Proactive Inclusion in a Complex World

Barry shared encouraging data, illustrating how inclusive hiring efforts are paying off. In a study of recruitment practices across the UK, Canada, and India, companies employing “tried-and-true” inclusion tactics – diverse candidate slates, diverse interview panels, mandatory bias training, and targeted sourcing – saw tangible results. In the UK, for example, 50% of new hires this year were women, up from 46% in 2023, with similar rises in Canada (55%, up from 51%) and modest results in India (37%, up from 36%). These upticks in women’s hiring underscore how inclusive talent strategies can drive measurable progress, reinforcing Barry’s point that inclusion can be a competitive advantage in every market. Barry also highlighted partnership as a catalyst for innovation: The StepStone Group, a global leader in digital recruitment and the summit’s host, exemplifies how embedding inclusion at a platform’s core helps connect talent to opportunity at scale. StepStone’s own Head of Diversity & Inclusion, Bianca Stringuini, echoed this vision of inclusion-fueled innovation in her welcome remarks, setting the stage for a day of learning and collaboration.

From Compliance to Influence: Aligning HR Leadership

The first session dug into a foundational question: how can Chief Diversity Officers (CDOs) and Chief Human Resources Officers (CHROs) join forces to amplify impact? James Cowling-Vega, shared insights from a new Seramount study based on interviews with over 100 CHROs. The research revealed that while most HR leaders support Inclusion in principle, truly integrating inclusion into business strategy requires moving beyond compliance-driven approaches to ones centered on influence and collaboration. Cowling-Vega noted that effective CDO-CHRO partnerships hinge on speaking the language of business outcomes. This theme of “shifting from explaining inclusion to executing with influence” resonated throughout the day. In fact, Seramount’s latest pulse survey found that only 1 in 5 CDOs feel they can effectively influence their C-suite on Inclusion, even as 90% say securing senior leadership buy-in is their top priority. Closing that gap is critical – without the ability to clearly link inclusion to business value, Inclusion efforts risk being sidelined or defunded in today’s environment. Cowling-Vega’s session underscored a clear call to action: HR and Inclusion leaders must continue to evolve from box-checking to business-aligned strategies, using data and influence to embed inclusion into executive agendas.

Moving with Trust in AI

A lively fireside chat on emerging technology examined the cutting-edge of inclusion practice: AI in HR. Nicola Weatherhead, StepStone Group’s VP of Talent Acquisition & People Operations, joined Subha Barry for a candid discussion on the promise and perils of artificial intelligence in people management. Weatherhead, a veteran tech industry people leader, and Barry emphasized moving forward with trust in AI – harnessing AI’s efficiencies in recruiting and talent management while maintaining human oversight and fairness. Attendees openly shared their experiences via live poll: many organizations are still in early exploratory stages of integrating AI in HR, and the top concerns on everyone’s mind are bias, transparency, and compliance with rapidly evolving laws. Weatherhead addressed these head-on, citing the forthcoming EU AI Act as a prime example of why HR leaders must stay proactive. Her guidance: treat AI as a tool to augment, not replace, human judgment, and build diverse teams to vet AI-driven decisions for unintended bias. She described StepStone’s approach to ethical AI – from rigorous bias testing in algorithms to cross-functional governance – as a model of balancing innovation with responsibility. The takeaway was clear: trust and innovation can co-exist. With the right guardrails, AI can help streamline hiring and expand talent pools, but earning employee trust means prioritizing ethics and transparency at every step.

