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Diversity, equity and inclusion are not buzzwords, though sadly many businesses still treat them as such. They are key drivers of innovation and creativity. Research by Forbes highlights the power of diverse minds in business success, and their role in attracting and retaining top talent.
A diverse workforce reflects the world we live in and the customers and clients we serve. When we work alongside colleagues with different experiences, identities and backgrounds, we start to look at issues through a new lens.
It takes effort to be equal and inclusive. It’s important that SMEs approach this as something you want to do rather than have to do. That’s when the real progress happens. If reading this article inspires you to take action, our HR Consultants are always on hand to give you advice.
In this article we will explore:
What is diversity, equity and inclusion?
The benefits of DEI in the workplace
The difference between equity and equality
Unconscious bias and how to avoid it
How to be an inclusive people manager
Understanding and managing neurodiversity
How to create a diverse and inclusive culture
What to include in your DEI strategy
DEI training and what it should cover
What is Diversity, Equity and Inclusion (DEI)?
DEI is integral to people strategy and management. It’s about taking action to create an environment where everyone feels welcome, opportunities are equal, and employees feel treated fairly and achieve a sense of belonging at work. When people feel this sense of ease and comfort, they are more likely to flourish and be able to achieve their full potential.
Treating employees fairly begins with their first interaction with your business, way before they become employed by your company. According to the CIPD, the factors and personal characteristics to consider include:
Accent
Age
Caring responsibilities
Colour
Culture
Visible and invisible disabilities
Gender identity and expression
Mental health
Neurodiversity
Physical appearance
Political opinion
Pregnancy, maternity/paternity and family status
Socio-economic circumstances.
The benefits of diversity, equality and inclusion at work
Nobody wants to feel marginalised or disadvantaged when they come to work. Prioritising DEI helps reduce inequalities and has a positive impact on employee wellbeing, creating the conditions for every individual to become more efficient and effective. This adds value in many areas and makes small businesses more competitive.
Studies have found a direct link between diversity and productivity at work, leading to stronger teams performing at a higher level. In diverse teams, employees learn together, gaining a better understanding of each other and your customers. People who are free to speak up, share their beliefs and be who they want to be are also more engaged at work. Attracting and recruiting talent can also become easier when your company values and respects diversity.
Building a diverse, equal and inclusive workforce has a range of business benefits:
Learning: employees learn from their colleagues’ experiences, identities and backgrounds, broadening mindsets and developing as individuals.
Innovation: colleagues feel able to speak out and challenge each other, sharing different perspectives and ideas.
Problem-solving: complex problems are much harder to solve when a team shares the same background or demographic, e.g. A Board of Directors made up of white, university-educated males.
Creativity: when diverse minds combine, the effect can be powerful.
Resilience: a team that represents your customer base will be more in tune with changing customer needs, allowing your business to adapt and become more resilient.
What’s the difference between Equality and Equity in DEI?
Over recent years, there’s been a shift in HR terminology from Equality to Equity. Here’s what each term means...
Equality is treating everyone in the same way
E.g. a line manager provides identical support to every member of their team, no matter what their background, age, race, gender, or identity.
Equity is taking action to ensure there are fair outcomes for all
E.g. a line manager identifies the specific needs of each member of their team and provides the support they need for their individual situation. In simple terms, equity is adjusting the level of support according to individual needs. It’s about fairness of process and avoiding unconscious bias.
What is unconscious bias?
Unconscious bias describes thinking patterns that are shaped by our experiences, beliefs, and personal views of the world. We use the word ‘unconscious’ because most of the time, we don’t realise we’re doing it. We are naturally drawn to people like us.
Bias can instinctively influence the choices we make in life and at work. It can also make us resistant to change. Our brains are hard-wired to make certain decisions based on preference. If we asked you whether you’d like tea or coffee, you would probably make your choice based on unconscious bias - a personal judgement that one hot drink is better than another.
How unconscious bias appears in the workplace
According to ACAS, unconscious bias includes when a person thinks:
better of someone because they believe they’re alike, or
less of someone because that person is different to them.
