Diversity, equity, and inclusion

Pillar 2

PILLAR 2

Diversity, equity, and inclusion

When it comes to building resilient workforces in order to compete in a changing economy, culture is king. Leading employers understand that in today’s world, supporting diversity, equity, and inclusion (DEI) is non-negotiable: it is now at the heart of great employee experiences and winning workforce strategies.

DEI and a four-way win

Keilon Ratliff, Chief Diversity Officer at Kelly, says there are different views on talking about diversity as a driver of business performance—but he insists it is appropriate. “We look at it as a four-way win,” he explains.

Think about the impact of increasing diversity in hiring, says Ratliff. “First, if an organization is getting talent that it otherwise would have overlooked, then it benefits. Second, the talent is getting a win, because they may not have otherwise had an opportunity to get that job.

“Then we have the community. If you’re finding more people jobs, that’s helping the community.” Finally, says Ratliff, Kelly wins too: “Ultimately, if you have those three, Kelly is more profitable because we’re putting people into great jobs. We’re a for-profit organization and we have a mission with DEI as a focus—and proud of it.”

Competing on culture

Money is not everything when it comes to attracting talent, and for some employers it is not the primary focus of their employee proposition. “When we’re competing for talent, our strongest competition lever isn’t salary—it’s our benefits, our company culture and flexibility,” says Megan Henry of Cummins Inc. “Our employee value proposition focuses on respect in the workplace: how we can develop you and give you as much flexibility as possible.”

Henry’s firm has taken multiple steps to build a more diverse and inclusive workforce, from offering flexible shift patterns to boosting recruitment among historically black colleges, universities, and from among veterans, and piloting schemes to boost employment of neurodiverse individuals and ex-inmates [see box on Kelly 33]. “We’re excited about the opportunities ahead of us,” says Henry.

At JTI GBS, we create a safe environment to help build trust and to inspire people to be confident with their authentic selves. A diverse, equal and inclusive workplace is a vital part of our organizational culture. We have number of activities supporting it and lately, we have started workshops for our employees on the topic of cognitive diversity and the different ways of thinking in every individual. This is not only helping us being a better team, but also a more effective one.

Philip Rybakov
People and Culture Director, JTI GBS Poland

The data shows that most organizations still have work to do on DEI. Less than a quarter have implemented initiatives that support inclusion, such as programs to develop talent from underrepresented groups (22%). Shockingly, just 16% of executives say their organization has a clear route for reporting discrimination at work.

The talent view of DEI

Our talent survey underlines the wide gap between DEI goals and the status quo: 43% of talent say they have experienced non-inclusive behaviors at their current employer. There is a high correlation with those who are planning to leave their roles within 12 months: 62% of this group report non-inclusive behavior.

Only 35% of talent say that leaders in their organization model inclusive behaviors at all times, while 38% believe their employer only pays lip service to DEI.

Figure 10: Organizations get mixed reviews from talent on DEI

The executive view of DEI

Among executives, the perception that organizations are not putting DEI into practice is even higher than among talent: 47% agree. Similar numbers say that leaders are not actively creating an inclusive culture and say there are issues retaining and progressing talent from underrepresented groups.

Figure 11: Executives are also aware of DEI shortfalls—and progress has declined over the past year

When compared with the data from our 2022 research, it’s apparent that progress around some aspects of DEI is declining. The prevalence of senior managers hosting open conversations on inclusion, for example, has dropped from 30% in 2022 to 21%. Is this a sign of DEI fatigue?

Figure 12: Compared with 2022, executives are less likely to say they have implemented many initiatives that foster diversity and inclusion

Second chances: Accessing an overlooked talent pool

Companies struggling to access talent could consider some overlooked sources of diverse potential employees. People with a criminal record, for instance, is a talent source that Kelly is addressing with its Kelly 33 Second Chances Program.

The program recognizes that stringent corporate policies can exclude candidates with even minor misdemeanors from job opportunities; its name is a reference to the fact that about one in three Americans has a criminal history.

“I say to people: ‘I’m sure you know people that have some kind of a blemish on their record, and they’re not all bad people.’ They’re friends and family,” says Keilon Ratliff from Kelly.

Many companies fear the risks of having potentially dangerous individuals in their workforces, but closer examination can reveal opportunities for the large number of people with non-violent offenses.

After partnering with Kelly, one organization hired more than 600 skilled workers with non-violent criminal records. It was able to grow its talent pool by 20%, reduce its turnover rate by 70% to an all-time average monthly low of 3%, and diversify its workforce by 8%.

“Amazing things happen when people are given a second chance,” says Ratliff.

Second chances: Accessing an overlooked talent pool

Companies struggling to access talent could consider some overlooked sources of diverse potential employees. People with a criminal record, for instance, which is talent source that Kelly is addressing with its Kelly 33 Second Chances Program.

“I say to people: ‘I’m sure you know people that have some kind of a blemish on their record, and they’re not all bad people.’ They’re friends and family,” says Kelly’s Keilon Ratliff.

“Amazing things happen when people are given a second chance,” says Ratliff.

Lessons from the Workforce Resilience Leaders

Workforce Resilience Leaders are more likely than other companies to be focusing on inclusion. This starts with listening to employees: 35% of the Leaders run a regular employee survey, compared with 26% of the Workforce Resilience Laggards, and 62% say they are good at listening to the views of employees at all levels of the organization (compared with 33% of the Laggards).

Once they have listened, they take action: the Leaders are more likely than the Laggards to say they are providing a living wage to workers at all levels of the organization (70% compared with 51%), and that they are good at progressing workers from underrepresented groups into more senior-level roles (63% compared with 31%). They are also more likely to say they have reviewed hiring processes to make them more inclusive (67% compared with 37%).

The data shows that this action on DEI is paying off: the Workforce Resilience Leaders are more likely than the Workforce Resilience Laggards to report that employee satisfaction and wellbeing improved in the past 12 months (55% compared with 40%, and 62% compared with 41%). And they are almost twice as likely as the Laggards to say that employee productivity has increased over the past 12 months (69% compared with 35%).