Diversity Deep Dive

A recent study by the Boston Consulting Group reveals that nearly 48% of the global workforce is grappling with unprecedented levels of burnout. The study uncovers a powerful connection between workplace inclusion and employee well-being, showing that a higher sense of inclusion significantly reduces burnout and attrition. The report identifies four key drivers that shape a truly inclusive environment: access to resources, strong support from senior leadership, psychological safety, and equitable opportunities for success. At its core, inclusion and belonging aren't just buzzwords—they are the foundation of a workplace where equity thrives, and everyone can reach their full potential.

According to Harvard Business Review, inclusive leaders help organizations by creating 17% more high performing teams, driving 20% high-quality decision making and 29% more collaborative work. Numerous studies indicate that inclusive workplaces lead to lower attrition and improved employee engagement. When leaders take time to lean in with empathy, it encourages employees to be their authentic best selves while creating a workplace which positively impacts overall organizational goals and initiatives.

Challenging macroeconomic conditions, geopolitical disruption, climate change, and the rise of artificial intelligence (AI) are just a few concerns impacting millions of people globally. According to PWC’s recent Global Workforce Hopes and Fears survey of 56,000 workers in 46 countries, 26% of workers stated that they will change jobs in the next 12 months. Many workers are experiencing tremendous stress, anxiety, and burnout. Organizations recognize that transformation is the key to long term sustainability. Equitable and inclusive workplaces are a critical component of the transformation to ensure companies have a dynamic workforce to drive innovation and skills needed for future growth.

Assuredly, we have seen progress on LGBTQ+ rights worldwide with several countries legalizing same sex marriage over the past few years through legislative and court decision including Australia, Brazil, Cuba, Slovenia, Switzerland, and Taiwan to name a few. Yet, many LGTBQ+ workers continue to be closeted and do not bring their full authentic selves into their careers. More concerning, according to a recent global study completed by Statista, there are approximately 71 countries where members of the LGBTQ+ community can face criminal charges. While we have seen some advancement for LGBTQ+ equality, many efforts have fallen short. Now more than ever we need LGBTQ+ business resource groups (BRGs) and allies to help cultivate an inclusive, safe, and respectful workplace for all.

According to Catalyst’s Inclusive Leadership Report, 45% of employees’ experience with inclusion is directly linked to their manager’s behavior. In the report, Catalyst outlines 5 key drivers impacting inclusion in the workplace which are 1) value 2) trust 3) authenticity 4) psychological safety in expressing different views and 5) psychological safety in being able to take risks. Globally, there is a paradigm shift in the employer, employee, and talent social contract. This shift means that leaders must lean in with empathy, respect, and inclusive behaviors to attract and retain talent in a tough labor market.

According to Deloitte’s 2021 Global Human Capital Trends Report, organizations need to focus on well-being beyond the standard “work/life balance”. In the global report, workers indicated that prioritizing well-being and integrating it in workplace transformation efforts as one of their top 3 concerns. As the world continues to move forward despite the impact of COVID-19, rising inflation, and social unrest; equity, diversity, inclusion, well-being, and belonging are critical now more than ever. In a talent scare market, workers are looking beyond compensation and seeking flexibility, authenticity, deeper connections to their beliefs, and a workplace that is equitable and inclusive for all.

According to the PwC’s 2022 Global Workforce Hopes and Fears Survey, 54% of respondents believe that it is extremely important for organizations to have transparency about their record for addressing diversity and inclusion in the workplace. The study further showcased the topics that mattered most to workers including, pay, flexibility, job fulfillment, wellbeing and inclusion. 66% of respondents stated that they want to be their true selves in the workplace. Over the past few years, companies have made many commitments on diversity, equity and inclusion with the ultimate goal of creating a workplace that is equitable and inclusive for all.

