Continuation: What is diversity, equity and inclusion?

What do we know about advancing racial equity for Black Americans in the US private sector and across society?

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Black Americans in the workforce are at a disadvantage; the median annual wage for Black workers is approximately 30 percent, or $10,000, lower than that of White workers, with serious implications for economic security, consumption, and the ability to build generational wealth. They are underrepresented in higher-wage industries and executive roles, and they face lower odds for advancement. Clear racial patterns exist across the US labor force, with nearly half of Black workers concentrated in low-paying healthcare, retail, food services, and accommodations roles.

There are many benefits to righting historical wrongs and realizing the full potential of Black American talent: addressing wage disparities alone, for instance, could propel two million Black Americans into the middle class for the first time.

Doing so will take effort on many levels. Research from the McKinsey Institute for Black Economic Mobility suggests some jumping-off points:

The stories of Black leaders’ journeys can offer inspiration and hope for personal and professional development. Get insight from Jason Wright (president of the National Football League’s Washington Commanders), Stephanie Hill (an executive vice president at Lockheed Martin), and Barry Lawson Williams (the founder of Williams Pacific Ventures).

What issues are important to Latinos in the workplace?

In the United States, Latinos make up 18.4 percent of the population and 17.3 percent of the labor force, and that share is projected to rise to more than 30 percent by 2060. This community faces challenges, and US- and foreign-born Latinos alike remain far from equal with non-Latino White Americans, with Latino Americans earning just 73 cents for every dollar earned by White Americans. They face discrimination in securing financing to start and scale businesses, and they face challenges accessing food, housing, and other essentials.

McKinsey research on the economic state of Latinos in America finds that they are underpaid, collectively, by $288 billion a year. At full parity, though, Latinos could spend an extra $660 billion annually, and Latino businesses could generate trillions in revenue and support millions of new jobs, while also creating new flows of generational wealth. Addressing barriers faced by Latinos in America could make the economy more robust for all.

How can we empower Asian Americans at work?

Asian Americans have contributed to the US economy since the 1800s, yet they have historically been overlooked. This group as a whole is often perceived as the “model minority,” a term that diminishes the unique issues faced by their diverse community. Recently, given the rise in racially motivated attacks on Asian Americans during the COVID-19 pandemic, historically unaddressed challenges faced by this group are coming to light, offering a fresh reminder of the need to support and include Asian Americans at work.

In corporate America, Asian Americans are underrepresented in senior leadership roles (as are Black, Hispanic, and Latino Americans). What might help? Recognizing where in the corporate pipeline Asian Americans are underrepresented, mitigating implicit and unconscious bias during promotion and performance evaluations, fostering sponsorship for Asian American employees, and expanding workplace flexibility and support such as paid sick leave.

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What does research show about the experiences of LGBTQ+ employees in the workplace?

For LGBTQ+ employees, many workplaces today fall short of full inclusion, even if there is visible corporate support for LGBTQ+ communities. For example, LGBTQ+ women are more underrepresented than women generally in America’s largest corporations. Just four LGBTQ+ CEOs head these corporations—only one woman, and none identifies as transgender. An episode of the McKinsey Talks Talent podcast considers the latest research on the LGBTQ+ experience in the workplace and highlights practical steps for all employees to signal support and boost progress for this community.

Transgender employees face a unique set of challenges. They earn 32 percent less money than cisgender employees (cisgender refers to people whose gender identity aligns with the sex assigned to them at birth). More than half of transgender employees say they are not comfortable at work, and they report feeling less supported by managers. These strong feelings of exclusion have significant economic implications: greater transgender inclusion in the workforce through wage equity and increased employment could boost annual consumer spending by $12 billion a year. To help address the issues, companies can be intentional in recruiting (for example, by asking applicants what pronouns or names they prefer to use) or offer trans-affirming benefits, among other actions.

How do different industries approach diversity, equity, and inclusion?

Different industries may well need to take different approaches to diversity, equity, and inclusion, depending on the composition of their workforces. Several articles offer insight into those industry-specific dynamics, especially with regard to gender diversity:

Learn more about our Technology, Media & Telecommunications, Financial Services, Travel, Logistics & Infrastructure, Education, Public & Social Sector, and Healthcare Systems & Services practices.

For more in-depth exploration of these topics, see McKinsey’s collection of insights on diversity and inclusion. Learn more about Diversity, Equity & Inclusion consulting at McKinsey—and check out DEI-related job opportunities if you’re interested in working at McKinsey.

Articles referenced include:

Source: mckinsey.com

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