Pocket Change: When inclusion is inconvenient
Pocket Change is a monthly series of notes on disruption, authored by 18 Coffees co-founder Caleb Gardner. Be the first to read Pocket Change — subscribe to the email newsletter here.
Some sectors of the U.S. economy have been shedding jobs the past few months, as fears of a recession give companies, especially in tech, a reason to tighten their belts and lay off thousands of workers. On the surface, these decisions have been made in the name of efficiency (something Wall Street investors love to hear) — despite the fact that the research shows that layoffs are almost always counterproductive in the long run.
Chief Diversity Officers and those with roles dedicated to DEI have been hit particularly hard, with attrition rates almost double non-DEI roles. Which begs the question: at what point will investing in diversity and inclusion be seen as part of a minimally viable organization?
Part of the problem is that leaders are still keeping DEI at arms length. Any department relegated to a cost center, outside of essential business operations, will be a target when times get tough. Too few organizations have figured out how to successfully integrate learning about inclusion, much less started to make it the responsibility of everyone in the organization.
Last weekend, I attended a private dinner at SXSW for social impact business leaders, and there was consensus that despite the structural challenges DEI leaders still face, the incentives are starting to slowly shift. Financial reporting, for example, will have to show more sophistication around how it considers diversity initiatives when measuring progress on the “S” (social) part of ESG. I came away from the conversation hopeful that we may be in the last gasps of DEI as a side project.
In the meantime, employees themselves have agency to make sure inclusion is still central to business operations. In fact, I’d say we all have a responsibility to be inclusive in our everyday work, whether or not there’s an organizational leader with DEI in their title. We shouldn’t be caught in the ethically-dubious position of leaving marginalized people on the sidelines just because equity isn’t in our job description.
Speaking of equity, I’ve recently launched a new podcast with DEI thought leader Adriele Parker where we talk about issues in the news related to the social responsibility of business. Listen and subscribe to Leadersh*t wherever you get your podcasts.
Keeping an eye on:
CARELESS DRIVING – Not all car industry innovations are being welcomed, including the removal of AM radio from most electric vehicles, and Ford’s new car repossession patent.
BURNT-OUT WOMEN – Senior-level women are leaving their positions at the highest rate in years. At least partially to blame: the gender pay gap has barely moved in two decades.
WOKE HUNTERS – President Biden has threatened the first veto of his presidency over a Senate vote overturning a rule that permits retirement fund managers to consider ESG factors in their investment decisions.
TIKTOK BANS – A broad bipartisan bill would give the Biden administration new powers to ban foreign-based technologies – particularly TikTok, the widely popular Chinese-owned social media app.
A.I. OFFICERS – A C-Suite role dedicated to the applications of artificial intelligence is a hiring target for some forward-thinking companies. (How will Apple pumping the brakes on A.I. affect their prospects?)
PERSONAL SATISFACTION – Are you feeling satisfied with your personal life, like 83 percent of Americans? We appear to be very happy with our family lives. (Household incomes, not so much.)
