Corporate alphabet soup: DEI is not HR

Diversity, equity and inclusion (DEI) is now a major focal point for UK-based organisations. In the last five years, the UK has witnessed a 58% increase in available diversity and inclusion (D&I) roles. That figure alone by no means signifies tangible change. But what it does signify is a drastic change in the way organisations are thinking. Not only in terms of how they hire and retain staff, but also the way they communicate externally (marketing), engage organisations in their supply chain and so many other touchpoints for companies to consider.

A series of external events have triggered an awareness amongst senior leaders across organisations in the private, public and third sector to be more considerate and deliberate with their DEI efforts. From the #MeToo movement; challenging unchecked sexual harassment of women over the years, to racial inequity as highlighted by the Black Lives Matter (BLM) movement, to name just two examples.

The two examples I mentioned on gender and race tend to be the most high profile amongst organisational leadership but leaders need to take a much wider look if they want a more inclusive workplace. A much wider look.

Without a doubt, there is a need for companies to develop cultures which establish values and behaviours and, subsequently, policies which uphold those cultures. However, the success of all this rests on the type of leadership driving this change. Who/what function is best placed and equipped to embed effective DEI practices and behaviours?

Historically, the strategic leadership of D&I especially has come from the HR function. This has been because it was, and in many cases still is, reactionary. It was a compliance measure, to avoid a company having to go to court and risk being sued by disgruntled employees. So, given that this centred so much on the attraction, hiring, promotion and sometimes firing of staff, D&I was subsumed within the HR Function. There is something fundamentally wrong in taking that approach, which I will try my best to explain here.

There are six core functions of HR: recruitment, workplace safety, employee relations, compensation planning, employment law compliance and training/learning and development. Sure, there are small variances here and there but we would be hard-pressed to extend much beyond this remit. 

Let me give you three examples to illustrate HR’s limitations and why it is not the function to lead on DEI or D&I.

1. Marketing

A number of companies have taken heat for insensitive advertising campaigns. From the racially sensitive campaigns at Dove, Nivea and H&M, to the sexually inappropriate campaigns of Axe, Hyundai and Burger King. Paddy Power took heat for a campaign that missed the mark around disability.

These issues are not HR issues but rather functions of marketing and comms. The leadership around what is acceptable should rest with those who have to think about core messages and how they are communicated. Whether that be through the use of focus groups,  alignment with core values, or having partnerships with those who understand your wider remit around DEI. 

HR does play a role here, in making sure those who influence decision making are aware of the wider company policies and, of course, casting a wider net to have staff with wider representation. However, this is all internal-facing activity.

2. Product

There are more than enough papers that show the difference it makes when product teams are attuned to the needs of a wider audience, rather than limiting it to just a small sliver of an overall market. Designing use cases, customer experience scenarios, inclusive field research or focus groups is outside the scope of HR. So why would you want to limit the impact and leadership to them alone?

3. Supply Chain

Procurement and supply chain functions have increasingly become something organisations commit charters and pledges to. In an attempt to be more transparent and not be accused of cronyism, many medium and large organisations have started to look wider for suppliers. The Hackett Group, in their 2017 Supplier Diversity Study, found that companies who dedicate 20% or more of their spend to diverse suppliers can attribute as much as 15% of their annual sales to supplier diversity programs. 

As companies move from corporate social responsibility (CSR) directives to the more measurable environmental, social and governance (ESG), this kind of social accountability will call on those buying in external services to think about how diverse their options are. It’s a struggle to see where HR fits in here. 

DEI is wider than HR
There are many touchpoints for organisations where DEI could make a profound impact and yet so often many only see DEI through the lens of the HR function. I think I have lost count of the number of Head of Diversity roles I have seen advertised where a background in HR is required, or it states that the role will be, in some shape or form, bolted on to the HR function. 

With no disrespect to existing HR functions or heads of DEI, I see the role of DEI as a more distributed, horizontal function across organisations. Something that is embedded in the core of leadership at every level. Heck, I would even include it as a metric for measuring the performance of senior leaders across the board, demonstrating from the top down just how important it is for diversity, equity and inclusion to be a core part of their leadership remit.

A sad reality of the current status quo is that too often those who would be tasked with the DEI role at a senior level are somewhat neutered, with a lack of agency or budget. Imagine how effective the role would be if, rather than being seen as an HR/People adjunct, it stood as an equal function, an ally, a partner for any organisation that champions inclusive leadership and cultures?

Wishful thinking or an opportunity to rewrite the DEI narrative and better equip organisations to build truly inclusive workplaces not just limited to the lens of HR?