Too many leaders still think workplace culture means team hugs and away days, as more employers ‘quietly’ drop DEI goals and inclusion pledges. But Pat Sharman, co-founder of Everyone Matters, says it’s time for HR to step up and remind the c-suite that culture is strategy and ignoring it can be costly.
At a time when there continues to be a significant backlash against diversity, equity and inclusion (DEI), and major companies are scaling back or completely ditching DEI goals, we have to question whether these firms have been guilty of diversity washing. Like green washing, were companies using diversity to boost their image, when in reality it wasn’t really part of their core values. The geopolitical climate has given the c-suite at some of these companies an excuse to push DEI back down the agenda.
I personally don’t think we (collectively) have always gone about DEI in the right way. It shouldn’t be a box ticking exercise. Instead, it’s about really understanding the value of diversity and equity to the business through, for example, diversity of thought, and through inclusion, such as psychological safety.
Some companies have adopted language like ‘inclusive culture’, which, if implemented correctly, can deliver all the benefits of DEI and more. In the current climate, we need to reboot the focus on building positive, diverse and inclusive workplace cultures.
Culture is strategy
Workplace culture isn’t something to be parked with HR, and/or the marketing team, with no support from the board. It should be front and centre in how a company delivers on its strategy. But the majority of c-suite don’t understand workplace culture or the pillars supporting it, such as diversity of thought, psychological safety and human health. I have heard leaders suggest it’s about having a daily team hug or a team social event. It’s not!
Many leaders focus on strategy, developing a detailed plan on how the company will achieve its long-term goals, the company objectives and differentiation from the competition. Talk is of market share, profitability, and continuous innovation.
But workplace culture is how we deliver on that strategy. It’s about how we act and make decisions underpinned by our values and beliefs, how we behave and treat each other, and how we communicate.
Ditch the group think
Diversity of thought, which is not a tick box policy, will bring different viewpoints, ideas and approaches. It will help with problem solving, creative thinking, adapting to change and building resilience.
Psychological safety, which is inclusivity in action at the highest level, will ensure a safe environment to discuss problems and solutions, alongside encouraging ideas. It means people are empowered and respected. It again will encourage creative thinking and innovation and help companies become nimble to managing change.
It also aids human sustainability. When people are your greatest assets, why wouldn’t you want them to be physically, mentally and emotionally healthy.
The risks of poor culture
There is plenty of evidence that a positive workplace is more productive and leads to higher profitability, including the much referenced 2015 Harvard Business Review article: ‘Proof that positive work cultures are more productive’.
The article outlines multiple disadvantages of a negative culture including higher sick leave, with illnesses ranging from stress to heart disease, higher disengagement, which leads to higher absenteeism, accidents, errors and lower productivity, not to mention undermining employee loyalty. It highlights that this leads to an increase of 50 percent in voluntary turnover.
These are the high costs a company faces if it doesn’t focus on building a positive workplace culture. There are, of course, intangible benefits too. Things like maintaining a positive reputation, assuming that you want to attract and retain the best talent.
Expectations are also very different now between, for example, Gen Z and millennials, and this needs to be factored in. Views on the workplace have also changed post-covid. And people today are also more connected than ever before through social media and the rise in platforms for employee feedback. If companies have a negative culture, they cannot hide it for long. The resulting impacts on reputation can make it harder to attract talent.
How HR can drive it forward
So that all sounds great Pat, but how can HR drive it forward with the c-suite?
- Data – there are many tools that can help measure the culture of a board. One I’ve used is called Hogan, which is backed by decades of scientific research.
- Board training (including you) – once you have the data, training on the value of culture and the company’s own culture can be tailored to the individuals on, and the collective, board.
- Once the board has a deeper understanding of their culture, the desired culture of their organisation, and the benefits, you can start to develop a plan to implement it.
And lastly, it frustrates me that HR are not always considered a key contributor to the company goals by some leaders. As professionals responsible for the greatest asset of any company, I say “lean in” and teach them a thing or two.
