Photo by Yan Krukau
Despite the rapid growth of Diversity, Equity, and Inclusion (DEI) as an industry in recent years, there is a lack of standardized practice to ensure its effectiveness. This can make it challenging for small and midsize employers to find the right approach to tackle complex and persistent workplace issues. The task of implementing DEI strategies may seem too daunting or costly for these organizations, leaving them unsure of where to start.
We’ve heard stories from leaders that have paid consultants tens of thousands of dollars to help them achieve DEI goals, only to receive a generic report with high-level insights. As a result, they end up with little to show for their investment—no clear action steps and no meaningful outcomes. This lack of progress can be frustrating and demotivating for teams who are genuinely committed to promoting diversity, equity, and inclusion in their workplaces.
While larger employers can afford to spend billions of dollars each year on diversity training–with little evidence of progress—and employ Chief Diversity Officers (who are often given insufficient autonomy and resources), small and midsize employers need to make every investment count. They are a critical driver of the U.S. economy, employing over 46% of the workforce. With limited people, time, and money, they must carefully choose DEI strategies that not only align with their needs, goals, and budget, but lead to tangible results.
In this article, we'll explore practical strategies and investment options that can help small and midsize employers get started on the path to building a more diverse, equitable, and inclusive workplace.
Where to Start?
When embarking on a DEI journey, small and midsize employers often focus on the “D” first, believing they need to increase the diversity of their team before they can start creating structural and cultural change. However, this approach fails to acknowledge the diversity that already exists within their organization. For instance, ethnicity, sexual orientation, gender identity, family status, and ability are identities that can often be invisible.
Starting with an assessment of your current team's needs and culture is a smart move for a couple of reasons. First, not only can it reveal issues that you might not be aware of but it can also help you to prioritize growth opportunities so that you can maximize the impact of your efforts. Obtaining clarity on what needs to change as well as why presents opportunities to show your team you're committed to creating an equitable work environment. Second, doing so can save you from making the mistake of hiring individuals with diverse backgrounds as a primary solution to achieving diversity, equity, and inclusion in your organization. This won't solve structural inequalities. In fact, if you bring in new talent without first addressing underlying issues, it is likely that they will feel unsupported and ultimately leave.
DEI isn’t just about representation: it’s important to address structural inequality before people with marginalized identities join your team. At Ellequate, we focus on the “E” first to build the foundation required to support a diverse and inclusive workplace.
(Re)Defining DEI
While 79% of organizations planned to increase their DEI budget in 2022, one study found that "roughly 80 percent of companies are just going through the motions and not holding themselves accountable," which some would call “diversity dishonesty.” Your organization can avoid this costly, reputation-destroying approach by getting clear on why you’re doing this work, what success looks like for you, and how you’re going to achieve it. Remember, diversity, equity, and inclusion are outcomes of intentional efforts to create a more fair and just workplace—they are not programs or initiatives.
Here’s how we define DEI at Ellequate:
Diversity refers to the range of identities, backgrounds, and perspectives represented within your workforce. An organization with a diverse workforce is accountable to the unique needs of its stakeholders, especially those with marginalized identities.
Equity recognizes that past and current injustices must be addressed through the dismantling and rebuilding of systems to promote fairness and well-being for all individuals, regardless of their background and/or identities.
Inclusion is about creating a culture where difference is not just tolerated, but welcomed and appreciated. When an environment is inclusive, all stakeholders—including those with marginalized identities—feel respected and valued.
Again, we focus on equity first because we believe it’s the foundation and prerequisite for diversity and inclusion.
There isn’t necessarily a wrong way to interpret these values as long as it aligns with the outcomes you aim to achieve. Ellequate Advisor Cherrie Davis doesn’t use the words “DEI programs” or “DEI initiatives” because these are short-lived, and they can compartmentalize the work into specific departments or committees. Once you make this commitment as an organization, you should be able to assess every decision you make through the lens of your DEI values. Or, as Cherrie sometimes says, “humanizing systems.” She’s optimistic about changing workplace systems and cultures; Cherrie believes that “we will live up to our potential to cultivate an ecosystem that thrives because of our diversity.”
Our highest performing Leaders In Workplace Equity fully embody their DEI values, integrating them into the fabric of their organization across different departments and systems. They understand that DEI isn’t a separate department or an individual function, like HR or accounting, but a set of values, norms, and expectations that extend into every area of the organization.
What Does Your Existing Team Need?
Now that we've established the importance of assessing the needs of your current team, let's dive into how to go about it. For small and midsize employers, starting small and focused makes a lot of sense. However, it's important to avoid the pitfall of picking and choosing “isms” to address first. For example, focusing only on gender or race ignores the reality that people hold multiple identities and often experience compounded discrimination. For example, the experiences of BIPOC women are often very different than those of white women and BIPOC men. Addressing one form of oppression requires addressing all forms of oppression.
Your overarching strategy has to begin with an emphasis on uncovering inequity so you can create better experiences for everyone on your team. When you make assumptions about employee experience or you start with an approach that is too siloed, you run the risk of unintentionally minimizing employees with other shared identities. We’ve seen leaders prioritize much needed efforts to improve the experiences of Black employees in the interest of promoting racial equity and then learn from survey results that their Asian, Asian American, or Pacific Islander (AAPI) employees feel left behind.
We’ve created an employee survey and organizational assessment that work together to help you understand how your systems impact your people—including employees with marginalized identities—showing you exactly where to prioritize your efforts to have the greatest impact. A comprehensive assessment can also be a great way to gauge employee sentiments about DEI values and start conversations about your organization’s culture.
It can be tempting to make decisions based on what you see other organizations doing. Remember, there’s no one-size-fits-all approach to DEI, and the strategies and techniques that have worked for others might not be the best fit for your team. Again, the best strategy for your organization is one that’s focused on meeting your team’s unique needs.
Make Small Changes for Big Impact
Once you understand what your employees are experiencing and how your workplace systems either promote equity or create unintentional barriers, you can set goals and take incremental steps toward transformative change. We’re not aiming for “better than before,” but above and beyond what they have experienced in the past. No strategy that was custom-built for your team should seem “too big” for your organization to handle.
You can do a lot of this work by rethinking systems and processes, which doesn’t have to cost a lot of money. However, it will take time and commitment. Common areas where SMBs create change include their benefits and total compensation package, workplace policies, leadership style, manager training, professional development, and more.
Smaller teams do have some advantages when it comes to DEI work: with fewer people, it’s easier to create personal connections, make evidence-based decisions quickly, and execute new processes with consistency. Most SMB leaders can also make decisions without having to consider other stakeholders. The way we see it, SMBs have the agility and the human touch to lead the workplace equity revolution.
Get the Data You Need to Embed DEI
If you’ve already had a conversation or two with your leadership team about adopting DEI values or developing a strategy for workplace equity, you’re ready to get started! The next step is to find out what your team needs.
An Ellequate membership helps small business and nonprofit leaders access data-driven insights into how their employees feel and what they need. Our platform shows you which employees aren’t receiving enough support and what changes you can make to your workplace systems to help them thrive. Many employers are thrilled to discover that meaningful changes require smaller than expected investments of time and money—resulting in an unprecedented ROI.
In addition, your organization's efforts can have a profound impact on achieving a greater purpose. Our platform helps us collect and analyze aggregated employee survey and organizational assessment data, which allows us to identify what works for specific groups with shared identities across organizations of all sizes and industries. The collective efforts of your organization and others across the country will influence tomorrow's best practices for equity in the workplace.
Don’t just invest in DEI—invest in data-driven strategies that lead to measurable outcomes. Learn more.
