DEI increasingly a stated priority for HR but only 36% get budget to roll out specific initiatives

These are the most important findings of the 9^th edition of the HR Barometer, an annual survey by Vlerick Business School and Hudson among HR Managers of the top 200 largest employers in Belgium to determine the latest HR challenges and trends. Every year, the survey focuses on a specific theme, with Diversity, Equity, and Inclusion (DEI) being the theme for 2023. A total of 111 companies across a wide range of industries participated in this year’s survey. The research was conducted by Professor Dirk Buyens and researcher Sarah Quataert of the Centre for Excellence in Strategic Management at Vlerick Business School, together with Ellen Volckaert of Hudson’s Research & Development Department.

Recruitment and selection continues to be a top priority

The top 3 priorities for Belgian HR departments this past year were recruitment and selection, leadership development, and employer branding. Retention of current talent was the strongest climber, with NWOW tumbling down the ranking. Many companies are still figuring out how to make hybrid working work and what HR’s role is in this but the sense of urgency has diminished significantly post-pandemic.

Ellen Volckaert, Senior Manager R&D at Hudson: “The survey’s results paint a very clear picture of a highly competitive labour market that is still on fire, with HR struggling to fill job openings. Increasingly HR professionals are actively trying to prevent poaching of existing talent by other companies. When the influx of new hires stalls and more people leave their jobs, it can feel like filling a bucket full of holes. On a positive note, HR leaders consider that their organisation excels at recruitment and selection, indicating that they have the skills to attract new talent.”

Increased focus on DEI

Since the launch of the HR Barometer in 2015, DEI has become steadily more important over the years.

• The main reason why organisations invest in DEI is the moral conviction that this is important, followed by access to talent and skills, improved business performance, and better company branding.
• The majority of HR professionals (73%) think that DEI is both the right thing to do and critical to the organisation’s survival. Just over half (57%) of respondents reckon that diverse teams perform better.
• In practice, DEI mainly denotes gender, nationality, and age. DEI goals in HR mostly relate to recruitment, selection, representation in management, and pay.
• Almost 80% assert that DEI is an essential part of the company’s mission statement. This manifests itself in a written code of conduct (75%), diversity goals (67%) or a DEI strategy (58%).
• Only 36% are allocated a separate, dedicated DEI budget.
• 23% use quotas as part of their strategy.

Dirk Buyens, Professor of Human Resources at Vlerick Business School: “Although the majority affirms that DEI is intrinsic to the company’s mission, these figures drop when we ask respondents about investments in procedures to strategically embed DEI. Also worth noting, only 1 in 3 HR professionals has a separate, dedicated DEI budget. On a positive note, the need to invest in DEI starts from a moral responsibility. But HR professionals also have their doubts, as managing diverse teams can be quite complex, requiring an additional effort, both from HR and managers.”

Concrete action is limited to ad hoc initiatives for now

Although HR managers are convinced that DEI is important, initiatives are largely ad hoc and continuous investments are limited to communication and surveys.

• 57% of respondents communicate on DEI, roll out campaigns, or organise employee surveys
• 44% have an ombudsperson
• Internal training is also limited: DEI training for managers (38%) and for employees (25%); mentorship or sponsorship for leaders (34%); unconscious bias training for recruiters (32%)

DEI is a shared responsibility

HR professionals see themselves as being responsible for DEI within the organisation (85%) albeit as part of a shared responsibility with the CEO and senior management. In just under 70% of organisations, an employee is explicitly responsible for DEI as per their job title or job description. In 3 out of 4 cases, this person reports to HR or directly to the CEO. Only 42% of HR professionals consider that their own senior management leads by example on DEI.

Finally, 1 in 3 respondents affirms that HR departments also often lack diversity. Moreover, they think that their HR practices promote DEI but only 31% are satisfied with the results of DEI initiatives within the organisation.