Lanaya Irvin, CEO of Coqual
Every year companies in the US spend around $8 billion on DEI efforts, according to research by the consulting firm McKinsey. With all the financial investment, time and attention put into advancing diversity, equity and inclusion (DEI) in corporations, it is crucial to understand who benefits from these efforts.
In 2019 a report entitled Being Black in Corporate America, released by global nonprofit, think tank, and advisory Coqual, found that Black professionals are more likely to encounter prejudice and microaggressions than other ethnic groups. They are also less likely than their white counterparts to have access to senior leaders and managerial support.
The report lays out employees' everyday experiences of systemic racism in workplaces and the consequences it creates for those trying to advance to senior leadership positions. For example, Black professionals are nearly four times as likely as white professionals to say they've experienced racial prejudice at work.
Additionally, Black women are less likely to have access to the same support and advocacy as white women. Black women who are often numerically under-represented in professional occupations regularly grapple with how to counteract negative racial stereotypes that undermine their professional images in the office. In response, they often have to strategically engage in code-switching, by adjusting their speech, appearance, and behaviors to try and fit in.
While many white women have made gains in American workplaces, the gains for racial and ethnic minority women haven't been as significant. According to another McKinsey study, white women hold nearly 19% of all C-suite positions, while racial and ethnic minority women only hold 4%. Overall, white women have benefited disproportionally from corporate DEI efforts.
"It's very easy for companies to think, we've delivered on women, on gender, we have parity. But without looking at data intersectionally, looking at groups across signs of difference, we may not see the groups for whom we aren't creating the conditions to thrive. For Black colleagues, the barriers they face to advancement seem to be largely invisible to their white colleagues," says Lanaya Irvin, CEO of Coqual.
There's a tendency when implementing DEI initiatives to consider women's experiences with a unified view. The problem with that is that it tends to reflect the experiences of white women because they make up the dominant group of women leaders in corporations today.
"A material gap in perception makes overcoming these retention, development, and advancement hurdles much more difficult for Black employees. It's because the gap between what employees are experiencing and what their peers or managers understand or believe is wide," explains Irvin.
Creating more inclusive workplaces for all women starts with recognizing different lived experiences, and here Irvin shares three actions we can take.
Focus On Belonging
Irvin notes that the study indicated that Black talent was willing to forgo benefits such as high income and opportunities to travel for a culture where they felt they belonged. This included feeling seen, acknowledged and valued by their peers and managers.
"When I spend time with senior leaders in our task force, I think that what we find in being Black in corporate America is hugely instructive for what larger companies should be and should foster at their firms. This sense of trust, a sense of community, lifts the ideas of others and fosters a sense of belonging," she says.
To ensure high levels of productivity, employee engagement and retention, Irvin says companies need to start creating a culture where employees feel like they belong.
Ensure Consistency, Transparency and Clarity In The Promotion Process
Coqual's research demonstrates that women of color, particularly Black women, feel acutely aware that they are being passed over for promotion for equally or less qualified colleagues.
Discrimination is much more likely to occur in a promotion process when leaders do not have clear promotion criteria or they don't apply those criteria consistently.
Irvin says leaders need to be transparent on what it takes to get ahead to solve inequality in representation. "Companies must set clear expectations around how advancement works. We need clarity around expectations, including inclusive behavior," she says.
Acknowledge The Costs
While companies are quick to hire employees from typically underrepresented groups, Irvin says most organization tend not to put as much effort into retaining them. Consequently, leaders simply do not acknowledge the turnover costs associated with poor company cultures, and they are less likely to take action to solve this problem.
"Individuals are looking for places to be seen and rewarded for their unique contributions. Talent has a tremendous amount of choices today. And employees will leave. They will leave to join an organizations where they're embraced for their differences," she says.
