September 18, 2024
Diversity Equity Inclusion (DEI): Progress amid challenges
The term ‚DEI‘ might fade but not the practice!
"Yes, this is obviously a topic that is very important to me, not just as a woman in the beer and beverage industry, where I'm constantly asked, 'What's it like in a male-dominated industry?' The truth is, there are still huge discrepancies and a lot of work to be done. Our purpose is 'challenging stereotypes'; we want to break down prejudices..."
Katharina Kurz, co-founder and directrice of BRLO, Interview September 2024 (translated)
BRLO, founded in 2014, is a Berlin based brewery and gastronomy company that stands for modern beer diversity and distinctive experiences.
Watch interview bites with Katharina about
What does DEI stand for?
Diversity Equity Inclusion (DEI) are a set of principles held by many organizations to make people of various backgrounds - including gender, race, religion, ethnicity, socio economic class, ability and sexual orientation - feel supported, welcomed and safe.
- D (iversity) refers to the presence of differences within a given setting, including race, gender, age, sexual orientation, ability and other attributes.
- E (quity) involves fairness and justice in treatment, access and opportunities, ensuring individuals have what they need to succeed.
- I (nclusion) means creating environments where any individual or group can feel welcomed, respected, supported and valued.
Related initiatives are an integral part of many organization core strategies and proved to be a booster for creation of positive impact. Paired with essential future skills, like openness and resilience to constant change DEI supports a holistic approach to building teams fit for embracing change and emerging futures.
Main DEI objectives?
Promote fair treatment: Ensure equitable access to opportunities and resources for all individuals.
Enhance representation: Increase diversity within organizations and institutions to reflect broader society.
Foster inclusive environments: Build cultures where diverse perspectives are valued and integrated into decision-making.
Mitigate bias: Identify and reduce implicit and explicit biases in systems and practices.
Incoporated in a long term, positive impact oriented strategy, all objectives are supporting pivotal shifts in business, finance, environment and societal dynamics to create positive impact
DEI achievements so far
Increased awareness and policy development
- As of 2023, 85% of companies in Europe have a dedicated DEI strategy (1)
- Universities like Oxford have implemented comprehensive DEI policies to promote diverse student bodies and faculty (2)
- McKinsey & Company. (2023). Diversity wins: How inclusion matters.
- Oxford University. (2023). Diversity and Inclusion.
DEI achievements so far
Representation enhancement
- As of 2023, women hold 33% of board seats in Financial Times Stock Exchange Index 100 companies compared to 26% in 2018.
- There has been an increase in the representation of women and minorities in S(ience) T(echnology) E(ngineering) M(aths) fields, but they remain underrepresented (3)
3. Spencer Stuart. (2023). 2023 U.K. Spencer Stuart Board Index
BUT
Why does it matter?
Which hidden barriers and underlying dynamics are impeding DEI?
What can we do to overcome them?
Why does it matter?
‚Today, a large chunk of the workforce is occupied by Baby Boomers (19%), Generation X (35.5%), and Millennials (39.4%). With over 10,000 Baby Boomers per day reaching the age of 65, in 2030, we’ll see Generation Z constitute about 30% of the workforce. Their fresh ideas on work and technology will soon impact our work environments on a greater level.‘
Han Ju Lee, John Hopkins University, April 2023
Despite a climate that is pressuring Diversity Equity Inclusion (DEI) terminology and practices, DEI remain crucial in todays world.
DEI positively impact innovation, societal change and decision making. Employee satisfaction and business performance are enhanced. Existing challenges vary by regions. However, a continued commitment to DEI initiatives is essential for creating more dynamic and innovative environments, essential for positive impact creation.
Future-ready teams
Complex challenges require not only technical expertise but also social and emotional intelligence. DEI helps sharpen these social skills by encouraging us to be empathetic and open to different perspectives. Future skills like openness, resilience, critical thinking, communication, creativity and collaboration are best developed and applied in diverse teams.
"I do think that an incredible openness to change is super important as a skillset, because the mindset of 'we've always done it this way' just doesn't work anymore… So, I believe it's about being open to trying new things, quickly seeing if they work—essentially having a strong resilience to deal with change. I think that's the new normal."
Katharina Kurz, co-founder and directrice of BRLO, Interview September 2024 (translated)
DEIs positive impact
Employee satisfaction
Inclusive workplaces lead to higher employee satisfaction and retention. According to Glassdoor, 76% of job seekers and employees say a diverse workforce is an important factor when evaluating companies and job offers.
Glassdoor. (2023). Diversity and Inclusion Workplace Survey
Innovation
Diverse perspectives contribute to better problem-solving and innovation. Boston Consulting Group found that companies with more diverse management teams have 19% higher revenue due to innovation.
Boston Consulting Group. (2018). How Diverse Leadership Teams Boost Innovation
Enhanced business performance
Diverse teams are shown to be more innovative and effective. McKinsey & Company found that companies in the top quartile for gender diversity on executive teams were 25% more likely to experience above-average profitability than peer companies in the bottom quartile.
