10 Feb How Global Mobility Specialists Can Help Companies See Value of Foreign Talents
Global mobility specialists will need to keep companies aware of the fact that DEI (Diversity, Equality, and Inclusion) departments are important for the growth of their organizations on a global scale. After all, their products and services cater to a global audience.
This has come to light on account of studies citing how DEI (Diversity, Equality, and Inclusion) departments are now the first to go in tech layoffs at tech companies.
A BBC article cites a study made by Revello Labs, indicating that the tech layoffs in the States in 2022 included a lot of African-Americans (7.42 percent) and Latin Americans (11.49%). Of the 150 employees laid off by video-streaming giant Netflix, more than 25 percent came from minorities and other underrepresented groups.
A Zippia study also shows that prior to the job cuts, these minorities had already been unrepresented in the supposedly progressive tech sector. American Caucasians occupied 62 percent of tech positions; Asian Americans came in second at 20 percent; Latin Americans were behind by eight percent; while African Americans were still at the bottom rung at seven percent.
A report by outplacement firm Challenger, Gray, and Christmas Inc. was the first to sound the alarm that job cuts in 2022 increased by 13 percent compared to 2021. It also warned that the trend will continue.
Investing in themselves
How to prevent this from happening too often? A global mobility consultant interviewed by Forbes says that underrepresented groups should invest in themselves and in their skills, regardless of whether they are employed or job-hunting.
Companies will always look for talent who can be crucial in helping them reach their goals. Regardless of the color of their skill, talent who performs and can contribute significantly will shine and get the attention and recognition it deserves.
It was the Bloomberg article that pointed out that the first to fall by the wayside were the minority groups, which in turn would have dire long-term impact on these people who had suffered underrepresentation for so long.
DEI jobs were reduced by 19% in 2022. One social media employee said his company’s diversity team saw its ranks significantly reduced from 30 people just down to two.
Reactions to the same story when it was picked up by LinkedIn News were an angry outcry of how the tech companies should have made DEI part of their integral infrastructure. Other commenters questioned the authenticity of the motivation of these companies in promoting values and platforms of inclusion. Still others asked pointedly whether Big Tech was just doing lip service in light of the frequent attacks on minorities, or if they could see that DEI was an investment that could positively impact their bottom line.
Concerns and consensus
Yes, Caucasian employees are also being let go mainly due to budgetary reasons, but the consensus is that they will be the first to be rehired once the economy improves. African Americans, Asian Americans, and members who belong to the LGBTQA+ community fear that they will have to fall into a very long line.
Minorities are growing more concerned about their employability. Because ultimately that’s where the real issues lay. Like other cost-intensive but non-sales-y jobs like marketing and human resources, DEI departments were widely regarded as cost centers but non-revenue generators. CEOs, CFOs, and others from the C-suite, facing potential tremendous loss because of the economic slowdown, tend to cut off jobs that do not directly increase profit or, at least, market share.
Long-term investment that pays off
Proponents of DEI maintain that inclusivity and diversity are indeed a long-term investment that will pay off for the companies in the long run.
The BBC cites a report published by McKinsey and Company in 2020 saying that firms included in the top 25 percent when it comes to race and gender diversity tend to experience “stronger financial returns.” It also mentioned a study by work-intelligence firm Cloverpop that found that teams who are diverse can outperform individuals when it comes to decision-making about 87% of the time. Meanwhile, companies that have a culture that promotes diversity and inclusion have more loyal employees who are 5.4 times more likely to choose retention rather than seek opportunities elsewhere.
In the BBC interview, Tanya Tarr, president of executive learning and development firm Cultivated Insights, strongly points out, “Companies might think cutting DEI staff or initiatives helps the short-term bottom line, they’re actually cutting themselves off from the human assets that would be a stabilizing revenue source.”