As of 2023, the United Nations recognizes 80,000 multinational companies (Boston University). That number is only increasing as technology and tools make connecting with communities and employees easier.
The global nature of modern business makes diversity, equity, and inclusion a must-have business imperative. DEI initiatives unlock new possibilities for local communities, like increasing incomes, creating gender equality, and supporting the career growth of underrepresented individuals.
In this article, we explore the importance of DEI, what DEI looks like worldwide, and how to support global DEI initiatives. Support the DEI training of your global teams and invest in organizational services that keep you and your staff informed.
The Importance of DEI in Global Operations
We no longer experience geographic limits to our lives; business, travel, family, and education have no borders, upping the importance of DEI. For years, businesses followed mandated DEI initiatives to remain compliant, but being diverse, inclusive, and equitable now offers a competitive advantage.
There’s no turning back, and because our lives are becoming more global, it’s crucial to examine why DEI must be a priority in business ops.
Larger and More Experienced Talent Pools
37% of millennial and Gen-Z workers say they won’t apply for a business with a poor reputation amongst racially underserved people (Washington Post). DEI initiatives help prevent such a scenario. When you cut out the unconscious biases and focus on the skills and experience behind the candidate, you automatically expand your talent pool.
Lower Turnover Rates
If an employee quits, replacing them can cost as much as 213% of their salary (Center for American Progress). DEI initiatives create a sense of belonging and signal that you value your employees’ well-being, increasing retention rates.
Improved Customer Experience
People frequent businesses they trust, and a large customer base is a sign of a good customer experience. Gender and ethnic diversity in global organizations translate to increased market share, a larger customer base, and increased profits (University of Colorado).
Enhanced Employee Engagement
Diverse and inclusive environments engage employees. In fact, 83% of millennial workers are actively engaged when they believe their organization fosters an inclusive culture, compared to only 60% who are actively engaged when their organization does not foster an inclusive culture (Deloitte). And that isn’t a passive engagement, either. It’s an active engagement that includes contributing to group projects, which boosts innovation and leads to product and service development worth talking about.
DEI Practices Across Different Regions
One hundred years ago, it would have been impossible to imagine today’s protections and benefits for businesses provided by DEI. In North America, companies in the U.S. and Canada enjoy employee resource groups and more diverse senior leadership.
Even in traditionally homogenous industries, women and ethnically diverse employees have access to development programs. Let’s take a quick look at the DEI landscape across the globe:
Europe
The close relationship of countries in Europe was also once thought impossible, but the EU unites countries as different as Italy and Poland. The E.U. takes an active interest in improving the lives of its disadvantaged citizens through laws such as the European Accessibility Act and the EU Directive on the Gender Balance on Corporate Boards.
Asia
Countries across Asia embody centuries of traditions that govern business operations. The influence of American and Western European countries is changing that narrative, with companies in Japan and India implementing inclusive hiring practices and equitable opportunities for gender-diverse individuals.
Africa
The growth of technological adoption in Africa opened the door for Safaricom’s M-Pesa program, which brings banking and digital money services to millions of people. Likewise, Nature’s Nectar supports farmers through beekeeping programs that help increase income in the poorest regions.
South America
DEI efforts in South America have a ways to go to reach the global average, but several movements are improving the situation. Recognition of individuals with indigenous heritage and native languages allows more individuals the opportunity to express themselves. Yet, those with disabilities and members of the LGBTQ+ face considerable hurdles that remain unsolved.
We could joke about Antarctica being the final frontier for DEI, but the continent is home to scientists and penguins. And both groups tend to be diverse and inclusive—unless you’re a seal; then you could get eaten.
Australia
Australia, despite its reputation as a multicultural society, faces challenges in achieving true DEI. While policies like the Fair Work Act and the Sex Discrimination Act have contributed to progress, issues such as the underrepresentation of Indigenous Australians in the workforce and leadership roles persist.
The government has implemented initiatives to promote gender equality and diversity, including programs to support women in STEM fields and measures to address workplace harassment. However, there is still room for improvement in terms of inclusivity and addressing systemic biases that may impact certain groups, such as people with disabilities and LGBTQ+ individuals.
Developing a Global DEI Strategy
As more organizations become global businesses, you need to develop a solid global DEI strategy to meet the needs of your consumers and staff. Here are a few ideas to get you started developing practices that work for you:
- Define your DEI vision—Step one is to establish what it means for your company to be diverse, inclusive, and equitable. During this stage, you should honestly and transparently evaluate where your DEI stands and what your next steps are.
- Invest in multicultural awareness education. Educating your staff on diverse cultural norms allows them to navigate complex relationships. Multinational companies should also be familiar with the laws, regulations, and restrictions of working with or in other countries.
- Leverage local community partnerships—Developing relationships with local communities gives you a source of diverse talent and potentially loyal customers. Leverage their insights and develop products and services geared toward solving their pain points.
- Set goals and track progress—With the foundation in place, you need to set realistic goals and decide which KPIs you’ll use to track your progress. You can use this data to adjust your strategies, making practices more equitable along the way.
- Create a mentoring program—Black and Latinx individuals face extra challenges when trying to grow into management positions. Create a mentorship or sponsorship program to help create opportunities for those individuals.
- Tailor practices to meet regional needs—It should go without saying, but we’re going to say it anyway: every country has its own unique culture, food, behaviors, languages, beliefs, and customs. Become well-versed in these, and you’ll make a better impression than someone who lacks that awareness.
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Tools and Technologies Supporting Global DEI
It’s because of advanced tools and technologies that so many businesses can operate globally. These advances also support global DEI causes, leveling the playing field for those who need it most. Some popular tools include:
- Diversity-centered applicant tracking systems (ATS) to source diverse talent.
- Remote Software as a Service (SaaS) workstations to support global WFH employees.
- Machine learning and AI to parse applications without human bias.
- Digital resources to educate team members without disrupting operations.
- Metrics reporting software to track, analyze, and benchmark performance.
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Measuring and Scaling Impact
Analysis and disclosure of DEI efforts and results are becoming standard business practices. Although that’s more true for North America and Europe, Asian and African companies are making significant headway.
Businesses include some of the following metrics to track DEI:
- Demographic makeup of current headcount, talent pool, and hiring pipeline.
- Employee satisfaction and net promoter scores (NPS).
- Pay distribution across geographic locations.
- Ethnicity makeup of senior leadership teams.
- Turnover rates and employee referral rates.
Scaling these initiatives starts with DEI leaders who bought into fundamental principles and their results. It then requires consistent effort, but as these organizations show, it’s worth the investment:
- Banco Pichincha, Ecuador’s largest bank, invested $100 million between 2020 and 2023 to expand banking access to women. During that time, the gender pay gap closed by 16% (World Economic Forum).
- The Hong Kong Exchanges and Clearing Limited (HKEX) exchange is using its influence to promote greater environmental, social, and governance (ESG) practices across Hong Kong. Since 2020, the percentage of female directors has risen to 17.3, and the number of companies listed without a female director dropped to only 21.4% (World Economic Forum).
Elevate Your Global Leadership with Coach Diversity Institute
DEI is a human right and a global issue. Examples of companies and organizations doing good are available from every region around the world, with many more waking up to the possibilities DEI policies offer to customers, staff, and even bottom-line profits.
Through strategic planning, dedicated investment, and priceless education, you can position yourself as a global diversity leader. Partner with Coach Diversity Institute to start the process and educate your front-line employees and senior leaders!