Equity in the Workplace: Why It Matters
In today’s competitive corporate landscape, the need for gender and minority equity is not just a matter of ethics—it’s a proven business strategy. McKinsey’s most recent study on gender diversity, published to mark the 10th anniversary of their research, reveals that companies in the top quartile for gender diversity are 25% more likely to experience above-average profitability compared to those lagging behind.
Equity, particularly in leadership, enhances both financial performance and employee engagement, creating a competitive advantage for organizations that embrace it. In addition to the financial benefits, companies that invest in equity are better positioned to meet the evolving demands of the modern workforce.
Millennials and Generation Z, who now make up a significant portion of the workforce, prioritize fairness and inclusivity in their career choices. Deloitte’s survey of millennials shows that 75% are more likely to remain with companies that have strong commitments to equity and fairness. These generations want more than just equal opportunities—they expect their unique needs to be recognized and supported, and they are drawn to purpose-driven organizations that align with their values.
A tangible example of this is IKEA, which has consistently prioritized gender balance and equity in leadership roles. Through ongoing audits and commitment to 50/50 gender representation in leadership, IKEA has not only improved employee satisfaction but has also positioned itself as a leader in diversity and inclusion across Europe. This kind of commitment demonstrates that equity-driven strategies not only enhance employee loyalty but also contribute to an organization’s long-term success.
However, progress remains slow on a global scale. According to the World Economic Forum’s Global Gender Gap Report, if substantial action is not taken, it could take 132 years to close the gender gap worldwide. This highlights the urgent need for organizations to prioritize equity now—not just for the benefit of their employees, but for the future sustainability of their business.
Equality vs. Equity: Understanding the Nuance
Equality and equity are often used interchangeably in discussions about diversity and inclusion, but they represent fundamentally different approaches.
Equality means providing everyone with the same resources or opportunities, assuming that everyone starts from the same place. In contrast, equity focuses on distributing resources based on each individual’s unique needs, acknowledging that people face different challenges and barriers to achieve equal outcomes.
Dr. John A. Powell, a renowned professor of law and the director of the Othering & Belonging Institute at UC Berkeley, emphasizes that equality ignores the systemic disadvantages some groups face. Equity, by recognizing the varying experiences and barriers, is the more appropriate strategy for creating truly inclusive environments.
This distinction is especially crucial in the workplace. Equality might offer everyone the same training, but equity ensures that underrepresented groups, such as women and minorities, receive additional support tailored to their specific challenges. For example, a mentoring program tailored for women in leadership focuses on addressing gender-specific barriers, which general leadership training might not consider.
From the employee’s viewpoint, fairness is a key component of equity. Fairness in the workplace means ensuring equal pay and equal opportunity, regardless of where someone comes from or their starting point.
For underrepresented groups, particularly women and minorities, the barriers to leadership often include challenges related to self-confidence, communication skills, and assertiveness. Traditional management training, which usually focuses on the outdated command-and-control leadership model, tends to overlook these unique challenges. Managers who rely on hierarchical power may miss the opportunity to foster genuine inclusion and empowerment.
This is where equity-driven leadership programs become essential. By targeting areas like self-confidence and communication skills, these programs help underrepresented employees overcome specific barriers, empowering them to reach their full potential. Ultimately, organizations that embrace equity in their leadership development foster a more inclusive and high-performing workforce.
Equity in Action
To create an equitable workplace, companies can take several impactful steps:
- Tailored leadership programs: Provide training focusing on developing self-confidence, effective communication, and mindset shifts, equipping employees with the skills to excel in leadership roles.
- HRM-centric training: Implement regular laser workshops to reduce microaggressions and biases in daily workplace interactions, recruitment, and promotion, fostering a fairer and more inclusive environment.
- Set measurable goals: Establish clear objectives “locally” team by team for increasing equity globally and in leadership roles, closing consideration gaps, and ensuring consistent progress is made and tracked.
Act now!
I learned a long time ago that there is one thing a company can never buy: its culture.
Investing in equity is investing to elevate your organization’s culture. Our specialized leadership programs are designed to empower your teams with the tools they need to thrive in an inclusive, equitable environment.
With tailored training on self-confidence, mindset shifts, and communication, we provide the framework for equipping leaders to drive performance.
Let’s discuss your ambitions as an employer and ways to give your people the tools they need to excel in their roles and responsibilities. You can book a 20-minute discovery call here.
