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The Radical Transformation of Diversity and Inclusion the Millennial Influence

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The Radical Transformation of Diversity and Inclusion the Millennial Influence for inclusion The Radical Transformation of Diversity and Inclusion The Millennial Influence Written by: Christie Smith, Managing Principal, Deloitte University Leadership Center for Inclusion, Deloitte LLP Stephanie Turner, PhD, Deloitte Consulting LLP The Radical Transformation of Diversity and Inclusion The Millennial Influence 3 for inclusion As a result of our shared commitment to moving the needle on inclusion in global business environments, the Billie Jean King Leadership Initiative (BJKLI) and Deloitte have joined forces to identify the issues impacting today’s diverse workforce. The Radical Transformation of Diversity and Inclusion: The Millennial Influence is the first research report to come from our ground-breaking collaboration. In this study, we examine generational views of diversity and inclusion and their impact on innovation, engagement, and creativity and other business outcomes. What we have uncovered could change the way organizations approach inclusion across corporate America for years to come. At the heart of this work is a generational gap that suggests that millennials view inclusion as having a culture of connectedness that facilitates teaming, collaboration, and professional growth. This is in stark contrast to prior generations who traditionally consider it from the perspectives of representation and assimilation. A few of our key findings include: • When defining diversity, millennials are 35 percent more likely to focus on unique experiences, whereas 21 percent of non-millennials are more likely to focus on representation. • When asked about the business impact of diversity, millennials are 71 percent more likely to focus on teamwork compared with 28 percent of non-millennials who are more likely to focus on fairness of opportunity. • 83 percent of millennials are actively engaged when they believe their organization fosters an inclusive culture, compared to only 60 percent of millennials who are actively engaged when their organization does not foster an inclusive culture. • Millennials believe that programs aimed at diversity and inclusion should focus on improved business opportunities and outcomes as a result of the acceptance of cognitive diversity, specifically individualism, collaboration, teamwork, and innovation. With millennials, the most traditionally diverse, digitally connected, and socially minded group of professionals, set to comprise nearly 75 percent of the workforce by 2025, we believe this research is critical to informing and elevating the inclusion conversations taking place across corporate America. These findings provide an incredible opportunity for organizations to play an important role in breaking down barriers and getting to solutions that promote teamwork, collaboration, and enhanced business performance. As strong believers in the strength of inclusive and authentic workplaces, we hope this study helps to broaden your view on the future of inclusion in your organization and the great things diverse teams can accomplish. Billie Jean King M. Christine Smith, PhD Founder Managing Principal – Deloitte University Billie Jean King Leadership Leadership Center for Inclusion Initiative Deloitte LLP The Radical Transformation of Diversity and Inclusion TThehe Millennial Influence 3 Contents Millennials radically transform traditional concepts of diversity and inclusion 5 Generational perspectives on diversity and inclusion 7 Impact on the employee experience 12 Fostering a cognitively diverse culture 16 Conclusion 19 Meet the authors 20 Additional information 21 Endnotes 22 Millennials radically transform traditional concepts of diversity and inclusion Exploring evolving definitions of about inclusion. Decades of research and diversity and inclusion, our 2015 survey programming have focused on assimilating found that the millennials are unique in individuals of different genders, races, viewing cognitive diversity as essential ethnicities, religions, and sexual orientations for an inclusive culture that supports in our organizations, and the baby boomers engagement, empowerment, and and Generation X-ers should be given credit authenticity. They also value inclusion from getting us from Point A to Point B in the not as an abstract ideal that checks a inclusion discussion. Millennials, however, are box and makes everyone feel good, but ready for Point C. as a critical tool that enables business competitiveness and growth. As the These young professionals are the most millennials flood leadership ranks, traditionally diverse generation in history. Only their perspectives will demand a shift 59 percent of millennials are Caucasian and in traditional diversity and inclusion 27 percent have immigrant backgrounds.1 For models. But where should we begin? them, walking into an office lobby and seeing all types of people is a given. They are much Last year, we corresponded over email with more concerned with cognitive diversity, or a 29-year-old manager at a Fortune 100 diversity of thoughts, ideas, and philosophies, consumer goods company. After hearing and in solving business problems through about the way he structured his team, we a culture of collaboration. For millennials, were interested in seeing him interact with inclusion isn’t just about getting people his employees during a weekly brainstorming of different creeds in a room. It’s about meeting. “That’s fine,” he said. “But be connecting these individuals, forming teams prepared, when you come on site to observe on which everyone has a say, and capitalizing us I’m not going to introduce myself as the on a variety of perspectives in order to make a manager because all points of view on this stronger business impact. team carry the same weight. People have the freedom to express themselves whether they While cognitive diversity isn’t necessarily a have 30 minutes or 30 years of experience.” new concept, it’s still not a reality in most organizations. Companies may pay it lip As the millennial generation (also known as service, but much of the time, hierarchical Generation Y, born 1980-95) floods leadership leadership and bureaucratic paths of ranks, stories like this are not uncommon. communication prevent a mixture of ideas Millennials strive to be inclusive, but not and approaches from taking hold. in the way we are accustomed to thinking The Radical Transformation of Diversity and Inclusion The Millennial Influence 5 We know from prior research that millennials Some organizations may be tempted to ignore are more tolerant and encouraging of alternative the issue and hope that millennials will eventually perspectives than older generations,2 but as grow up and out of their desire for cognitive of 2015, no study had examined the degree diversity and its resulting consequence for to which millennials hold these non traditional inclusion initiatives, but their futures depend on beliefs about diversity and inclusion, and addressing it now. Businesses that don’t expand the impact of changing definitions on our their notions of diversity and inclusion will organizations. Deloitte and the Billie Jean King increasingly lose their millennials and certainly Leadership Initiative set out to close the gap by won’t retain Generation Z (today’s young people, surveying 3,726 global professionals of all levels, born 1996-2012), who are even less focused on ages, genders, races, ethnicities, and sexual traditional diversity than their older brothers and orientations. We learned that our hypothesis sisters, and are even more engaged in socially was correct: while millennials value the ideals of collaborative platforms. And, the transformation diversity and inclusion just like their generational of the diversity and inclusion model isn’t just a counterparts, they fundamentally define the retention issue. The millennial viewpoint is simply constructs differently, and therefore, have better for business. According to a recent IBM different expectations relating to engagement, study, 75 percent of CEOs and executive-level empowerment, and authenticity at work. leaders believe that leveraging cognitive diversity is essential to organizational success.6 The disconnect between the traditional definitions of diversity and inclusion and It is within the power of the current baby the millennial definitions is already causing boomer and Gen X majority to challenge their business hardship. By 2025, millennials will traditional approaches, suspend judgment, comprise nearly 75 percent of the workforce, and break down the barriers that have been and yet they change jobs approximately every put up around diversity and inclusion. Through two years.3 As we learned from this research, a combination of advocacy, learning, and this is partially because they are intolerant leadership, organizations can capitalize on the of workplaces that don’t allow them to be creativity and innovation of millennial thinking themselves.4 Due to their desire for free to transform business for the better. expression, 71 percent do not always follow their organization’s social media policies,5 This paper will share our findings on the resulting in clashes with managers and human evolution of the diversity and inclusion concepts, resources representatives and their corporate from what older generations conceived decades communications colleagues. ago and still hold to be true, to what millennials believe today. We’ll explore the impact of differing definitions on the employee experience and suggest how organizations can take the As used in this document, “Deloitte” means
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