According to the Human Rights Campaign Study, “A Workplace Divided, Understanding the Climate for LGBTQ workers nationwide, 46% of LGBTQ workers are closeted at work, 50% of non LGBTQ workers don’t believe they have any LGBTQ workers in their workplace, and 28% of LGBTQ workers are totally closeted both in the workplace and in their personal lives. While we have seen strides for LGBTQ equality and advocacy for rights, many efforts have fallen short to foster an inclusive, safe, and respectful workplace for all.

According to a 2021 Harvard Business Review study, 85% of workers believe that their mental health and wellbeing has declined and 56% cited a high increase in job demands. The Great Resignation continues where we have seen more than 4.5 million people leave their jobs in March 2022 according to the Bureau of Labor Statistics. Global conflict and a never-ending pandemic have exacerbated employee burnout. There is a fundamental paradigm shift in the employer and staff dynamic that can not be overlooked. Today’s workers seek purpose and belonging in the workplace and beyond. Belonging is critical to support inclusive and respectful workplace and communities for all.

According to a Qualtrics 2022 Employee Trends report, an estimated 32% of female leaders globally plan to leave their current job. Over the past 18 months we have seen a mass exodus of employees leaving their jobs in a phenomenon called the Great Resignation. Many workers are experiencing stress and anxiety which has led to pandemic burnout and a decreased sense of belonging. Now more than ever, companies need to focus on equity, diversity, inclusion, and accessibility to break barriers and pioneer workplaces where everyone is valued, respected and belong. When we lean in with empathy, we tap into our humanity, which is the common bond that unites us all.

According to the PwC Global Culture survey, 66% of C-Suite and Board members responded that culture is viewed as equally as or more important to organizational performance as their operating model. The survey further indicates that 85% view culture as a top leadership agenda item. Over the past 18 months our connections have become increasingly more mobile with a global reach. Cultural competence is highly correlated to dynamically diverse and high performing teams.

According to the Harvard Business Review, when companies focus on inclusion & belonging it leads to a 75% reduction in sick days, 50% decrease in turnover risk, and 56% increase in performance in the workplace. Over the years, many companies have made bold statements on diversity, equity and inclusion but have fallen short on actions. In June of 2017, 150 CEOs from distinguished companies across all industries joined forces and formed the CEO Action for Diversity & Inclusion by pledging to support and advance efforts to build more inclusive and respectful workplaces for all.

According to a Washington Post article, at the start of the COVID-19 pandemic, jobs for diversity, equity and inclusion professionals plummeted by an estimated 60% in the US. As companies were bracing for an economic downturn, it was common to make tough decisions on what roles were critical vs. non-critical. However, no one could have imagined the shift in corporate views on the importance of diversity, equity, inclusion and belonging until the summer of 2020 when social justice protests and global outcries due to the death of George Floyd. It sparked serious conversations on racial inequities in the workplace and society as a whole. Many companies made bold statements to support social justice but have fallen short of actionable plans.

According to the National Foster Parent Association, Charles Loring Brace started the foster care movement due to the large number of immigrant children and orphans sleeping on the streets of New York City in 1857. Over the years, it has transformed from a ministry outreach to a government led social support system. Today, approximately 400,000 children are in foster care in the United States. More than 50% of children in the system are from diverse and underserved communities. Each year more than 200,000 children age out of foster care due to turning 18, 21 or finishing high school, depending on the state. Without family support or a plan, many fall victim to poor outcomes including getting trapped in human trafficking. Foster care may be where one starts in life but it does not define a person’s destiny or their journey to greatness!

Earlier this year the World Economic Forum released the 2020 Global Gender Gap Report in which it highlighted that it will be close to 100 years before we see gender parity. A more sobering realization is that due to COVID-19, and the reimagined workplace where work and home responsibilities have intersected, many women are scaling back their careers. In a recent Department of Labor report on unemployment, women have left the workforce at four times the rate of men. Women are often the caregivers, and COVID forces schools to close and distant learning, women are juggling in a pressure cooker to the breaking point multiple priorities at home and at work.

