Closing Equity Gaps in the Workplace

Mar 15

The significance of diversity, equity, inclusion and belonging (DEIB) in the workplace cannot be underestimated. It is not only a moral imperative to provide equal opportunities, but it also brings tangible benefits to organizations, such as fostering innovation, enhancing profits, and improving employee retention. Recognizing the importance of closing equity gaps, organizations are increasingly focusing on creating inclusive cultures that value and embrace diversity. In this blog, we will explore the various aspects of closing equity gaps in the workplace and the strategies that can be implemented to achieve this goal.

Identifying Equity Gaps

Identifying equity gaps in the workplace is crucial for understanding the areas where disparities exist and where interventions are needed. Several key indicators can help identify these gaps. By identifying these equity gaps, organizations can take targeted actions to address and close them, fostering a more inclusive and equitable work environment. Let’s take a look at some common areas of inequity.

Lack of diverse representation in leadership roles

The lack of diversity in leadership is a key contributor to inequity in the workplace. A study by CFO Dive* in 2023 found that white males still hold nearly 90% of the top C-suite roles at major corporations. This tradition creates a stigma that obstructs or at the very least dissuades minorities from achieving leadership roles.

Pay inequity

According to a 2023 Gender Pay Gap Study,** for every $1 that men make, women earn $0.83 when data are uncontrolled. We see an even greater disparity amongst racial diversity. Indigenous American and Native Alaskan women make $0.72 to every $1 white men make, Black women earn $0.80, Hispanic women $0.79, an Native Hawaiian and Pacific Islander $0.78 to every $1 white men make. When companies allow their pay data to be uncontrolled, these gaps will not be closed.

Microaggressions and psychological safety

Microaggressions in the workplace can significantly contribute to poor psychological safety. These subtle, often unintentional, acts of discrimination or bias can erode an individual's sense of belonging and undermine their confidence and well-being. When employees experience microaggressions, they may feel marginalized, invalidated, or excluded, which can lead to heightened stress, anxiety, and a reluctance to express their ideas or challenge the status quo. Over time, this can create a hostile work environment, hindering collaboration, innovation, and overall productivity. It is crucial for organizations to address and mitigate microaggressions to foster a culture of psychological safety where all employees can thrive and contribute their best.

Root Causes of Inequity

There are many factors that contribute to inequity in the workplace. Understanding the cause of these inequitable practices can help companies understand why change is necessary and how to approach equity goals.

Unconscious and conscious bias in people decisions can contribute to inequity in the workplace in several ways. It can lead to a lack of diversity in leadership roles, perpetuating the existing disparities and limiting opportunities for underrepresented groups.
Biased decision-making can reinforce previous exclusive or non-inclusive cultures, hindering progress towards a more equitable environment.
Systemic barriers embedded in policies and practices influenced by bias can create and perpetuate inequitable outcomes, affecting various aspects such as hiring, promotions, and compensation.

Strategies for Closing Gaps

Now that we’ve had the opportunity to identify some areas and causes of inequity, let’s look at some of the options that we have to close these equity gaps.

Securing buy-in from leadership

Leadership buy-in is crucial to address inequitable practices as it sets the tone and direction for the entire organization. Without the commitment and support of leadership, efforts to close equity gaps may lack resources, accountability, and the necessary cultural shift needed for lasting change.

Conducting equity audits

Addressing pay inequity is a crucial step towards creating a more equitable workplace. According to a 2023 study by Payscale,*** 62% of companies are committed to conducting pay equity audits and prioritizing pay equity overall, indicating a growing recognition of the issue. Increasing pay transparency has also been identified as a key strategy, with participants in the study ranking it as the most important compensation activity for the next few years. By conducting pay equity audits and implementing transparent pay practices, organizations can identify and address disparities, ensuring fair compensation for all employees. These efforts contribute to creating a more inclusive and equitable work environment where individuals are compensated based on their skills and contributions, regardless of their gender or other demographic factors.

Implementing bias mitigation practices through inclusive education

Implementing bias mitigation practices through inclusive education is a powerful strategy to address inequities in the workplace. By providing education and awareness programs, organizations can promote understanding, challenge biases, and foster a culture of inclusivity where all employees feel valued and supported.

Expanding diversity hiring, ensuring inclusive promotion & career development practices

Expanding diversity sourcing and hiring practices is a crucial strategy for closing equity gaps in the workplace. By actively seeking out and recruiting candidates from diverse backgrounds, organizations can ensure a more inclusive and representative workforce, fostering a culture of diversity and equity.

According to a McKinsey study, companies with diverse boards and executive leadership earn more in profits by 25%. Having diversity in hiring and promotional practices not only increases DEIB and improves the employee experience, it is the most profitable route as well.

Recognition

A 2023 study by Gallup/Workhuman**** surveyed employees regarding recognition and equity in the workplace. The study found that employees who ‘strongly agreed’ that they receive the right amount of recognition for their work were 7X more likely to perceive their company as equitable. Of employees who did not agree that they were being properly recognized for their work, a mere 9% reported their company as being equitable.

Measuring Progress

Tracking progress is of utmost importance when it comes to goals related to closing equity gaps. By monitoring and measuring key metrics, organizations can assess their progress and identify areas that require further attention. Measuring progress of equity gap closure related goals also allows organizations to hold themselves accountable and make data-driven decisions to address any disparities or inequities that may exist. Here are a few proven methods for measuring progress towards equity gap closure goals:

Employee engagement surveys: Leveraging employee feedback gives companies the chance to learn how their efforts to close equity gaps are being received by their employees. Be sure to make your survey data measurable and applicable to the goals that you are measuring against.
Diversity metrics: Adding measurable diversity metrics across the employee lifecycle and experience can help companies understand how equitable their practices are, and how their equity gap closure goals are progressing. Some key metrics to consider measuring diversity are:
- Hiring and retention rates
- Promotion rates
- Recognition
- Employee satisfaction
Evaluate pay equity: The first step to closing the pay equity gap is to identify where those gaps exist. Conducting pay equity audits and addressing inequities on a regular basis can build a practice that combats systemic barriers and bias.

Conclusion

Closing equity gaps in the workplace requires an ongoing commitment to equity, as well as continual improvement to uphold an inclusive culture. By addressing areas of disparity and implementing strategies to promote diversity, organizations can benefit both individuals and the overall society. It is not only a moral imperative but also brings tangible benefits such as fostering innovation, enhancing profits, and improving employee retention. By striving for equity, organizations can create a more inclusive and equitable work environment where all individuals have equal opportunities to thrive and contribute their best.

Thank you, as always, for tuning into the HENSLEE blog. We look forward to continuing the battle against inequity together. Lead with heart! 💓