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HR is Broken: DEI’s been axed… and that’s just the beginning

September 3, 2024 by Nathaniel Kruska

I hate to break it to you, but HR is typically one of the least popular departments in any large organization. Many employees think HR is broken, who see it as an overly bureaucratic source of unnecessary rules and paperwork. HR is also viewed as the gatekeeper of benefits and as the corporate grim reaper when finance demands layoffs. It’s certainly not an easy time to be an HR manager. I don’t even call myself an HR Consultant — I prefer “People Whisperer,” a title given to me by client.

As strategic HR consultants, we have a slightly more nuanced perspective. Well-intentioned initiatives like DEI (Diversity, Equity, and Inclusion), have brought about a great deal of awareness for bias and prejudice in the corporate world. Unfortunately, mis-guided solutions and less-than-stellar execution have led to what many people view as unintended consequences, like superficial box-ticking or meeting corporate requirements. These failures illustrate broader issues within our industry.

For those of us who are paying attention, the solution comes down to the fact that we’ve lost sight of the HUMANNESS in everything we do.

By focusing on the human element, we can create authentic solutions that go beyond compliance and paperwork to foster true inclusion, respect, and fairness for ALL employees. Recognizing and valuing the individuality of each employee, rather than treating them as mere data points, is key to truly transforming corporate culture within an organization and fixing the HR industry as a whole.

So, if you’re in HR and feeling a bit ticked off already, grab a coffee, take a seat, and get ready — because this is just the beginning…

DEI is DOA

In case you haven’t heard, the Society for Human Resource Management (SHRM) has exterminated the “Equity” from its DEI initiative. This decision has sparked debate among many HR leaders. Some claimed that the word “Equity” was a source of confusion and misunderstanding among HR professionals, which led to division among colleagues, and distracted from the intended purpose of DEI. 

I, for one, do not accept that we need to remove the term “equity” just because we don’t know how to define it. As PEOPLE LEADERS, we can find better solutions to problems like this. It’s our responsibility to clarify and uphold the values that truly matter.

While we’ve improved as a society, we still have a long way to go, and hope this change doesn’t undo a decade’s worth of progress. At Flynn Barrett Consulting, our focus remains on fostering an inclusive environment where EVERY individual feels valued and supported. Removing “Equity” from the DEI acronym may change the terminology, but it shouldn’t change our commitment to creating fair and inclusive workplaces.

Ultimately, we couldn’t care less what people call it, as long as ALL employees are treated as human beings, and given the respect and opportunity they deserve.

Across-the-Board Cuts

We have a colleague who worked for a well-known health organization for over 15 years, and had another 10 years in the industry beyond that. This organization decided that in order to cut costs, they were simply going to terminate the top three highest-paid employees in each region. 

This purely financial decision, which was handed down to a possibly already overwhelmed human resources team, is a prime example of how HR is broken. While we don’t know if HR was afraid or asleep at the switch, leadership clearly showed no concern for loyalty to long-time employees or the emotional impact on the rest of the workforce. Even from a pragmatic point of view, the layoffs were made without regard for expertise, performance, or tenure, resulting in experienced employees being replaced by much lower-skilled newcomers.

Not only does this approach undermine basic business strategy but also sets a poor precedent for employees. Whatever terminology you want to use, HR must prioritize fair and thoughtful decision-making that values each employee’s unique contributions.

Golden Handcuffs

A small company we work with had an employee who wanted to return to school to further their career. They brought it up with their boss, who immediately suggested the possibility of the company subsidizing this educational journey and started a conversation about providing educational benefits for all of their employees. This is a great example of a company who sincerely appreciates and wants to help their employees in whatever way they can. Keep in mind, this isn’t a Fortune 500 company with unlimited resources, but they recognize the importance of having a well-educated workforce and are genuinely committed to employee growth, even with budget limitations.

A number of larger companies offer a variety of educational benefits to their employees, knowing that many will likely move on in a year or two. Why would they do this? Because they are PAINFULLY aware of their high turnover rates. By providing these benefits, they hope to increase the chances that employees will stay longer, even if it’s only until they complete their education. While it’s hard to criticize this business strategy, it feels fundamentally flawed from a human perspective. Employees may feel obligated to stay to fulfill their educational commitments, rather than out of genuine loyalty. This approach may not be sustainable in the long run if job satisfaction isn’t made a priority.

To create a truly inclusive environment, HR should focus on offering benefits that encourage long-term loyalty and personal development, rather than using benefits merely as a tool to temporarily retain employees who may not want to be there. Actively engaging with employees to understand their needs, career goals, and aspirations can lead to more meaningful loyalty. Companies that adopt a human-centric approach to leadership—prioritizing employee well-being and satisfaction—will not only retain talent longer but also build a more motivated and productive workforce. This would be a much stronger and sustainable retention strategy.

Unconscious Bias in Hiring

Unconscious bias affects even the best-intentioned employers. Factors like names, schools, and geography can subtly trigger hidden biases, influencing hiring decisions. For example, a hiring manager who went to Ohio State might unconsciously discount a perfectly qualified candidate just because they went to Michigan.

To address this complex challenge, a colleague of ours is developing a service that removes potentially biased information from resumes, thereby focusing on skills and experience instead. This innovative approach aims to ensure a fairer, more inclusive hiring process. Implementing tools like this is critical to eliminating bias and ensuring that all candidates are evaluated solely on their qualifications and potential.

When we say HR is broken, these are the types of creative solutions we need. By removing the unconscious bias from the equation (not to mention the conscious bias), companies can better create an environment where true diversity is celebrated. Not only diversity of race, gender, and religion, but diversity of all backgrounds and experiences.

Putting the “Human” Back Into Human Resources

HR as an industry is facing a make-or-break moment in its history. In the wake of a worldwide pandemic, a seismic expansion of the gig economy, a major shift to remote and hybrid work environments, and the most divided political climate the working class has ever seen, we are confronting a massive uphill challenge.

As fractional CHRO professionals, we don’t actually believe HR is broken in an unfixable way. Nor do we claim to have all the answers to every problem. However, working with different companies on a variety of problems gives us a unique perspective on the state of the industry. Nearly every problem we face can be solved with one simple idea: Listen to your people!

The key to navigating these challenges is prioritizing fairness and empathy. By considering the well-being of those affected by decisions, we can create a more inclusive and effective HR industry. It’s time to put the “human” back into human resources.

While the idea of treating others with respect and dignity is not complicated (for most of us), getting others to buy in and follow through is a different story. That’s why we’re here to help. If you’d like to have a discussion about the future of Diversity, Inclusion, that forbidden ‘E’ word, or any other facet of your company’s HR practices, give us a call or schedule a free consultation today.

Filed Under: Current Events Tagged With: compassionate leadership, culture, dei, diversity, employee benefits, employee retention, layoffs, workforce planning

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Kerry Flynn Barrett

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