It’s the Right Thing: Part of the “Improving DE&I for SMBs” Series

Improving DE&I for small business starts with assessing where you are. Next is figuring out what needs work, then prioritizing, figuring out what to measure, and setting goals and targets.

By creating a workplace that values and respects differences, businesses can attract a wider range of customers, employees, and partners. Additionally, improving DE&I for small business can bring fresh perspectives and ideas to the table, leading to increased innovation and creativity.

Challenges to diversity, equity, and inclusion

Small businesses may face unique challenges when it comes to implementing effective DE&I practices. Hence, it is important for owners to understand the value of DE&I for small business and take intentional steps to create a more inclusive workplace.

Here is an excerpt from Salary.com's whitepaper: Identifying the Gaps, How to Conduct a Diversity, Equity, and Inclusion Audit, which explains the fundamentals of a DE&I Audit.

Kickstarting DE&I for small business

Leading an internal review of systems and culture through a DE&I lens anchors the conversation. It might spark productive debate about past mistakes, or it could create a sense of accomplishment. A shared understanding of the organization's status provides clarity on its terrain, strategic direction, and progress measurement. 

Here are key areas of impact:

• Corporate Risk- With an increasing emphasis on equity and fairness across all corporate America, companies should mitigate or remedy the risk of pay disparities across gender, sexual orientation, and age. 
• Hiring and recruiting- This is the front door to the organization. Ensure that you use hiring and recruiting to build diverse candidate pools. 
• External perceptions and brand reputation- Today's buyers are highly politically and socially conscious and their purchasing habits reflect their beliefs. 
• Compensation, benefits, and work conditions- Evaluate the extent to which your total rewards programs and working environments are equitable. 
• Assessments and decision making - Analyze whether assessments of worker productivity and performance are honest and accurate. Also study whether decisions to transfer or promote workers are consistent with those assessments. 
• Meetings and social connections- Look at the conditions in which workers interact and the extent to which everyone gets a chance to contribute. 
• Learning and growth- Enhance productivity and performance by ensuring equal access to learning and growth, which are part of total rewards. These are the opportunities for one to advance in their career, and even gain a promotion. 
• Using the data - Gather and analyze data about your employee population and compare it to external demographics, available from the US Census Bureau. Define your demographic as the market from which you recruit talented employees. Look at the DE&I numbers of your competitors and other companies. Then assess whether the composition of your internal demographics match the external population.

Jumping into a DE&I initiative

Review policies, procedures, and practices

• Collect data on policy implementation to assess their impact on diversity, equity, and inclusion. 
• Collect diverse employee data such as compensation, education, experience, gender, job title, and description to quantitatively analyze pay equity. 
• Examine how policies, management, leadership, and culture are supporting or acting as barriers to diversity, equity, and inclusion. 
• Gather employee perceptions of how inclusive the overall climate is on your campuses and in the system. 
• Evaluate attitudes and beliefs on diversity, equity, and inclusion, as well as existing support and willingness for embracing change. 
• Collect data on end-users' perceptions of the organization's diversity, equity, and inclusion services' effectiveness. 
• Continuously consider and seek out best practices and evolving relative concepts. 
• Review policies, procedures, and practices for legal compliance. Compare them against other employers' diversity, equity, and inclusion practices to inform legal counsel. 
• Conduct a statistical assessment of differences in pay across gender, age, and education levels. 
• Conduct focus group sessions with executives, managers, and staff at the organization and subsidiary levels. 
• Carry out one-on-one interviews with key stakeholders (board members, senior leadership, department heads and staff, plus former employees). 
• Conduct an online survey of benchmark companies.

The whitepaper has 18 audit questions to ask as you move through this process. You can download it here.

Conclusion

In summary, the fundamentals of a DE&I Audit involve taking an internal review of systems and company culture to identify areas of impact. The audit process includes reviewing policies, procedures, and practices for legal compliance and best market practices. DE&I for small business is an essential step to ensure that you are building a safe, inclusive, and equitable environment.

By recognizing the gaps and addressing them proactively, small businesses can create a roadmap for implementing effective DE&I initiatives. Through intentional efforts to improve DE&I practices, small businesses can promote diversity, and harness the full potential of their workforce for long-term success.