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Why is DEIB important in hiring?

Why is DEIB important in hiring?

Why is DEIB important in hiring?

The state of DEIB (Diversity, Equity, Inclusion, and Belonging) in the workplace is a mess. For a couple of years, it seemed U.S. companies finally recognized the cultural and business imperatives that it matters that everyone on their teams felt seen, heard, and valued. It appeared as though American business leaders were going to take decisive, meaningful action to level the playing field and correct systemic challenges.
Then, slowly but surely, it became evident that they didn’t really know how to make change and they didn’t know how to talk about it, much less implement thoughtful policies. So, things got a little messy, and because things didn’t turn around overnight and humans resist change, the door was opened to skepticism and naysayers. As a result, political actors took over the conversation as their own and nearly overnight, the historical reality that we actually are collectively better off when everyone wins was replaced with more divisive us-vs-them, zero-sum rhetoric, and threats of lawsuits.
But the evidence is in and it is crystal clear; the business case has been made. Organizations that do not embrace change will be both less relevant and less profitable. Period.
So, if you are in leadership or play any role in building teams in your organization, you are now left to figure out HOW to proactively and responsibly move toward the future promised by diversity, equity, inclusion, and belonging.
It’s a big nut to crack, but it starts at the beginning. It starts with equitable hiring practices.
What is DEIB? Before we dive into its importance, let’s start with the basics - what is DEIB?
  • Diversity refers to the mix of different demographics within a workplace, related to inherent and acquired characteristics, and cognitive, cultural, and experiential dimensions.
  • Equity is about processes and systems in an organization that ensure equal access to opportunities, resources, and advancement with consideration for individual needs, circumstances, and starting points.
  • Inclusion means intentionally creating and maintaining a workplace environment where all people feel respected, valued, socially connected, and encouraged to contribute and participate in the collective network as they are.
  • Belonging is both a feeling (of deep connection) and an outcome of diversity, equity, and inclusion —in that it is a sense of being valued as you are within the organization and that you can contribute in a meaningful way.
Now that you have an understanding of DEIB, let’s dive into why it should be a crucial part of your hiring practices.
It creates equity, right from the get-go.
When you apply a DEIB lens to hiring, you level the playing field. By minimizing bias in the process, you give every candidate a fair shot. This not only surfaces overlooked abilities and highlights potential, it also ensures organizations don’t miss out on recruiting future high performers. It’s a win-win: candidates are treated fairly and feel seen for their unique value, and companies gain access to untapped talent.
It sets employers and employees up for success.
It’s pretty simple: DEIB + inclusive hiring practices mean a workforce with diverse perspectives. Why is this a good thing? Because building a team with unique perspectives leads to:
  • Increased innovation
  • Teams with unique problem-solving abilities
  • Higher employee engagement
But it’s not just employees’ sense of well-being and accomplishment that sees the impact of DEIB. Overall, organizations with a focus on hiring diverse teams, especially at the top of the org chart, see their bottom line get a bump. Companies in the top 25% in terms of diverse leadership teams have a 39% greater likelihood of financially outperforming their peers in the bottom 25% (McKinsey & Company).
It sets off a ripple effect.
Firms like McKinsey & Company have been studying the effects of DEI on companies for years. Their 2023 study (fourth in a four-part series) found that when organizations had a 10% increase in women’s executive representation, there was an average 2.1 increase in the percentage of both women employees and women managers at the company within the next two years. This shows that one action focused on DEIB can lead to other desirable outcomes. As employees feel more empowered within the organization, their sense of belonging increases.
It makes you desirable to candidates.
According to the same report from McKinsey & Company, diverse leadership teams “bolster community involvement, positively impacting ethical disposition, community orientation, and the general image of a company.” In an era where business faux pas are practically an everyday occurrence, positive public perception can go a long way in bringing in top talent.
A report from the Pew Research Center found that 72% of workers said enacting policies to ensure that people are treated fairly in hiring, pay or promotions has had a very or somewhat positive impact where they work. Employees serve as your number one brand ambassadors, so when they see positive changes at work, it makes them more likely to share those positive experiences with potential candidates.
It’s clear that employees and candidates want to work with organizations that focus on DEIB.
DEIB hiring is the future - and responsible AI is the way to get there.
The benefits of DEIB in hiring are clear, but how do you get there? The answer is actually pretty simple: ethical and responsible AI, which ensures fairness and transparency across your hiring practices. Plus, using AI-powered tools makes it easy to ensure that your efforts are impactful and defensible.
When you’re ready to make your hiring process more equitable and efficient, CLARA is here to help. Contact us today to get started.
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