Navigating Legal Headwinds in Inclusion

Legal and regulatory shifts have rocked the Inclusion landscape worldwide, a reality brought to life by Chris Bracebridge, Partner at Covington & Burling LLP and a leader on the firm’s global Inclusion Council. Bracebridge led a session on inclusion under pressure – how recent legal changes demand agile strategies from Inclusion and HR teams. He noted that in just the past 18 months, dramatic changes have altered what’s permissible or practicable in corporate Inclusion programs. From high-profile court decisions on affirmative action in the U.S., to new European regulations like the AI Act and pay transparency directives, to evolving UK compliance requirements – the rules of engagement for Inclusion are being rewritten in real time. Bracebridge broke down these complexities with practical clarity, reassuring leaders that inclusion and compliance are not mutually exclusive. For instance, he pointed out that even amid political pushback, companies can focus on inclusive practices that are universally beneficial, such as mentorship programs or diversity in recruitment, which carry low legal risk but high cultural impact. The key is to stay informed and creative: adjusting language, reframing programs, and doubling down on business relevance can help inclusion initiatives survive external challenges. Bracebridge’s bottom line: Inclusion leaders must become deft navigators of change, influencing stakeholders with both vision and vigilance. His insights – coming from a firm that’s been advising global companies through these storms since 2021 – provided a roadmap for turning legal “disruption into opportunity”, sparking ideas on how to future-proof inclusion efforts.

Macro Trends and Inclusion: An Economist’s View

After lunch, the summit zoomed out to a macro-economic lens, examining how broad labor market trends influence workplace inclusion. Julius Probst, Appcast’s European Labor Economist, presented a data-rich look at the British economy and job market in 2025. Probst, shared sobering statistics: the UK’s unemployment rate has crept up to 4.6%, and job vacancies have declined to their lowest since before the pandemic. After a long post-pandemic boom, Britain’s labor market is edging closer to a downturn, with hiring freezes and lower turnover as economic uncertainty rises. Yet within this challenging climate, there are silver linings for inclusion. Probst noted that a cooling labor market can push employers to focus on quality ofhire over quantity, presenting an opening to double down on inclusive recruitment – reaching talent that may have been overlooked in hyper-competitive Probst added perspective from on-the-ground in the UK: even as overall hiring slows, skills shortages persist in sectors from technology to care services, meaning companies that cast wider nets and invest in upskilling diverse talent will weather the storm better. This economist’s view reinforced a theme from earlier in the day – inclusion as innovation under pressure. When macro headwinds blow, inclusive practices like reskilling, internal mobility, and flexible work can become engines of resilience. The session vividly connected the dots between global trends and daily inclusion work, reminding leaders that Inclusion strategy must flex with economic realities.

Collaborative Solutions: Evolving ERGs and Beyond

Caroline Waters, OBE – a veteran HR executive and Deputy Chair of the UK’s Equality and Human Rights Commission – led an eye-opening breakout session on global demographic shifts and what they mean for inclusion. Co-facilitated by Angela Lacerna, an Associate Director of Partner Development at Seramount, the session challenged participants to think bigger about where talent and consumers will come from in the future.

Waters highlighted several striking facts as signals of a massive demographic transformation unfolding worldwide:

• English speakers on the rise: China is poised to become the largest English-speaking nation in the world.
• Talent pool scale: The top 25% highest-IQ individuals in China outnumber the entire population of North America (and India’s top 28% does as well).
• Workforce surplus: Even if every current U.S. job were transferred to China or India, those countries would still have a huge surplus of workers to spare.
• Skyrocketing birth rates: In the time it takes to read this sentence, dozens of babies are born around the globe – about 38 in the United States, 92 in China, and 241 in India. As Waters put it, “the speed of global diversification is almost too fast to grasp.”
• Shifting majorities: In Birmingham, UK, the balance of demographics flipped within a decade. The city went from roughly 58% White and 42% Black in 2011 to about 49% White and 51% Black in 2021 – a complete reversal of majority and minority representation in just ten years.
• Youth resurgence: In the UK, church attendance among young adults has quadrupled, from only 4% in 2018 to 16% today. This unexpected surge in youth participation is another example of how quickly social trends can turn.

Each of these data points, Waters explained, is more than just a statistic – it’s a wake-up call. Together, they paint a picture of a world where diversity is the new normal on a global scale. Populations and workforces in Asia are booming, educational and linguistic advantages are no longer confined to Western nations, and even local communities are seeing dramatic shifts in composition and behavior. For inclusion strategists, the implication is clear: we must anticipate and embrace a far more diverse future. Inclusion efforts can’t rely on old assumptions about where talent comes from or what “majority” means in any given context. Instead, leaders should prepare for a reality in which the so-called ‘minority’ groups may become majorities (and vice versa), and cultural patterns may shift unexpectedly.

