Deciphering DEI at the Crossroads

If you are rethinking or reframing Diversity, Equity, and Inclusion currently – you’re not alone!

This week, myself and Emma Lutwyche, Special Counsel at Pinsent Mason, connected to tackle the question of ‘where to from here for DEI’? A timely topic given the current social and legal crossroads.

Is DEI Dead?

Whilst we agreed there’s currently considerable ambiguity and uncertainty as a result of the “Flood the Zone” strategy coming from the US, it’s clear that DEI is by no means "dead" in Australia, or even in the US for that matter. (1)

Whilst it’s certainly facing some detailed questions, if well managed, this moment has the potential to be an opportunity to improve organisation outcomes through a more authentic approach to inclusion.

Whilst Australia’s historical, racial, social, and legal context is very different to the US, the current debate presents an opportunity to ask the question, ‘to what extent are our current approaches serving us and our organisations, in the most effective way?’

Is there in fact a possibility, that we may we be perpetuating and magnifying bias, as a result of our own ingrained human stereotypes and beliefs, and potentially exacerbating exclusion for so-called ‘historically privileged populations’? 

Legal Differences between the US and Australia

Emma confirmed that Australia is unlike the US, which lacks protection for affirmative action at a federal level, and instead relies on the laws of individual states. In contrast, Australia boasts robust long-standing laws at both federal and state level, which are unlikely to be removed, even in the event of a new government being elected at the next federal election. 

Australia’s protections for minority groups support a variety of human rights charters, and reflect a commitment to social equality for a wide variety of people, which is consistent with one of the world’s most multicultural nations. Further, in the last 3 years, there has been a strengthening of protections for minority groups in our employment law, at both the Federal and State levels, through anti-discrimination and work health and safety legislation, in addition to a broadening of reporting requirements such as the gender pay gap.

This is good news for organisations with targeted policies, practices and programs, designed to increase access to jobs or leadership positions, for which minority groups have historically been at a disadvantage.

Inclusion @ Work enables individuals and teams to thrive, not just survive.

Navigating Organisational Tensions

Putting the legal backdrop aside for the moment, if DEI strategies are to be more than just ‘woke washing’ initiatives, it’s important organisations are aware there’s no ‘one-size-fits-all’ approach.

As we’ve seen in the tech sector in the US, and the supermarket industry both here in Australia and the US, there’s been a range of responses to the current context.

At one end of the spectrum we’ve seen organisations come under pressure to unceremoniously ‘dump’ their DEI strategies, and those with a business model linked to US government funding, such as Accenture, have felt they have no choice but to acquiesce. 

Depending on your perspective, Walmart has taken a ‘letter of the law approach’ with their “Inclusion for All” strategy.  Conversely, it has also been widely surmised, that rather than walking back their DEI strategy, they are engaging in a rebranding or reframing approach. 

Costco, on the other hand, has clearly recommitted to the value of DEI in their customer and employee strategies. Here in Australia, Woolworths have taken a middle road, bringing back Australia Day merchandise for purchase online only, after removing it from both stores and online the year prior, during the polarising Referendum discussion.

Creating Real Value from DEI Strategies

Given the significant investment and likely opportunity cost, of operationalising DEI strategies and initiatives, it's important to consider whether DEI principles and practices are in alignment with your organisation’s external customer / market value, and internal cultural values.  If they are indeed aligned, then it is a responsible use of finite organisational resources, to ensure those strategies deliver as would be expected, of any other strategic organisation initiative.

As such, this moment of reflection offers an opportunity to review your organisation’s data and approach, and make adjustments where opportunities are identified. Furthermore, given the requirement for Australian organisations to be proactively psychosocially safe, respectful and inclusive for everyone, (in addition to flexible for some), there is a potential source of competitive advantage for those taking the view DEI principles have the potential to be ‘good for all’, not just for those required under the legislation. Aurecon is an example of an organisation which has clearly committed to this approach. Recognising the complexity of developing policies which support those who identify as women only, for example, they are demonstrating how organisations can both comply with legislative standards, and be inclusive for all.

