Diversity Beyond Gender: How Startups Can Enhance True Diversity

Diversity is trending. As one of those people who likes to bring the discussion of inclusion and diversity to the table, starting this article with that statement fills me with joy and hope; however, as I wrote it, I felt challenged to seek a new lens to approach the topic of diversity beyond the gender lens. 

Gender diversity has indeed had some wins in the fight for women's visibility; an excellent example of this is that in 2022 there are 74 female CEOs employed at America's 500 highest-grossing companies (more than ever before) or that countries like New Zealand and Spain are implementing laws to eliminate the gender pay gap. 

But in having a broader idea of diversity, companies and management teams should address it beyond the gender challenges (despite the fact they are still accurate and, unfortunately, still a reality for many women in the workforce) because this topic refers to the variety, infinity, or abundance of different things, dissimilarity, disparity, or multiplicity in the work environment.  

Yes, diversity is indeed trending. There is a movement that has generated interest in working to promote it, which has resulted in some actions, such as the commemoration of specific dates like Women’s Day, the participation of brands in the LGBTIQ+ Pride Month and other commemorative dates, as well as in the  incorporation of some actions to integrate certain groups into the organizational  culture, a clear example of this is the creation of numerous diversity spaces and  committees within the organizations. But is the number of committees created  around the visibility of the so-called minorities the best way to measure how  diverse a company can be?  

At managerial levels, today, it is undeniable that having a leadership team that reflects the market your startup serves is one of the ways a company can better understand its market — under the premise that current and potential markets are increasingly diverse.  

Diversity must be lived at all levels of the company.Diversity in any work team allows the input of new ideas from employees from different backgrounds that help promote the organization's performance. Companies like Google have shared the results of the importance of seeking employee diversity and the strategies they use in their recruitment process.  

Teams made up of people with different backgrounds, experiences, ages, nationalities, cultures, genders, and even geographic locations have been vital in finding different perspectives to solve complex problems. Diversity is key to increasing creativity, which is necessary to compete in an industry as dynamic as technology.  

However, some companies that have managed to create teams under a selection process that seeks diversity, led by a team with a particular gender parity, still find that their employees do not feel that their voice is meaningful.  

Diverse Teams With Hierarchical Agility 

Let’s start with some facts: 

· It has become clear that work teams should have different ways of  thinking, backgrounds, work styles, and experience.  

· Companies with greater gender diversity value and promote inclusion. Its leaders firmly believe that mutual respect leads to better customer service.  

· Undeniably, diverse teams are more innovative and deliver better long-term financial and performance results (diversity offers a higher ROI than homogeneity). 

· Studies have shown with significant confidence that having a large percentage of women in senior and leadership positions brings better financial results, added to the fact that startups with women as founders and co-founders are better investments than startups led entirely by male teams. 

But what happens when all our efforts to be a company with a genuine commitment to  diversity are undermined by a silent enemy: the corporate hierarchy?  

One of the most evident signs of an experienced leader is the attention she pays to her people and her team; however, the structure of a company can be complex to navigate.  

Leaders from different organizations have tried to fight the issue by developing  innovative structures that result in a more diverse collaboration space. The  organizational model of holacracy is about a system in which decision-making is distributed horizontally instead of being established by a traditional hierarchy; it  was a model adopted by organizations such as Zappos, Medium, and Whole  foods.  

In a holacracy, no person or role is above another. The internal structure of the company does not have a traditional hierarchical order, so a company's organizational chart with this model would have a circular design. Holacracy has often been considered a system without bosses or hierarchies but with clear objectives and operations in which the accomplishment of those  remains the goal. Its main characteristics are the circular structure, a joint  government with regular meetings, a clear definition of roles, flexibility, and autonomy.  

Although some companies have implemented holacracy correctly and seeking a  higher level of innovation, indeed, it is not a functional system for all types of companies, the main criticisms of the system that have made some companies return to hierarchical structures are the uncertainty that it can generate, the administrative risk derived from the self-management of workers and what certain detractors say is a system that only works in small and medium enterprises.  

Hierarchy can be necessary for specific teams or companies to get work done,  and it can be a force for good if teams are structured well and led by a skillful  leader.  

It is not about determining a correct or superior management system or  organization; the important thing is to ensure that, regardless of whether there is a traditional or circular organization chart, every one of the associates’ voices has a safe space where they can be heard as an essential step for creating a real diverse workplace.  

One of the best ways to combat feelings of lack of voice or inferiority in a hierarchy is to give people power within their domains — to allow them to  specialize; this makes people feel better and makes things more organized.  

With the right management team, associates will not experience healthy  hierarchies as a division between top and bottom. Effective teams have scales and influential leaders who can make everyone feel they are under a "flat" structure, but  unfortunately this is not true for most companies. 

It is a fact that even in the world of startups, where we seek to be agile, inclusive,  innovative, and diverse companies, there are challenges to overcome. Founders and leaders must constantly be questioning whether we have managed to carry out a process of real inclusion of all the voices that make our company exist and grow.  

Putting ourselves at the service of the organization, opening healthy conversation spaces, evaluating our associates under a meritocracy, being open to  feedback in both directions, and correctly rewarding the efforts of each one of  them will help us not only to have new ideas to conquer the current and potential market; it will also allow us to attract talent together with the loyalty of the internal  team.  

Let’s not forget about the facts on how the current idea behind diversity is changing and why it could provide great benefits for startups. 

- According to the 2020 census in the US, the groups formerly seen as  “minorities” may reach majority status by 2044. 

- A Pew Research Center report from 2018 says that 48 percent of Generation Z  (the new labor force) are racial or ethnic minorities. 

- Diverse management has been shown to increase revenue by 19 percent, according to the results of a study conducted by Boston Consulting Group. 

- According to an HBR 2013 report, diverse companies are 70 percent more likely  to capture new markets. 

- More than 3 out of 4 workers prefer diverse companies. 

- A study from Deloitte shows that 78 percent of people believe that diversity  and inclusion offers a competitive advantage. 

Teams in companies that have policies that encourage and value natural diversity have more motivated and harmonious employees, which generally translates into more profitable companies and better business results.  

To anyone working in a company where they feel like diversity is not valued, be aware that you have a voice that should be used and listened to and if there’s no space for you to feel safe while doing it, then let me remind you that many leaders and founders, such as myself and plenty of others, are actively searching for talent just like you.