ERGs: From Passion to Strategic Impact

Katie Oertli Mooney, Managing Director at Seramount, shared that even as some organizations pull back on formal DEI programs, employee resource groups (ERGs) remain resilient and continue to evolve. She introduced a new ERG maturity model with two dimensions – operational and impact – urging companies to move beyond grassroots passion to a structured infrastructure with leadership alignment from the top down. On the impact side, Mooney challenged leaders to think past what ERGs do (hosting events or programs) and focus on what they enable for the business and culture. The message was clear: leading organizations treat ERGs not as extracurricular networks, but as strategic partners in driving inclusion and innovation.

Mooney illustrated how high-functioning ERGs serve as pipelines for relationship-building and talent development. ERG leaders and members gain vital experience – from cross-functional collaboration and strategic planning to mentoring others – that hones their business acumen and inclusive leadership skills. These experiences build executive presence and influence among diverse talent, empowering employees to drive cultural fluency across the organization. In short, ERGs can be incubators of future leaders, translating grassroots energy into tangible business capabilities.

Spotlight Stories of Resilience and Innovation

As the summit’s final segment, two industry leaders delivered inspiring spotlight stories illustrating how they are driving inclusion forward in challenging times. Sharlene John, Head of Inclusion, Recruitment and Onboarding at Selfridges, spoke about cultivating talent and culture in the luxury retail sector. John described how Selfridges partners with the King’s Trust to promote internal talent development, creating avenues for underrepresented employees to advance and lead with continued support at the close of the program.

Next, Annika Allen, Head of Inclusion at All3Media, offered a candid look at building inclusion in media and entertainment – an industry known for creative dynamism and, often, systemic inequities. At the summit, Allen spoke passionately about the link between employee well-being and inclusion. In an environment prone to burnout and high stress, All3Media has made employee mental health a pillar of its Inclusion strategy – from inclusive storytelling workshops that give employees a voice, to equitable parental leave and flexible work arrangements. Allen’s core message: creativity and inclusion thrive together when people feel safe, valued, and cared for as whole individuals.

Think Bigger, Act Smarter: What’s Next

After a full day of insights and exchange, the Think Bigger Summit concluded with a unifying call to action. In closing remarks, Subha Barry observed that through every panel, spotlight, and hallway conversation, one theme came up again and again: “This work lives or dies by our ability to influence.” Influence – built on trust, backed by data, and aligned to business priorities – is the linchpin for turning inclusive ideas into sustained action. Barry challenged every leader in attendance to carry the day’s learnings back to their organizations and “engineer influence” for the changes that matter. Some key messages emerged from the summit’s conversations:

• Moving with trust in AI: Leverage AI-driven tools in HR and recruiting, but do so ethically and transparently, addressing biases and ensuring human oversight at each step.
• Inclusion as innovation under pressure: Treat inclusion as a source of innovation and resilience, especially in turbulent times. When under pressure – whether from legal, economic, or social forces – doubling down on Inclusion can reveal new solutions and growth opportunities.
• Shifting from compliance to influence: Evolve from check-the-box diversity compliance toward true influence in the C-suite. Build the business case with data and storytelling, and speak to what drives your particular organization. Inclusion isn’t a “nice-to-have” – it’s a strategic imperative, and it demands the same rigor and buy-in as any core business initiative.
• Evolving ERG maturity and impact: Invest in the maturity of Employee Resource Groups so they become strategic partners in talent development and innovation. Provide ERGs with executive sponsorship, clear objectives, and metrics to showcase impact, moving them from affinity communities to engines of business insight and leadership development.

Looking ahead, Seramount is committed to keeping this momentum going. Seramount’s Global Inclusion Index remains open for organizations to benchmark not just what they say, but what they do, across 29 countries. And the upcoming Global Member Conference will reunite this community to continue the conversation, dive deeper into new research, and turn ideas into action. These efforts are part of Seramount’s broader 2026 thought leadership agenda,  all aimed at one goal: helping inclusion leaders think bigger and act smarter to meet the demands of this changing workplace.

Together, we are turning aspiration into action, and ensuring that inclusion not only keeps pace with change, but drives the innovative workplaces of tomorrow.

The post Strategic Inclusion Under Pressure: Think Bigger Global Summit Highlights appeared first on Seramount.

