A recent decline in diversity among entry-level professionals underscores the importance of sustained DEI efforts. Kiranbir Sodhia, a tech leader in the DEI space, believes organizations must continue to commit to fostering diverse and inclusive workplaces with new approaches.
LOS ALTOS, Calif., June 18, 2024 /PRNewswire-PRWeb/ -- Despite years of progress, Diversity, Equity, and Inclusion (DEI) in entry-level technology positions has seen a sharp decline in both the United States and the United Kingdom, according to research conducted by Rockborne, a subsidiary of the Harnham Group. In 2023, the U.S. witnessed a staggering two-thirds decrease in new recruit levels for women, plummeting from 36% in 2022 to 12%. Similarly, in the U.K., the percentage of women entering the profession fell from 35% to 11%. (1) Kiranbir Sodhia, a proponent of diverse teams, emphasizes the benefits of increased diversity in driving collaboration and innovation. "Reducing DEI initiatives not only risks losing diverse talent but also damages company culture and invites backlash," says Sodhia.
Moreover, the study highlighted a concerning trend in diversity beyond gender. In the U.K., the proportion of entry-level Black, Asian, and Minority Ethnic professionals dropped from 42% in 2022 to 12% in 2023, marking a significant regression from the progress observed since 2020. Similarly, in the U.S., the percentage of Black, Indigenous, and professionals of color at entry level plummeted almost 60 points, from 70% in 2022 to 11% in 2023. (1)
Despite these alarming statistics, DEI remains a priority for many organizations. A recent report found that 72% of C-Suite and HR leaders plan to increase their commitment to DEI initiatives. (2)
Why DEI Matters
It is clear that employees value DEI. Of IT professionals polled, 83% say diversity initiatives have made their company a better workplace, while 77% say they have positively impacted business results. (3)
Beyond ethical concerns, inclusion plays a key role in high-performing teams and organizations, with data clearly supporting its importance:
- Impact on Employees' Morale: Employees from inclusive organizations are 9.8 times more likely to look forward to going to work, 6.3 times more likely to have pride in their work, and 5.4 times more likely to want to stay a long time at their company. (4)
- Impact on Revenue and Profit: More diverse companies have higher revenues. Data from Great Place to Work-Certified™ companies revealed that those with significant gaps between the experiences of white employees and minorities had significantly lower revenue growth. Companies with the largest gaps averaged 8.6% revenue growth, while those in the top quartile averaged 11.1% growth. (5) Additionally, McKinsey reports that companies in the top quartile for gender diversity on executive teams are 39% more likely to financially outperform their peers, and those in the top quartile for ethnic diversity are similarly 39% more likely to outperform. (6)
- Impact on Innovation: A study surveying over 1,700 companies across eight countries found that the most-diverse enterprises were also the most innovative. Companies with above-average total diversity had 19 percentage points higher innovation revenues and 9 percentage points higher EBIT margins on average. Firms with enabling diversity factors like fair employment practices and top management support saw up to 12.9 percentage points increase in innovation revenue. (7)
Regarding this last point, Sodhia highlights: "Companies benefit from diversity of ideas not just of representation. Diverse ideas come from diverse representation and from diverse ideas comes greater innovation".
Steps to fix diversity
Improving diversity does not happen overnight. "You can't solve the DEI issue in one year," Sodhia says. "It takes years and years, and if you try to rush it, you're going to get it wrong." Sodhia acknowledges that there will always be someone better out there and urges companies to stop trying to hire "the best person for the job". It is more important to look for great team members, that are well suited to the job and the culture of the company, as they can be trained to be the best people for that team.
Sodhia highlights that companies can cultivate a diverse environment by providing employees with flexibility and encouraging authenticity. Additionally, "role models" hold significant importance: having individuals from varied backgrounds in leadership positions with real influence can inspire colleagues to pursue and deepen their career paths within the organization.
"Candidates are out there; it's a matter of building a pipeline to take advantage of the graduates that colleges and universities are already preparing", points out Sodhia. Companies can start by:
- Acknowledging that it takes time to build a diverse team.
- Being open and honest about their DEI intent, standing firm on their commitment.
- Practicing caution when looking for team member participation.
- Expanding where they recruit from moving forward.
- Improving AI training used in selections processes.
