INSIDER: Diversity and Inclusion Matters
Diversity is valuable and important, as societal development necessitates all individuals of various backgrounds and experiences being welcomed regardless of their differences. The inclusion of these distinct individuals in a common space allows for synergies that can create a greater product. As this country has grown increasingly diverse over the last few decades, diversity and inclusion has become a pressing topic for all sectors of our society. Moreover, rates of immigration ensure that the United States of America will only become more diverse as we continue forward. From schools to corporations, it has become a commonly accepted idea that our institutions should be representative of the American population rather than maintaining a status quo of homogenous leaders. Jason R. Thompson, author of Diversity and Inclusion Matters, Tactics and Tools to Inspire Equity and Game-Changing Performance, addresses the need for diversity in modern companies and how it can be encouraged at all corporate levels.
Current corporate statistics point to a growing trend and need as stated above. Although the majority of Fortune 500 board seats are held by white men, women and underrepresented racial and ethnic groups have seen gradual increases in recent years. In 2022, we saw that women held more than 30% of the board seats in these companies while underrepresented racial and ethnic groups held 22.2% of the board seats.1 These are significant achievements that require continued support from leadership in order to maintain this type of success.
THINK POINT #1: How to Address Diversity Shortcomings
The first step of any problem is recognition. After recognition comes the more difficult part of addressing the challenge. However, Thompson offers a straightforward simple framework that leadership teams or diversity officers can use to develop successful initiatives to help create more diverse and representative companies. The framework follows a simple acronym: Collect the necessary data; Analyze the data to identify the problem; Plan to address the identified problem; Execute the plan and move towards your goals. By following Thompson’s CAPE in all aspects of a company, DEI goals can be pursued at all levels. Furthermore, this framework is especially salient for inexperienced Diversity officers, as they will see several problems but may find it difficult to effectively use their limited resources to systematically address the issues. The most common issues can include homogenous leadership teams, homogenous boards of directors, unequal gender pay, biased marketing advertisements, and a non-diverse pattern of promotion. Although these issues might be well-known, they are sometimes deeply integrated into company culture and require complex solutions. Only by fully understanding the situation with the initial steps of the CAPE framework and then following the latter half of the framework can these situations change for the better.
THINK POINT #2: DEI Takes Time
Widespread support for corporate diversity is a notable change in public opinion. However, there is an incorrect belief that an immediate transformation to a diverse workforce is feasible. Careful analysis shows that corporate management teams and boards of directors are filled with individuals with extensive experience but also long tenures in their positions. Furthermore, as Thompson points out in his book, upper-level positions in corporations have characteristically low turnover that creates stability within the company and communicates confidence to the public. This situation can easily become frustrating for corporate Diversity teams since they cannot see the change that they desire immediately materialize. It is extremely important to be patient in the face of complicated situations such as this. The only successful path is deliberate, thoughtful steps forward to initiate lasting change. Possibilities include making sure that there are workshops to help employees understand the diversity of our society, expand recruiting populations for upper-level positions, and enact policies to increase retention of underrepresented employees, among others. No worthwhile action is immediate or easy; thus, diversity and inclusion will steadily be improved as long we continue to support and pursue it.
Real Estate Implications
While most real estate firms are smaller than the major corporations professing support for diversity and inclusion, they can still take deliberate action to increase the diversity of their workforce. It will be more difficult to have representation in smaller teams, but firms can make changes through simple actions like ensuring that there is fair, non-discriminatory recruitment for team members, unbiased interviews, and support in the workplace for employees of diverse backgrounds. Additionally, maintaining a positive, supportive workplace culture can help the retention of underrepresented employees.
Although these ideas may seem to be of small impact, they can increase the appeal of your real estate firm to customers. Just as the American population is increasingly diverse, so is the population of home buyers and sellers. If customers have an opportunity to interact with agents with whom they can relate, or even if customers see a diverse team that they view as more welcoming, these potential clients may be more likely to prefer your firm. Diversity and inclusion are important issues that, when addressed, can increase the effectiveness of your firm.
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Recommended Reading
Thompson, Jason R. (2021), Diversity and Inclusion Matters: Tactics and Tools to Inspire Equity and Game-Changing Performance, John Wiley & Sons, Inc.: Hoboken, New Jersey.
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Reference
Green, Kori (2023), “New Data From Deloitte and the Alliance for Board Diversity (ABD) Reveals Continued Focus is Necessary for Fortune 500 Boards to be More Representative of the US Population,” Retrieved from Deloitte: https://www2.deloitte.com/us/en/pages/about-deloitte/articles/press-releases/new-data-reveals-opportunity-for-growth-on-fortune-500-boards-to-be-more-representative-of-the-us-population.html.
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About the Author
Vineet Paidisetty, BBA
Baylor University
Vineet Paidisetty is a first-year medical student at Baylor College of Medicine. He recently earned his Bachelor of Business Administration from Baylor University with a double major in Finance and Business Fellows while also being on the pre-medical track. Vineet hopes to combine his interests in finance and medicine for his professional career through healthcare administration or healthcare-focused private equity.
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