As we move forward into the next chapter of our nation’s political story, it is more critical than ever to reaffirm our dedication to diversity, equity, and inclusion (DEI) in the workplace. A recent Seramount study revealed that over three-quarters of US employees remain firmly committed to supporting their employers in combating racism and injustice.

Additionally, nearly 80% place a high value on working within an inclusive organization. These findings underscore the prevailing understanding of the importance of DEI across the workforce. Yet they also reinforce our responsibility as corporate leaders to stay the course, regardless of the political climate.

This article first explores the potential impact of a second presidential term under Donald Trump on DEI initiatives. By examining key policy stances and political developments, DEI leaders can prepare for the challenges and opportunities ahead.

We then introduce “Thinking Bigger About DEI,” a new Seramount initiative specifically designed to help organizations rethink and expand their DEI strategies in the post-election period. In a rapidly evolving workplace landscape, it’s imperative to adopt a more holistic, agile approach to DEI—one that’s aligned with current challenges but equally mindful of emerging opportunities.

DEI Leaders’ Concerns About a Second Trump Term

On October 16, 2024, Seramount held a confidential Employee Voice Session (EVS) for Chief Diversity Officers (CDOs) and other DEI leaders to discuss the potential impact of the upcoming election results on corporate DEI efforts. The session revealed considerable apprehension among participants. According to the survey conducted during the event:

• 93% of DEI leaders believe a second Trump term would negatively impact corporate DEI efforts.

• 78% of respondents expressed concern that a second Trump presidency would hinder their future DEI strategies and programming.

1. Attacks on Equity

Throughout his first term, President Trump repeatedly criticized DEI initiatives, labeling them divisive and “woke.”

His administration launched the 1776 Commission to counter programs such as the 1619 Project, which examines US history through the lens of African-American experiences. Trump also denounced efforts such as President Biden’s Executive Order on Advancing Racial Equity, calling them “Marxist” initiatives.

With a second term, many DEI leaders expressed concern that these attacks could escalate, leading to legal and administrative challenges aimed at dismantling equity-focused programs within companies.

2. Challenges to DEI Training

One of the most immediate concerns for DEI professionals is the possibility of the reinstatement of Trump’s 2020 Executive Order on Combating Race and Sex Stereotyping and related directive restricting federal diversity training, including concepts such as critical race theory and White privilege. Although President Biden quickly revoked this order, Trump has pledged to reintroduce it and even expand its scope. Although the executive order focused exclusively on federal agencies and federal contractors, these developments create new uncertainty for DEI leaders, who may be forced to reconsider their training programs in response to potential political backlash.

3. Erosion of “Disparate Impact” Protections

Under the Trump administration, significant efforts were made to roll back protections under the “disparate impact” doctrine, a core principle of Title VI of the 1964 Civil Rights Act addressing unintentional discrimination in the workplace. Private organizations have faced disparate impact claims related to a wide array of employment issues, from hiring policies to dress codes. Revoking these protections would significantly impact legal efforts to combat systemic inequities, weakening one of the most important tools for ensuring workplace fairness.

4. Legal and Political Challenges to DEI Programs

During Trump’s first term, legal and political challenges to DEI programs intensified, particularly those relating to affirmative action and race-conscious policies. Many DEI leaders expressed worry about the rise of legal challenges framed as combating “reverse racism.”

Trump, alongside allies such as Vice President-Elect J.D. Vance, has framed DEI initiatives as a form of “reverse racism” against White individuals. Vance introduced the “Dismantle DEI Act” in 2024, aiming to eliminate federal DEI programs and withhold funding from institutions that implement such policies.

Trump’s judicial appointments, notably to the Supreme Court, have also shifted the legal landscape, culminating in the 2023 ruling that banned race-conscious admissions in higher education. His administration also plans to use agencies such as the EEOC and Department of Justice to challenge DEI practices, framing them as violations of antidiscrimination laws.

Lawsuits against universities such as Princeton and Yale underscored this effort. The corporate sector might see a return to actions such as the Department of Labor’s argument in 2020 that Microsoft’s commitment to double their numbers of Black/African American people managers, senior individual contributors, and senior leaders in their US workforce by 2025 constituted “unlawful discrimination on the basis of race,” a violation of  Title VII of the Civil Rights Act.