When unconscious bias is at play, leaders risk making very poor decisions. The first step to avoiding bias is to recognise when you might be acting in such a way. When you understand what bias looks like, you can take action to avoid it.
Workplace bias commonly appears in five forms:
Affinity - bias towards people who appear to be like you
Appearance - bias towards people who look like you
Confirmation - bias towards your own point of view/lack of objectivity
Gender - preference for one gender
Age - favouritism based on age.
Unfortunately, unconscious bias is embedded in some workplaces. When this happens, it can negatively influence culture and seriously hamper DEI efforts. If an employee perceives their manager to be making decisions based on unconscious bias, it may create negative feelings, low morale, and lead to accusations of discrimination.
If you notice a colleague showing unconscious bias at work, don’t be afraid to speak out. Once you can recognise bias in yourself, it’s easier to spot in others. Take our unconscious bias e-learning to develop your understanding.
Bias in recruitment and selection
Unconscious bias may rear its head during recruitment and selection, and in performance management and people development. Retention of top talent then becomes difficult. A study by Harvard Business Review and the University of Chicago found people who perceive some form of bias at work were three times as likely to plan on leaving within a year.
To avoid unconscious bias in recruitment and selection, consider:
Advertising roles widely, both internally and externally
Removing fields, such as name, date of birth, gender and race, from application forms
Conducting initial interviews by telephone to avoid being influenced by a candidate’s appearance.
Using a panel selection process.
It’s also a good idea to document each step you take to ensure recruitment and selection is fair and balanced, in case of appeal.
Bias in performance management
To avoid bias in people and performance management:
Set fair objectives across your team. Don’t make it easier or harder for some employees to achieve them.
Monitor progress and performance through standard procedure, giving equal time to each team member.
Identify the skills and knowledge gaps you need to bridge to achieve equity across your team.
Ensure a variety of learning and development opportunities are available to all.
How to be an inclusive people manager
“Inclusion is the practice of including people in a way that is fair for all, values everyone’s differences, and empowers and enables each person to be themselves and achieve their full potential and thrive at work.” - CIPD
Leading in an inclusive way is about leading with fairness, understanding and equality. You might have to overcome negative attitudes in order to achieve a fully inclusive workplace. And you will make mistakes and encounter resistance. Being inclusive is learning process; as long as our intentions are positive, getting it wrong means we are making progress. Here are our top tips for managers on being inclusive at work.
Build a culture with inclusive behaviours at its heart. Role model the behaviours you want to see everyone to show at work, such as respect, equity, fairness, understanding, and dignity at work. Make it clear that everyone is responsible for acting and working inclusively, every day. Communicate your expectations often and with clarity. There’s more on this in the next section.
Recruit inclusively. Show how much you value people of all backgrounds and opinions by shortlisting, interviewing, and hiring diverse minds. Focusing on diversity and inclusion in recruitment will enhance business culture by allowing you to engage more effectively with talent.
Speak openly about inclusivity. Make it the norm, not a tick-box exercise during recruitment and selection.
Provide an environment where everyone feels included. Adapt your facilities to accommodate the needs and requirements of a diverse workforce. Consider things such as access routes, bathroom facilities, quiet spaces, and reasonable adjustments to workspaces.
Ask the right questions. To truly understand your team’s individual needs, you need to feel confident asking the right questions with sensitivity.
Welcome all ideas and opinions. Create spaces where employees feel safe to speak up, share ideas and ask questions. Give every employee the chance to speak and share their concerns, frustrations, and observations, and actively listen to what they say. Ensure every voice is heard, respected, listened to - equally. This is critical for psychological safety at work and can be hugely motivating.
Recognise best practice. When employees demonstrate the behaviours you are striving for, highlight their achievements and why this is important.
The value of neurodiversity in diverse teams
Embracing neurodiversity is key to achieving a diverse and inclusive workplace culture. Neurodiversity has always existed. It’s only in the last decade that stigma has reduced, understanding has improved, and workplaces have begun to recognise and realise the talents of neurodiverse employees.
