DIVERSITY, EQUITY & INCLUSION

MIT Sloan Management Review | The Invisible Barriers Holding Top Talent Back | This research reveals how recognising hidden disadvantages in the workplace can shift perceptions of fairness and promote equity, especially for diverse employee groups.

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✨ OVERVIEW

This research explores how people's perceptions of fairness in workplace decisions shift when they become aware of invisible barriers certain groups face, particularly women. The study reveals that when people learn about women's specific disadvantages in a work context, their judgements of fairness in promotion decisions change significantly. The research emphasises the importance of considering structural factors and equal opportunity in equity discussions rather than focusing solely on demographic categories. It also highlights how individual beliefs about the causes of success influence interpretations of fairness, suggesting that open discussions about these beliefs can shape organisational attitudes towards equity.

🧩 CONTEXT

Creating an environment where all employees feel valued and empowered is crucial in today's diverse workplaces. While previous research has identified various factors contributing to workplace success, the specific impact of invisible barriers on diverse employee groups still needs to be explored. This study addresses this gap by examining how awareness of structural disadvantages affects perceptions of fairness in reward allocations. The research comes when organisations increasingly focus on diversity, equity, and inclusion (DEI) initiatives, making its findings particularly relevant for business leaders seeking to create truly inclusive work environments.

🔍 WHY IT MATTERS

Understanding and addressing invisible barriers in the workplace is crucial for several reasons:

↳ Challenges assumptions about equal opportunity—Many people assume equal opportunity exists unless presented with evidence to the contrary. When participants learned about women's invisible disadvantages in a specific work setting, their fairness judgements shifted significantly. This highlights the importance of making these barriers visible to decision-makers and observers.

↳ Shifts focus from demographics to specific barriers—The research suggests moving away from broad demographic categories and focusing on specific, unique barriers individuals face in localised contexts. This approach aligns with recent legal opinions that mandate focusing on individualised experiences rather than demographic characteristics.

↳ Reveals the complexity of equity issues—The study shows that addressing disparities requires considering multiple aspects, including pay inequalities and unequal work opportunities. This multifaceted approach is necessary for genuinely addressing equity issues in the workplace.

💡 KEY INSIGHTS

↳ Awareness of invisible barriers shifts fairness perceptions—When participants learned about women's invisible disadvantages in a specific work context, their judgements of fairness in promotion decisions changed significantly. Promoting a woman over a man was initially rated 1.5 times less fair. However, when informed about gender-based invisible disadvantages, promoting either employee was judged similarly fair.

↳ Beliefs about success influence fairness judgements—People's assumptions about the structural causes of success act as an interpretive lens for ambiguous situations. Those who strongly believed in structural causes of success (one standard deviation above the mean) rated promoting a woman over a man as 1.3 times fairer. Conversely, those with weaker beliefs in structural causes (one standard deviation below the mean) rated it 1.2 times less fair.

↳ Invisible disadvantages are prevalent and impactful—Research shows that work performed by women often yields lower productivity levels or less favourable ratings than identical work by male colleagues despite equal effort and skill. For example, peers rate research abstracts by men as higher in scientific quality than similar abstracts by women, and consumers evaluate identical online courses and software codes less favourably when produced by women rather than men.

↳ Framing matters in DEI discussions—The study suggests that resistance to affirmative action and other DEI programmes may stem from framing them around abstract or historical societal wrongs. Focusing instead on specific, context-dependent invisible disadvantages can more clearly reveal task inequality and shift perceptions of fairness.

🚀 ACTIONS FOR LEADERS

↳ Don't assume equality of opportunity—Seek and share information about potential barriers in your work environment. Make this information salient for decision-makers and observers to potentially change perceptions of reward allocations.

↳ Consider multiple aspects of disparity—Address both pay inequalities and unequal work opportunities. Addressing disparities requires evidence of both to create a truly equitable workplace.

↳ Get specific—Move away from broad demographic categories and understand individuals' unique barriers in your particular organisational context. This approach can change people's intuitions and aligns with recent legal opinions on DEI initiatives.

↳ Openly discuss beliefs about success causes—Encourage conversations about beliefs in structural versus individual causes of success. These discussions can help managers anticipate reactions to reward allocations and shape fairness attitudes in the organisation.

🔗 CONCLUSION

This research provides valuable insights into how perceptions of fairness in the workplace can be shifted by increasing awareness of invisible barriers faced by certain groups, particularly women. Organisations can foster more nuanced and compelling discussions about equity by focusing on specific, context-dependent disadvantages rather than broad demographic categories. The findings highlight the importance of considering individual and structural factors in success and suggest that open discussions about these beliefs can lead to more inclusive and fair workplace practices. As businesses continue to prioritise diversity, equity, and inclusion, this research offers a roadmap for creating truly equitable work environments that recognise and address the invisible barriers holding top talent back.

🎯 KEY TAKEAWAY

Recognising and addressing specific, context-dependent invisible barriers can significantly shift perceptions of fairness, leading to more equitable and inclusive workplace practices that benefit all employees.

