3-1 Assignment- Diversity, Equity, and Inclusion in the Workplace
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3-1 Assignment – Diversity, Equity, and Inclusion in the Workplace
Nicole Sheppard
Southern New Hampshire University
ACC 315 – Accounting Information Systems
Ciro Castaldi
May 21, 2023
3-1 Assignment: Diversity, Equity, and Inclusion in the Workplace
Diversity, Equity, and Inclusion are referred to as DEI and “is a clear example of what is not well measured (or reported) is not well managed” (Higgins, 2021). Several organizations share the principles of diversity, equity, and inclusion, seeking to support many different groups of people. This includes those of different races, genders, religions, ethnicities, and abilities (McKinsey & Co., 2021). DEI principles are interrelated and are frequently grouped together, collaborating to foster an atmosphere of fairness and respect. There has recently been a major push for big companies to implement an increase in prioritizing Diversity, Equity, and Inclusion. In the article, “Using Analytics to Solve the DEI Challenge”, the January 2021 study by “JUST capital corporate-racial-equity-tracker” was utilized to analyze different companies that understand diversity and how they are fixing the problem (Higgins, 2021). There are also a few steps that the study “Goals and Targets for Diversity, Equity, and Inclusion” suggests companies should take to accomplish consequential progress within a more feasible timeframe. These steps are as follows: 1. Present diversity data in a way that is simple, salient, and comparable, and 2. Leverage diversity data to empower the right people to act (Higgins, 2021). After taking all this information into account, it’s imperative for companies to have DEI within the workplace because it provides an abundance of benefits to a company's employees and management alike. The financial inclusion framework found in “Deloitte Insights: Driving Purpose and Profit Through Financial Inclusion”, consists of the organization, community, offerings, and ecosystem. This framework begins with aligning the sales strategies to its financial goals. Next, there is the development and deployment of products and services to reach underserved
communities. After, they reach out to the local footprint, or the geographies and communities, by
making commitments where they are recruiting, operating, and investing. Then finally, the ecosystem amplifies the impact through vendors partners, and public platforms (Davis & Guigui,
2021). There is a substantial amount of data within the accounting department that may be relevant to DEI. The department has been directed to provide the financial inclusion team with consumer data and the employee DEI team with employee data. As a result, this information can aid with the resolution of problems with diversity, equity, and inclusion within the workplace. This data can be found through the company’s payroll and sales/accounts receivable data. By resolving these issues, the organization can become more inclusive and more diverse both internally and externally. Examining which race controls major portions of roles within the company in terms of skills and education through their payroll data, is one technique suitable for determining how diverse the company truly is. The percentage of Caucasian employees increases greatly through every level of the corporate ladder, making up 85% of the highest-ranking executives within the company. At the executive level, it is clear that racial inequality is a heavily concentrated issue. Of the executives, only 2% are African American and only 3% are Hispanic or Latino, demonstrating how ineradicable DEI partisanship is throughout the entire organization. It has been revealed through McKinsey & Co.'s paper “Delivering through Diversity” and study “Why Diversity Matters” that gender-diverse organizations perform 21% better than the national average and that businesses with diverse ethnic and racial backgrounds had on average 43% higher profit margins (Higgins, 2021).
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Five important performance areas which represent the exceptional practices that can help the DEI framework have been introduced by IGS Innovative Growth Solutions, LLC. These performance categories include Organizational Commitment, Climate and Culture, Recruitment, Retention, and Talent Development. A company that is committed to achieving a diverse workplace as well as an environment that is equitable and inclusive is following organizational commitment. A company leading in diversity, equity, and inclusion, is a company following climate and culture. Company’s actively hiring, promoting, and retaining diverse workplaces, is following recruitment. A company that measures to retain the company’s dicerse workplace is following retention. And a company that promotes its opportunities for their employees as well as leadership development to ensure that the company meets their current and future needs as a diverse workforce follows talent development. Not all of these practices have been adopted but these areas can assist many organizations
in the assessment of their current circumstances and develop plans for improvement. An example
through retention would be the company actively working to keep a diverse workforce by maintaining a friendly onboarding process for its new hires, paying all workers fair wages, and providing the company with briefings on its commitment to DEI, among other things (IGS Innovative Growth Solutions, LLC, 2023). By addressing these strategic business imperatives that can benefit the company through financial inclusion, financial leaders can reach a higher bottom line. Many businesses no longer hire full-time employees for long-term positions. They instead choose to hire contracts or consultants to fill these positions. They need to instead be looking for qualified candidates that fit
their company best. It would be best for the company to evaluate its recruiting, hiring methods, and compensation packages when making these hires. It's also important for them to remember
that even in these positions, employers must keep an eye out for burnout, low morale, and lack of
encouragement from their employees. Although it's important to look at all their successes in retaining employees and how they achieved it, it is also essential to look at their failures in a higher turnover for most of their positions. Diversity is essential to any company’s success and organizations should be more open to it.
References
Davis, C. & Guigui, U., (2021, June 2). Driving Purpose and Profit Through Financial Inclusion.
Deloitte Insights. Retrieved from http://learn.snhu.edu/d21/le/content/1272271/Home?itemIdentifier=TOC
Diversity, Equity, and Inclusion Framework.
Innovative Growth Solutions, Inc LLC. (2023, February 2). Retrieved from http://www.innovativegrowthsolutions.com/wp-content/uploads/2016/04/DEI-Best-
Practices-Framework.pdf
Higgins, J. (2021, August 17). Using Analytics to Solve the DEI Challenge.
HCMI. Retrieved from http://www.hcmi.co/post/using-analytics-to-solve-the-dei-challenge
McKinsey & Company. (2022, August 17). What is Diversity, Equity, and Inclusion?
McKinsey & Company. Retrieved from http://www.mckinsey.com/featured-insights/mckinsey-
explainers/what-is-diversity-equity-and-inclusion
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