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Employers take note: It’s a new world for diversity and mental health

Following a year unlike any other, employers are increasingly recognizing the linkage between mental health and their Diversity, Equity, Inclusion and Belonging (DEI&B) strategy. Where previously DEI&B and mental health initiatives would live in separate corporate domains, now, employers large and small increasingly understand the inextricable link between these two issues as they work to provide support for their diverse workforce populations.

Prior to the events of 2020, mental health in the workplace had been treated as a ‘one size fits all’ issue. For example, there was little recognition of the psychological impact of racial violence and micro-aggressions on people of color and other marginalized populations. But media coverage and public awareness of the pandemic, economic stress, and the fight for racial justice has finally brought these important issues to the forefront of public, employee and employer consciousness. Case in point, according to a recent McKinsey study, 40% of employers surveyed say they are increasing their investments in DEI programs, even as they make budget cuts elsewhere. Additionally, Willis Tower Watson notes, 51% of surveyed employers say mental health is among their top three benefit priorities this year, a dramatic increase from 2019 (up from 27%).

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HR feels the heat
With HR and benefits organizations under unprecedented pressure to address mental health issues in the workplace, the temptation is to do everything possible. However, that approach can seem rushed and lead to unthoughtful action. Instead, to meaningfully move the needle, employers should identify a few specific initiatives they can dive deep into and maximize the resources they have.

So, where should employers focus to best support their employees for maximum impact and return on investment?

  • Focus on culturally-competent care: The first step is to recognize that mental health issues disproportionately impact marginalized groups. Issues include stigma, distrust, and racial trauma. One important way to support underrepresented communities in the workplace is to invest in culturally-competent mental healthcare services that remove barriers and ‘democratize’ access to care for marginalized populations. These programs work in tandem with your DEI&B programs and provide a safe and productive space for employees to articulate and work through challenges. 
  • Support diversity in storytelling sessions: Encouraging employees of diverse demographic backgrounds to tell their stories in a safe forum elevates awareness and creates psychological safety. Storytelling allows people to feel heard and validated, while hearing other people’s stories elicits empathy, a deeper understanding, and allows the listener to see the world from a different perspective.  We can throw statistics at people all day long and they are quickly forgotten. But with storytelling, we engage the heart and open a new level of understanding that connects people. Storytelling can have a deeply transformative effect for both the storyteller and the listener.
  • Dig deeper on results: Meaningful progress in our diversity efforts is not just about increasing the presence of a diverse workforce (the “add diversity and stir” model). It must include training managers and leaders to create a culture of psychological safety and inclusion on their teams. In order for diverse stakeholders to thrive, we need to adequately support them and foster their growth. We must pay attention in meetings: who is speaking up, who is not? Double down on demographic data, from an applicant's first contact with your organization all the way through the attrition and exit interview data: who is applying, who is staying, who is thriving? Employees will stay because they feel a sense of belonging and trust that their employer is invested in their growth. Additionally, employees want reassurance that their employer cares for their well being, which includes mental health. While it is true that great DEI&B strategies allow organizations to outperform and break into untapped market segments, they also, and perhaps more importantly, result in employee trust, loyalty, and engagement, as well as a more joyful workplace culture. 

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The power to innovate together
This moment in time remains the most challenging in history for employers and the HR function. Stress levels remain high. The past 18 months have been both unprecedented and humbling. In the absence of a playbook on how to navigate through crises and rapid and compounded change, we have had to test new approaches and iterate with brutal immediacy.

The HR community has come together with unprecedented generosity and a willingness to share resources and ideas. With record levels of investment in mental health and diversity efforts by employers, we must seize this unique opportunity to create real change by centering these very issues.

The simplistic ‘business case for diversity’ is no longer compelling. Instead, we are called to embrace a broader definition of success that includes a growth mindset, employee well-being and above all a commitment to human dignity.

It is indeed diversity of thought, collective momentum, and the convergence of these ideas that help us redefine DEI&B and mental health in the workplace in a way none of us could have imagined 18 months ago.

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Mental health benefits Diversity and equality Employee engagement
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