5 Tips to Improve Corporate Diversity Strategies

Many of us are still processing our feelings of outrage, sadness, and frustration with the recent police brutality incidents we've witnessed. We are all now forced to acknowledge and confront the systemic racism that still exists in both our society and workplaces. As a vocal advocate for more minority and women representation in tech and in leadership, I'm exhilarated about the current momentum and I welcome new faces to the movement. Now is the time to move past acknowledgment of existing racism and having conversations to rolling our sleeves up and taking action to drive change.

Regardless of where your company is on their diversity, inclusion, and equality journey, there is still work to be done. Black people and minorities are woefully underrepresented in just about every area of corporate, from total representation to representation in leadership, in the C-suite, and on company boards. This trend continues even when research demonstrates again and again that organizations with diverse teams and inclusive cultures result in greater profitability and value created. A 2018 report from McKinsey found that diverse leadership teams at the executive level are 33 percent more likely to have above-average profitability than companies in the bottom quartile. An HBR study on innovation also found that diverse teams are significantly better positioned, 70% more, to enter new markets.

So why then do companies still lack diverse teams even when there are such benefits to gain? It's time to confront the fact that our corporate policies for recruiting, developing, promoting, and retaining minorities and women reinforce behaviors that result in a lack of diversity. But it's not too late! On the heels of the global protests against racism, every company should use this moment to rethink and improve their corporate diversity strategy. Here are a few suggestions on where to get started, regardless of your current maturity level with diversity and inclusion strategies:

#1 Provide Education and Create Spaces for Uncomfortable Discussions on a Regular Basis

I know many of us are experiencing overload with the amount of resources companies are providing today on anti-racism and bias due to the current climate - there seems to be a new town hall, forum, or educational resource presented every day. While this is great, let's ask ourselves, how many companies offered these resources before the murder of George Floyd? How much longer will they be offered as the initial shock fades?

Consistent education is key. Diversity and inclusion education and bias training shouldn't only happen once a year - this is not the same as confidentiality acknowledgments. Employees need to truly understand anti-racism, different types of bias, microaggressions, systemic racism, and how all of these show up at work. Once a year education on these themes is ineffective. Companies must invest in regular education for their workforce in a way that allows for learned knowledge to be applied. Companies should also have regular forums for employees to discuss uncomfortable topics such as racism - many people (sadly) do not have diversity in their personal lives. The opportunity to engage with minorities at work and hear their stories is critical to achieving an inclusive work culture.

#2 Hire More Minorities at Every Level

This is an easy one - hire more black people and minorities. Period. Before allowing yourself to slip into the "its a pipeline problem" narrative, evaluate if you are truly investing resources to identify minority talent at all levels - this includes partnering with universities (where minority talent actually exists) for entry-level roles, identifying experienced professionals, and cultivating relationships with senior executives for future opportunities.

#3 Reevaluate Recruiting Processes

Building on number 2, every company should do a full end-to-end review of its recruiting processes if the company lacks appropriate representation at every level. Many companies continue to hire as much as 50% of their workforce through employee referrals. This leads to homogenous employee referrals from the same companies and universities that, in many cases, have also traditionally lacked diversity. This is a losing strategy for closing the minority representation gap. The same applies when actively recruiting from competitor companies that lack diversity.

Instead, investigate where false barriers to considering diverse candidates exist. How open are your hiring managers to review resumes from applicants that didn't attend universities or work for companies traditionally represented within your company? Do you have diverse interview panels to ensure a fair and balanced perspective during hiring? If recruiter compensation and targets are aligned to quickly filing roles, how do their incentives adjust when they are successful at placing minority talent? It is known that recruiting minority talent may take recruiters longer as it's not as simple as going to your top 5 competitors (who lack diversity) to find talent. There must be appropriate alignment with recruiter goals and incentives to acknowledge this point and drive desired behavior.

#4 Be Transparent on Current Representation with Goals and Measures for Accountability

Companies should aim to be transparent (where legally possible) with minority and women representation in their organizations and in leadership. Concealing, or not being completely forthcoming, with the data can create a sense of distrust within the minority and women communities at your company.

Additionally, do not group together minorities and women in measuring your current representation and goals. Too often, companies reference "Underrepresented Groups" (URG), which includes women and minorities. The result of this has been an improvement in hiring and promoting white women to the leadership level while minorities have seen little, if any, improvement. Company goals and actions to achieve those goals should be designed to specifically focus on improving representation for each group to avoid celebrating perceived improvement that actually only benefits one group while leaving minorities behind.

#5 Invest in Youth and Internal Development Programs

Invest in youth development programs relative to your industry to ensure equal access to opportunity and that the minority pipeline is flourishing. There are so many ways to achieve this. Sponsor a school, host an office visit, offer employee mentors to students, provide grants to nonprofit organizations that offer development programs... Host a think tank session and encourage employees to participate in brainstorming ideas in this area.

Additionally, if your company requires a specialized skill set for certain roles, reevaluate internal development programs offered to upskill high potential candidates who may not be an exact match for the desired experience. Are 7 years of Xyz experience really required or could an internal development program for a high potential candidate with applicable experience allow for success entering a role? Companies' diversity and inclusion strategies should include investing in youth development programs in their industries while also offering internal development programs.