A conservative Think Tank from the US recently called for Apple to end its DEI efforts. The group cited “litigation risks, reputational risks and financial risk” as reasons why Apple should abandon its DEI efforts. UK employers must take notice.
First, because the events in America are already having an effect on the UK. Second, this sentiment shows that something is very wrong when hiring minorities can be viewed as “lawsuit risk”.
The statements of the Think Tank were not just the mutterings of a minority out-of touch. Unfortunately, they reflect a growing anti-DEI trend in the US. The new president of the US is an active member. During his previous term, Trump issued an executive order banning diversity training for public institutions and bodies that receive federal funding. In his first week in office, Trump issued an executive order that put all government DEI employees on paid leave.
Companies that are well-known could follow the lead of Trump. Meta, McDonald’s and Walmart slowed down their DEI programs even before Trump’s second tenure began. They did this in anticipation of more conservative policy. Both companies cited changing “legal and political landscapes” as the reason they backed away from DEI programs. They argued that DEI schemes were unfairly favoring some groups.
Impact on the UK
The UK is already feeling the impact of the DEI cuts. Meta’s decision not to continue DEI programs will affect UK employees, and it could be the same for other US-based companies that operate in the UK.
It is not likely that the current economic climate will help. In times of economic turmoil, diversity initiatives are usually the first to be cut. This is a knee-jerk, short-sighted reaction. According to research, businesses with greater diversity tend to be more profitable. Cognitively diverse teams also solve problems more quickly. McDonald’s senior leadership team (one of those companies that reduced their DEI programs) said that a diverse workforce was a competitive edge. Diversity and inclusion in the workplace is also associated with a 5x higher likelihood of employees staying for longer periods, which reduces hiring costs for employers.
It’s not just the right thing, but it is also logical to promote diversity and inclusion. Why aren’t there more businesses that see the value in these programs, instead of viewing them as lawsuits just waiting to happen?
Overreliance on diversity quotas is the problem. These targets seem good in theory. These targets are meant to make up for historical and current inequalities and to help achieve equal representation at work faster, especially in areas where we need to push companies.
Tokenism: Its Risks
Diversity quotas, however, are not the best solution. They’re merely blunt instruments. Quotas may get underrepresented workers into the door but they don’t guarantee an inclusive culture where these workers are supported and can thrive. Quotas are also ammunition for DEI critics who claim certain individuals got their job because they checked the diversity box.
As a female Asian CEO, I am tired of having to defend my achievements as the result of hard work, skill and determination rather than a href=”https://hrreview.co.uk/analysis/analysis-hr-news/paul-sesay’s “the dangers of tokenism”/378435″ rel=”noopener” target=”_blank”>tokenism/a>. I’m tired of being a female Asian CEO who has to explain that my success is the result of hardwork, skill, and determination , not tokenism. While I don’t support companies that turn their backs to diversity and inclusion I am open to a new approach. To create an equal playing field for everyone, the focus should be to eliminate biases that are at the root of inequalities. A solution is to hire based on skills.
It is a two step process that begins with anonymising the CV. Personal information, such as a candidate’s name, pronouns or age, will not trigger unconscious biases that could influence hiring decisions. Next, use’skills based scenarios’ to test the role-specific abilities of candidates. This will ensure that hiring decisions are made based on a candidate’s ability and not their background. The diversity will then follow organically.
A New Beginning
Our research at Applied has shown that a skills-based, anonymous approach can increase the number ethnic minorities hired by as much as 300% and the number women hired in senior roles by 70%. There’s also no risk that workers will be viewed as “token hires” or “lawsuit risks” when they are objectively and fairly judged to have the best qualifications for the position.
There is no doubt that we are at a crucial moment for diversity, inclusion and equality. I hope this will lead to the reimagining of DEI in the UK and not the end. Although some UK employers might give up on DEI programs, I believe that companies who are well-informed will decide to rebuild better.
Minority workers will never have to worry about being viewed as “token employees” or “lawsuit risk” again with approaches based upon skills, data, and evidence.
