Across industries there’s an emphasis on addressing diversity, equity, and inclusion (DEI) in leadership roles. Research shows that greater diversity within an organization improves business performance. According to a report from McKinsey & Company, companies in the top quartile for gender-diverse executive suites are 15 percent more likely to generate above-average profitability compared to the bottom quartile of companies with predominantly white and male executive teams.
Manufacturing, however, lags in gender diversity when compared with other industries. A study by Thompson and the Women in Manufacturing Association (WiM) finds that only one in three manufacturing professionals and one in four manufacturing leaders are women.
While gender diversity is essential, it is only one facet for companies to consider as they embed DEI across their organizations. The following five steps provide a framework to help manufacturers improve DEI.
Cultivate role models and mentors—Manufacturers must alter their hiring practices to increase diversity at every level. Tapping into alumni and referral networks is a way for manufacturers to expand their hiring talent pools. When employees see a diverse management team, they see a career path for themselves, too.
One example of a company putting a DEI plan into action is Florida-based Carrier Global Corporation and its “_belong” brand. The underscore “_” in front of belong represents a blank space where anyone and everyone fits. Carrier’s _belong approach has helped boost its percentage of female executives and professionals of color by 35 percent since 2015.
Take a hard look when measuring diversity—Highlighting statistics, such as the number of new female hires, is a good start. However, dig deeper to analyze the number of women running meetings or people of color who have budget control over a product line. This will give you a true understanding of your organization’s diversity. Map employee journeys through the company and examine who gets promoted to secure a holistic view of your entire company’s DEI efforts.
Transform how your company works—The pandemic has shown that, with the right tools, several manufacturing jobs can be done from anywhere. Strides in Industry 4.0 technology—IoT, cloud, sensors, wearables, 3D printing—have helped move even core manufacturing jobs offsite. Breaking free from geographical limitations allows manufacturers to access diverse, skilled talent pools.
Start at the top—It’s incumbent upon manufacturers to create recruitment, hiring, and promotion programs that support DEI. Metrics are important but won’t help address key issues if the C-suite isn’t supportive. The C-suite needs to demonstrate transparency and highlight achievements for DEI efforts to employees, stakeholders, partners, and customers.
Give people a voice—employee resource groups (ERGs) provide the support and framework for elevating insights and feedback from different voices within the organization. Manufacturers need to grasp the business value of ERGs. For example, an ERG for Black employees can help an organization discover and hire more diverse talent from historically Black colleges and universities.
Making progress on DEI is critical to long-term success. These five steps are great starting points for companies to make meaningful change.
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