McKinsey & Company. (2020). Diversity wins: How inclusion matters.
Moral responsibility and legal obligation
Organizations have a moral responsibility to promote fairness and equality, addressing historical and systemic inequalities.
To underline that:
Many countries have laws mandating certain aspects of diversity and equity. For instance, the EU's directive on gender balance requires at least 40% of non-executive director positions to be held by the underrepresented sex by 2026.
European Union. (2023). Directive on Gender Balance on Corporate Boards
Social responsibility
Organizations play a crucial role in societal change by promoting equity, diversity and inclusion, which can lead to positive impact.
Public perseption
Companies with strong DEI approach are viewed more favorably by the public. A survey by Edelman found that 60% of consumers say they would buy or boycott based on a company’s stance on social issues.
Edelman. (2020). Edelman Trust Barometer Special Report: Brands and Social Issues
Hidden barriers and underlying dynamics impeding DEI
„Even though our bylaws state that we uphold equality and diversity, it remains a point of contention…. I need to be open to the possibility that at some point a woman might stand before me who is physically a man, or vice versa, and that eventually a man might be in my club, even though we are a women’s club."
Verena Roos, 1st chairwoman of Business and Professional Women Saarbrücken e.V. Germany, Interview July 2024 (translated)
The Business Professional Women (BPW) Association is one of the largest networks for female entrepreneurs and working women with more than 30,000 members in over 100 countries.
It holds consultative status with both the Council of Europe and the United Nations. Additionally, it has permanent representatives at the UN as well as at the International Labour Organization (ILO) and the Council of Europe in Strasbourg. BPW Germany is an active member of the German Women's Council and a cooperating member of the United Leaders Association (ULA).
Men are welcome.
More insights about hidden barriers and underlying dynamics:
Systemic inequality
Deep-rooted societal and institutional biases continue to keep inequities alive.
E.g. in 2023 the gender pay gap in EU27 was 13%, among them Germany w 18%
"Addressing the 18% pay gap in Germany (… and raising the women's quota…) is a political issue that the Business and Professional Women (BPW) Club Germany, together with the Women's Council, is actively advocating for."
V. Roos, 1st chairwoman BPW Saarbrücken Germany, Interview July 2024 (translated)
Taxing labor heavily while keeping resource use relatively cheap
creates an imbalance. It discourages employment and investments in human resource and development initiatives, while encouraging excessive consumption of natural resources.
""We don't receive any benefits for having people on the team who aren't fully productive because they are dealing with other issues. We want to integrate them, but we bear the financial burden. Labor is taxed very heavily, while resources aren't taxed as much….
…. There needs to be a system that promotes a certain way of doing business... We don't have that system."
Anna Yona, Wildling Shoes, Interview August 2024 (translated)
Resistance to change, a question of generational differences
Some organizational cultures and individuals resist DEI initiatives, viewing them as unnecessary or disruptive.
Research indicates that those of the Baby Boomer generation (1946-1964) value DEI among workplace priorities lower, Generation X (1965-1980) has mixed opinions, Gen Y (1981-1996) recognizes its importance, and Generation Z (1997-2010), the most diverse generation yet, believe that DEI is imperative.
" The Cologne Carnival parade is the ultimate and most challenging male domain in Germany. Being the first women’s association to participate in the Cologne Carnival parade would be a public political statement of having broken through the old white guys' network.“
V. Roos 1st chairwoman BPW Saarbrücken, Germany, Interview July 2024 (translated)
Implicit bias
Unconscious biases still influence hiring, promotion, and daily workplace interactions.
e.g. 61% of workers in Europe have experienced or witnessed discrimination or bias based on age, race, gender, or LGBTQ+ status
"Although our bylaws state that we uphold equality and diversity, it is still a point of contention.*
Yes. I need to be open to the possibility that at some point a woman might stand before me who is physically a man, or vice versa, and that eventually a man might be in my club, even though we are a women’s club.“
V. Roos, 1st chairwoman, BPW Saarbrücken Germany, Interview July 2024 (translated)
*Note: Also men can be become members of BPW.
Lack of data
Insufficient data on diversity metrics can hinder the ability to measure progress and implement effective strategies.
"The topic of 'measurability' was addressed at our recent Future Conference. BPW Germany aims to become more modern and more open. To achieve this, we are now focusing more precisely on the levers and their measurability."
V. Roos, 1st chairwoman BPW Saarbrücken Germany, Interview July 2024 (translated)
Hidden barriers and underlying dynamics are powerful so what can we do to overcome them?