Berin, Least Impactful DEI Initiatives

Risks of Removing Existing DEI Initiatives

Emma highlighted the risks for organisations in the event they decide to remove policies, practices or programs focused on supporting specific underrepresented groups. Which confirms that if organisations decide to eliminate, for example, existing development opportunities such as mentoring and sponsorship programs for women or another minority group, they potentially expose themselves to claims of unlawful discrimination. As such, adjustments in the current environment need to be navigated with care, and a clear understanding and explanation, of why certain approaches are being taken and others not.

The Merit Myth

This leads us to the ongoing conversation regarding the importance of Merit, and a preference to the principle of fairness, more than equity.  It’s important to understand what this actually means in practice, however.  Reviewing the workplace experience data (above), is helpful in understanding the real world impact of a principles based decision.

What we consistently see is those who are members of underrepresented groups, or those with greater degrees of intersectionality, experiencing lesser degrees of inclusion and belonging.

Are we more committed to a principle, or the practical impact of our decisions?

The Merit Myth is reasonably well understood, and the challenge for 1 underrepresented group is highlighted in this cartoon below.  As a myth, however, it has proved to be remarkably resilient. In part this is because people have a predisposition to hire, promote, recognise and reward others more like them.  However, it also occurs because we are comfortable with an approach consistent with prior success, and because ‘outsiders’ are more likely than ‘insiders’, to bring new perspectives or potentially unwelcome information which may be at odds with our historical preferences. We call this the phenomenon, Identity and Information Bias.

Practical Actions for HR and DEI Leaders

Emma confirmed, that even 2 years after the implementation of Respect @ Work Legislation, many organisations are still grappling with how to operationalise psychosocial safety. She stressed that frontline managers are the key to this, and providing simple, but practical tools to proactively create safe, respectful and inclusive cultures for all, whilst also addressing inappropriate behaviour promptly, is key.

From a systems perspective, it’s also important to review your organisation’s data and understand potential risks or areas of exposure. From a human and interpersonal interaction perspective, most organisations understand the need not just to be aware of unconscious bias, but to proactively act on them. 

After years of significant investment and effort, however, unconscious bias training has not produced an equitable playing field for many, and so it is time to prioritise practical steps to “look beyond the labels”, and proactively foster an inclusive workplace for everyone.

Clear, consistent and uncomplicated approaches, which reinforce the desired mindsets and skillsets, particularly for leaders, and address Australia’s legislative requirements, are a priority for all organisations.  To date, however, it is rare that training which synthesises Identity based Inclusion in the new legal environment, has been combined into a single consumable package for time-poor leaders, who continue to find it challenging to operationalise on a daily basis.

The Remaining Open Question

Whilst we all agree that fairness sounds like a positive approach in life and work, how do we achieve it without further disadvantaging people who are already disadvantaged?

It is undoubtedly a delicate navigation, with a requirement for nuanced communication. In such situations, “and thinking” can be a helpful tool. 

In other words, how do we safely provide appropriate support for our disadvantaged (underrepresented) team members, whilst also ensuring everyone equally has a fair opportunity to participate in what McKinsey has called, a “Diverse Meritocracy”? (2)

In challenging moments such as these, returning to the principles of diversity and inclusion for guidance can be helpful.  If safety, respect and inclusion are at the heart of your organisation’s strategy, then together with a diverse representation of perspectives, organisations have the ingredients required to navigate this landmark moment for DEI, and benefit both our organisations, individuals and society.

 At I LEAD Consulting we’re on a mission to bring us all together and simplify Diversity and Inclusion for Leaders and Teams.

PRACTICE  INCLUSION | EMBRACE  DIVERSITY | ACTIVATE  ALLIES

(1) Glasgow, Meltzer Centre; (2) McKinsey