According to a new survey, about half of supply chain organizations have formal diversity, equity and inclusion (DEI) objectives with specific targets for management.
The new survey by Gartner, Inc., found that 49 percent of the supply chain organizations surveyed had DEI targets, up from 27 percent in 2022, a 22 point increase.
“Supply chain organizations may have been expected to take a step back in pursuing DEI objectives in light of increased scrutiny and economic pressures,” Dana Stiffler, Distinguished VP Analyst in Gartner’s Supply Chain Practice, said. “Our data instead showed strong gains, with a steep increase in representation of underrepresented races and ethnicities at every level of the supply chain. The key driver of these gains is an increase in accountability via formalized management goals.”
Between September and October 2023, the survey polled more than 300 supply chain professionals from North America and Europe with active involvement in their organization’s DEI initiatives. The survey found that the percentage of full-time employees from under-represented race/ethnicity in those organizations increased from 32 percent to 48 percent. When compared to the previous year’s survey, representation of those under-represented races and ethnicities was 1.5 times what it was in 2022.
Among those with formal or general DEI objectives, the respondents said their DEI initiatives aimed to attract new talent (68 percent), retain or engage new employees (64 percent), improve business performance (58 percent), attract customers (48 percent), reflect and support local communities (44 percent) and attract investors (40 percent).
“The recruitment focus of DEI initiatives is crucial, with a higher percentage of supply chain employees actively seeking a new job at the highest rate since 2021,” Stiffler said. “The focus on engagement and retention is also well-placed with supply chain employees less likely than other professions to be highly engaged or have a high intent to stay. Their discretionary effort in mid-2023 was at its lowest point in the past two years.”
The survey also found that pushing representation higher reflected an emphasis on achieving DEI initiatives. In 2022, 75 percent of supply chain organizations said they focused on some dimension of diversity, while only 40 percent reported working on specific DEI projects – known as the “say-do” gap.
“While nearly the same proportion of organizations focused on one or more aspects of DEI in 2023, we saw a much higher percentage of supply chain respondents working on specific DEI projects and initiatives with measurable outcomes, jumping from 40% to 73%,” said Stiffler. “In 2023, the ‘say-do gap’ was reduced to nearly half of what it was in 2021; the connection between tangible action and improved DEI outcomes seems increasingly clear.”
The top four DEI initiatives were learning and development (L&D), benefits, employee engagement and recruitment, the survey found. Of those, employee engagement and L&D led the list.