FUTURE OF JOBS

Harvard Business Review | Do You Need an External Talent Cloud? | The article explores how external talent clouds can address the global talent crisis. They offer faster hiring, cost savings, and flexibility through digital platforms that engage a global workforce. The article also outlines steps for implementing this strategy and its impact on the future of work.

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✨ OVERVIEW

The article "Do You Need an External Talent Cloud?" by John Winsor and Jin H. Paik addresses the growing talent crisis organisations worldwide face. It introduces the concept of "open talent," a globally distributed workforce accessible through on-demand digital platforms. The authors argue that embracing an external talent cloud can provide companies with faster hiring processes, lower costs, and greater flexibility. They outline steps for implementing this strategy, including establishing a centre of excellence, selecting appropriate platforms, and launching pilot programs. The article also discusses the future of open talent, including the potential impact of Web 3.0 technologies and decentralised autonomous organisations (DAOs) on the freelance market.

🧩 CONTEXT

The global business landscape is experiencing a significant talent shortage, with projections indicating that by 2030, over 85 million jobs could still need to be fulfilled. This crisis is exacerbated by the rapid growth of tech jobs, with 35 million new positions created in 2022 alone. Traditional hiring methods need to be revised to meet this demand, leading to a new pattern of behaviour where individual managers circumvent standard hiring processes and turn to digital talent platforms for quick and efficient solutions. This shift towards open talent represents a fundamental change in how work gets done, driven by technological advancements and the rise of empowered microentrepreneurs.

🔍 WHY IT MATTERS

↳ Addressing the talent shortage is crucial for business survival—With the potential for an $8.5 trillion talent shortage by 2030, companies that fail to adapt their hiring strategies risk falling behind in a competitive market. The open-talent model solves this crisis by providing access to a global pool of skilled professionals.

↳ Traditional hiring methods are becoming obsolete—The linear, top-down approach to hiring is no longer sufficient in meeting the rapidly changing demands of the modern workforce. Companies must embrace new models that offer greater flexibility and efficiency in talent acquisition.

↳ Open talent provides significant cost and time savings—Companies that embrace the open-talent model can get work done 4-5 times faster and 8-10 times more cheaply than traditional staffing models. This efficiency can provide a significant competitive advantage in today's fast-paced business environment.

💡 KEY INSIGHTS

↳ External talent clouds offer a new hiring paradigm—An external talent cloud is a pool of professionals from various platforms that can be accessed for temporary employment. This model allows companies to tap into a global network of highly specialised workers with interdependent skills, providing greater flexibility and access to expertise.

↳ Open talent is distinct from the gig economy—While the gig economy often involves exploitative practices, open talent empowers highly skilled professionals with significant negotiating leverage. These workers set their terms of employment, deciding what work to do, where, when, and how to do it, and what to charge.

↳ Digital platforms are revolutionising talent acquisition—More than 800 digital talent platforms worldwide offer access to an estimated 500 million skilled professionals. These platforms provide transparent matching of supply and demand, complete with job ratings, trust scales, skills certifications, and job history.

↳ Web 3.0 technologies are shaping the future of open talent—Platforms like Braintrust, which operates as a decentralised autonomous organisation (DAO), are introducing new ownership and reward distribution models in the freelance market. This shift could lead to freelancers having more control over their work and potentially owning some of the intellectual property they create.

🚀 ACTIONS FOR LEADERS

↳ Establish a centre of excellence—Create a dedicated team or division within your company to research, develop, and deploy open-talent practices. This centre should focus on retaining knowledge and skills, offering support in problem definition, incentive design, and post-submission evaluation.

↳ Develop a comprehensive open-talent strategy—Define clear goals and objectives for changing your operational models. Consider the exact problems external talent will solve, the skills you're looking for, and how you'll handle systems access, compliance, and security constraints.

↳ Select and build relationships with appropriate platforms—Research and carefully select platforms that best meet your needs. Build long-standing relationships with these platforms, treating them as potential partners rather than mere transactional services.

↳ Launch a pilot program—Test your external talent cloud strategy through a pilot program. Use this to learn about operational challenges, assess your organisation's readiness, and refine procedures before scaling up.

↳ Implement an internal communications plan—Develop a plan to help full-time employees understand that their jobs are safe and that the changes will boost the overall health and competitiveness of the company. Transparency is critical as you move to scale up your open-talent plan.

🔗 CONCLUSION

The shift towards open talent represents a significant opportunity for companies to address the growing talent shortage while improving efficiency and reducing costs. By embracing external talent clouds, organisations can access a global pool of skilled professionals, enabling faster and more flexible hiring processes. However, successful implementation requires careful planning, including establishing a centre of excellence, developing a comprehensive strategy, and building strong relationships with talent platforms. As the open-talent revolution continues to evolve, particularly with Web 3.0 technologies, companies that adapt to this new paradigm will be better positioned to thrive in the future of work.

🎯 KEY TAKEAWAY

Embracing external talent clouds is now optional but a strategic imperative for companies seeking to navigate the global talent shortage and remain competitive in a rapidly evolving business landscape.

