Three Keys to Retaining Diverse Talent

Amid a national labor shortage and a renewed DEI push, employers need to step up their retention efforts. Here’s how.

It’s been called “diversity’s revolving door”: the endemic trend of diverse talent quitting their jobs at rates two or even three times higher than their male and/or white colleagues. 

In today’s business landscape, that’s never been more of a problem. 

On one hand, the ongoing worker shortage underscores the need to retain diverse employees, who, as we noted in a previous article, improve innovation and profitability. On the other, if organizations truly want to walk the walk when it comes to diversity, equity and inclusion (DEI), they won’t get there through lateral hires alone. For instance, the Mansfield Rule, which was created for law firms but adopted by many professional services firms as a baseline DEI metric, dictates that at least 30 percent of individuals considered for leadership and governance roles, promotions, client pitch opportunities and senior lateral positions should be women, people of color, LGBTQ+ professionals or people with disabilities. That percentage is hard to hit if you’re relying exclusively on outside hires.

As a DEI professional who has devoted her career to creating more just and equitable workforces, I’ve seen firsthand what makes for a successful retention program. Here are three best practices I recommend investing in.

Encourage active employee resource groups

Employee resource groups (ERGs)—be they organized around employees of color, LGBTQ+ employees, parents, disabled employees, religions or any number of other communities—are spaces where inclusion (not just diversity) comes to the fore. These groups function not only as a safe and trusting space where people who are part of a given community can get together, but as a space for others across the organization to learn and develop allyship. 

Ensuring ERGs are fulfilling their purpose takes dedication, investment, and constant communication. Those leading the way can’t feel like they have to drive these important initiatives alone—on top of their existing responsibilities—without ample resources and support. 

Establishing a calendar of events hosted by ERGs is one way to start, creating a steady cadence of activity that can keep employees engaged and ensure each group has equal opportunities to participate. For instance, during AAPI Month in May, our Asian–Pacific Professional Network hosted a panel to celebrate and educate employees about AAPI heritage and culture. In June for Pride Month, ThinkPride, our LGBTQ+ group, hosted a trivia night and a speaker to present the “ABCs of LGBTQ+.” In October, United Colors group started its “Food & Culture Series” with a virtual cooking class and our Black Professionals group hosted several events, including an internal conversation about respectability politics, and wrote a feature for National Black Poetry Day highlighting famous and up-and-coming poets. Frequent newsletters and internal resources can help promote, support and supplement these events.

ERGs can and should have a tangible impact on company operations and messaging too, be it an LGBTQ+ group leading an initiative about standardizing pronouns in email signatures, partnering with outside organizations to improve corporate culture (e.g., participating in the Human Rights Campaign’s Corporate Equality Index) or developing external announcements for important holidays, milestones and other pivotal moments. 

Establish mentorship programs that actually work 

Though mentorship programs are fairly common in corporate workforces, companies often fail to invest the time, structure and training to make them truly effective. These programs are important especially for diverse employees who may be entering a workforce with few colleagues who share their backgrounds. 

Hosting a series of formal trainings for prospective mentors—trainings that navigate the nuances of engaging with diverse talent—is a good place to start. Then, organizations should ensure that everyone who wants a mentor can be matched and that informal mentorships are given the opportunity to grow and flourish.

Business and HR leaders can’t stop there. Organizations must emphasize the importance of meeting consistently. You can’t build a rapport and make meaningful progress if you only meet once a quarter. Encouraging and formalizing more frequent touchpoints is therefore central. 

Last, many organizations won’t have the diversity at the top necessary to match every mentee with someone who shares, say, their race and/or gender. Don’t ignore these disparities. Be transparent and forthright about where the company stands in its DEI journey, and communicate the ways in which both mentee and mentor can learn from each other and find common ground. 

Secure buy-in and participation from company leaders 

Retaining diverse talent must start at the top. Participation and encouragement from firm leaders can inspire others. Especially in a fast-paced working environment, this also can let junior staffers know it’s okay—and in fact encouraged—to take time away from client work to invest in ERGs and community-investment activities. 

This can be as simple as a manager emailing their team to say, “Hey, I’m going to this event, it would be great if you did too.” Senior leadership also should take part in these events, signaling to staff that this work is important to the firm at the highest levels. We saw this happen during our recent Leg-Up Program, which brought students from underrepresented backgrounds together with BRG staff in a range of educational sessions. Senior executives took part in these sessions, making it clear that DEI is a priority for BRG.

High-level participation also can help in recruitment: when prospective employees ask firm leaders about the organization’s culture and commitment to DEI, they can talk genuinely, from firsthand experience.

It may be some time before we close “diversity’s revolving door” completely and tap into all the potential a truly diverse workforce can bring. But, especially in the midst of a labor shortage, no amount of outside hires will address this problem. To create real cultural change, organizations must dedicate themselves to retaining diverse talent—and these best practices are a great place to start.