Prioritizing Inclusion During Uncertainty
When talks of budget cuts brew in the atmosphere, kindness is usually the first to be axed as well. When money becomes a concern, the way people are treated, and the importance of culture can often take a back seat. Unfortunately, the focus changes from the importance of healthy workplace environments to prioritizing other areas that appear to be more profitable. The concern moves to what leaders mistakenly feel has more tangible results. Feeling valued with a sense of belonging is a result that organizations should desire because of the overall outcome for their business. As the Great Resignation taught us that people want to be where they are valued, have a voice, and believe they can be their authentic selves. So, even during economic downturns, high interest rates, and economic and political uncertainty, it is important to remember that DEI is more than just nice to have but a necessity in creating an organizational culture that is resilient, market competitive, innovative and productive. Organizations must ensure that inclusion is integrated into our spaces if maintaining company longevity is the goal.
Several companies have already filed bankruptcy this year. Major retailers such as Bed, Bath & Beyond, David’s Bridal, Boxed, Tuesday Morning and Party City are in this group. CBI We can examine the correlation between their financial distress and the diversity and inclusion perception of their employee community and may draw some hints as to why there was a ceiling on their success. Glassdoor reports that Bed, Bath & Beyond has a 3.6 out of 5 diversity score. Their average rating has declined by .03% over the past 12 months. David’s Bridal was rated 3.7 out of 5 with the lack of care for employees and diversity mentioned as grossly lacking. Tuesday Morning’s diversity and inclusion culture was 3.4 out of 5, while Party City faired at 3.6 out of 5 based on 691 anonymous employee responses. There is a negative impact when employees feel that their organization does not care about diversity and inclusion, including low engagement and turnover. An additional consequence is that employees offer negative reviews, and their void of care becomes obvious on critical platforms that affect growth and lucrativeness. The Void of Care Blog Post
Although these are small sample sizes, the data supports what other studies have shown empirically – the correlation between a diverse and inclusive culture and the profitability of a company. Organizations should always be concerned about how each employee experiences their culture because word- of- mouth alone travels fast and can influence investors and stockholders’ confidence in the leadership and strategy. We may not know the ins and outs of these retailers’ strategy and approach to diversity, equity and inclusion; however, the evidence suggests that the investment was insufficient to yield innovation, resilience and competitiveness.
Today, innovation and staying on the cutting edge will be critical to thrive in the current economy and beyond. Commerce is about the survival of the fittest. Organizations who are averse to investing in their culture will find it more difficult to thrive.
Companies who have consistency in their focus around DEI tend to be more resilient during downturns. If inclusion remains a priority, innovation will flourish. Can you be innovative without listening to people? Are you able to stay afloat during financial difficulties if your people are not bought in to your strategy and values? The question becomes, if your organization was forced to cut their budget, what area do you believe would be the first to be on the chopping block?
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