Beyond the Debate: How to Hire for Diversity and Merit
Should you hire qualified people based on merit? YES.
Does your business benefit from a diverse and inclusive workforce? Yes!
Two things can be true. Yet, the recent discourse has made it seem like it is one or the other. It’s not.
We know that under Title VII, in general, employers are not permitted to take any employment actions (e.g., hire, fire, promote) motivated by a protected characteristic (e.g., race or sex). Under the current administration, the EEOC and DOJ have made it clear that they intend to eliminate discriminatory DEI practices. In its recent memorandum, the DOJ enumerated examples of business practices to avoid, including quotas, preferential recruiting and hiring, and segregated training programs.
We also know that research has shown that diversity and inclusion in the workplace enhance financial performance and foster innovation. For example, in a series of McKinsey & Company reports, it was noted that “[t]he greater the representation of gender diversity, the higher the likelihood of outperformance. …[C]ompanies where more than 30 percent of the executives are women were more likely to outperform companies where this percentage ranged from only 10 to 30.” And Boston Consulting Group published a finding that “[c]ompanies that reported above-average diversity on their management teams also reported innovation revenue that was 19 percentage points higher than that of companies with below-average leadership diversity—45% of total revenue versus just 26%.”
So, let’s discuss some high-level diversity and inclusion practices that are both legally compliant and complement a focus on merit-based practices.
Practices you should avoid:
Quotas.
Some of the mega corporations you may have seen drop their DEI initiatives (think Meta, Google, Starbucks, Wells Fargo) had unlawful diversity quotas for hiring and some even made these quotas a criteria for executive bonuses.
Race/Gender-conscious hiring or promoting.
The DOJ is currently investigating the state of Minnesota because the Minnesota Department of Human Services requires its hiring supervisors to provide a “hiring justification when seeking to hire a non-underrepresented candidate.” Hiring supervisors who do not comply with the policy “may be subject to disciplinary action, up to and including termination.”
Practices you can utilize that foster diversity and inclusion:
Community outreach.
Many companies support or sponsor community events to demonstrate their priorities. For example, Costco invested millions in Minority Depository Institution (MDI) and Community Development Financial Institution (CDFI) community development credit unions to expand economic opportunities in historically redlined and disadvantaged communities.
Ensure the job qualifications are appropriate for the actual job.
You can get creative on how to conduct merit-based hiring by removing unnecessary barriers related to what the job actually requires by identifying the qualifications relevant to each position. For example, Delta Airlines uses a “skill-first” talent approach which creates merit-based access to career opportunities by considering skills as equivalencies to education.
Experience/Background-conscious hiring.
Rather than focusing on immutable traits of the applicants, focus on the variables that can actually influence your business, such as different perspectives, experiences, and backgrounds.
Employee groups.
Optional groups, open to all employees, that focus on a sense of inclusive engagements. For example, Apple has Diversity Network Associations that help employees of all backgrounds come together for recognition and celebration of important moments throughout the year.
Whether you need a fresh set of eyes on your existing policies or a strategic partner to build them from the ground up, I’m here to help.
