Know Your Audience
As population demographics change, industry commitment to diversity, equity, and inclusion will only become more crucial.
Diversity, equity, and inclusion strategies have always been about people, and creating the best circumstances possible for all people, all identities, to thrive in the workplace. Plain and simple.
Don’t get me wrong, my use of “plain and simple” isn’t implying the work is easy, because it’s not. DEI strategies require intention, discipline, and consistent effort.
But commitment to these principles will be central to sustaining vibrant workplaces and to the continuing success of our companies. Much like hard work and expertise, it will set businesses apart within the insurance industry.
When I teach my Inclusive Leadership workshop to Marsh McLennan Agency (MMA) leaders, I say DEI is both the right thing to do and the smart thing to do. Whichever case is most persuasive to a leader, as long as they join our DEI journey, I’m pleased. The reality is, more times than not, it’s a “both/and” decision. Leaders affirm commitment to diversity, equity, and inclusion as a guiding principle and a business imperative. As a DEI leader, I believe this, too.
We know that values often drive decisions about who to do business with and who to refer business to. As demographics continue to shift, we can expect to see this reflected even more in future decision makers and buyers.
The proof is in the data. Shifts in demographics, buying power, and attitudes of job-seekers underscore changes that impact who our buyers, suppliers, vendors, and employees could and will be. The U.S. Census Bureau (among other sources) projects that non-Hispanic whites will fall below 50% of the nation’s population by 2045. This trend aligns with the continued growth of buying power for communities of color over the past several decades. While race/ethnicity is only one of many dimensions of identity, it is one that is measured, especially as it relates to representation.
The clarity of this demographic trend gives us a great opportunity to reflect on our industry. What do our boardrooms look like, our senior leadership teams, our client portfolios, the talent we are attracting and investing in? Does our industry reflect the communities in which we live and work in a way that all identities can see themselves thriving, and at all levels within our organizations?
There’s a popular phrase in DEI, “If you see it, you can be it.” It’s the notion that when you and I see someone who shares our dimensions of identity in a role within an organization, particularly an executive role, then we can imagine ourselves in that role as well. Knowing someone has gone before us is a source of empowerment, especially for someone just entering the world of work. Cue Gen Z.
For Zoomers, a commitment to workplace diversity, equity, and inclusion is table stakes. Anyone who thinks otherwise hasn’t been paying attention. As the most diverse generation of our time, Gen Z has a strong sense of social awareness and believes it should be a guiding practice in the workplace.
When I presented the agency’s DEI journey to all of MMA’s interns this past summer, I opened with this question: “When you think about your future employer, is their commitment to diversity, equity, and inclusion important to you? If so, give me a ‘thumbs up’ in the Zoom chat.”
Thumbs up abounded, as did requests to connect on LinkedIn. I felt affirmed as a DEI leader and that our interns validated our plan of action from an employer brand perspective. My guess is you’re seeing this same thing with your interns and early talent.
We all know about the “silver tsunami” in our industry. I count myself among this population approaching retirement. Thinking about our candidate pipeline and succession planning couldn’t be more important. So, if workforce development is critical to the industry and our potential workforce cares about DEI, we logically must demonstrate dedication to DEI to attract this talent to our firms.
DEI as Risk Management
Increased employee retention and engagement are additional outcomes of an organization’s credible commitment to DEI. When we create workplace cultures where everyone can be their authentic selves, coupled with policies, practices, and procedures that are fair for all, we create the optimal conditions for high-performing teams. When you and I don’t have to worry about hiding part of our identity, for fear it might limit our professional opportunities, then we are able to bring our best gifts and talents to the organization. This is a win for the individual and for the team.
In our industry language, DEI is a risk management strategy. Diversity within our organizations is a business imperative from a talent perspective because it multiplies the experiences, perspectives, and insights that we can bring to innovation and solutions for our clients. The example I use when teaching our Unconscious Bias workshop and describing affinity bias, which is unconsciously favoring people who are like you, is if I hire a bunch of Kiras to serve our clients, they’re going to bring great strategy but not the details for execution. We need both to succeed. This is a simplified example, but when we create diverse teams, we deliver greater value to our clients.
We all know about the silver tsunami in our industry. I count myself among this population approaching retirement. Thinking about our candidate pipeline and succession planning couldn’t be more important.
Diversity gives us multiple ways to connect with our customers, which can support business retention and help us expand our prospective client base. Our commitment to DEI signals our core values as organizations—and our customers are paying attention. We see these questions in RFPs from potential and current clients: “Describe your DEI journey,” “What are your demographics?” and “Do you work with diverse suppliers/vendors?” are just a few examples. We know that values often drive decisions about who to do business with and who to refer business to. As demographics continue to shift, we can expect to see this reflected even more in future decision-makers and buyers.
I’m not telling you anything new. I’m just reminding you of what you already know about diversity, equity, and inclusion from a business strategy perspective. But let me remind you of one more thing: we’re the insurance industry. We’re the bedrock of society, of the economy, and of the communities in which we live and work around the globe. People and organizations trust and depend on us with their hopes and dreams that take the shape of property, processes, and people. I find this incredibly humbling. My hunch is you do, too.
Because of our industry’s great importance to worldwide resilience, stability, and prosperity, we are uniquely positioned to lead from the front. You’ve probably heard the phrase “To whom much is given, much is required.” What a great sentiment for a time such as this.
A commitment to DEI in our workplaces and business strategies doesn’t create change overnight, particularly authentic, credible, transformational change. But that should not stop us. While we are competitors in the marketplace, let us unite as an industry to create a more diverse, equitable, and inclusive future for all.
This is the legacy-leaving kind of change we can make together.
