IIFL Home Finance’s Rashmi Priya Suggests a Hack to Gain Good Business Outcomes From Your DEI Initiatives

Despite the growing emphasis on diversity, equity, and inclusion (DEI) initiatives in organisations, many still struggle to fully integrate them into their core operations. In this article, Rashmi Priya, Head of HR at IIFL Home Finance Limited, sheds light on the need for translating DEI efforts into tangible business targets and the significance of mainstream representation in driving inclusive practices

The untapped potential of DEI has led to organisations missing out on a huge chunk of talent and the resulting business. Human Resource departments across organisations are still struggling to find the right formula to establish DEI at their core. While effort is put into finding the right balance in the employee database through DEI initiatives, since the increase in the headcount of employees falling into the diversity category has no visible link to tangible business outcomes, such efforts lose significance over time and eventually fizzle out. 

Constraints in Women’s Access to housing finance

According to internal reports, the estimated market size for women’s housing loans in India exceeds $30 billion. Though it is a large and growing market segment, women’s access to housing finance remains constrained by factors such as insufficient income and traditional gender norms. This dichotomy extends to financial organisations with women underrepresented in employment at nearly every level. For instance, as per these reports, women account for only 22% of employees in India’s Scheduled Commercial Banks and hold just 11% of senior and managerial positions. While women constitute 97% of the customers in the microfinance sector, women’s representation in the workforce stands at a mere 12%. 

Also read: From Funding a Startup to Founding One – Tracing Easy Home Finance’s Startup Journey

While traditionally, such leaders are picked from the DEI community, doing so renders the efforts a tad weak. It is essential to recognise the importance of representation from mainstream groups. While it is important to include Champions from diverse backgrounds concerning gender, caste, class, and more, representation from the mainstream is equally important. This is because the Champions from the mainstream can advocate in favour of the cause, fostering a more inclusive work environment where the ideas and voices of everyone are heard and understood.

Establishing tangible business outcomes for DEI initiatives

To ensure that the DEI initiatives deliver results, organisations must go beyond increasing diversity headcount and link it to tangible business targets. And that begins with the thoughtful segmentation of products and services, positioning offerings to target all segments of society. And to address such unique customers, the ecology and workplace need to be restructured to foster a conducive and inclusive work culture that welcomes diverse ideas and perspectives. 

It is a statistically proven fact that diverse workforces drive greater innovation and offer more inclusive and well-rounded ideas, products and offerings. To realise these benefits, it is crucial to have Gender Champions in senior leadership who can advocate for diverse voices in strategic discussions and decision-making. These Champions would play a pivotal role in guiding, sculpting and leading the targets for DEI. Therefore, the success of such strategies would rest with them. Having such Champions in senior leadership will, therefore, lead to the hiring of a more diverse workforce. 

Also read: Tier 2, 3 and Rural Cities to Lead Rise in Talent Demand in BFSI Sector: Ruhie Pande, Godrej Capital

Embracing diversity: Beyond the DEI community

While traditionally, such leaders are picked from the DEI community, doing so renders the efforts a tad weak. It is essential to recognise the importance of representation from mainstream groups. While it is important to include Champions from diverse backgrounds concerning gender, caste, class, and more, representation from the mainstream is equally important. This is because the Champions from the mainstream can advocate in favour of the cause, fostering a more inclusive work environment where the ideas and voices of everyone are heard and understood.

By acknowledging the untapped potential of DEI, addressing constraints in women’s access to financial services, establishing tangible business outcomes, and embracing diverse leadership, organisations can thus create a more inclusive and successful future. It is through these efforts that the full benefits of diversity and inclusion can be realised, leading to a stronger and more equitable society.

 About the author: Rashmi Priya’s works and efforts have been focused on improving the workplace culture, diversity & inclusion, employee wellness and safety while keeping the balance between strategic and tactical works in the HR space.