Editor’s note: Veteran entrepreneur and investor Donald Thompson writes a weekly column about management and leadership as well as diversity and other important issues for WRAL TechWire. His columns are published on Wednesdays.
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RESEARCH TRIANGLE PARK – Maybe it is Halloween right around the corner or the mixed economic messages coming from every angle, but as summer fades into fall, there is a lot of strangeness in the marketplace. One of the oddest things I am seeing and hearing is diversity, equity and inclusion (DEI) being used as a scapegoat for everything from strident partisan politics to layoffs and downsizing notices.
If I can give you the world’s shortest management lesson in response, it is this: “Please stop!”
Donald Thompson
Your DEI initiatives are not a catch-all for the organizational or societal turbulence you’re currently facing. Throwing the term “DEI” into a memo or announcement doesn’t somehow magically protect you like a shield or support you like a pair of crutches.
Again: “Please stop!”
DEI AS BUSINESS FUNDAMENTAL
For those of us who work with organizations to create DEI initiatives, it can seem as if we are already far along the path. However, this effort frequently reveals something completely different – most businesses are just beginning their journeys. Executives and managers are being asked to consider ideas and programming that they didn’t learn about in their MBA programs or train for earlier in their careers.
In these instances, it is helpful to remember that the journey begins at some point on a metaphorical mental map based on numerous internal and external factors. What we specialize in at The Diversity Movement is meeting our clients where they are and then partnering to make significant gains.
Clearly, though, one would think that we are past the point where selling DEI programming is necessary. I have yet to read a study that reveals organizations that are diverse, equitable and inclusive are worse off than their peers. In fact, studies over the last five or more years universally demonstrate the power of DEI-forward companies. However, let’s just say for the record: If you think DEI is nonessential, you probably don’t know what DEI really is.
DEI is not the old-school, day-long training programs of the 1980s and 1990s. Today, DEI is a data-driven, strategic approach to workplace culture, brand expansion, talent attraction, and employee retention.
Infusing DEI into brand DNA becoming very important – here’s how execs can do it
For example, in talent retention and attraction, having a strong DEI focus helps you tap into a larger talent pool, increase trust among colleagues and reduce turnover. From this perspective, a positive workplace culture is no longer just “nice to have.” A healthy culture is a business imperative. Cultivating a culture of belonging that aligns with personal values through DEI can create professional happiness, which improves business outcomes.
DEI IS NOT A SCAPEGOAT
What I have seen recently is troubling – C-suite leaders using DEI as a scapegoat for any number of economic challenges they face, especially regarding layoffs. If you are a CEO and have to make the difficult decision to lay off workers, of course you want to be thoughtful. People’s livelihoods are on the line, and many organizations take years to recover brand equity lost during highly-publicized downsizing events.
But, as a leader, you can’t just plop “DEI” into an announcement as a signal that you have been more humane or thoughtful in layoffs. Here are several real-world reasons this won’t work:
- Using DEI as a shield is inauthentic to your employees, former employees and their families. Signaling remorse is not the same as authentic regret.
- You are inviting scrutiny by employees, local political and civic leaders, community activists and the media if you say you’ve used DEI in the layoff process.
- So far, no one has adequately provided a good answer to the main question: “How – exactly – are you taking DEI into consideration with layoffs, and what does that even mean?”
AUTHENTICITY BEATS VIRTUE SIGNALING
The Merriam-Webster dictionary officially added “virtue signaling” last month. It is defined as: “The act or practice of conspicuously displaying one’s awareness of and attentiveness to political issues, matters of social and racial justice, etc., especially instead of taking effective action.” According to the dictionary editors, the phrase has only been around since 2013, but it is currently among the top 6% of words included in “look-up popularity.” Clearly, people are getting familiar with the phrase and its implications.
Using DEI as a crutch when there is bad news is a classic use of virtue signaling – false words over authentic action. The downside here is that this practice deeply undercuts the real power of DEI initiatives and the great work being done to overcome inequities in the workplace and communities.
Let’s be real: Many people never fully recover emotionally or financially from a layoff. Virtue signaling in these instances is not only egregious, but the opposite of the kind of high-octane leadership we need as the workplace (and world) become more empathetic. The last thing you want as an executive is to be tarnished with a label when it comes to something so personal and emotional as downsizing.
Layoffs have legal implications and brand consequences. Just like any crisis at your organization, you need to demonstrate deep thought and consideration into how you communicate, not just for the sake of lives disrupted, but for those who you need to continue working, growing, thriving, and winning.
Writing in the Harvard Business Review, Corey Jones, Daina Middleton and Rebecca Weaver explain, “Whether you’re the CEO or a team leader, when meeting with an affected employee, showing humility and vulnerability will convey that you’re not taking the situation lightly or only care about the health and welfare of the business.” Instead, they counter: “Demonstrating that you’re human will enable you to better connect with employees – both those who are leaving and those who are staying.”
Culture is now at the center of how organizations win in the marketplace. We need more empathy, trust and collaboration at work, so don’t undermine your DEI programming by selling it out for short-term gain. Use authentic storytelling and honest language to explain what you have done and what you plan to do in the future. The long-term view can help your organization get through tough conversations as you create the kind of culture you and your stakeholders desire.
About the Author
Donald Thompson is CEO and co-founder of The Diversity Movement. His leadership memoir, Underestimated: A CEO’s Unlikely Path to Success, is available wherever books are sold. He has extensive experience as an executive leader and board member, including digital marketing agency WalkWest. Donald is a thought leader on goal achievement, culture change and driving exponential growth. An entrepreneur, keynote speaker, author, Certified Diversity Executive (CDE) and executive coach, he also serves as a board member for organizations in marketing, healthcare, banking, technology and sports. Donald is the host of the “High Octane Leadership” podcast. The Diversity Movement has created an employee-experience product suite that personalizes diversity, equity and inclusion (DEI) through data, technology, and expert-curated content. The microlearning platform, “Microvideos by The Diversity Movement,” was recently named one of Fast Company’s “2022 World Changing Ideas.” DEI Navigator is a “chief diversity officer in a box” subscription service that provides small- and mid-sized businesses with the tools, advising and content that leads to action and results. Connect or follow him on Linkedin to learn more.
