CTO’s Guide to Fostering Diversity, Equity, and Inclusion

Diversity, Equity, and Inclusion (DEI) have gradually evolved from mere buzzwords to integral facets of progressive organizational cultures.  In the ever-evolving landscape of business, DEI emerges as a pivotal force for organizations of all sizes.

DEI is all about creating an environment that reflects the rich tapestry of the global community, further harnessing the power of different backgrounds, perspectives, and talents.  Most importantly, this strategy creates a safe space for employees of various backgrounds, with groups ranging from women, military veterans, indigenous people, and people of color to the LGBTQIA+ community and more.

Organizations that adopt D&I practices see huge gains in the form of business results, innovation, and decision-making. Moreover, it establishes a sense of belonging among employees, making them feel more connected and productive.

According to Deloitte, diverse companies enjoy 2.3 times higher cash flow per employee, while Gartner found that inclusive teams improve team performance by 30 percent in high-diversity environments. 

The tech industry faces several challenges in achieving true inclusivity

But despite the growing recognition of the importance of diversity, the tech industry faces several challenges in achieving true inclusivity. In the recent statistics released in April 2023 by Dice, a DHI Group, Inc., 53% of Black tech professionals said that racial discrimination frequently occurs, whereas 51% of women said gender discrimination frequently occurs in the tech industry, compared to just 30% of men.

On the other hand, the latest 2024 Gen Z and Millennial Survey conducted by Deloitte shows that 50 percent GenZ’s have rejected an employer or an assignment due to factors such as negative environmental impact or non-inclusive practices, whereas 89 percent Millennials feel that having a sense of purpose is very or somewhat important to their overall job satisfaction and mental well-being.

It’s becoming increasingly important for tech companies to understand the full composition of their workforce. This may seem like a simple concept, but embracing the importance of DEI is critical for driving innovation and growth.

The leader’s role in helping drive diversity, equity, and inclusion outcomes

Building a DEI culture involves both planning and a commitment from leadership. CTOs and other business leadership teams need to rethink about their diversity and inclusion practices, explore new strategies to build a more equitable workplace, and create a new future of work by mitigating both conscious and unconscious bias. A few steps that can help build a DEI strategy.

• Dig into data: This will require collecting and analyzing the people data to assess the demographics of the organization – including the leadership team. Once the data is examined, CTOs and other business leaders can set benchmarks and metrics for the DEI goals they want to achieve.
• Implement DEI protocols in the hiring process: Actively seek diverse candidate pools by – collaborating with diverse professional organizations, participating in job fairs, targeting underrepresented groups, and utilizing diverse recruitment platforms. This can broaden reach beyond traditional networks and enhance the likelihood of attracting a diverse array of candidates.
• Education and training: Investing in DEI education and training programs for all employees helps raise awareness and equips individuals with a positive attitude to challenge biases.
• Open lines of communication: Promote a culture where it is okay to speak up and point out relevant issues. This practice will make employees more comfortable speaking their minds and encourage them to voice their thoughts and concerns to have meaningful conversations that will help the organization move forward.
• Promotion and advancement: Track the promotion rates for all kinds of groups to ensure that diverse talent has equal access to upward mobility within the organization.

Establish Employee Resource Groups and encourage engagement 

Employee resource groups (ERGs) are voluntary experience or interest-based groups that exist within the organization or businesses. Through ERG groups, organizations can empower employees to find meaning and connection. Both ethnicity-based and affinity groups allow employees to connect, engage, and grow in spaces that encourage personal growth and culture-building within the organization.

As with any business initiative, there is no one-size-fits-for DEI practices. However, with proper planning, strategy, framework, or action, CTOs and business leaders can create a culture of engagement, belonging, and empowerment within an organization.

Likewise, creating a truly diverse, equitable and inclusive culture is not a one-time task, but an ongoing process that requires commitment and effort from leaders at all stages.

In brief

Diversity, equity, and inclusion are essential components of an organization. A diverse and inclusive workplace culture positively impacts everything from employee recruitment and loyalty to innovation and performance.