As various global social movements have brought increased attention to diversity issues, an increasing number of organizations are establishing senior leadership roles dedicated to diversity, equity, and inclusion (DE&I) as a means to drive lasting change. I recently had the opportunity to speak with several DE&I leaders within the insurance space to discuss best practices and obstacles in DE&I efforts. Here are some key insights from our discussion that could be valuable for your organization.
- Begin with Data.
Where should organizations begin their DE&I journey? Everyone stressed the importance of beginning with a clear understanding of the organization’s current state. One leader emphasized the significance of starting with reality rather than assumptions, stating, “Data closes the gap between perception and reality.” Data can help organizations pinpoint “hot spots” where individuals from diverse backgrounds may face obstacles in hiring, promotions, or higher-than-average turnover rates.
While many organizations track gender data, tracking other aspects of diversity has proven more challenging due to data policies. Some companies have implemented self-identification processes, while others are hesitant to collect additional data until they have a clear plan for its use. One large organization seeks employees’ consent to disclose additional information, such as ethnic and racial background, but restricts access to individual data to just five people within the organization. Only trends are shared at the business unit level to safeguard privacy with materiality thresholds. There is an argument for publicly disclosing aggregate DE&I information to promote accountability. What gets measured gets managed, but what gets disclosed gets really managed.
- Lead by Example
As with any significant organizational transformation, leadership at the top is crucial. However, declarations from senior leadership can be empty without consistent behavioral changes that support DE&I goals. According to some of the DE&I professionals, grand gestures are not necessarily indicative of a commitment to DE&I. Subtle signs of progress can be more meaningful. A win for them is when the executive team addresses DE&I proactively. Others highlighted the importance of CEOs and other C-level leaders openly acknowledging their own mistakes as a positive sign of change. One mentioned, “Success is when leaders understand the importance of DE&I and lead by example.” Some of their mid-level leaders and above participate in allyship programs, and they are no longer the sole advocate.
- Foster a Psychologically Safe Environment
Individuals thrive when they can bring their authentic selves to work. It’s about ensuring that everyone in the organization feels they can reach their full potential. Psychological safety is crucial for inclusion and overall employee engagement. Some managers pose questions to employees regarding psychological safety, revealing gaps between genders and racially diverse and non-diverse groups. Particularly in a virtual work environment, leaders must make a dedicated effort to create opportunities for open expression, such as virtual office hours, regular check-ins on team dynamics, and setting a positive example.
It was clear in my conversations that improving DE&I is not a mere checkbox exercise. It needs to be engrained throughout the enterprise with full support of management. Taking meaningful steps, such as utilizing data to clarify the organization’s position, setting leadership examples, and fostering an inclusive culture, can set your organization on the path to long-term progress.