The Edelman Trust Institute and Harvard Business School's Institute for the Study of Business in Global Society collaborated on a special analysis of the 2023 Edelman Trust Barometer that looked at trust at work across U.S. divides. One of the main findings is that action on societal issues influences employment decisions. Nearly two in three employees (63 percent) say they are more likely to work for an employer that demonstrates a commitment to racial justice.
While action on racial justice remains a priority for employees, the analysis also reveals a gap between how executives see their organizations doing on racial justice and how employees view their progress: 60 percent of executives feel their organization is making “meaningful progress on addressing racism and racial inequities in the workplace” while only 18 percent of associates agree.
Based on my research, I see two explanations for this disconnect.
The Principle-Practice Gap
My research on what my co-author and I call the “Principle-Practice Gap” reveals a clear pattern in which company leaders express a commitment to racial justice or Diversity, Equity, and Inclusion (DEI), yet fail to follow up with actions required to make meaningful progress.
These are some examples of how executives’ efforts may not align with what associates consider meaningful progress:
- Hiring more Black employees, but into precarious roles at the entry level and not offering living wages, job safety, and benefits
- Hiring more Black employees, but not offering development or opportunities to advance to management roles with more power and stability
- Hiring a Chief Diversity Officer or appointing a diversity committee without allocating the power, resources, or influence to shift systems and culture that present barriers for underrepresented employees
- Making financial investments to outside community organizations without reconciling with internal racial issues present within your company
In 2023, we’re also seeing companies dialing back the most basic DEI and racial justice actions, which can further widen the executive-associate disconnect.
A Communication Breakdown
The disconnect is caused by a communication breakdown. Leaders must effectively communicate the meaningful progress they feel they are making to address racial inequalities in the workplace. This means going beyond an annual ESG report or one-time CEO town hall. They must tell the story of the systems, operational, or cultural changes they are making to address historic and current inequalities, how it is changing lives in their workforce, and why they will remain committed to it in the future.
The bottom line? Trust and communication are two-way streets. Trusting your employees is just as important as being trusted — particularly when it relates to things they see and live on a daily basis in their jobs that you, as a leader, may be distanced from. Listen to employees to close the disconnect.
