In November Change the Race Ratio hosted it’s second ED&I Leaders Summit of 2024, which saw business leaders and ED&I Directors sharing their insights on the future of ED&I and the role it plays to be a strategic business imperative to create a more inclusive workplace culture. In 2024 we’ve seen significant progress from members on increasing racial and ethnic minority representation at senior levels and actions taken to improving data transparency and pay gap reporting.
At our first panel, moderated by Andrew Ninian, The Investment Association, we heard from John O’Brien MBE, Anthropy, Jelena Eremic Newson, EY and Sir Trevor Phillips, on why ED&I remains important on the agenda and reflections on the UK’s changing demographics. They discussed the role of the leadership buy in, the actions that work to achieve businesses ambitions of increasing ethnic minority representation at the top and how businesses can continue to drive change and navigate headwinds.
Here are some takeaways and emerging themes
Where are we now for the case for change around ED&I
There is an abundance of evidence demonstrating organisations that prioritise ED&I in their organisation consistently outperform in areas such as innovation, for example, diverse teams are twice as likely to successfully get a product to market, demonstrating the business benefit including financial performance, customer reach and risk management.
There are two interconnected aspects to consider which need to go hand in hand: the moral case and then the business case. If you are leading with just a business case there could be a risk of lacking authenticity, especially for early talent who could feel they have been selected as a tick box exercise to symbolise diversity in the team, rather than being the best fit for the position. It’s important be able to articulate the case for change and see the benefit not just at the top, but in the bottom line too.
The case for change has also become more detailed and nuanced, we understand the need for diversity in teams, as well as within the business as a whole, to ensure we actually realise the diversity dividend. For example, some organisations found their creative team had greater diversity than their account strategic management teams; to realise the benefit of greater creativity the business needs greater diversity to successfully take the product to market.
Thinking more widely customers are more decerning and recognise their purchasing power. Customers want to see that their needs and backgrounds are represented in leadership teams and in new product developments or they will take their business to a competitor. Business has an important role to play in shaping the society we want to live in – that should be part of the case for change.
The importance of business’s role in society
The area where businesses can have the greatest impact on their colleagues is creating a sense of safety and security as well assuring them that progression is achieved fairly. During the summer riots and unrest, the most important role for business leaders was to ensure employees felt safe and looked after, rather than making external statements. Providing open lines of communication and signposting to the support available helped employees especially from minority groups.
Businesses think very carefully about ED&I in their marketing and talent acquisition. However, very often the in-person experience of visiting a corporate HQ doesn’t match their digital persona. On arrival you may be greeted by, a security guard, receptionist, and other front of house teams, who are typically of an ethnic minority background, and when you get to the boardroom the demographics usually change. First impressions are important for your staff, customers and wider stakeholders, and it’s important to reflect if the real work experience in your business matches your ED&I ambitions.
Business also has influence on its supply chain and can be very influential in shaping society. For example, in supporting ethnic minority owned firms and engaging with firms with greater diversity. Regulators are becoming increasingly interested in this area in the UK and EU.
Behaviour change is driven by competition
Investors are also becoming more interested in ED&I to a point where action to create inclusive workplaces is becoming a pre-requisite. Furthermore, people are influenced by the behaviours of their competitors, and there is more, societal and market expectation. Organisations want to be at the vanguard and not one of the laggards, slow adoption on any issue can also be telling on a leaderships ability to respond to changing demand and consumers behaviour, no leader wants to be behind the curve.
Three tips to engage leaders if interest is waning
The power of storytelling. To help articulate the argument for the ED&I, it’s important to consider the power of storytelling, not only relying on the business benefit but also considering the emotional benefits, and positive impact on employees and wider stakeholders.
Step out your bubble. ED&I professionals, like most professionals, can spend a lot of time talking to each other, but talking to leaders who don’t have ED&I at the top of their agenda and listening to different points of view is just as important and beneficial, in helping to build a truly inclusive rational for action.
Small investment big impact. Change doesn’t always have to be big and complex, finding a small change that is easy to do and that creates a big impact will get a leader’s attention every time.
Top tips
- The moral and business case should be articulated together to be authentic
- Clearly articulate how a focus on ED&I can positively impact an organisations wider stakeholders
- Jargon can be a distraction - Consider language to make sure your point lands well and is understood
- Build a wide coalition of different views and priorities to inform your thinking