DE&I Can Help Businesses Balance Financial and Recruiting Challenges

By Buffy Naylor

Those businesses seeking “the business case” for diversity, equity and inclusion (DE&I) will find it in spades in 2023 and beyond.

While organizations have for decades been aware of the need for DE&I, acknowledgement of its importance has ebbed and flowed for just as long. After the events of the summer of 2020, DE&I received a lot of attention. Many businesses — including IT and communications channel organizations — launched DE&I initiatives and hired diversity officers.

Two years later, companies find themselves staring down the twin barrels of talent shortages and an impending recession. In reaction, most organizations are trimming their budgets to run lean during a financial downturn. Some businesses’ budget adjustments include cutting back on or even eliminating their diversity teams. That’s a big mistake, say the experts.

DE&I forms a kind of circular symbiosis with talent recruiting and business success. Here’s how. In a tight labor market, a diverse recruiting program can help identify and attract top talent. A Glassdoor survey found that 67% of people consider diversity an important factor when deciding where to work. Further, a diverse workplace can help retain that talent, reducing turnover and keeping recruitment costs down.

Another way in which DE&I helps the bottom line: Diversity increases productivity. Diverse teams are more creative. According to a study by the Boston Consulting Group, businesses with a diverse workforce increased their innovation revenue by as much as 12.9%. Diverse teams are demonstrably better at collaborating and problem solving.

A report from Accenture shows that companies failing to prioritize DE&I can be missing out on $1.05 trillion in revenue from increased productivity and decreased turnover. Among the report’s conclusions: “If leaders prioritize a culture of equality now, they will create an environment that is more likely to produce the financial results they want and need.”

The IT and communications channel thrives on innovation. Long-term success requires the agility and innovative thinking found in a work environment informed by DE&I. And promoting DE&I also gives channel companies a leg up in the competition for talent. But how likely is it that channel organizations will make DE&I a standard part of their business strategies?

For the past year, DE&I in the channel has been in the ebb phase. Vennard Wright, CEO and president of Wave Welcome and a member of Channel Futures’ DE&I 101, sees this as part of the process.

Wright sees DE&I evolving in phases. Forward-thinking companies advance through each phase, becoming stronger as they go. Those that don’t are left behind.

“It’s not an implication; it’s simply human nature to respond to environmental occurrences and to take the path of least resistance,” he said. “It takes foresight, hard work and genuine empathy to stay the course and invest valuable organizational resources into long-term gain … that isn’t immediately apparent.”

Sarah Marsh, director of channel partnerships for Workday, and also a member of the DE&I 101, agrees that those who are willing to put in the work will be rewarded.

“Now more than ever … companies should be investing in their DE&I strategies to enable innovation and agility,” she said. “Those that are bringing it to the front of corporate strategy from the C-suite are the companies that will most effectively compete during an economic downturn.”

Kelli Ballou-McMillan is another member of the DE&I 101. The director of global partners for Five9 is also founder and CEO of Xposure Inclusion & Diversity Council. She expects channel leaders will keep moving DE&I forward.

“As we move into 2023 I believe we will find stronger voices in the champions and the ERG leaders that truly impact a company’s culture,” she said. “These voices will continue to push for equitable spaces and seek to assist leadership teams that are intentional about nurturing their culture visibility into the impact of this work.”