RESPONSIBLE AI

Accenture | Work, Workforce, Workers: Reinvented in the Age of Generative AI | This comprehensive report explores how generative AI transforms work, reshapes the workforce, and impacts workers. It highlights the economic potential, challenges, and strategies for leaders to navigate this technological revolution responsibly. The report also emphasises the importance of human-centred approaches and trust-building in realising Gen AI's full potential.

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👀 DID YOU SEE?

✨ OVERVIEW

Accenture's report comprehensively analyses how generative AI is transforming the business landscape. It highlights many opportunities: accelerating economic value, driving business growth, and creating more meaningful work. The report emphasises the need for responsible adoption, human-centred approaches, and trust-building to fully realise Gen AI's potential. It addresses key challenges, including the trust gap between workers and leaders, and offers strategies for organisations to navigate this technological revolution successfully. The research underscores the importance of reinventing work processes, reshaping the workforce, and preparing workers for a Gen AI-driven future.

🧩 CONTEXT

The emergence of generative AI marks a significant shift in AI evolution, following the Diagnostic and Predictive eras. Beginning in late 2022, this new Generative Era is characterised by machines that predict with high accuracy, generate creative content, and offer personalised suggestions. As organisations grapple with integrating this transformative technology, they face workforce dynamics, regulatory environments, and employee sentiment challenges. The rapid advancement of Gen AI has outpaced regulatory frameworks, leading to urgent efforts to establish guidelines for its responsible use.

🔍 WHY IT MATTERS

Addressing the challenges and opportunities presented by generative AI is crucial for several reasons:

↳ Economic and business impact—Gen AI can unlock over $10.3 trillion in additional economic value by 2038 if adopted responsibly and at scale. Most CxOs believe it will increase their company's market share, with 17% anticipating an increase of 10% or more.

↳ Workforce transformation—44% of working hours in the US are in scope for automation or augmentation, with even higher percentages in countries with more knowledge- and language-task-based workers. This transformation will significantly impact job roles and required skills across industries.

↳ Trust and transparency challenges—95% of workers see value in working with Gen AI, but their top concern is trusting organisations to ensure positive outcomes for everyone. If not addressed, this trust gap could hinder the successful integration of Gen AI in workplaces.

↳ Leadership readiness—Two-thirds of CxOs confess they are ill-equipped to lead this change, highlighting the need for new leadership approaches and skills in the Gen AI era.

💡 KEY INSIGHTS

↳ Trifecta of opportunities—Gen AI offers a unique combination of economic value acceleration, business growth, and more meaningful work for people. Organisations adopting Gen AI responsibly and at scale can unlock significant economic potential while fostering innovation and employee fulfilment.

↳ Trust gap between workers and leaders—There's a substantial misalignment in perceptions between workers and CxOs regarding Gen AI's impact. For instance, 60% of workers are concerned about increased stress and burnout, compared to only 37% of leaders who see this as an issue.

↳ Importance of human-centred change—Reinventors, representing 9% of organisations, are 2x more likely to anticipate 20% or more productivity gains in the next three years. These leading organisations actively involve their people in enterprise change efforts and focus on reskilling.

↳ Workforce impact varies by sector and country—The impact of Gen AI on working hours differs significantly across industries and countries. For example, 47% of all working hours in the UK will be impacted, compared to 44% in the US.

↳ Need for comprehensive strategies—Currently, three-quarters of organisations globally lack a comprehensive strategy to ensure positive employee experiences and outcomes with Gen AI, highlighting a critical area for improvement.

🚀 ACTIONS FOR LEADERS

↳ Develop digital fluency and Gen AI expertise—Leaders should prioritise their learning and understanding of Gen AI technologies to guide their organisations through this transformation effectively.

↳ Reinvent work processes—Redesign processes and workflows across the value chain to fully leverage Gen AI capabilities, empowering workers to reshape their work using these tools.

↳ Reshape the workforce—Redesign jobs and roles around Gen AI capabilities, creating more agile and adaptive organisational structures that can evolve with technological advancements.

↳ Prepare workers for Gen AI integration—Focus on making workers "Net Better Off" by providing tailored learning pathways aligned to individual needs and actively involving people in enterprise change efforts.

↳ Build trust and transparency—Address the trust gap by involving workers in Gen AI implementation decisions, providing clear communication about its impact on jobs, and ensuring responsible use of the technology.

🔗 CONCLUSION

The integration of generative AI allows organisations to reinvent work, reshape their workforce, and create more meaningful experiences for workers. Leaders can unlock significant economic value by adopting a people-centric approach, fostering innovation and employee fulfilment. However, success hinges on addressing the trust gap between workers and leaders, developing comprehensive strategies for Gen AI adoption, and prioritising human-centred change management. As the regulatory landscape evolves, organisations must remain agile and committed to responsible AI practices to fully realise the potential of this technological revolution.

🎯 KEY TAKEAWAY

To succeed in the age of generative AI, leaders must view their people not as passengers but as navigators, fostering a culture of continuous learning, adaptation, and human-centred change.

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