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Diversity and Inclusion: Cultural Shifts Changing The Way We Do Business

Business

As sentiments from the #MeToo movement continue into 2018, gender dynamics and expectations for equality - both qualitative and quantitative - are on the top of everyone’s mind in America’s technology and business sectors. Company-wide initiatives that advocate for diversity and inclusion are becoming more prevalent, and we are likely to see these initiatives become the standard across the board.


By 2022, the Human Capital Management market is expected to reach $22.5 billion, almost doubled from 2017. And with a third of executives expected to increase Diversity and Inclusion spending next year, it’s safe to say this growing market opportunity will include tools, resources and a new crop of companies and services focused on D&I.

As with any cultural or social shift, innovation and funding tends to follow. We can expect new companies and technologies to emerge. These solutions will be particularly important for small businesses and early-stage companies, who stand to create teams and workplaces where D&I is built in to culture and policy from the get go.

The market opportunity for D&I is finally gaining more widespread attention, but based on some of my own qualitative research, as well as hard data, it’s about to grow significantly and quickly. Here are five market trends and opportunities in the D&I space we can expect to develop over the next few years:

The “I” in D&I

The discussion and action thus far has primarily been focused on diversity. Recruiting teams are looking at numbers of minorities and underrepresented groups within a company and then seeking out or hiring talent accordingly. While this isn’t a comprehensive approach, it’s quantifiable and concrete. Plus, research shows that diverse teams perform better than homogenous teams, which is making it easier to convince executives and boards to spend on diversity initiatives.

"Research shows that diverse teams perform better than homogenous teams, which is making it easier to convince executives and boards to spend on diversity initiatives." - Kate Brodock

The next step — radical inclusion — is far less linear. It relies more on psychology, as well as social, emotional and cultural intelligence across leadership and entire teams. However, as those teams diversify so will the thinkers, and diverse thinkers can more readily tap into diverse layers of human connection and culture.

In other words, we’ll naturally see an increase in the focus on inclusion and the creation of a work culture and set of principles that supports a diverse workforce.

Frameworks

In order to truly reveal the value of D&I, companies will need to implement new systems. We'll see new narratives and frameworks seep into the D&I market via internal teams and third-party service providers. At Women 2.0, we use the 3Ps (Principle, Policy, Process) to frame how we interact with the industry.

“Principle” relates to a company’s core values and culture. It’s essentially saying “do you have the moral foundation built in and set by leadership”?

With “Policy,” we’re looking at the tangible, recorded and actionable guidelines a company puts in place to support an organic D&I culture.

And finally, “Process” focuses on defining results and developing measurable systems that drive ongoing success.

Budget Spend

There will be two primary shifts in how money flows through the D&I market. We’ve already observed D&I dollars are moving from external-facing CSR efforts to internal-facing initiatives. With 96% of executives understanding that D&I could improve their bottom lines, this means D&I is lined up to receive budgets more akin to recruiting and HR.

Which brings us to the second major shift in budget: the sheer number of core resources, whether it’s bandwidth or capital, dedicated to D&I. In the second half of last year, 35% of executives reported that they would be increasing their budgets for D&I, and I suspect that number has gone up since then.

People are beginning to understand that this isn’t a numbers game. Processes need to be changed, cultures have to shift to support a diversified workplace, and policies have to get overhauled. This takes time and energy, and isn’t for the faint of heart.

DiversityTech

As we’ve seen with HRTech, we’re going to see a lot more tech-enabled solutions hit the market for D&I. Technology can increase access to D&I resources while lowering costs. However, especially when considering that Artificial Intelligence will likely play a massive role in the emergence of DiversityTech, the effectiveness of some of these technologies remains to be seen, and it will likely become a more nuanced conversation.

In my previous role, we ran an AI-driven talent marketplace that matches technologists to open tech roles. It demonstrated how AI can help companies develop their workforces, and what could happen in the future.

It also showed how difficult issues like bias were to be solved, and emphasized the adoption hurdles people had to get over in order to introduce technology and machines as solutions to what are traditionally perceived as “human” and “emotional” problems.

There is absolutely room for technology in this space, but we aren’t going to see a big adoption curve this year. The curve is also going to be lower, as many of the DiversityTech solutions out there are targeted at larger companies, so smaller companies won’t have immediate access.

Data & Analytics

This may be an obvious one (what market doesn’t rely on data?) but it’s also a tough one. Similar to AI’s role in D&I, data and analytics are best reserved for concrete numbers and tangible results. With D&I, we’re dealing with the connection between "soft" things, like humans and culture, and "hard" things, like bottom line and team performance. Traditionally, D&I has had very little measurement around it - aside from general HR data - and the industry is having to build metrics and frameworks from scratch.

But if the connection can be made, it’s clearly valuable, as evidenced by an unprecedented IBM lawsuit that thrust the value of diversity-yielding data, resources and strategy into the spotlight earlier this year.

IBM sued its former Chief Diversity Officer for presumably violating a non-compete agreement after she left the company for a similar job at Microsoft. This lawsuit suggested that she had access to IBM’s internal data on D&I, and that she would be taking that knowledge with her to Microsoft. IBM considered this a breach of contract by leaving with “trade secrets.”

This is significant, as it highlights just how much value the tech giants place on diversity strategies and their impact on business results, and it reveals that they will go to great lengths to protect them.

