Under pressure from activist investors, the public, and their own employees, many companies are expanding their commitments to corporate social responsibility with an emphasis on equity and justice for disadvantaged communities. Nearly nine in 10 of Fortune 100 companies list equity as one of their corporate values, according to our analysis of value statements of Fortune 100 companies. Mentions of diversity, equity, and inclusion (DEI) on S&P 500 earnings calls have increased 658% just since 2018, according to our analysis of earnings calls transcripts for S&P Global 500 for 1Q18 and 1Q21.
How Fair Is Your Workplace?
To shape a more equitable employee experience, leaders should ask themselves these four questions.
July 14, 2022
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Summary.
Historically many of the policies designed to increase fairness at work have revolved around the hiring process: for example, removing candidates’ names from resumes so hiring managers aren’t influenced by their presumed gender or ethnicity, or setting strict pay bands to ensure employees at the same level are paid the same rate. But in reality, most employees’ perception of fairness relates more to their day-to-day experiences — and these perceptions have a significant business impact. Perceptions of fairness improves employee performance by up to 26% and retention by up to 27%. To create a higher-fairness experience for all employees, organizations need to ask themselves four key questions: 1) Do your employees have the information they need to succeed at their jobs and advance their careers? 2) Do they feel supported? 3) Does everyone get a fair chance at internal opportunities? 4) Do leaders and managers recognize employee contributions?