It is estimated that 1 in 7 people in the UK are neurodiverse. That means that every small business with seven or more employees has at least one neurodiverse individual in their team. Conditions include Attention Deficit Disorder (ADD), Attention Deficit Hyperactivity Disorder (ADHD), Autism, Dyslexia, Dyspraxia and Dyscalculia.
Managing neurodiverse employees
Understanding neurodiversity allows you to get the best out of neurodiverse employees. They bring new perspectives and ideas, different approaches to problem-solving, organisation and processing information. Strengths may include memory skills, attention to detail, visual spatial thinking and creativity. Some see their neurodiversity as superpowers!
Every leader requires a basic understanding of the needs, skills and capabilities of neurodiverse employees in order to manage effectively. Learn more about managing neurodiversity in our guide to Supporting Autistic Employees at Work.
How to create a diverse, equal and inclusive business culture
Valuing diversity benefits all small and medium-sized businesses. When employees feel a sense of belonging at work it leads to increased engagement, productivity, and improved business results. To achieve a truly diverse and inclusive workplace you need to have a plan, and that’s where DEI strategy comes in. It’s important to set out a framework of intentions and expectations and how you will realise them. Your strategy should go on to inform every action and decision made in your business.
What to include in a DEI strategy
Employee Resource Groups (ERGs): establish representative working groups to focus on DEI issues and identify areas for improvement. Use them as an important research channel to test new ideas and gain valuable feedback. Listen and act on the group’s ideas and suggestions.
Establish a programme to recruit, develop and retain a diverse and inclusive workforce: consider the whole employee lifecycle. Start by committing to look for talent in a wide variety of places and clearly displaying diversity information on your website.
Celebrate diversity and inclusion: demonstrate a genuine commitment to DEI, not purely for likes on social media. Take advantage of awareness days and organise activities to include and engage all employees. Sharing stories and recognising best practice is a powerful way to bring people together.
Diversity based mentoring: an effective, enlightening way to develop perspective, share experiences and learn from people of different backgrounds, gender, race, and ages.
Make DEI a shared objective: introduce a common DEI objective for all employees as a way of encouraging inclusive behaviours and measuring individual performance.
Focus on training: line managers need to feel equipped to manage a diverse team in an equal and inclusive way. Identify the gaps and seek training to bring every manager, at every level, up to the same standard. Educating colleagues is also important. Show them what discrimination, unconscious bias and neurodivergence look like to promote a more diverse and inclusive outlook. Discuss what is acceptable and unacceptable language to use at work.
Read more tips on creating an inclusive business culture.
Diversity and inclusion training
A CIPD research study found that just 30% of employers say their leaders are completely committed to having an inclusive and diverse workforce. This highlights a clear need for more training and development.
Today’s employees expect inclusive workplaces where people from all cultures and backgrounds are welcome and everyone feels comfortable to be themselves at work. It’s not enough to show intent. Employers must show they are acting on their intentions.
Diversity and inclusion training should cover the following themes:
Building trust is the foundation of a productive, engaged, inclusive workplace culture. When you build trust, everything else falls into place. Small adjustments to management style can create a culture that builds trust with employees and between employees. This isn’t just a manager’s responsibility. It’s everyone’s responsibility to create a safe, supportive, empowering and trusting work environment. A business can enable a culture of trust, but it needs everyone’s buy in to come to fruition.
Creating a speak-up culture. Even in the most inclusive workplaces, not everyone will feel confident to speak up if they witness actions or behaviours that don’t fit with company culture and expectations. Feeling safe at work is a basic requirement. People need to know they can report something if it doesn’t feel right. They need to know it’s okay to ask questions without fear of repercussion. People managers also need to be equipped to handle and act on those conversations when they arise.
Leading by example. If you want employees at every level to buy in to diversity and inclusion strategy, they need to see senior managers and line managers leading by example. This includes learning how the language we use can impact others.
Understanding DEI policy. Having DEI policies in place as a guide is only the beginning. Managers need to understand what the policies mean and how to implement them in real-life situations.
Our CPD-certified accessible e-learning includes an introduction to DEI, embedding diversity, and an introduction to language and terminology. Take a look to find out more.
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