In recent months, a concerning trend has emerged within the business landscape: companies, organizations and institutions are pulling back from their Diversity, Equity, and Inclusion (DEI) initiatives. This shift is driven by various factors, including perceived consumer backlash and the belief that DEI efforts are costly, ineffective, and/or non-essential.
However, this retreat from DEI is short-sighted and risks undermining long-term business success. Disengaging from DEI is proving to be a flawed strategy as the importance of inclusion in the future of work becomes increasingly evident. Now more than ever, companies are being pushed to adopt sustainable, forward-thinking approaches to remain competitive.
This includes embracing a future-ready mindset, particularly through something I call Future-Ready Inclusion™. To understand why inclusion is essential in the future marketplace, we must first assess our current landscape.
The Risk of Defunding DEI
Recently, technology companies like Google and Microsoft cut their DEI budgets after previously making big promises. Corporations like tech giants Zoom and Snap have also reduced DEI investments, a trend also impacting even higher education and the federal government.
Another significant example of companies pulling back from DEI initiatives can be seen in the retail sector, where some brands have scaled back or redefined their DEI efforts in response to economic pressures and shifting consumer sentiments.
Short-Term Benefits with Long-Term Costs
These moves are often driven by a reactionary mindset, where companies prioritize short-term financial gains or aim to avoid controversy. However, this approach fails to recognize the long-term value of inclusive practices and the potential risks of disengagement.
When a company deprioritizes inclusion, it implicitly endorses harmful practices, such as ignoring the gender pay gap, being complicit in women earning only 84% of what men make, ignoring the racial wealth gap, dismissing the private and public sectors’ responsibility in addressing it, and accepting discriminatory hiring practices that exclude marginalized groups.
Disengaging from DEI is a short-term strategy that overlooks the evolving nature of the workforce and marketplace. The workforce is becoming increasingly diverse, with younger generations, including Millennials and Gen Z, placing a high value on diversity and inclusion. Companies that fail to embrace these changes risk losing top talent who prioritize working for inclusive employers and consumers who prioritize patronizing inclusive brands. Furthermore, the potential decline in trust and engagement from younger generations, both as customers and employees, highlights the necessity of committing to an inclusive future of work.
The Essential Role of Inclusion in the Future of Work
Inclusion is more than a trend; it’s a business imperative for the future. An inclusive culture is likely to secure three key advantages for any organization:
- Innovation and Creativity – Diverse teams bring varied perspectives, leading to more innovative solutions and creative problem-solving. Companies that foster inclusive environments are better positioned to adapt to changing markets and customer needs.
- Employee Engagement and Retention – Inclusive workplaces are associated with higher employee satisfaction and lower turnover rates. Employees who feel valued and included are more likely to remain committed to the organization.
- Competitive Advantage – Companies prioritizing inclusion will have a competitive edge as the market evolves. They will be better equipped to understand and meet the needs of an increasingly diverse customer base and employee base, driving growth and performance.
A Better Strategy: Future-Ready Inclusion™
Many organizations face uncertainty in their DEI work, and rather than reacting impulsively to challenges, they should instead adopt a long-term, sustainable approach that considers the future. This involves responding thoughtfully to the evolving needs of employees and the market, listening intentionally when designing or refining policies, and integrating DEI into core business strategies, building DEI initiatives that are transformative and stand the test of time. I like to call this approach Future-Ready Inclusion™.
What is Future-Ready Inclusion™?
Future-Ready Inclusion™ is the strategic, forward-thinking leveraging of differences at every level in every function within an organization. It prepares organizations for the evolving landscape of work by embedding inclusive practices into every aspect of the business. It involves proactive strategies that anticipate and address current and future global challenges related to human capital, shifting demographics, evolving market trends, and more.
Future-Ready Inclusion™ challenges organizations to:
- Embrace the Shift, seeing the growingly diverse landscape of consumers and employees as an opportunity versus a threat
- Craft Their Future, setting a vision for their role in the future of work and creating a transformational, future-ready strategic plan to get there
- Develop the Future, disrupting the status quo with purpose and building inclusive capabilities through inclusion.
Why is Future-Ready Inclusion™ Important?
Future-Ready Inclusion™ is crucial for staying ahead of demographic and market changes. This mindset ensures that companies meet current expectations and are prepared for future developments in the workforce and consumer landscape. The future is diverse, and so are future consumers. Companies must ask: “Does our organization look like and truly support the consumers we serve?”
How Do Organizations Attain Future-Ready Inclusion™?
Several key elements must be present to create a future-ready approach to inclusion.
The work of inclusion must be strategic, forward-thinking, and considerate of not only today’s diversity but also the diversity of tomorrow. Organizations should ask themselves, “What are we doing now to prepare our leaders and employees for the diversity that will emerge in our workforce and consumer base?”
Future-Ready Inclusion™ is transformational, not transactional. It’s not about checking boxes, like conducting bias training just to avoid trouble or appease consumers and vendors. Instead, it requires a genuine and authentic commitment to change.
This approach also prioritizes equity and justice. Inclusion isn’t possible without acknowledging various communities’ different levels of access and opportunities. Equitable policies, practices, and procedures are essential in the pursuit of true inclusion.
Finally, Future-Ready Inclusion™ is multi-dimensional and intersectional. While previous DEI efforts often focused on single identity groups—such as women, Black employees, LGBTQ+ employees or those with disabilities— Future-Ready Inclusion™ embraces a more tailored, more intersectional approach that acknowledges the complexity of people’s full identities and experiences.
Be Future-Ready
In conclusion, the retreat from DEI initiatives may seem like a pragmatic short-term solution, but it undermines the long-term viability and continuity of companies in a rapidly evolving world. Embracing inclusion is not just about fulfilling a moral obligation but about positioning a company for future growth and resilience.
By focusing on Future-Ready Inclusion™, organizations can build a more innovative, engaged, and competitive workforce that is well-equipped to thrive in the future of work, meeting the unique demands of an increasingly diverse consumer base.
