New Data Suggests the Corporate Retreat from Diversity Isn't As Bad as It Looks

With a combative presidential election just a week away and the country arguably the most divided it’s been since the Vietnam era, it’s no surprise that media outlets (this publication included) have reported a retreat from diversity and inclusion initiatives. Corporate promises to get serious about DEI—made in the wake of George Floyd’s murder and heralded at the time—seem to have crumbled under the weight of online activists and the deepening dread of boycotts. However, according to a new study, the DEI retreat made by a handful of prominent companies may have created the false impression that diversity is yesterday’s priority. When it comes to the marketing industry, at least, DEI seems very much alive. This is one of several notable findings of the Seramount Marketing, Media, and Adtech Inclusion Index. Conducted by She Runs It, a nonprofit that advocates for women in the marketing, media, and technology sectors, the report is not only a snapshot of the state of inclusion and representation but also the sort of honest accounting that perhaps only respondents promised anonymity can allow. DEI’s death has been greatly exaggerated While it’s true that a number of brand titans including Target, Molson Coors, and Ford have publicly walked back their DEI pledges, the study revealed that, in many c-suites and boardrooms, commitment to diversity has held firm. Among marketing, media, and adtech companies, 44% report that the size of their diversity teams has either stayed the same or increased. And while 33% admitted to cutting their DEI budgets, 42% kept funding in place while 22% added to it. She Runs It president and CEO Lynn Branigan suggests that these figures represent a deeper corporate understanding of the relationship between DEI and the bottom line. The advertising and marketing business “serves a diverse customer base and therefore it’s essential to have diverse teams so that we’re able to create campaigns reflective of the companies we serve,” she said. While the shifting winds of the sociopolitical landscape may mean that companies “get scared, the smart companies stay the course.” No diversity, no account Another way of phrasing Branigan’s observation might be: smart agencies are listening to their clients. According to the study, 86% of agency respondents reported that, during the RFP process, brand marketers wanted to know the firm’s gender, race, and ethnic diversity picture. “This year was the first time we looked at how intentional companies were in making sure that their agencies had teams that were diverse,” Branigan said. “Marketers are holding [agencies] accountable—that’s a game changer. They’re saying, ‘you get the business if you have inclusive and diverse teams.’” Advertising, marketing, and adtech companies also seem to have gotten the message about the importance of women. The industry outperforms corporate America overall on this front. While 36% of cross-industry respondents reported having women corporate executives in place, that figure jumped to 49% for ad and marketing companies. Women fill only 37% of management roles in corporate America overall, but in advertising, it’s 56%. Now for the bad news A less sanguine picture emerges, however, when it comes to the experiences of its Black employees. At first blush, it appears that the advertising and marketing industry is up to par. Black Americans currently represent 14% of those hired in the marketing, advertising, and adtech field, which slightly exceeds the 13.7% prevalence of Black Americans in the population overall, according to Census data. The problems lie with the experiences of those employees after they get hired. Only 7% of those Black professionals brought on board will get promoted—which in turn contributes to an attrition rate of 13%. That’s a high figure, considering that the average employee turnover across all industries is only 3.5%, according to Bureau of Labor Statistics data. “Black talent is exiting too fast and we aren’t able to keep them,” Branigan said. “If they don’t see themselves progressing, they don’t feel that they have a reason to stay.” But the study did uncover a trend that might convince more of them to stay, at least in the long run. Right now, 77% of companies in the advertising and marketing field report that they provide an office buddy as part of the onboarding process for new employees. These firms are part of a larger movement. Microsoft recently tried out a buddy program with 600 employees and 86% of the new hires reported that when their work buddy met with them between four to eight times during their first 90 days, both their work speed and productivity increased. Ad agencies and brands appear to be making the same conclusions. “We’re finding [that] more and more companies are investing in buddy programs so that employees feel nurtured, welcomed and supported,” Branigan said. “It’s really important.”

Diversity, Equity and Inclusion

New Data Suggests the Corporate Retreat from Diversity Isn't As Bad as It Looks

Most companies in the advertising industry have actually retained or increased their DEI budgets

Robert Klara

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Robert Klara