Trump has pledged to continue his campaign against DEI programs, using federal power to undermine DEI work, promising to investigate race-based discrimination in schools and businesses and targeting policies he deems divisive. The future of DEI initiatives could face further legal and administrative hurdles if these efforts persist.

Paid Family Leave: Progress and Challenges

In 2018, President Trump’s proposed budget introduced a provision for six weeks of paid parental leave. The following year, he signed a bill ensuring paid parental leave for federal civilian employees. During his final State of the Union address, Trump championed the Advancing Support for Working Families Act. However, the proposed legislation failed to include job protection for those taking leave. The legislation also faced other hurdles, including bipartisan disagreement on funding.

While Trump did not make specific commitments regarding paid leave in his 2024 campaign, Vice President-Elect J.D. Vance expressed optimism during the campaign, stating, “I think there is a bipartisan solution here because a lot of us care about this issue.”

Project 2025: A Blueprint for Rolling Back DEI

Many DEI leaders also expressed concern about the potential for federal investigations into corporate DEI practices, as laid out in the conservative think tank Heritage Foundation’s Project 2025. Project 2025, a policy proposal crafted by Trump’s allies and at times disavowed by Trump, outlines a series of steps to dismantle DEI efforts across the federal government and in private organizations.

Some key provisions:

• Removing DEI-related language from federal legislation and agency documents
• Investigating corporate DEI and ESG (Environmental, Social, and Governance) practices for potential “reputational laundering”
• Prohibiting race- or gender-based DEI initiatives in federally funded organizations
• Undermining antidiscrimination measures, especially those related to race/ethnicity and LGBTQ+ status
• Eliminating DEI departments, initiatives, and programming from schools receiving public funding
• Reforming the EEOC and obstructing its abilities to address and regulate workplace discrimination and inequities
• Leveraging Title VII of the Civil Rights Act against DEI initiatives

These proposals, if enacted, would clearly present significant challenges to DEI programs; it’s clear that DEI leaders will need to brace for potential legal and regulatory challenges.

Adapting DEI Strategies in an Uncertain Political Landscape

In response to these concerns, DEI leaders are exploring strategies to navigate the shifting political landscape. Feedback from Seramount’s recent focus group of DEI executives indicates that many are preparing to adapt in the following ways:

1. Reframing DEI Initiatives
   Leaders may need to pivot their messaging to emphasize the business imperatives of DEI—such as innovation, market competitiveness, and employee retention—rather than focusing solely on social justice or moral arguments.
2. Stealth Implementation
   Some DEI leaders anticipate adopting a quieter approach, implementing DEI strategies internally while avoiding external political scrutiny.
3. Increased Collaboration
   Building closer partnerships with legal and compliance teams will be crucial to navigating potential litigation and regulatory hurdles.

Embracing New Opportunities for DEI

While a second Trump term presents undeniable challenges, DEI leaders remain resilient. National surveys continue to show a strong employee commitment to DEI, with only 21%  expressing a negative view. Despite new hurdles, the underreported majority support for DEI in the workplace continues to provide a solid foundation for DEI professionals to continue pushing forward,even in the face of political headwinds.

Moreover, while the political environment may change, the demographic landscape is evolving in ways that offer new opportunities for DEI leaders. With multicultural consumers already making up nearly 40% of the US population and expectations that this figure will  grow, organizations must evolve their DEI strategies to reflect this diversity—not just in their workforce but also in their customer base, supplier networks, corporate partnerships, and community engagements.

Thinking Bigger About DEI: A Path Forward

At Seramount, we believe that the future of DEI lies in thinking bigger about the value proposition of DEI now. As organizations become more diverse, DEI leaders must take a broader, more integrated approach. From mitigating AI bias to advancing health equity and improving employee productivity, DEI initiatives can drive significant business impact.

The most effective DEI leaders are those who inspire their organizations to see DEI as a core business function, not just a social responsibility. Our “Thinking Bigger About DEI” initiative encourages organizations to expand their DEI efforts beyond traditional boundaries, integrating them into every facet of the business—from product equity to inclusive marketing and design and from supply chain management to investor relations.