„Why do we tax labor so heavily, meaning working hours? Why is it so expensive, while the resources one use are comparatively cheap? Do we want to become increasingly efficient with our working hours, with more and more pressure, where I have to squeeze ever more out of my team? Or is there time for learning, development, reflection, communication? People leave our school systems so unfinished. They simply haven’t learned many things about how to interact with one another. A workplace can play a crucial, positive role in further guiding …., creating a better way of working together. But that also takes time. And I want to have that time. And when we then look at what resources we are consuming, I am very much in favor of it. It would lead to a more careful use of resources, using only what is really needed. For me, that would make a lot of sense and truly help reshape our society."
Anna Yona,co-founder and directrice of Wildling Shoes, Interview August 2024 (translated)
Wildling Shoes, founded in 2015, produces handcrafted minimal shoes made from ecological natural materials and in compliance with fair working conditions.
Watch more and read more below:
Shift in political frame conditions: from labour to resource taxation
„….There are already great theoretical approaches to how this could be structured, and it would be a dream to operate in such a system. It would make it infinitely easier for us to do the right thing. And perhaps it would motivate others, who may not want to do it out of their own motivation, to at least move in that direction and support it."
Anna Yona, Wildling Shoes, im Interview August 2024 (translated)
E.g.
A shift in taxation—reducing taxes on labor and increasing taxes on resource use—could incentivize businesses to invest more in human resource, offer more opportunities for development in a diverse and integrative manner and focus on sustainable practices and reduce environmental impact.
Generational change resulting in shifts in power dynamics
„I am firmly convinced that in another two or three years, there will definitely be a movement with other women who have a completely different standing… We need to draw on the experience of the older generation, which we as younger ones must do… but we are at a point where we can say that we can play the role of the revolutionaries."
V. Roos, 1st chairwoman, BPW Saarbrücken Germany, Interview July 2024 (translated)
E.g.
- Deloitte Global Millennial and Gen Z Survey (2022) reports that Millennials (=Gen Y) and Gen Z are more likely to view workplace equity and inclusion as essential compared to Gen X and Baby Boomers. These groups expect their employers to take a stand on social issues, including DEI.
- Julie Kratz (Next Pivot point) proposes in her LinkedIn article ‚to bridge the gap between the different generational groups and how they view DEI by implementing three key strategies: Identify (the generational groups in your organization or to whom you belong), Plan (to engage all or how you want to get engaged) and Measure/Track/Adjust.
Inclusive leadership and commitments
„For example, in the craft, six or seven years ago, a woman was still a rare sight. That has changed. Nowadays, women are apprentices and masters. This has become almost normal. The craft has progressed much faster and more quietly in this regard than leadership positions in business companies."
V. Roos, 1st chairwoman, BPW Saarbrücken Germany, Interview July 2024 (translated)
E.g.
- As of 2023, 85% of companies in Europe have a dedicated DEI strategy
- Companies are increasingly measuring and publishing DEI data. Beyond publicity, better transparency helps to perform DEI initiatives, policies or programming with positive impact.
Unconcious bias training
The key for the future working world is „first and foremost openness; one must be open to change itself and ready to accept it. This willingness must be present... There is still this typical division of roles (Note: thinking in stereotypes).“
V. Roos, 1st chairwoman BPW Saarbrücken Germany, Interview July 2024 (translated)
The most effective unconcious bias training does more than increasing the awareness of bias and its impact. It supports participants to manage their biases, change their behavior, and check their progress. It gives them information that contradicts stereotypes and allows them to connect with people whose experiences are different from theirs. It entails structural changes to policies and operations—like a.o. the standardization of hiring processes. It is a long-term process.
Mentorship and networking
„….if you manage to bring two people together who immediately understand each other with just two or three sentences in terms of what the other wants, you can create synergies. The rest takes care of itself."
V. Roos, 1st Chairwoman BPW Saarbrücken Germany, Interview July 2024 (translated)
E.g.
The Business Professional Women (BPW) Association as one of the largest networks for female entrepreneurs and working women with more than 30,000 members in over 100 countries is committed in many ways to supporting women at all professional levels and in all sectors in developing their professional potential. In addition to personal exchanges, lectures, conferences and mentoring, the network carries out political and social lobbying work at national and international levels.
Policy reform
„BPW advocates for the women's quota and equal pay. These are major political issues. However, I believe that one should focus on the small details because that's where everything starts."
V. Roos, 1st Chairwoman BPW Saarbrücken Germany, Interview July 2024 (translated)
E.g.
- The EU's directive on gender balance on corporate boards requires companies to ensure at least 40% of non-executive director positions are held by the underrepresented sex by 2026
- The U.K.'s gender pay gap reporting legislation requires companies with over 250 employees to publish data on gender pay disparities
Ways of engagement that are comfortable and energizing to you personally!
Julie Kratz recommends a “choose your own adventure” approach to DEI … This could be in the form of virtual learning programs (private, on-demand), in-person workshops (opportunity to engage with fellow co-workers, building communities), leadership team programming (train the leader), and participation in workplace supported groups and activities: meet ups, employee resource groups, community projects, etc.‘