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.
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.
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.
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.
New parents re-entering the workforce are often juggling the tangible realities of daycare logistics, sleep deprivation, and a cascade of overwhelming work. No matter how parents build their family, they often struggle with the guilt of being split between home and work and not feeling exceptionally successful in either place.
Women building their families often face a set of challenges different from men. Those who have had children biologically may be navigating the world of pumping at work. Others might feel pulled in multiple directions when bringing a child into their home after adoption. Some women are trying to learn how to care for a newborn for the first time. New parents need all the help they can get with their transition.
Women returning to work after kids sometimes have to address comments such as:
"I didn't think you'd come back."
"You must feel so guilty."
"You missed a lot while you were out."
To counteract this difficult situation, women are finding mentors and making targeting connections. Parent mentors can help new moms address integrating their new life realities with work, finding resources within the organization and local community, and create connections with peers.
There's also an important role for parent mentors to play in discussing career trajectory. Traditionally, men who have families see more promotions compared to women with children. Knowing that having kids may represent a career setback for women, they may work with their mentors to create an action plan to "back on track" or to get recognized for their contributions as quickly as possible after returning to work.
Previously, in a bid to accommodate mothers transitioning back to work, corporate managers would make a show at lessoning the workload for newly returned mothers. This approach actually did more harm than good, as the mother's skills and ambitions were marginalized by these alleged "family friendly" policies, ultimately defining her for the workplace as a mother, rather than a person focused on career.
Today, this is changing. Some larger organizations, such as JP Morgan Chase, have structured mentorship programs that specifically target these issues and provide mentors for new parents. These programs match new parents navigating a transition back to work with volunteer mentors who are interested in helping and sponsoring moms. Mentors in the programs do not need to be moms, or even parents, themselves, but are passionate about making sure the opportunities are available.
It's just one other valuable way corporations are evolving when it comes to building quality relationships with their employees – and successfully retaining them, empowering women who face their own set of special barriers to career growth and leadership success.
Mentoring will always be a two way street. In ideal situations, both parties will benefit from the relationship. It's no different when women mentor working mothers getting back on track on the job. But there a few factors to consider when embracing this new form of mentorship
How to be a good Momtor?
Listen: For those mentoring a new parent, one of the best strategies to take is active listening. Be present and aware while the mentee shares their thoughts, repeat back what you hear in your own words, and acknowledge emotions. The returning mother is facing a range of emotions and potentially complicated situations, and the last thing she wants to hear is advice about how she should be feeling about the transition. Instead, be a sounding board for her feelings and issues with returning to work. Validate her concerns and provide a space where she can express herself without fear of retribution or bull-pen politics. This will allow the mentee a safe space to sort through her feelings and focus on her real challenges as a mother returning to work.
Share: Assure the mentee that they aren't alone, that other parents just like them are navigating the transition back to work. Provide a list of ways you've coped with the transition yourself, as well as your best parenting tips. Don't be afraid to discuss mothering skills as well as career skills. Work on creative solutions to the particular issues your mentee is facing in striking her new work/life balance.
Update Work Goals: A career-minded woman often faces a new reality once a new child enters the picture. Previous career goals may appear out of reach now that she has family responsibilities at home. Each mentee is affected by this differently, but good momtors help parents update her work goals and strategies for realizing them, explaining, where applicable, where the company is in a position to help them with their dreams either through continuing education support or specific training initiatives.
Being a role model for a working mother provides a support system, at work, that they can rely on just like the one they rely on at home with family and friends. Knowing they have someone in the office, who has knowledge about both being a mom and a career woman, will go a long way towards helping them make the transition successfully themselves.