are critical components in employee retention, productivity, and performance.  When employees feel included and valued, they are more likely become more engaged in the work they do and better perform while championing the organization. This, in turn, leads to better business outcomes for the organization.

6. Attracting top talent

Millennial and Generation Z are most diverse generational cohorts entering the workforce. Sixty-seven percent of job seekers value diversity, equity, and inclusion when seeking employment.  Prospective candidates are seeking companies that foster diverse and inclusive workplaces, and are more likely to stay when they feel appreciated. The advantages of workplace diversity that includes a more positive culture, increased profitability, and an atmosphere of inclusivity, are a snapshot of the many benefits a diverse organization, that help to attract and retain employees.

7.  50% of job seekers wish their organization would increase diversity 

As previously mentioned, Millennials make up the largest portion of the workforce. By the year 2025, Millennials will make up 75 percent of the workforce. A study has found that half of all employees feel that their organizations should do more to increase diversity and inclusion. Fifty-four percent say they will leave an organization for lack of commitment to diversity and inclusion.

8. 45% report more market share

Organizations with 2D or two-dimensional diversity are 45 percent more likely to report that they increased their market share and 70 percent of organizations with 2D  diversity are more likely to have entered into a new market within the past year.

Diversity, equity, and inclusion have not always been a top priority in organizations in the past. However,  in learning from past mistakes, the tides have been turning and a shift in focus has been placed on creating inclusive work environments for diverse teams. It has been evidenced that the organizations that have diverse leadership teams and focus on a culture of diversity, equity, and inclusion are actually winning. These organizations are leading in profitability, innovation, and employee recruitment and retention.  In order to foster an environment of inclusivity and build diverse teams, the action must be genuine and intentional with careful cultivation. The investment will lead to more fulfilled, more engaged employees who feel valued and better perform at work, increasing productivity, increasing client satisfaction, and ultimately increasing profitability. Organizations that are in the top quartile for 2D or two dimensional diversity including both gender and ethnic diversity are 12 percent more likely to outperform their less diverse counterparts, proving any investment in diversity, equity, and inclusion will be returned through better business outcomes. 

Managing through COVID-19: What your Employees Need Most

We are in the thick of an unprecedented time where all aspects of everyday life and business are dictated by the Coronavirus and fear.  Unemployment is at an all time high and businesses have been forced to close their doors.  While this negatively impacts most businesses, the effects to small businesses are most detrimental. For businesses that are deemed essential, it is imperative that leadership rise to the occasion during this global pandemic to inspire hope and resiliency in place of anxiety and uncertainty.  In order to move employees from a place of fear to a place of confidence and engagement, business leaders have to present a clear path forward. 

A forerunner in employee engagement metrics, Gallup, performed a meta-analysis that found four components that employees require of business leadership in times of crisis.  These four components or needs include: trust, compassion, stability, and hope. From their research that reviewed the findings of past crises and applied it to the impact of COVID-19, five actionable practices were derived to act as an audit tool to gauge just how well you are providing your employees with what is needed most in this time of crisis.

1.My leadership has a clear plan of action. During trying times, it is important that employees have faith in leadership to guide them through the obstacles in place.  They need to be able to trust that there is a clear path forward. However, Gallup has found that only 39% of American workers feel that their leadership has communicated a clear plan of action. 

2. I feel well-prepared to do my job. Having the tools you need to do your job is very     important and painfully obvious. With social distancing in play and working from      home becoming the new normal, this is even more important. For those who work in customer facing roles, PPE has become a necessity in addition to the tools needed to do their job.  Those who are new to working from home, now need to ensure they have proper equipment and a conducive home office setting.  In adapting to these new working condition, Gallup has found that 54% of Americans feel they are well-prepared to do their job.

3. My supervisor keeps me informed about what is going on. Communication and transparency are key in dealing with crisis management.  An organization’s response to COVID-19 should be clear and communicated across the entire organization.  However, it is the manager or supervisor who is responsible for providing understanding of the response and helping their direct reports adjust to the changes.  This includes flexibility as well as managing expectations.  Gallup has reported that only 48% of American respondents feel that their  supervisor or manager keeps them informed about what is going on in response to COVID-19.

4. My organization cares about my wellbeing.  A key component associated with employee engagement is employee wellbeing. During this pandemic, many employees are working from home with the added stress of having school aged children at home due to school closures. Flexibility and compassion from employers is imperative with the new normal in work-life balance during this crisis. Gallup has found that less than half of Americans, about 45%, feel like their organizations care about their wellbeing with respect to the impact of COVID-19.

5. Over the past 24 hours, how often have you been practicing social distancing? Don’t be part of the problem. It has been shown by the CDC and other governing agencies that in order to lessen the spread of VOVID-19, social distancing must be practiced continuously and consistently. We live in a time where technology is a vital part of everyday live, and we are fortunate enough to be able to use technology to stay together while we stay home. However, Gallup has found that only 26% percent of Americans reported they ‘Always’ practice social distancing and 40% reported that they practice social distancing ‘Very Often.’

It is highly recommended that you use this free tool to evaluate the pulse of your workforce as soon as possible.  Gallup provides free access to the COVID-19 leadership audit here.  They have found that a high response rate can be achieved in just 48 hours.  If you find that you do not score in the higher range, look at this as an opportunity. Work directly with your employees to find out how you can better provide them with what they need most in terms of trust, compassion, stability, and hope.

