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The views expressed are those of the author and do not necessarily reflect the views of ASPA as an organization.
By Tanya Settles
March 21, 2025
Though not entirely new, diversity, equity and inclusion (DEI) is currently facing significant challenges in the public sector. The mere mention of DEI sparks intense reactions and misinformation is rampant. This confusion leads to uncertainty and perceived risks for local governments. Leaders struggle to discern the truths about DEI amid the toxic rhetoric, causing its purpose to become unclear and diluted.
Governments exist to provide services and resources that the private sector cannot or will not. This includes managing public funds responsibly, allocating government resources equitably and offering services fairly. It is important for governments to be mindful of individuals in communities who may be underserved, lack representation or face barriers in accessing government services. Local governments should aim to support all individuals, amplify the voices of those who are less heard and make informed decisions about public resources. Achieving this requires attention to the needs of people with diverse backgrounds, experiences and perspectives. Consequently, it is essential to differentiate between the reality and misconceptions surrounding DEI.
Myth-Busting About DEI
It is becoming increasingly difficult to see DEI as something that is valuable and worthwhile to pursue. DEI won’t solve all the challenges of government, but filtering through the noise helps. Here’s what we know about ways DEI can help public organizations realistically achieve meaningful results:
Organizations that are attentive to DEI make better decisions about scarce resources. In private sector organizations, racial and ethnic diversity in leadership teams results in outperforming organizations that are not racially and ethnically diverse by about 27 percent. Similar results are achieved in government when it is considered that diverse decision making about resources helps ensure funding goes to the right places to achieve realistic outcomes.
DEI coupled with psychological safety results in performance and efficiency improvements. Psychological safety is a shared perception that employees will not be rejected for speaking up with questions, suggestions and respectful critique. Psychological safety helps teams realize the potential of diversity, and that means better performance and organizational health and wellbeing. Psychological safety is pivotal in creating an organizational culture where people want to work and stick around for the long haul. The cost of replacing an employee is estimated to be between one-half and two times the annual salary of employees. And when the best talent is attracted and retained, government entities spend less on recruitment and onboarding. Over time, these cost savings can be redirected, resulting in even greater fiscal efficiency.
Inclusive teams make better decisions. There are indications that racial, ethnic and gender diversity can enhance decision making. Some estimates suggest that decision making improves by up to 87 percent compared to non-diverse, homogenous teams. If race, ethnicity and gender together improve decision making, it is possible that considering other elements of diversity such as ability, age and other factors could also foster innovation and creativity.
Organizations with DEI practices in place are more likely to attract new generations of workers. Workplaces are changing with the introduction of younger generations of employees. An organization’s proficiency in DEI practices can, and should, be utilized to enhance applicant pools, employ diverse hiring teams for decision-making and foster a sustainable organizational culture where employees feel valued and have a sense of belonging. It is noteworthy that younger generations are increasingly attentive and seek environments that offer belonging, equity and meaningful interactions at work. As Tim Elmore observes in A New Kind of Diversity, Generation Z employees are the most racially diverse workforce and are more likely than previous generations to identify as gender/identity fluid.
Diversity hires are a myth. DEI isn’t about quotas, or making hiring and career progression decisions based on a candidate’s race, ethnicity, gender, identity or any other factor beyond skill and merit. Furthermore, hiring someone for no reason other than they check a desired box is equally illegal as not hiring someone because of race, ethnicity, gender or any other protected status. Diversity, however defined, is not a job qualification. But when organizations practice DEI initiatives and practices, they cast a wider net, consider greater perspective and lean toward hiring people who are creative, innovative and offer skills hiring authorities may not know they needed to make government work better.
One common belief that is well-supported is that mandatory DEI training, when not executed effectively, can significantly harm organizational culture. Determining whether training works means looking at the outcomes it was intended to achieve. Professional development initiatives must be intentionally integrated and aligned with the organization’s culture to be effective. Instead of mandatory half-day training sessions, consider allocating resources to efforts that foster psychological safety, value employees and support the entire community. DEI isn’t a panacea, nor is it simple, but it is worth the time and effort. The benefits to public sector organizations far outweigh the challenges, even in today’s politically divisive environment.
Author: Tanya Settles is the CEO of Paradigm Public Affairs, LLC. Tanya’s areas of work includes relationship building between local governments and communities, restorative justice, and the impacts of natural and human-caused disasters on at-risk populations. Tanya can be reached at [email protected]. The opinions in this column and any mistakes are hers alone.
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