This year’s theme for the 47th commemoration of Black History Month, as selected by the Association for the Study of African American Life and History, is “Black Resistance” – a recognition of the movements Black Americans have led and sustained to enact social change throughout our country’s history.
Today’s Resistance Movement
Despite the progress Black Americans have made in every facet of society, the continuing need for “Black Resistance” is even more evident today. Just look to Memphis, where another young Black man was recently killed by police, or to state legislatures considering voter suppression bills and in classrooms across the country where Black history is being ignored. These instances of racism and injustice serve as stark reminders that much progress is still needed, requiring Black Americans to keep challenging the societal and political forces attempting to constrain us.
The average American workplace is not exempt from such forces. Only one percent of Fortune 500 companies are run by Black CEOs, and on the whole, organizations have made little progress in elevating the experiences of Black employees. This all comes nearly three years after organizations made diversity, equity, and inclusion commitments following the murder of George Floyd.
This begs the question: why is the resistance movement in corporate America not building the momentum it needs to create, real systemic change? What’s in its way? The answer lies in equity. As I wrote last year, while many companies were able to hit the mark for diversity and inclusion initiatives, equity, or the “invisible E” as I like to call it, continues to remain elusive. And this is likely the cause of lackluster corporate DEI strategies that miss the mark in recognizing the experience of Black employees.
What Can Companies Do?
Until equity becomes a keystone of every firm’s DEI strategy, Black Americans and their value to an organization’s success will continue to be overlooked. I know this to be true from experience. As a Black man who has worked both in the public and private sectors, organizations fail to create environments where Black voices are respected and empowered.
Fortunately, companies can both recognize Black History Month as a time of remembrance, but also as a chance to equitably transform their organizations. At Ichor, the largest Black-owned management consulting firm in the nation, we counsel clients every day to embrace the following steps to ensure equity is a real priority:
- Create pathways for career advancement – Make sure Black and diverse employees have opportunities for promotion and growth within your company. While the number of companies in the S&P 500 and Fortune 500 with Black CFOs nearly doubled in 2021, there were only six Black CEOs of Fortune 500 companies in 2022. When Black people are included in the C-Suite, too often they are in roles that don’t lead to CEO. Make sure Black employees have a clear path for growth in all types of positions within the company – not only the positions that promote diversity. There are many benefits to this. Employees are among a company’s most important stakeholders and can act as great advocates for their organizations, leveraging personal and professional networks in a way that holds huge, often untapped power.
- Prioritize pay equity – In 2020, the typical full-time Black worker earned 20 percent less than a typical full-time white worker. To fully assess whether that’s the case in your organization, make sure diverse employees are being paid the same amount as other employees by conducting pay audits. This will also encourage your employees to be open and transparent about pay. Additionally, consider offering equity compensation as a way of attracting and retaining top talent.
- Go through implicit bias training – Have all your employees, from the C-suite to entry-level, participate in implicit bias training. According to Harvard Business Review, companies lose $450-550 billion dollars a year as a result of employees who feel alienated at work due to perceived biases at the company. When people become aware of the microaggressions they are committing in the workplace, they will be better equipped to change.
- Reassess supplier and third-party vendor programs – Identify areas where your business can conduct more work with Black and minority-owned companies. Investments in diverse companies have the power to narrow the wealth gap and positively impact underserved communities. Consider Ariel Investments, which recently announced a new $1.45 billion private equity fund aimed at creating minority-owned businesses of scale and providing Fortune 500 companies with diverse vendors.
- Value diverse employees even in challenging times – As Fortune writes, the ongoing layoffs in the tech and financial services industries have disproportionately affected HR and DEI teams that do not drive revenue for the business. Disrupting employee well-being during challenging economic times could limit an organization’s potential to build brand reputation, talent pools, and customer bases – all of which set companies up for long-term growth. To avoid disregarding DEI, companies can implement diversity best practices across functions and look at performance management through an equity lens, among others.
How Ichor Did It
I know these strategies work because they helped Ichor grow from a team of 9 in 2015 to nearly 100 today. These principles are embedded in how we do business every day, shaping a culture of collaboration and creating a team that reflects the racial and ethnic composition of our country. In this era of stakeholder capitalism, the diversity of our team brings cultural fluency and business acumen needed to understand nuances that other management consulting firms fail to see. It also ensures we never lose sight of equity.
Consider Ichor’s community engagement specialists. These are full-time employees embedded in American neighborhoods and in our clients’ businesses to facilitate relationship-building between organizations and the communities in which they operate. Our specialists spot inequities and explain the implications to help our clients reallocate capital where it’s needed most and can make the biggest impact, for all stakeholders.
Our hyperlocal position on the ground and in communities provides us insights into workforce challenges and regional dynamics shaping the employee experience. With these insights and a real focus on DEI in our strategic counsel, we help create more equity within organizations and the communities that rely on them.
The naysayers may claim these strategies don’t work, but through sustained efforts to actively listen to employees and communities, organizations can guarantee that a meaningful investment in equity will have far-reaching effects on their bottom line and legacy.