By adopting this more expansive view, DEI professionals can unlock the full potential of their programs and demonstrate measurable social and business outcomes. The future of DEI is not just about compliance or avoiding risk—it’s about seizing opportunities to create meaningful, transformative change.

Conclusion: Staying Committed and Agile

Despite the uncertainty and potential political challenges ahead, DEI leaders must remain focused on their core mission: to create workplaces where everyone feels valued and included. At Seramount, we are committed to providing the tools, research, and insights needed to help you navigate these turbulent times.

Whether you’re looking to strengthen your DEI strategy, adapt to a shifting political landscape, or rethink how DEI can drive business success, we are here to support you every step of the way. Together, we can ensure that DEI remains a central pillar of organizational success, regardless of the challenges ahead.

Let’s continue to think bigger, stay agile, and focus on what unites us—our shared commitment to building diverse, inclusive, and equitable workplaces.

The post What a Second Presidential Term for Donald Trump Means for DEI Leaders: Navigating Uncertainty and Seizing Opportunities appeared first on Seramount.

This is important because ESG is emerging as an essential counterpart to DEI goals and because ESG is falling more and more under the purview of the Chief Diversity Officer and the DEI team. It’s also making headlines as Republicans in Congress vow to scrutinize the social and climate goals of banks and asset managers. Companies must remember that ESG can attract talent and investors, build a loyal customer base, and develop brand integrity. Here are its components:

1. Environmental: Measures how well a company is able to mitigate the negative effects of their business operations on environmental issues. For example, a company can track resource depletion, waste, water usage, or treatment of animals.
2. Social: Measures the way an organization operates with consumers, suppliers, the external community, and talent. Examples of measurements include representation, pay equity, supplier diversity, and learning and development opportunities.
3. Governance: Assesses a company’s leadership and takes issues such as executive pay, board diversity, and stakeholder engagement into account.

In 2022, Seramount examined how ESG initiatives can aid in measuring employee and stakeholder satisfaction. We explored this topic further during a webinar with MGM Resorts and gave real-world examples of the impact ESG can have internally and externally.

Here are our findings:

The Evolution of ESG

To understand how ESG and DEI connect, we first talked about Corporate Social Responsibility (CSR). Historically, CSR was used within corporations to promote sustainability and philanthropic efforts. This initiative was a step in the right direction and was made up of four strategic pillars: environmental impact, philanthropic giving, ethical business practices, and having an economic first mindset in hopes of making a positive difference in the world. However, CSR lacks metrics for holding leaders accountable for results. Not being held accountable in the actual implementation of these pillars long-term can lead to a practice known as “greenwashing,” when a corporation misleads the public about how “green” their product actually is.

CSR is important because it got us to where we are now; the shift to ESG strategies will fill the missing piece by having metrics in place to implement purposeful campaigns. “ESG is quickly becoming an important tool in an organization’s ability to attract talent and investors, especially younger generations, and to build a loyal consumer base,” says Barbara Frankel, Senior Director of Insights at Seramount.

It’s important to note “that especially in supplier diversity, a lot of B2B companies are noting that their clients are demanding to see their own results in terms of whom they are hiring as their suppliers. They want to see that they’re meeting ESG goals in that area,” says Frankel.

What Gets Measured Gets Done

With the components of ESG in place, organizations can create tangible results that become essential to talent acquisition and retention. Why? Because today’s talent, especially Gen Z, want to work where leaders are actively making the world a better place while showing genuine interest in employees’ health and well-being, as well as increasing the representation of historically excluded talent. ESG allows for companies to be held publicly accountable for their socioeconomic commitments, on a global scale if needed, creating transparency that makes people feel proud to support the overall mission(s) of the company. Too, the public is now expecting a certain level of transparency.

“Everybody is under the microscope. You have to back up what you’re saying with metrics and facts. And if you don’t, you’re going to lose employees, you’re going to lose the public space, and you’re going to lose clients,” warns Frankel.

