Understanding Workplace Equity and Its Importance

By now, we've all had time to process SHRM's announcement of removing equity from DEI. The reactions have varied widely, from outright outrage to deep concern. What we're witnessing is a systematic dismantling of DEI from the top down, with SHRM (knowingly or unknowingly, I have not quite decided) preemptively leading the charge. Over the past several months, we've seen the government and corporations alike redefine their stance on DEI, with many scaling back or withdrawing their investments. Microsoft's recent decision to lay off its entire DEI staff, citing that "diversity is no longer business critical," underscores this significant shift.

It's clear to me that this issue extends beyond equity alone. The entire DEI practice, as we understand it, is now at risk of being undermined. SHRM's move is particularly alarming, as the proclaimed leader for the HR industry, signaling potential changes ahead that we should all be aware of. As I mentioned in my LinkedIn post, I have had my own feelings about SHRM and what they stand for beginning years before this announcement was made. What this decision  has made me realize is this leads to a more important question: Do people even know what equity is? Do they understand that it benefits everyone in a workplace, and without it, the other two letters (D and I) do not have an impact? While I am sure some decision-makers do and that is why they are making the change, others may be lost as to what this means. As people ops and DEI practitioners, it is on us to help define and truly explain what the "E" in DEI truly means.

The Rise of DEI Awareness

The rise in attention to diversity, equity, and inclusion was notably catalyzed by the aftermath of George Floyd's death. Many individuals who had previously not engaged deeply with race relations in America began to take notice. This period saw people engaging in difficult conversations to understand what they had witnessed and led to commitments being made for change. While the desire for knowledge was commendable, it was also evident that some individuals and companies were merely jumping on the bandwagon because it was trendy. I have remained outspoken about the difference between being performative and genuinely being committed to DEI initiatives. Companies were quick to issue statements, offer donations, or host training without truly understanding the investment  necessary to foster real change and progress. DEI became a buzz phrase, a catchy statement companies added to their website that gave the appearance of empathy, understanding, and a commitment to enforcing a systematic change.

What is Workplace Equity?

Equity is often misunderstood or conflated with equality. While equality involves treating everyone the same, equity is about ensuring fair treatment, access, and opportunities for all by accounting for individual needs and circumstances. Equity recognizes that we all start from different places and aims to provide everyone with the opportunity for growth and success.

In the workplace, equity means creating an environment where everyone can succeed regardless of their background, identity, or starting point. It encompasses several key aspects including

Promotions and Raises: Establishing transparent and fair criteria for promotions and raises to ensure all employees have equal opportunities for advancement and recognition based on their performance and contributions.

Pay Equity: Ensuring that individuals performing the same job are compensated fairly, without disparities based on gender, race, or other factors.

Access to Benefits and Perks: Providing equal access to benefits and perks based on the company's policies, ensuring that all employees can take advantage of available resources.

Accommodations: Making sure that those who need accommodations have the tools and support necessary for their continued success.

Equity is not limited to benefiting only specific groups; it enhances the workplace environment for everyone. It involves recognizing that we are all different, requiring different solutions yet who all deserve the chance to be successful. By fostering a culture of equity, organizations can ensure that all employees feel valued, supported, and empowered to reach their full potential.

The Importance of Equity in the Workplace

Equity is crucial because it directly impacts the effectiveness of diversity and inclusion efforts. Without equity, diverse talent cannot thrive, and inclusion becomes superficial. Here’s why equity matters:

Fair Opportunities: Equity ensures that all employees have access to the same opportunities, such as promotions, professional development, and resources, tailored to their unique needs.

Increased Innovation: Research consistently shows that diverse teams, when managed equitably, lead to increased innovation and creativity. According to a report by McKinsey & Company, organizations with diverse teams outperform their peers in innovation capabilities by 35%.

Better Performance: Equitable workplaces tend to have higher levels of employee engagement and outward performance.. McKinsey's 2023 research indicates that engaged workplaces see a 39% increase in profitability compared to less engaged workplaces.

Enhanced Reputation: Companies that prioritize equity often build stronger reputations as ethical and inclusive employers. According to Glassdoor, 67% of job seekers consider workplace diversity an important factor when evaluating job offers, which influences employer reputation and attractiveness to top talent.

Legal and Ethical Compliance: Maintaining equity helps organizations adhere to legal standards and promotes ethical behavior, reducing the risk of discrimination lawsuits and fostering a positive work culture.

Understanding and implementing equity in the workplace is not just a moral imperative but a strategic advantage. It benefits everyone and enhances the impact of diversity and inclusion efforts. Equity creates a fair and supportive environment where all employees have the opportunity to thrive, regardless of their background or starting point.

As People Ops/ DEI practitioners, it is our duty to educate and advocate for true equity. While many corporations are backing out of their previous commitments to DEI, it is up to us to continue to highlight the importance of this practice—regardless of what it may be called in the future. Equity is not a fleeting initiative to be pursued only when people are watching; it is a FOREVER commitment that should be reflected in the actions and values of the company, woven into the fabric and makeup of its culture. This means moving beyond surface-level commitments and buzzwords to implement meaningful changes that drive lasting impact. We must ensure that our workplaces are not only inclusive but also equitable, providing everyone with access to the resources and opportunities they need to succeed.

In the end, equity benefits everyone. It leads to higher employee satisfaction, better retention rates, and a stronger organizational culture. Contrary to what some leaders may claim, equity IS a business imperative. By committing to equity, we are not only doing what is right but also positioning our organizations for greater success and sustainability.