Be more effective in DEI policy by getting boards involved

Diversity, equity, and inclusion (DEI) policies can often be left to the HR and people teams. However, companies should recognise the impact these policies can have, and by promoting these ideas from the top down, better progress can be made.

The importance of DEI should not be understated. Not only does it create a safe and inclusive workforce for employees, but it actually boosts business performance.

As previously discussed by HR Leader, an effective DEI strategy can bolster profitability and performance within teams by providing better engagement and wellbeing.

That’s why getting board members and senior leadership invested in these ideas is so important. Jasleen Kaur, senior principal of HR advisory at Gartner says the influence these leaders have is crucial to success.

“Board members are in a strong position to influence the future direction and strategy of the organisation and, hence, can look beyond talent outcomes to ensure DEI is well-embedded in organisational strategy and processes,” said Ms Kaur.

“The board has the authority to determine real consequences for the success or failure of meeting DEI goals. The consequences of not prioritising diversity or getting it wrong can be severe, so it is up to HR to make a persuasive case.”

Getting board members involved in these decisions “simply makes good business sense” says Ms Kaur.

“Gartner research indicates that 56 per cent of full-time employees believe it’s very important that their workplace is ethnically, racially or culturally diverse. An inclusive environment is more likely to attract and retain workers, with employees more productive in a positive work culture,” she explained.

“In fact, diverse and inclusive teams perform 1.4 times better than those that are not. Establishing a positive work culture requires a whole of organisation commitment, and this is why the board’s involvement is central to the effectiveness of any DEI initiative.”

So how can organisations best achieve this? According to Ms Kaur, leaders need to begin to educate board members on the benefits that DEI policy has and build an effective business case.

“Leaders need to expand the board’s understanding of DEI by shifting their mindset and making a business case that is specific to the organisation and its priorities,” she said.

“They must also demonstrate its benefits and the risks of inaction or treating it as a tick-box exercise. It is so much more than hiring or promoting women or people with different abilities.”

Ms Kaur continued: “The board also needs to be aware of the current state of DEI initiatives in their organisation and understand the priorities of individual business units. This can be achieved by working with senior leaders to establish specific goals.”

A key theme of enacting effective DEI policy is ensuring that these ideas flow through all areas of the business. To achieve this, Ms Kaur says “communication and inclusion are key.”

“Often there is limited visibility into what individual business areas may be doing to drive DEI. This may be because of where they sit within the organisation or the lack of communication between each group,” Ms Kaur outlined.

“Leaders should focus on building an inclusive culture involving all employees that both encourages and celebrates the sharing of DEI milestones and stories.”

“From an executive perspective, establishing DEI as a standing agenda item ensures it remains top-of-mind. While 45 per cent of boards say diversity is on their agenda at every board meeting or at least on a quarterly basis, they must do more than simply review data and take decisive action on progressing initiatives.”