An explanation of DEI
In this video, Informa TechTarget assistant editor Tommy Everson defines diversity, equity and inclusion and explains how and why organizations introduce DEI policies.
In the age of AI and algorithmic bias, DEI is more important than ever.
Diversity, equity and inclusion -- better known as DEI -- refers to programs and policies that encourage representation and participation of different groups and individuals in a business setting. DEI initiatives aim to address historic disparities across industries, especially when it comes to race, gender and sexual orientation.
Here, we'll explain the purpose of DEI, its impact on business and different strategies for pursuing it.
Let's break down the acronym: Diversity refers to the various characteristics that distinguish one demographic from another; equity means equal treatment, access and opportunities; and inclusion means creating a culture where everyone feels welcome.
DEI is about more than diversity for diversity's sake. When an organization pursues DEI, they can expect:
- A better reflection of the customer base.
- More creativity and innovation.
- Better brand reputation.
- Better overall performance and productivity.
It's not just hearsay -- studies prove that DEI has a positive effect on profitability. According to McKinsey Research, companies in the top 25% for cultural and ethnic diversity were 36% more profitable than companies in the bottom quarter. And, when women are well represented in the C-suite, profits can be almost 50% higher.
Having solid DEI plans and initiatives in place will also be useful in the context of AI, as many systems have been found to express prejudicial attitudes and biases.
So, where to begin? Institutional or historical workplace disparities can't be resolved overnight. But here are some places to start your DEI initiative:
- Employee training. By informing employees about the dangers of unconscious bias and microaggressions, they can have a greater understanding and sensitivity toward one another.
- Diversifying candidate pools. To do this, companies can recruit from diverse areas and create mentoring programs that connect with and support underrepresented people.
- Monitoring pay equity. Employee salary data can be analyzed to identify and correct any unfair pay gaps or compensation bias.
- Tracking progress. Companies can use data to monitor program effectiveness, show the benefits of DEI and track whether stakeholders are supporting it.
For DEI to be effective, companies need to make sure their goals are concrete, actionable and quantifiable. To do this, they can establish DEI committees that set goals, develop action plans and analyze programs' results.
What are some of the ways DEI has impacted your workplace? Share your experience at Eye on Tech in the comments, and remember to like and subscribe, too.
Tommy Everson is an assistant editor for video content at TechTarget. He assists in content creation for TechTarget's YouTube channel and TikTok page.