The New DEI Audit: Strategic Meritocracy in a Volatile Climate

Kimberly Bedeau, Director of Diversity, Equity and Inclusion, HelloFresh

Kimberly Bedeau, Director of Diversity, Equity and Inclusion, HelloFresh

The question of aligning DEI initiatives with overall business strategy isn’t new, but the answer has shifted. It is no longer about “doing good”. It is about the optimization of human capital for organizational survival. In the current US and global landscape, the fundamental drivers of success, innovation and longevity, are inextricably linked to how a company manages its most important asset, talent. Even as AI integration accelerates, the human element remains the primary differentiator. If talent is the engine, DEI is the fuel system that ensures it does not seize.

To move past aspirational “Diversity, Equity and Inclusion” statements, initiatives must integrate directly with an organization’s core Key Performance Indicators (KPIs). This requires a systematic, unwavering and clear-eyed look at the markets your organization operates in. A strategy that works in a single US market may be a liability globally. The pillars for which your function operates on must be deliberately mapped to your organizations’ specific business objectives. When viewed through this strategic lens, DEI is no longer a “social program”. It is a fiduciary imperative and a tool for market capture.

I will pause here as I am confident there are some that are already thinking this is not right, what about the soul of the people and spirit of inclusion. Nothing has changed in that many initiatives are rooted in fostering inclusion. However, I am of the belief that no function, particularly corporate function, will be able to operate independently from that of the mission of the organization and agnostic of its ability to generate revenue or be long standing in name.

Measuring success often defaults to headcount representation and churn metrics. These are lagging indicators. They tell you where you have opportunities, not where you are going. As a practitioner, I advocate for predictive technology that measures the health of the talent ecosystem in realtime. What data is more helpful to your leadership team, the metrics that provide them a pulse or the post-mortem?

“Even as AI integration accelerates, the human element remains the primary differentiator. If talent is the engine, DEI is the fuel system that ensures it does not seize.”

So, while headcount, representation and engagement are important to measure for any workforce. Tools that allow your leadership team to pinpoint “equity gaps” within data and treat them as process failures rather than character flaws are leading indicators and more valuable. One such tool is an Organizational Network Analysis (ONA) which is designed to understand who is truly at the decision-making table, and who is not. By launching a survey asking the question ‘Who are the 3 people you go to for advice?’ You will start to understand the informal power structure and potential silos. If there are any similarities in groups that are being excluded inadvertently then that should be addressed.

To take it one step further, are there any data trends overlapping those excluded from informal networks and the impact on retention. The goal is to avoid discovering too late that top performers left because they were not able to contribute or participate in the high stakes, high visibility projects they so often want to challenge themselves. When high potential talent is excluded, the chances increase they will disengage and eventually depart.

With that said, this approach like any other may require iterations. And just as with any other business function, if a DEI initiative doesn’t yield results, it shouldn’t be abandoned. Instead, it should be allowed to be audited, adjusted and refined with the same agility applied to say a supply chain disruption.

Additionally, abandoning is the opposite of sustainability. Sustainability allows for growth and sustainability requires embedding DEI into the very operational underpinnings of an organization. This is another missed opportunity for some organizations: they treat inclusion as a “bonus” instead of a requirement. From a coaching perspective, inclusion must be treated as a core leadership competency.

Consider a leader consistently failing to retain diverse talent while their peers succeed, that is not a “culture fit” issue, it is a performance failure. We must hold leaders accountable for the “Inclusion Debt” they create when they fail to foster inclusion. In a volatile climate, an inclusive climate is a beacon for forward thinking organizations, particularly in light of the future talent who have told us that this is a differentiator.

Now talking about this space would be wholly irresponsible without discussing the legal implications in which the function operates. I do not feel it necessary to summarize but instead submit that the relationship with legal counsel is as important as ever. DEI work must continuously adapt to the ever-changing political and regulatory environment, ensuring that initiatives are both operationalized without impediment and ultimately impactful to your organization. This approach supports the most qualified talent can actually rise to the top. This approach allows DEI to be operationalized without impediment, protecting the brand while maximizing impact.

By shifting DEI from a “social program” to an operational imperative, organizations move beyond virtue signaling toward true operational excellence. In this volatile climate, an inclusive culture is a beacon for top talent that acts simultaneously as an anchor for an organization that intends to thrive ten years from now.

Legal

AI

Supply Chain