A recent survey conducted by Catalyst, reveal that 48% of working parents believe that they will need to reduce their hours or move to part-time work in the coming months due to the impact of COVID-19. Furthermore, the study highlights that nearly 33% are fearful that they will lose their employment in the next six months. Undoubtedly, COVID-19, is having a catastrophic impact on working families. This global pandemic has exacerbated the struggle of working parents’ ability to successfully integrate work and home life priorities. From the loss of adequate childcare, elder care or after school programs, many working parents are being forced to scale back on their career trajectory and focus on their home responsibilities. For single parents without a sufficient support system, COVID-19 has led to an increase in mental health stress and burnout.

According to a recent study by the Bob Woodruff Foundation, there are roughly 18 million Veterans in the U.S. Many of them work in industries hit hard by COVID-19. Rising unemployment and uncertainty fuels the crisis further. As a result, some Veterans and their families do not have sufficient savings to cover their day to day expenses for more than one or two months. Furthermore, a Pew Research Study on unemployment indicates that there are more people impacted by unemployment due to COVID-19 than at the peak of the Great Depression. Particularly we see women hit the hardest with up to 14% unemployment. Active military spouse unemployment has been as much as 25% this year. As military spouses were being largely underemployed pre-COVID-19, the pandemic has an insurmountable impact on their economic and mental health. It is critical, as we weather the current pandemic, to continue pushing for veteran and military spouse employment.

According to Johns Hopkins University, as of July 23, 2020 more than 15 million people have been infected with COVID-19 worldwide. In the U.S more than 3.9 million people have been diagnosed and more than 141,000 deaths have been reported. This global pandemic has forever impacted our lives and businesses. The unique challenges spurred by COVID-19 has caused many companies to pivot to a reimagined workplace as well as seek innovative solutions to meet the changing consumer demands. However, many certified diverse businesses have long faced systemic barriers to economic inclusion and wealth generation prior to COVID-19. Now more than ever, we need corporations to focus on strengthening and diversifying their supply chain for a sustained economic recovery. It starts with supporting certified small and diverse businesses.

Women-owned businesses are one of the most significant drivers of innovation and job growth in both developed and emerging markets. WEConnect International strongly believes that this is the time to rebuild global business for good by ensuring everyone has an equal opportunity to contribute to and benefit from the recovery. We know that companies and governments proactively investing in supplier diversity and inclusion will reap major dividends as we seek to recover from the global pandemic and systemic inequality. The reality is that today women only account for about 1 percent of the global spend on products and services by corporations and governments. In addition, women-owned small and medium enterprises (SMEs) in emerging markets still face a US$1.5 trillion annual credit gap that needs to be closed. However, they are often untapped resources for inclusive growth, which is particularly true for women of color. WEConnect International recognizes that engaging women as business owners from the beginning to the end of global value chains is critical now more than ever and the payback is worth trillions of dollars. As businesses work to recover from the COVID-19 crisis and learn from the mass protests for justice and equality, know that WEConnect International will continue to help lead the effort to rebuild the global economy for good. When women gain access to finance and their sales increase, they invest in the health, welfare and education not only of their households but also in their communities, yielding measurable prosperity for all. This is not only the right thing to do morally but good for corporate bottom lines and government policy. If all entrepreneurs had equal opportunities, including access to markets, global GDP could rise by as much as 6 percent, boosting the global economy by US$5 trillion.

According to the Centers for Disease Control and Prevention (CDC), more than 1 million people in the U.S. have been infected by COVID-19 as of April 30, 2020. This global pandemic has swept across communities leaving devastation and heartbreak behind. It has highlighted a longstanding problem of healthcare disparities plaguing poor and underserved communities which are most often populated by a large number of minorities. A more sobering realization is that the hospitalization and death rates which are disproportionately impacting African- American and Hispanics. In a recent Washington Post analysis, which compiled data from nine jurisdictions reporting infection and death rates by race, African Americans died at almost six times the rate of Caucasians.