In the last year, a combination of economic and cultural factors has led to a significant decrease in both the mental well-being of employees and their level of engagement at work. This issue is compounded by the fact that many employees who belong to marginalized groups experience an extra "emotional tax" on the job—feeling constantly on guard against bias or discrimination based on their race, gender, ethnicity, and so on. Consequently, what employees expect from the workplace has changed, leaving employers struggling to adapt and finding it difficult to maintain organizational health.

While many employers recognize change is necessary, they often approach complex challenges as if they are acute problems—when in reality, they are the result of chronic issues. For example, after the killing of George Floyd, corporate America pledged nearly $50 billion to groups working toward racial justice, hired Chief Diversity Officers, and hosted a multitude of implicit bias trainings. Fast forward three years, and those pledges have failed to effect change, DEI executives are leaving en masse, and many employees feel that their employer’s DEI efforts aren’t working. 

DEI efforts are falling short because organizations are failing to address the root causes of inequity. In other words, they are treating the symptoms, but not the disease. Why? 

Historical responses to public health emergencies can help shed light on this phenomenon. After the 2010 earthquake in Haiti, the Red Cross raised an incredible $490 million for disaster relief—one of its most successful fundraising efforts ever. However, Haiti needed aid long before the earthquake: about 72% of the population was living on less than two dollars a day, and malnutrition, AIDS, infant mortality, and limited access to clean water put Haitian life expectancies more than ten years lower than the regional average. We saw a similar response as the COVID-19 pandemic exacerbated gender disparities. Employers scrambled to support working parents, especially mothers, as they struggled to manage both family and job responsibilities—but mothers had been struggling long before the pandemic due to an unequal division of caregiving and household tasks.

People often respond more actively and immediately to acute problems than chronic issues due to a combination of psychological, emotional, and societal factors. Acute problems:

• Evoke a strong emotional response due to their sudden and dramatic nature, triggering a sense of urgency and empathy.

• Generate vivid images that are widely shared through media, making the situation more tangible and leading to a stronger emotional connection and increased willingness to take action. 

• Disrupt the norm, capturing people's attention and resulting in a surge of support and resources—chronic issues may be perceived as less surprising, leading to a less robust response.

• Often have a clear cause-and-effect relationship, making it easier for people to understand and attribute blame—in contrast, chronic issues may involve complex systemic factors that are harder to comprehend and address.

• Demand immediate attention and action due to their urgent and time-sensitive nature, whereas chronic issues are ongoing.

While acute problems receive more immediate attention, addressing chronic issues requires sustained effort, long-term strategies, and systemic changes. Employers face the challenge of bridging the gap between the intense response to acute problems and the ongoing commitment necessary for achieving lasting change. This balancing act is crucial for attaining optimal organizational health.

What Is Organizational Health?

Organizational health refers to the overall well-being of an organization, including how efficiently it operates and how engaged its employees are. It's a state in which systems, methods, and individuals work together to optimize performance, much like the synchronized function of a healthy human body.

For employers, organizational health is crucial for success. A healthy organization can handle challenges, adapt to changes, and take advantage of opportunities effectively. When employees are fully engaged, feel valued, and are proud of their contributions, they are more productive and creative. This contributes to the organization's growth and reputation, building trust among its community of stakeholders.

DEI as a Path to Organizational Health

When employees face bias or discrimination at work, the entire organization suffers, much like when a single part of the human body is unwell. Just as a health issue can impact overall well-being, a negative work environment affects the collective performance of the workplace. Negative experiences can lead to increased stress, anxiety, and reduced job satisfaction. Our recent findings suggest that when employees with multiple marginalized identities, like Black women, do not believe their employer prioritizes DEI in the workplace, they are less likely to experience psychological safety and more likely to experience stress in the workplace that affects their personal life. Over time, the perception of bias and discrimination can contribute to burnout and mental health issues. 

Addressing bias and discrimination by singling out individuals (i.e. "a few bad apples") or treating incidents as isolated events, fails to acknowledge the ongoing and systemic nature of the problem. This approach treats the issue as if it's an acute problem, rather than recognizing its pervasive and deeply ingrained presence within the organizational structure.

Imagine a scenario where a manager consistently includes more critical subjective feedback in the performance evaluations of BIPOC (Black, Indigenous, People of Color) employees or women. Consequently, these individuals receive fewer promotions compared to their White or male colleagues. If we approach this situation as if it is an acute problem, we might solely blame the manager. Proposed solutions, such as providing implicit bias training or individual coaching, could make the manager feel defensive, leading to resistance and hindering our DEI efforts. In contrast, if we address this situation as a chronic issue, we acknowledge that biases are prevalent in all of us. We focus on mitigating bias in the performance review process itself. We define clear expectations and deliverables for each role, train all managers to use an objective assessment rubric, implement more frequent 360-degree reviews, ensure evaluations are free from biased language, put accountability measures in place, and track promotion rates by race, gender, etc. By adopting this comprehensive strategy, biases are acknowledged as systemic challenges that demand systematic solutions, which leads to smarter and fairer business decisions and a healthier work environment.

Mental, physical, and social well-being are concepts that everyone can relate to. Framing DEI as a pathway to optimal health can solve for gaps in understanding. By recognizing outcomes as products of operational systems, all members of the organization can better understand their role in cultivating a healthy workplace—without experiencing the blame or shame that often accompanies acute approaches to DEI problem solving. 

A Diagnostic Tool for the Workplace

Outcomes such as decreased turnover, improved employee engagement, and the attraction of top-tier talent are direct products of sound organizational practices. Luckily, these are all things that leaders can control!

Great leaders admit that they're still learning and acknowledge there are things they don't know. With our advanced analytics platform, Ellequate helps leaders identify gaps in their operations and bring to light disparities in employee experience. Working together with our coaches and advisors, they get clear on what really matters and create achievable action plans to reach their goals.

Are you ready to join our community of changemakers? Get in touch with our team to learn more.

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