Building a diverse and inclusive future starts from the top

Recently, major brands have been scaling back their diversity, equity, and inclusion (DE&I) initiatives, raising questions about the future of DE&I in corporate spaces. Industry analysts warn that such decisions are shortsighted and could harm long-term business outcomes.

In fact, DE&I remains essential for growth, and organisations that overlook its importance risk damaging their brand reputation, losing talent, and underperforming in the market. Hence, it is unsurprising that Heidrick and Struggles revealed in 2022 that 93% of executives worldwide said diversity and inclusion are more important to their organisation than at the beginning of 2020.

However, while acknowledging its importance, organisations still struggle to align DE&I efforts with measurable business outcomes. According to Heidrick & Struggles, only 22% of organisations worldwide say their DE&I efforts are contributing to their business success “to a large extent” today, with that number inching up to only 26% three years from now.

Success derives from having a committed leadership bench with a clear objective on how to drive DE&I. Now more than ever, it is significant to equip leaders with relevant skills to effectively navigate the DE&I landscape, thus contributing to bigger business outcomes. Organisations that execute plans around DE&I help enhance the decision-making process and foster a human-centric workplace for every employee.

Putting DE&I as core agenda starts from the top

In Asia, only 17% of senior and middle management jobs are held by women. In recent research by Heidrick & Struggles analysing India’s leading financial services global capability centres (GCCs) and technology multinational companies (MNCs) paints the same image – merely 33% of organisations have one female leader in their top two most senior levels. Men still dominate the financial and technology sectors, holding 80% of leadership roles in financial services GCCs and 87% in technology MNCs. Beyond gender disparity, organisations must also consider factors like age, nationality, ethnicity and physical ability to achieve true diversity and an inclusive environment.

To make an impact change, leadership teams must integrate DE&I into the organisation’s overall business strategy, setting clear expectations for leadership and establishing metrics to track progress. For example, a leading global energy management organisation has strategically developed a strong pipeline of Asian leadership talent, placing them in key global roles across Europe and Asia. This approach has proven highly effective in driving workplace diversity on an international scale.

Leaders should also build structures that facilitate learning and collaboration, fostering a culture of collaboration and trust by prioritising people in the DE&I strategies. For instance, leadership teams can engage employees by establishing a company network to facilitate continuous learning across all career stages and strengthen internal mobility. Such initiatives on development and networking help with talent growth across different roles, aligning with an organisation’s overall vision.

By walking the talk and embedding DE&I into the board’s agenda to ensure a consistent focus, organisations can set a strong example that cascades throughout the organisation, creating a culture where diversity is embraced and valued.

Building a diverse leadership bench: The key is to “localised” global mindsets

For global organisations with a regional presence, there is still a notable gap in advancing regional talents to top global leadership roles. To address this, global organisations must adopt a more customised approach to talent management, driving both global and local success. This involves creating opportunities for Asian leaders to gain global exposure across different regions and encouraging them to consider a wider range of career options during international assignments.

To close the gender gap, C-suite leaders can facilitate this commitment by implementing mentorship and training programmes to help women leaders in mid-management advance in their careers. Additionally, by sponsoring female employees for certifications and offering upskilling opportunities across various fields, organisations can open the door to great growth and leadership opportunities.

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Organisations also need to expand their definition of strategic communication to include diverse perspectives, ensuring that their strategies resonate with everyone. Leaders can achieve this by understanding, respecting, and applying local nuances and cultural differences when developing a global vision.

While broadening the scope of communication strategies and addressing structural challenges, organisations can better support regional leaders in closing the leadership gap and fostering a more inclusive global leadership bench.

Creating an inclusive environment beyond mandates

Implementing DE&I initiatives not only creates a great workplace culture but also impacts business outcomes. According to a new study by TechTarget’s Enterprise Strategy Group (ESG), 75% of leaders saw their DE&I investments as having a positive impact on their business’ competitive position. However, many organisations are in the initial stages of creating an inclusive culture, in which they view most critical aspects of inclusive workplaces as primarily compliance-related, such as adhering to anti-discrimination laws and meeting diversity quotas.

True inclusion goes beyond compliance; it involves making DE&I a part of everyday business practices. Organisations should encourage flexible work arrangements that accommodate diverse needs, including family commitments. For example, financial services GCCs located across India’s North, West, and South regions have a higher ratio of female leaders, as reduced commuting times enable women to balance professional and family responsibilities. Offering such flexibility helps advance careers while enhancing retention and engagement across the workforce.

Organisations should also provide incentives for workforce reintegration, particularly through dedicated programmes aimed at helping women return to the workplace after sabbaticals and extended breaks. These initiatives often offer greater flexibility, such as customised work hours and work-from-home incentives, along with additional professional development opportunities from industry experts.

As organisations tailor their DE&I strategies to meet diverse workforce needs, they can cultivate a genuinely inclusive culture that drives long-term success and bolsters their competitive position.

A diverse workplace does not happen naturally; it requires intentional efforts from future-ready leaders. By creating inclusive environments, aligning global DE&I strategies with local practices, and engaging at the board level, organisations can ensure that they are not only meeting today’s needs but also preparing for tomorrow’s challenges and opportunities.

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