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December 9, 2024
February 17, 2022

How Poor DEI Contributes to Low Employee Morale

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It’s no secret that diversity, equity, and inclusion (DEI) in the workplace is essential to a happier and more productive workforce. But when DEI is just lip service, DEI efforts can actually do more harm than good, contributing to low employee morale.

So, how can employers and business leaders do better? We’ve collected statistics and narratives to shed light on the issue and, more importantly, provide actionable strategies to do DEI justice for all. 

The Disconnect Between Surface-Level DEI Initiatives and Inclusion

DEI is a hot topic in the workplace—so much so that many companies implement DEI programs as a mere formality, without considering the deeper impact on their workforce. It’s essentially “PR work,” as Patricia Duchene from Forbes calls it, and can be a major reason for low employee morale. 

When DEI initiatives are seen as “checkbox” exercises, they can lead to feelings of disappointment and disillusionment among employees. Failing to follow up words with actions is a serious misstep that erodes trust and safety. 

Let’s delve deeper into two common pitfalls that can undermine even the best-intentioned DEI initiatives.

1. Misalignment Between Preached Values and Actions

Six out of 10 companies host events and discussions connected to DEI, but research suggests many businesses stop there. Only 49% of employers actually have a strategic diversity plan in place. This illustrates how many companies lack the initiative or know-how to create lasting, structural change. 

Doing the bare minimum doesn’t work. When DEI efforts aren’t meaningfully integrated into the company culture and daily operations, employees may feel their concerns and experiences are not genuinely valued or understood. This misalignment can cause some individuals to grapple with feelings of betrayal, disengagement, and dissatisfaction. 

2. Lack of Cultural Competence Among Leadership

Effective leaders who create a culture of trust and respect can increase morale, creativity, and collaboration. The key to unlocking trust and respect? Cultural competence. 

But here’s the catch: Research shows that only 24% of leaders have “high levels of perceived cultural intelligence.” 

When leaders lack cultural competence, they may unintentionally create a hostile or exclusionary environment. This can manifest in several ways:  

  • Miscommunication: Differences in communication styles and cultural norms can lead to misunderstandings and misinterpretations. 
  • Microaggressions: Subtle, often unintentional behaviors or comments can create a hostile work environment for underrepresented groups. 
  • Tokenism: Making individuals from underrepresented groups feel singled out or like they were hired just to fill a quota can lead to feelings of isolation and low employee morale.  
  • Lack of empathy: A lack of understanding of different cultural perspectives can lead to insensitivity and a failure to address the unique challenges marginalized groups face.  

In short, true leadership requires more than just words. Leaders must actively address these issues to elevate employee morale.

7 Actionable Steps to Realign DEI Efforts and Elevate Morale

To establish a truly diverse, equitable, and inclusive workplace, companies must focus on creating the right foundation. Overlooking the initial steps only perpetuates the cycle of surface-level initiatives discussed earlier. 

We encourage you to remain vigilant and thoughtful by taking the following steps to realign your DEI efforts with your company culture and boost employee morale.

1. Foster Open Dialogue

DEI means different things to different workforces. Every company consists of people with a unique mix of backgrounds and identities. 

It’s crucial to listen to the voices of your employees. By creating a safe space for open dialogue, you can ensure that your DEI initiatives truly resonate with your workforce.

2. Define What DEI Means

Based on the aforementioned dialogue, define what DEI means for your organization. Create a clear and concise statement of values and objectives. This statement should be shared and workshopped with folks from all levels of the organization. Communication is key to realigning DEI efforts with company culture. 

3. Continuously Involve Employees in DEI Policy Decisions

Involve employees in developing DEI policies. Regularly seek feedback from team members on their experiences and suggestions for improvement. 

Listen actively and ask follow-up questions to ensure you understand your employees and gain the full picture. When decisions are being made, ensure everyone gets the opportunity to provide input. 

4. Introduce Bias Awareness

Unconscious bias often prevents us from finding and enabling the collective brainpower within our own organizations. This is where unconscious bias training can help. 

Unconscious bias training addresses how our minds have been conditioned to act when we meet those we perceive to be different from us. This training can raise awareness of the mental shortcuts that lead to snap judgments about people’s talents or character. 

The goal is to minimize bias in everything from hiring and promotion decisions to interactions with colleagues and clients. 

Five key questions unconscious bias training should answer are: 

  • Where do biases come from? 
  • How do biases impact workplace decisions?
  • What are common types of biases? (e.g., confirmation bias, halo effect, implicit association bias, affinity bias, attribution bias)
  • How can people and organizations reduce unconscious bias? 
  • How is unconscious bias linked to microaggressions? 

5. Acknowledge DEI as an Ongoing Initiative

Awardco’s DEI policy states that DEI “is an ongoing work that requires constant vigilance and care. As such, Awardco is continually improving policies and practices to meet the needs of an ever-growing workforce.”

As needs change and employees come and go, it’s important to embody an open mindset. Adjusting opportunities amid shifts enables your team to keep DEI as an actionable priority.

6. Measure and Adjust DEI Strategies

Make sure your DEI initiatives are rooted in data. Incorporating DEI data into your company’s database ensures DEI remains an integral part of the organization’s everyday practices—not just a separate program that requires ticking certain boxes. 

Examples of DEI metrics include: 

  • Workforce demographics
  • Applicant diversity
  • Employee experience and retention
  • Pay equity analysis 
  • Leadership diversity

7. Keep an Eye on HR Laws & Policies

When strategizing your DEI policy, it helps to look into current federal, state, and local laws to help ensure the program is compliant. Here are a few examples of current laws and policies: 

  • Title VII of the Civil Rights Act of 1964 prohibits an organization from discriminating on the basis of race, color, religion, sex, or national origin in any employment decision. State laws and government contracts reiterate this standard.

  • Age Discrimination in Employment Act of 1967 or the Age Discrimination in Employment Act (ADEA) protects persons 40 years of age or older from age-based employment discrimination.

  • While the federal government has not taken such steps, some states have moved to directly regulate or ban DEI initiatives through legislation. Companies must evaluate DEI initiatives against state and local equal employment opportunity (EEO) laws to ensure that they are compliant. State legislatures that have passed anti-DEI policies include Alabama, Florida, Idaho, Utah, and more. 

Stay on Track with Valuable Resources

It’s clear that a surface-level approach to DEI isn’t enough. To truly foster an inclusive, equitable, and diverse workplace, organizations must commit to ongoing efforts and genuine change. Remember, this isn’t just a moral imperative—it’s a strategic advantage. By embracing DEI, you can unlock the full potential of your employees, reduce employee turnover, and achieve long-term success.

We encourage you to lean on our resource library to discover actionable ways to nurture a positive work culture.

Awardco Staff
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