Especially for early-stage companies and small businesses, the D&I market paints a clearer picture of how bottom lines, employee morale and social progress work - or don’t work - together. And as small companies become big companies, the next Google, Amazon, Apple or even IBMs of the world will, with any luck, be born with D&I in their DNA.

Career

Male Managers Afraid To Mentor Women In Wake Of #MeToo Movement

Women in the workplace have always experienced a certain degree of discrimination from male colleagues, and according to new studies, it appears that it is becoming even more difficult for women to get acclimated to modern day work environments, in wake of the #MeToo Movement.


In a recent study conducted by LeanIn.org, in partnership with SurveyMonkey, 60% of male managers confessed to feeling uncomfortable engaging in social situations with women in and outside of the workplace. This includes interactions such as mentorships, meetings, and basic work activities. This statistic comes as a shocking 32% rise from 2018.

What appears the be the crux of the matter is that men are afraid of being accused of sexual harassment. While it is impossible to discredit this fear as incidents of wrongful accusations have taken place, the extent to which it has burgeoned is unacceptable. The #MeToo movement was never a movement against men, but an empowering opportunity for women to speak up about their experiences as victims of sexual harassment. Not only were women supporting one another in sharing to the public that these incidents do occur, and are often swept under the rug, but offered men insight into behaviors and conversations that are typically deemed unwelcomed and unwarranted.

Restricting interaction with women in the workplace is not a solution, but a mere attempt at deflecting from the core issue. Resorting to isolation and exclusion relays the message that if men can't treat women how they want, then they rather not deal with them at all. Educating both men and women on what behaviors are unacceptable while also creating a work environment where men and women are held accountable for their actions would be the ideal scenario. However, the impact of denying women opportunities of mentorship and productive one-on-one meetings hinders growth within their careers and professional networks.

Women, particularly women of color, have always had far fewer opportunities for mentorship which makes it impossible to achieve growth within their careers without them. If women are given limited opportunities to network in and outside of a work environment, then men must limit those opportunities amongst each other, as well. At the most basic level, men should be approaching female colleagues as they would approach their male colleagues. Striving to achieve gender equality within the workplace is essential towards creating a safer environment.

While restricted communication and interaction may diminish the possibility of men being wrongfully accused of sexual harassment, it creates a hostile
environment that perpetuates women-shaming and victim-blaming. Creating distance between men and women only prompts women to believe that male colleagues who avoid them will look away from or entirely discredit sexual harassment they experience from other men in the workplace. This creates an unsafe working environment for both parties where the problem at hand is not solved, but overlooked.

According to LeanIn's study, only 85% of women said they feel safe on the job, a 5% drop from 2018. In the report, Jillesa Gebhardt wrote, "Media coverage that is intended to hold aggressors accountable also seems to create a sense of threat, and people don't seem to feel like aggressors are held accountable." Unfortunately, only 16% of workers believed that harassers holding high positions are held accountable for their actions which inevitably puts victims in difficult, and quite possibly dangerous, situations. 50% of workers also believe that there are more repercussions for the victims than harassers when speaking up.

In a research poll conducted by Edison Research in 2018, 30% of women agreed that their employers did not handle harassment situations properly while 53% percent of men agreed that they did. Often times, male harassers hold a significant amount of power within their careers that gives them a sense of security and freedom to go forward with sexual misconduct. This can be seen in cases such as that of Harvey Weinstein, Bill Cosby and R. Kelly. Men in power seemingly have little to no fear that they will face punishment for their actions.


Source-Alex Brandon, AP

Sheryl Sandberg, Facebook executive and founder of LeanIn.org., believes that in order for there to be positive changes within work environments, more women should be in higher positions. In an interview with CNBC's Julia Boorstin, Sandberg stated, "you know where the least sexual harassment is? Organizations that have more women in senior leadership roles. And so, we need to mentor women, we need to sponsor women, we need to have one-on-one conversations with them that get them promoted." Fortunately, the number of women in leadership positions are slowly increasing which means the prospect of gender equality and safer work environments are looking up.

Despite these concerning statistics, Sandberg does not believe that movements such as the Times Up and Me Too movements, have been responsible for the hardship women have been experiencing in the workplace. "I don't believe they've had negative implications. I believe they're overwhelmingly positive. Because half of women have been sexually harassed. But the thing is it is not enough. It is really important not to harass anyone. But that's pretty basic. We also need to not be ignored," she stated. While men may be feeling uncomfortable, putting an unrealistic amount of distance between themselves and female coworkers is more harmful to all parties than it is beneficial. Men cannot avoid working with women and vice versa. Creating such a hostile environment is also detrimental to any business as productivity and communication will significantly decrease.

The fear or being wrongfully accused of sexual harassment is a legitimate fear that deserves recognition and understanding. However, restricting interactions with women in the workplace is not a sensible solution as it can have negatively impact a woman's career. Companies are in need of proper training and resources to help both men and women understand what is appropriate workplace behavior. Refraining from physical interactions, commenting on physical appearance, making lewd or sexist jokes and inquiring about personal information are also beneficial steps towards respecting your colleagues' personal space. There is still much work to be done in order to create safe work environments, but with more and more women speaking up and taking on higher positions, women can feel safer and hopefully have less contributions to make to the #MeToo movement.