Diversity, equity, and inclusion. In our previous two blogs, we have reviewed the many ways boards of directors can hold their CEOs accountable for diversity and equity, which leaves but one category left: inclusion. Of the three, inclusion can be the most difficult to monitor, because unlike diversity and equity, there are not as many quantitative statistics associated with this element of DEI. Nonetheless, there are still some quantitative as well as numerous qualitative elements that boards of directors can, should, and must confirm their CEOs are overseeing when it comes to inclusion. No reason to delay—let’s walk through each task!
Once the board of directors has both worked with their CEO to define their organization’s vision for DEI and ensured a thorough, enforceable commitment from the CEO to diversity and equity, keeping track of how inclusive the workplace environment is of the utmost importance. To begin, boards of directors should confirm CEOs are requiring that their HR team and/or hiring managers regularly seek feedback from diverse employees who are leaving the organization. Moreover, they should ensure the collected responses are compared over time. For example: let’s say these surveys reveal many Hispanic employees were initially leaving because of reason [x]. A few months later, after appropriate DEI initiatives have been implemented to address reason [x], retention of Hispanic employees has increased. The same surveys are again conducted, demonstrating that the Hispanic who are now leaving are more likely to leave because of reason [y]. The progressive cycle repeats: such surveys can precisely identify issues of exclusion and thus allow for the development of strategies to increase inclusion, helping ensure the retention of diverse employees. Terrence Duddy, senior independent director for both Hammerson plc and Debenhams plc, puts it succinctly: “‘The data from these people as to why they are leaving may unlock the issues in a way that the data from those who stay cannot,’” meaning there is no reason for boards of directors to not ensure their CEOs are overseeing such measures.
Another step toward inclusion that boards of directors can take is confirming their CEOs are staying informed on mentoring and sponsorship opportunities for underrepresented groups—what those opportunities are, who is leading them, and how effective they are proving to be. Mentoring and sponsorship are invaluable in fostering inclusive environments because they help ensure diverse employees know they have someone looking out for them within the organization. This task for boards of directors is especially important when taken together with the aforementioned retention surveys, because—for example—if mentorship and sponsorship programs are being offered to disabled employees, but disabled employees are still leaving the organization at higher rates than nondisabled employees, the board of directors and their CEO can recognize that these programs must be reworked.
Now, here’s the trickiest part: measuring the overall environment of inclusion within the workplace. Such a task is not as simple as the previous two means by which boards of directors can hold CEOs accountable for inclusion, but it is just as important for successful implementation of DEI across an organization. As a starting point, Deloitte offers some general guidelines for boards of directors to monitor inclusion within their organization:
These guidelines, however, are just that—guidelines! They are not the be-all, end-all of examining inclusion. In terms of concrete action, such as the “metrics” Deloitte mentions, boards of directors should ensure their CEOs are requiring that their team repeatedly perform inclusion surveys. The Gartner Inclusion Index is one option that can be employed for the development of questions that effectively measure inclusion. Similarly, these surveys might seek to determine the percentage of employees “who believe they are treated fairly and with respect in the workplace,” with demographic elements noted. For example, if 74% of female employees report that they don’t believe they are being treated with respect, and they identify this unfair behavior as a result of reasons [x], [y], and [z], then such survey results should send up a red flag for a conversation to be had between the board of directors and their CEO over those issues. In addition to this collection and analysis of inclusion surveys, boards of directors should confirm their CEOs are overseeing the organization of focus groups; monitoring the development of means by which exclusionary behaviors (e.g. microaggressions) can be reported (e.g. an online system, a DEI committee, etc.); and so on and so forth, as all of these strategies contribute to a more inclusive environment.
Last but certainly not least, boards of directors should also hold their CEOs accountable for their own inclusive behavior. Within employee surveys, there can be questions regarding how or if the CEO embodies certain traits of inclusive leadership, such as commitment, courage, cognizance, curiosity, cultural intelligence, and collaboration. Additional questions should inquire about the CEO’s commitment to DEI and the overall organization’s commitment to DEI. With this information, boards of directors can better evaluate the next necessary steps for ensuring their organization is one that fosters inclusion across all levels. The board of directors of YW Boston have voiced their dedication to an inclusive environment; Wendy Foster, a member of the board, succinctly observed that “‘[t]o have the greatest impact, boards have to “walk the talk” and do the work!’”
As with diversity and equity, boards of directors should be provided updates every meeting about the status of inclusion initiatives and surveys within their organization, especially because inclusion often presents additional difficulties to measure. Ultimately, the need for boards of directors to become more involved in DEI is imminent. With the three articles we have developed on how CEOs can be held accountable for diversity, equity, and inclusion, we hope to have provided straightforward, effective ways boards of directors can reach out to their CEOs regarding these topics. When all levels of an organization play their part, a more diverse, equitable, and inclusive future will shine over the horizon.