Millennials and CSR: An Infographic

This infographic was created as a supplement to my dissertation proposal defense last weekend.  It provides a high level overview of the significance of corporate social responsibility in the recruitment and engagement of millennial employees.

This infographic was created as a supplement to my dissertation proposal defense last weekend.  It provides a high level overview of the significance of corporate social responsibility in the recruitment and engagement of millennial employees.

Millennials and CSR

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GIVE Pgh: My Experience Building a PWA

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As a tech for good fellow with Net Impact, I was tasked with creating an impact project that would reach at least 250 people. The impact project I created is a progressive web app (PWA) called GIVE Pgh. The purpose of this app is for simpler charitable giving to non-profit organizations in the Pittsburgh area. The app will feature a new non-profit organization each month allowing users to donate through the JustGiving donation platform. This app aims to showcase the lesser known charity organizations in the Pittsburgh area that get overlooked.

The GIVE Pgh app aims to address the lack of support for smaller and lesser known charitable organizations in Pittsburgh. According to the 501c3 registry from the IRS, there are over 4,000 tax exempt or non-profit entities in the area. However, there are only a handful that get continuous recognition from the larger fundraisers throughout the region.

The GIVE Pgh app uses the JustGiving donation platform to provide simple and secure charitable giving. The simple donation integration API was used to achieve this. The app was developed with the GoodBarber app builder. The entire process was spent developing and designing the application. In addition, time was spent working with the JustGiving development team to get all the branding and necessary information for the app.

The GIVE Pgh app was published on April 29th, 2018. I have tested the app, but would like it to be tested by potential end users. The app has been downloaded by people in my personal network and I am awaiting feedback. I plan to take all feedback received and make adjustments to the app if necessary.

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With the help of the feedback from users, the GIVE Pgh app will give smaller charitable organizations the opportunity to have their missions spread across a different demographic. This exposure will help raise funds to continue to carry out the visions of these organizations.

The GIVE Pgh app will be sustained past this fellowship by becoming a non-profit organization. Currently I fund this project out of pocket as a progressive web app. However, I would like to upgrade the app from a PWA to a native application that would be available in the Google Play store for Android and the Apple App Store. I understand this is not an easy feat, however, I plan to file tax exempt status for GIVE Pgh and collaborate with interested people to grow this impact project.

There was a lot to learn during this process around patience, expectations, and the complexity of app building. Building an app, even if it is a progressive web app, is time consuming and takes both financial and technical wherewithal.

Continue reading “GIVE Pgh: My Experience Building a PWA”

Deloitte’s Millennial Survey 2017: Accountability and Influence

Deloitte has posted the results of their sixth annual Millennial Survey this year revealing less optimism and more apprehension.  As a result of a tumultuous political season last year and economic disruption including Brexit, millennials are less ambitious in bailing on current employers.  Instead they are seeking stability in what seems like a time of uncertainty.

Despite the obvious downturn of the 2017 survey results from those of 2016, the desire for millennials to work for a socially responsible organization has anything but diminished.  Their outlook on the current state of social impact among businesses is favorable. However, there is a desire for larger, multinational organizations to make more of an impact on social issues on a global level.

Many millennials feel accountability for the issues in the world around them.  Given that it may not be feasible for the average individual to make a global impact, employees seek to make an impact through their employers. Employer sponsored CSR initiatives including corporate volunteering, community outreach events, and charitable donations give employees the feeling of empowerment and influence.  These opportunities allow millennials, and any other socially conscious employees, to make tangible impacts locally.

According to the 2017 the survey administered by Deloitte, 59% of millennials believe they are at least fairly responsible for protecting the environment.  However they are realistic in the scope of their impact with only 38% of millennials believing they will have a significant level of influence on the world around them.  Overall, 77% of the participants have engaged in some charitable activity from fundraising to volunteering.

Millennials appear to have a preference to work for organizations that are socially responsible with respect to the world around them including the community and the environment. Although they are aware of their limitations of impact, millennials seek out opportunities to contribute to a good cause through their employers.  It is in the workplace that millennials feel they are the most accountable and can have the most influence.

 

 

 

CSR Initiatives Attract Top Talent

Competition is thicker than ever when it comes to the job market.  More and more candidates have advanced degrees and certifications that would, in the past, provide an advantage in the hiring procesimagess.  This leads one to believe that the job market has turned into a seller’s market over the years, where quality job seekers come a dime a dozen and employers have their pick.  While this may be the case for the average job seekers simply looking to get their foot in the door.  This is not the case for top talent with their own set of requirements they expect from an employer.

Top talent, especially those that are millennials, demand to work for innovative organizations that have more to offer than a decent benefits package and a competitive salary. Many want to work for a company that is socially responsible and focused on engagement of their employees.

Surveys administered from Gallup , Deloitte, and Net Impact, to name a few, show that job seekers and current employees prefer to work for organizations that are committed to CSR. They want the organization they work for to share their personal values and make a sociological-environmental impact.

Therefore, in order to attract top talent, many companies have changed their brand strategies while ramping up CSR initiatives. Sustainability and corporate social responsibility are not new philosophies in business.  That is why the focus now is not on whether or not a firm has a CSR initiative, as most companies do.  It is the extent to which the organization incorporates CSR in their framework and the sincerity of the programs that attract top talent.