The final point is especially relevant. Tech companies must look at how they are training the AI models that they are using during selection processes. AI models can be more meaningful if they help find the exceptions, or so-called "needles in the haystack". Sodhia explains, "I think the biggest issue lies in how AI models are trained. Companies must make sure that their models are truly objective." AI itself shouldn't have personal biases, but it will if the models use biased data.
Using AI to address diversity
Despite its positive impact in the corporate world there are growing concerns about the future of DEI efforts, particularly in light of recent actions by tech giants. As an example, both Meta (8) and Zoom (9) back their DEI initiatives.
At the same time, AI and diversity have been in the spotlight as this technology is being implemented to automate selection processes. Without the inclusion of diverse people in AI development, there is the potential for even more significant power imbalances for minorities, whether that is for the workers or the consumers.
Navigating these challenges with DEI and AI is vital to the future. Organizations must improve communication about DEI initiatives and foster transparency to build understanding and buy-in. Equally important is ensuring that AI is not inadvertently biased via the models it is trained on lacking diversity.
"As we face challenges in maintaining diversity in the workforce, it's crucial for organizations to prioritize DEI efforts," emphasizes Sodhia. "We must continue to champion diversity and inclusion to drive innovation and success."
About Kiranbir Sodhia
Kiranbir Sodhia, a distinguished leader and engineer in Silicon Valley, California, has spent over 15 years at the cutting edge of AI, AR, gaming, mobile app, and semiconductor industries. His expertise extends beyond product innovation to transforming tech teams within top companies. At Microsoft, he revitalized two key organizations, consistently achieving top workgroup health scores from 2017 to 2022, and similarly turned around two teams at Google, where he also successfully mentored leaders for succession. Kiranbir 's leadership is characterized by a focus on fixing cultural issues, nurturing talent, and fostering strategic independence, with a mission to empower teams to operate independently and thrive.
Kiranbir Sodhia: Transforming Tech Teams; Cultivating Leaders
For more information visit https://www.linkedin.com/in/kiranbir/ .
References:
1. "Diversity In Data Report 2023: Summary"; Harnham; 12 December 2023; harnham.com/diversity-in-data-summary-2023/.
2. Crist, Carolyn; "DEI backlash won't halt workplace initiatives, most leaders say"; HR Dive; 7 June 2024; hrdive.com/news/business-leaders-continue-dei-initiatives-despite-criticism/718323/.
3. Bennett, Madeline; "Diminishing DEI - the big mistake that some tech firms are making and storing up talent problems for the future"; diginomica; 2 March 2024; diginomica.com/diminishing-dei-big-mistake-some-tech-firms-are-making-and-storing-talent-problems-future
4. Bush, Matt. "Why Is Diversity & Inclusion in the Workplace Important?" Great Place to Work, 25 Aug. 2023, greatplacetowork.com/resources/blog/why-is-diversity-inclusion-in-the-workplace-important.
5. Hastwell, Claire. "Racially Diverse Workplaces Have Largest Revenue Growth." Great Place to Work®, 5 Jan. 2020, greatplacetowork.com/resources/blog/racially-diverse-workplaces-have-largest-revenue-growth.
6. "Diversity Matters Even More: The Case for Holistic Impact | McKinsey." mckinsey.com, 5 Dec. 2023, mckinsey.com/featured-insights/diversity-and-inclusion/diversity-matters-even-more-the-case-for-holistic-impact#/.
7. Lorenzo, Rocio, and Martin Reeves. "How and Where Diversity Drives Financial Performance." Harvard Business Review, 31 July 2018, hbr.org/2018/01/how-and-where-diversity-drives-financial-performance.
8. Elias, Jennifer; "Tech companies like Google and Meta made cuts to DEI programs in 2023 after big promises in prior years"; CNBC; 23 December 2023; cnbc.com/2023/12/22/google-meta-other-tech-giants-cut-dei-programs-in-2023.html.
9. Mohan, Pavithra. "Zoom Laid off Its DEI Team—and It's Not the Only Company Making Such Cuts." Fast Company, 8 Feb. 2024, fastcompany.com/91025936/zoom-laid-off-its-dei-team-and-its-not-the-only-company-making-cuts.
Media Inquiries:
Karla Jo Helms
JoTo PR™
727-777-4621
jotopr.com
Media Contact
Karla Jo Helms, JOTO PR™, 727-777-4629, [email protected], jotopr.com
SOURCE JOTO PR™
Share this article