Long-Term Commitments = Long-Term Results

In 2021, MGM Resorts publicly released their Social Impact & Sustainability Report, showcasing the goals MGM wanted to achieve by 2025. These goals included (but are not limited to) training employees on social impact and sustainability policies, access to leadership opportunities for all employees, expanding their supplier diversity program, and investing in local communities. MGM is also creating a sustainable supply chain through setting the following goals: Reducing water/sq ft by 30%, reducing carbon/sq ft by 45%, reducing energy/sq ft by 25%, and spending at least 10% with diverse suppliers.

“Commitment starts from the top,” says Tony Gladney, Vice President, Diversity, Equity and Inclusion, MGM Resorts International. MGM’s ESG task force was comprised of executives from strategy, investor relations, risk, finance, purchasing, and other functions, and they were able to prioritize their focus based on input from employees, customers, communities, and shareholders. “You have to know where you’re at, in order to know where you need to go,” he goes on to say.

MGM’s ESG strategy is integral to their recruitment, sales, and customer operations. “Our HR team will tell you it is a very competitive market out there. There is a battle for talent. They are looking at ESG issues. They are looking at how they treat their employees, how they treat their customers,” says Gladney. The topic of ESG is also brought up by potential clients. “We partner with our global sales team to talk to them about where we are from an ESG perspective, what our commitments are from a DEI perspective. Are we reaching our goals? And you will actually lose customers as well, because they want to do business with individuals that are really practicing being responsible citizens in the communities where they operate. It just makes good business,” he adds.

Read more about how ESG and DEI work together by downloading ESG and DEI: The New Indicator of Employee, Stakeholder Satisfaction, or contact us to speak to an expert about strengthening your organization’s ESG strategy for 2023.

The post Long-Term ESG Commitments Can Create Long-Term Employee Results appeared first on Seramount.

Strong DEI performance has shown to contribute to ROI and mitigates all types of organizational risk; however, most companies continue to underinvest in DEI people and initiatives. The average DEI team has fewer than seven staff, even for the largest organizations, and the average spend on DEI programs is only $44/per employee. Inevitably, this leads to an overstretched and under-resourced team that is unable to drive the systemic changes required to meet stakeholder, employee, market, and board expectations. 

On the contrary, progressive companies are redoubling investment to fortify their DEI initiatives and strategies, ensuring that no matter what uncertainty lies ahead, their talent pipeline, brand reputation, corporate culture, market valuation and board confidence are secure. DEI is no longer a moral imperative; it is a business imperative in today’s climate.

Consumer Confidence and External Stakeholder Sentiment Can Help or Harm Brand and Market Value

According to Seramount’s recent insight paper, 86 percent of consumers think companies should actively implement ESG best practices. Furthermore, they are 76% more likely to buy from companies that champion environmental and social issues and that practice ethical governance. Marketing missteps, such as cultural appropriation or use of non-inclusive language and images, can lead to significant consumer backlash. On the other hand, strong performance on DEI metrics can bolster brand, revenues, market share and stock valuations.

Employee Engagement and Satisfaction Are Deeply Tied to DEI Priorities

46% of employee turnover is due to an unhealthy company culture. Employers need to understand what their employees truly want from their workplace and invest in these imperatives to retain and attract the right talent. As Gen Z enters the workforce, 53% of them expect to see more diversity in leadership positions. This influential group has made it clear: they will not stay at a company where leadership doesn’t reflect the larger workforce (and currently less than 8 percent of the F500 has a diversified C-suite). Don’t risk waiting until you lose top talent to discover vulnerabilities in your culture. Now more than ever, fostering inclusivity and trust between leadership and workforce is crucial to culture health.

Pressure from Boards is Mounting for Sustained Focus on and Investment in Change

Poor performance on DEI metrics, unfulfilled promises on investments, and all-talk-no-action can impact company valuations, stock prices and M&A potential. Boards are mandating transformation and looking beyond DEI and HR for this commitment toward everything from leadership teams, suppler diversity, and ESG policies, to Learning and Development curriculums.

