In 2022, the business case for diversity, equity and inclusion no longer needs to be argued. It is universally accepted that leaders who want their organizations to compete and win in the market for talent know they need to foster a dynamic culture of belonging and inclusiveness. They know this because they have seen organizations that didn’t commit to DEI falter and fail.
Consequently, I believe this will be the year the C-suite turns to human resources and DEI professionals to help solve three big sets of challenges. Let’s look at the solutions that are already being deployed.
Solving Employee Retention and Talent Demand Challenges
Executives are tasking HR and DEI professionals with leveraging creative and innovative ways to retain employees in a historically competitive market for talent. Workers are shopping for the best opportunities, and, as they say in the housing industry, it’s a buyers’ market.
In a market where job candidates have the advantage, organizations that offer more inclusive benefits and compensation packages stand the best chances of filling vacancies and plugging talent gaps. Battling the Great Resignation will also require putting in place a clear strategic plan for fostering inclusion and belonging. There can be no more “courageous conversations” that amount to nothing more than talking the talk. “Quotas” also need to be treated as the outdated concept they are.
Walking the walk on DEI is critical. Be aware, though, that an effective plan to boost inclusion and belonging must fit in with other efforts to meet hiring, retention and professional development goals. Filling talent pools and pipelines for executives and finance professionals will likely demand special attention.
Solving the Remote Work Challenge
More organizations are creating flexible work options, and hybrid remote/in-person schedules are becoming common. Despite the world doing the best it can to return to “normal” operations, part- or full-time remote work will be a priority for many job seekers and long-term employees. An employer that insists everyone report to the office all day every day is likely to see a mass exodus of people who refuse to go back to the old way of doing business.
Obviously, many jobs must be performed on-site and face to face. But even those positions can be made more attractive with flexible work options such as 4-day weeks, earlier or later start times, and choice of worksite.
How does this apply to DEI? Flexibility makes a job more inclusive. It also shows that an employer values what people do outside of work hours.
Focusing on DEI when creating and modifying work policies ensures the needs of people are prioritized. Organizations that do not take this path will see employees disengage and jump ship to take new jobs or start their own businesses.
Solving the Leadership Diversity Challenge
As you probably know, a growing number of states have laws requiring publicly traded companies to include women and minorities on their corporate boards. NASDAQ also recently mandated board member diversity for companies trading on the exchange. Specifically, NASDAQ requires listed companies to have at least one board member who identifies as female, LGBTQ+ or a racial or ethnic minority. Anyone who thinks mandates for diverse leadership will end here needs to think again.
In Congress a U.S. House Subcommittee on Diversity and Inclusion exists under the Committee on Financial Services. Rep. Joyce Beatty, a Democrat from Ohio, chaired the subcommittee while also serving as vice chair of the full committee. Speaking at a diversity symposium in Cincinnati in late December 2021, Beatty remarked on the rapid shift in attitudes, saying, “I called the CEOs of each major financial institution to Washington, D.C., and they were given an action plan for diversification. And all of them showed up.” Watch this space.
Predictions for 2022 and Beyond
Granting that making predictions regarding DEI is like guaranteeing the weather in the Midwest (you think you know …), I will now offer my best advice regarding what HR and DEI professionals can expect. I promise I did not use my Magic 8-Ball!
- Increased Compensation for New Employees: Competition for talent is fierce, and the scarcity of great employees in various industries and locations enables talented people looking for jobs to demand their price. Finance departments should be ready to be flexible and prepared to set priorities for sweetening job offers in consultation with team leaders.
- More Inclusive Benefits: Growing numbers of employers will cover domestic partners in health plans, expand maternity and paternity leave, offer mental health days and make other formerly uncommon benefits common. The pandemic rocked everyone’s world and pushed us all to the limit. Don’t be surprised to see job candidates kicking the tires of your benefits offering.
- DEI Maturing as a Standalone Discipline: As DEI grows as a priority, I think we will start to see DEI departments separate from HR. The director of DEI will report directly to the chief executive. Why? DEI is not and should not be merely a compliance concern. Also, sometimes and in some situations, people do not trust the authenticity of DEI work when it is done exclusively inside HR.
- Increased Reliance on Data Analytics to Support Strategic Planning and Bolster DEI: As organizations grow in or walk a journey toward DEI, it will become more important for them to have reliable, consistent data for setting goals and establishing key results. Much of the raw data will be collected automatically and processed using AI tools.
- More Chief Diversity Officers: Look for the CDO role to become a staple. This will happen first within publicly traded companies due to rules like the NASDAQ listing requirement. As other organizations see the benefits of board diversity, they will add CDOs.
01 February 2022
Category
HR News Article