With the C-suite ready to invest in diversity, inclusion, equity, and belonging initiatives, here are four strategies to capitalize on the moment.
By Marcy Klipfel
Executive buy-in is the holy grail of any corporate initiative. It’s especially so for today’s diversity, equity, inclusion, and belonging (DEIB) efforts, which have been the subject of much debate over the past year. Despite frequent press reports of DEIB divestment, new survey data suggests an overwhelming majority of American CEOs are awakening to the value of DEIB.
More than seven in 10 CEOs (74%) who participated in Businessolver’s 2024 State of Workplace Empathy report say their company has DEIB initiatives in place. That’s a 13-point increase in just one year. Encouragingly, 63% of CEO participants rank their company’s programs as excellent.
The Value of DEIB
Notably, 86% of the CEOs who took part in the 3,100-participant survey attribute DEIB initiatives to their own personal feelings of connection to peers. This is welcome news, especially against a backdrop of worsening mental health inside the C-suite. More than half (55%) of CEOs surveyed in the workplace empathy study reported experiencing a mental health issue over the past year, a whopping 24-point increase from 2023. Feeling connected to colleagues can significantly boost mental health by fostering a sense of belonging, reducing stress, and creating a supportive work environment.
CEOs also appear to be primed for even greater attention to diversity and inclusion activities moving forward. More than eight in 10 CEOs (84%) say their company should do more to foster a diverse and inclusive environment. This may be a reflection of CEOs learning more about what DEIB means and the specific value it brings. At 84%, many more CEOs than last year (69%) said they are now familiar with DEIB terminology.
HR leaders involved in DEIB efforts are in the position to capitalize on increasing CEO awareness, interest, and enthusiasm for these initiatives to achieve even greater outcomes.
A Launching Pad for DEIB
Successfully leveraging CEO enthusiasm for greater DEIB effort—and the budget to support it—depends on DEIB leaders’ next move. By speaking the language of top decision-makers, stakeholders will have an easier time securing the reinforcement they need to be effective.
82% of CEOs agree that financial performance is tied to workplace empathy, a core outcome of DEIB strategy.
- Demonstrate the ROI. For example, HR leaders who can draw connections between their efforts and the health of the business are in the strongest positions. Today’s C-suite executives are facing immense pressure to ensure as many of the company’s resources as possible are going directly to the bottom line. Therefore, it’s crucial for DEIB teams to articulate how their efforts are returning a solid ROI. Luckily, the ground has already been softened here; 82% of CEOs agree that financial performance is tied to workplace empathy, a core outcome of DEIB strategy.
- Get the C-suite involved in DEIB. Another effective technique for maintaining executive buy-in is to look for opportunities to immerse executives in DEIB experiences. As cited above, data suggests leaders at the highest levels are beginning to see the personal value of participating in these activities. Of course, the CEO opinion doesn’t typically exist in a vacuum. C-suite direct reports and managers are often called on by their CEOs when big decisions (such as doubling down on DEIB) are on the agenda. Immersing these stakeholders in the DEIB effort has the added benefit of socializing DEIB throughout the organization. And there’s plenty of room for improvement here, as just 29% of employees believe DEIB is very important to their current manager.
- Report on the impacts. Frequent reporting is another solution to keeping CEOs interested and supportive. Especially when tied to overall business and HR goals, DEIB efforts can earn top-of-mind positioning with executives in charge of moving key needles. Say, for instance, the organization has a goal to lower the average age of its employees. Diversity and inclusion are especially important to Gen Z. In fact, 86% of Gen Z participants in the workplace empathy survey said that if it was up to them, they’d place a higher importance on DEIB initiatives than the current CEO at their company. Reporting on Gen Z engagement with and feelings about DEIB efforts can underscore its value in attracting and retaining young talent.
- Focus on benchmarking and track the data. Depending on an organization’s focus on competitive difference, peer benchmarking can be another strategy for keeping CEOs excited about DEIB momentum. This year’s data shows decreasing attention paid to LGBTQ+ and non-binary employees, each down roughly 10 points year-over-year. Just 41% and 27% of employees, respectively, say their company’s DEIB efforts seek to address issues relevant to the LGBTQ+ and non-binary team members. This presents a potentially huge opportunity for a company to stand apart from marketplace and talent competitors by adding or enhancing programming for LGBTQ+ and non-binary employees and their allies.
Going From Good to Great
As employees change demographically, behaviorally, and culturally, it will be essential for HR and DEIB leaders to anticipate these shifts to maintain the value that executive leadership needs to see for continued investment. With the support of top decision-makers, adapting and evolving DEIB projects and programming to meet the needs of a fast-changing workforce will become much easier. Talking to CEOs in a language they understand about a subject they are increasingly invested in is how DEIB teams can take their efforts from good to great.
Marcy Klipfel is the chief engagement officer at Businessolver.
