Do you have ‘diversity fatigue’? Here are 5 ways for businesses to get out of their DEI slump

Organizations around the world have stepped up their efforts to create more diverse and inclusive environments. However, ‘diversity fatigue’ is setting in.

The term first surfaced three decades ago to describe stress in response to companies’ efforts to diversify their workforce, according to the Employers Council in the US. In more recent years it has included people feeling tired of talking about diversity, or the lack of it.

Recently, there’s been a raft of articles and blogs warning that DEI (diversity, equity & inclusion) risks sliding down organizations’ priority lists. Around one in six diversity officers at S&P 500 companies left their roles between 2018 and 2021, according to the consultants Russell Reynolds. The reason? Companies are dedicating insufficient time and resources to the DEI process, found one report, leaving DEI leaders struggling with the lack of support.

“Many DEI leaders feel tired and discouraged as they need more from CEOs, executives and managers,” Ivori Johnson, director of DEI and belonging at HR technology firm ChartHop, told the Human Resources Director website.

COVID-19 was a watershed moment. “Since the start of the pandemic, there have been major setbacks in social and economic inclusion as economic vulnerabilities have been exacerbated and social and political polarization has grown,’’ Kweilin Ellingrud, Senior Partner and Director, McKinsey Global Institute, said in the foreword to the 2023 DEI Lighthouses report. “The events of recent years have shown that any progress made is easily reversible.’’

The DEI Lighthouse Programme was initiated by the The Global Parity Alliance (GPA) – a cross-industry group committed to advancing diversity, equity and inclusion (DEI) - in 2022 by the World Economic Forum, in collaboration with McKinsey & Company, to identify initiatives that have driven significant, quantifiable, scalable and sustainable impact, and highlight what they have in common.

While the headline figures appear optimistic - companies are forecast to spend $15.4 billion on diversity, equity and inclusion (DEI)-related efforts by 2026, double what was spent in 2020 - actual progress is slow.

COVID-19 “has caused a generational loss in gender parity, for example, increasing the projected time to reach global parity from 100 to 132 years,’’ Ellingrud said. The report also highlights that racial and ethnic equity efforts remain fragmented, LGBTQIA+ individuals continue to face stigma and discrimination and only a small percentage of businesses are focused on inclusion of people with disabilities.

However, the report is not all doom and gloom. It identifies five factors across DEI initiatives that had the most sustained impact. They are:

Understand the problem by identifying the root causes. Analyze the relevant data and insights from those most impacted. This often includes employee feedback surveys, focus groups and interviews. Use the information to identify company-specific DEI opportunities and help prioritize investment.

Define success by setting clear, measurable near- and long-term goals which will help with measuring the effectiveness of the policies. This helps to articulate a case for change – the rationale for why the organization is focusing on the effort and how it connects to the company’s values, mission and business outcomes – and motivates employees to act.

A deep commitment from executive management helps signal the importance of - and allocate the appropriate resources (budgets, expertize, timeline) to - DEI. CEOs and senior leaders need to make DEI a core business priority, act as role models and be held accountable for outcomes, not just inputs or activities.

Develop solutions that address the root causes and integrate any changes into key processes and ways of working. This ensures that impact is sustained. It’s also important to equip and encourage employees to contribute.

Finally, measuring progress of the key performance indicators (KPIs) allows leaders to monitor progress and, if needed, adjust the approach to increase impact and accurately allocate resources.

These steps will help organizations create a more engaged and effective workforce that is better equipped to navigate and benefit from a talent pool that brings many different experiences and perspectives.