Key Takeaways

DEI teams are taking on expanded roles and responsibilities as pressures mount to address societal crises, workforce experience and engagement, and retention pressures in an uncertain talent market. New tools and strategies will be required for success in this landscape. Successful organizations will need to:

• Mitigate the “disengagement tax” and “quiet quitting”
• Be quick and thoughtful in their response to social crisis and turbulent news cycles
• Support and train overstretched DEI staff
• Create clear measurement and communication of progress on DEI goals
• Follow through on DEI commitments for building inclusive talent strategy
• Align goals of ERGs with the larger business goals
• Build effective partnerships

Interested in learning more about how Seramount solutions can help integrate DEI strategy with the business strategy? Contact us.

The post The DEI Imperative: Minimizing Risk and Maximizing ROI in an Unpredictable Market appeared first on Seramount.

There is compelling evidence that speaking out is more and more necessary as employees, especially members of Gen Z, insist that corporate leaders be societal leaders as well. Consumers, too, often vote with their wallets, choosing to buy from organizations that publicly support their values.

Speaking out can be a daunting process, and if DEI isn’t part of the equation, the messaging may not be inclusive or could damage the organization’s reputation.

Here are some of the key takeaways from Seramount’s recent insight paper for Diversity Best Practices members, Top Social Issues Critical for Organizations.

Employees Have Higher Expectations than Ever Before for Employers

Workforce Applying to Organizations with Aligning Values

A July 2022 Qualtrics survey revealed that 54 percent of US employees would take a pay cut to work at a company that aligned with their values, and 56 percent would not consider working for a company whose values they disagreed with. There are serious talent attraction and retention implications for organizations to weigh when deciding whether to take a stand on social issues. Although staying silent has traditionally been the safest route, there is now a risk of losing current and potential employees to companies that speak out. During a time when companies are facing labor shortages, showing commitment to Environmental, Social, and Governance (ESG) topics by speaking out on social issues that affect employees aids the business’s ongoing reputational strategies to attract and keep desirable talent.

Younger Employees Especially Expect Employers to Honor DEI Commitments

Younger employees are conscious about how the places they work can affect other communities and are more willing to make lifestyle changes—including the places they choose to work—than previous generations. According to the 2021 Deloitte Global Millennial and Gen Z survey, 44 percent of Millennials and 49 percent of Gen Z said they have made choices about the type of work they would do and companies they would work for based on their values.

Speaking Out Plays a Powerful Role in Bolstering Employee Engagement

Research shows that 68 percent of employees would consider quitting their current job to join an organization with a stronger viewpoint on the social issues that matter most to them. This trend has been noticeable in the corporate world. For example, people who work for large tech companies are leaving their jobs to work at smaller, often nonprofit, organizations that are taking steps to deal with and/or eliminate the climate crisis. Climatebase, a job-search site that specializes in climate tech and environmental organizations, has had more than 600,000 users since it was launched in 2020. When employers speak out and take action on social issues, employees are twice as likely to express high job satisfaction than the employees of companies that remain silent.

Consumers and Shareholders Expect Brands to Uphold DEI

Consumer Purchasing Habits Being Determined by Values

Along with employees, customers are also looking to companies to be vocal on social issues. According to Barron’s, 60 percent of Americans want consumer-facing companies to have a position on issues such as racial discrimination and social justice. When companies take a stand on social issues, they show potential consumers that the organization’s commitments to DEI are more than just lip service. Customers’ purchasing habits are increasingly being determined by their values. Nearly 46 percent of consumers indicated that they visited a company’s website or searched online before buying to learn about their position on social issues, compared to 23 percent who said they would never do so.

B2B Businesses Being Held Accountable by Clients

There are also B2B implications for companies to consider when speaking out on issues. B2B companies find their clients increasingly expect them to uphold values through initiatives such as supplier diversity and sustainable procurement. According to a survey from global communications agency Hotwire, 80 percent of business leaders would end a business relationship based on the vendor’s failure to have effective crisis communications.

Seramount will be hosting a webinar titled Stand Up or Stay Silent? The Business Benefits of Speaking Out on Social Issues on December 2. Join us to learn more about the business benefits of speaking out and considerations leaders should make when deciding to make a statement, and also hear real–life examples of organizations that have taken stands.

Employees of our Diversity Best Practices member organizations can access the full insight paper here. Interested in learning more about membership and how Seramount can help your organization tackle controversial issues? Contact us.

The post The Pressure Is On for Corporations and Leaders to Speak Out on Social Issues appeared first on Seramount.