Lessons To Learn From IKEA’s Diversity And Inclusion Policies

Written By: Poorvi Gupta

Companies are microcosms of the society we live in. Like in society, companies too have laws and structures to facilitate and enforce workplace equity. In addition, companies have been trying to use a variety of strategies to ensure workforce diversity and actively curb discrimination. Unfortunately, efforts at equity and diversity have had little progress to show. While the Indian corporate sector has on paper implemented efficient D&I strategies, much of the real implementation remains a work in progress.

Over fifty percent of companies in India have less than ten percent women in decision-making positions, as per the Jobs For Her’s DivHERsity Benchmarking report 2019. The report further establishes that 49% of D&l programs were only implemented after 2015 – indicating that this is a recent trend and perhaps a growing priority but a long-long way from success.

Swedish Giant IKEA Leads The Way

Companies such as Wipro, Accenture, SAP, NASSCOM with a strong Indian presence have done a good job at integrating D&I policies. It is worthwhile thinking about which global companies might have inspired these local D&I strategies. Swedish company IKEA has been extremely clear about D&I in its workforce from the very beginning. In August 2018 when IKEA opened its first retail store in India, it already had a workforce comprising of 44% women overall, and with 46% of women in the top management globally. Talking to Ungender, Parineeta Cecil Lakra, Country People & Culture Manager at IKEA India said,

“We are an equal opportunity employer and we aim at a workplace where equality thrives. To reach true equality, we focus both on the diversity of our workforce and on fostering a culture of inclusion in our work environment. Our goal is to create an inclusive culture where everyone is valued for their unique contribution, and where they can be themselves.”

On how the D&I program impacted the company’s growth, Lakra notes, “These efforts have surely helped us in retaining the right talent and making the workplace gender-neutral. When we have a diverse and equal workforce, we take better decisions too on the job. Over the past years, addressing gender equality has been a priority for us. We have to have more participation from women in the workforce in India for a more equal society. It is non-negotiable for us to have a 50/50 gender balance across all levels. Today more than 50 per cent of our senior leaders and close to 45% of our co-workers in the Hyderabad store are women.”

We asked if gender representation in the company’s ranks was the primary way in which IKEA sought to implement D&I measures and were told that “apart from having an equal female perspective in the company’s decision-making strategies, it (Ikea) has solidified the foundation of diversity with objective inclusionary measures like six months of parental policy for all coworkers. As far as policies dealing with sexual harassment go, post the #MeToo movement, we have strict compliance against any form of harassment or exploitation and each coworker goes through extensive trainings to be able to understand and fulfil these compliance requirements.”

Implementing D&I Is An Effort Beyond Ticking Compliance Boxes

Most people confuse D&I programs with women’s participation in the workforce. However, the truth is that all societies are heterogenous. Diversity is at the center of social structures – In India we have a  LGBTQIA community, we have a community of persons with disability,  communities of women who shoulder a large part of care-worker commitments at home – these communities and so many more are all given an opportunity to get back in employment (and contribute to India’s economy) through D&I programs.

Rama Chari, Director of Diversity and Equal Opportunity Centre in Bengaluru delves into this and shares that companies intending to implement D&I programs must hire subject-matter specialists. “HR may not be aware of the diversity aspect of gender or disability. People who study these subjects and attain expertise should be consulted in order to maximize the benefits of D&I programs. Gone are the days of trial and error. If companies just jump into hiring without building supporting policies around it, it will not be sustainable. If companies intend to hire persons with disabilities, then are their buildings accessible enough? Are their policies protecting their rights if they are discriminated against? These are the questions that come into play which is why calling experts while formulating D&I policies is imperative,” Chari added.

Among the few Indian companies that Chari names for having robust D&I programs, she names The Lemon Tree Hotel chain that employs many people with disabilities. However, she feels worried about how it is going to survive in the post-pandemic scenario as hotels are one of the most impacted sectors.

Does D&I Impact Profitability

Could there be business benefits to implementing D&I as well? Global giant furniture giant Ikea certainly believes so. Chari believes that businesses have realized that customers too, like companies, are diverse and so developing products for a diverse range of customers benefits from having a diverse workforce. The other benefit in hiring from an unrepresented community – companies have a wider pool of talent to choose from.  There are meritorious people in every group. Thirdly, companies that incorporate D&I programs have a stronger brand and culture which results in better business.

The Jobs For Her report finds that the success of D&I programs depends on how involved the company’s leadership is in a D&I effort. Almost three-quarters (78%) of all companies’ CEOs or COOs reviewed D&l group performance at least once a quarter. Further, 77% of companies had D&l groups that directly reported to the CEO or COO, who set specific goals for D&l leaders within organisations. The report also clearly establishes that D&l performance also impacted compensation outcomes for the company’s leadership, a whopping 76% of leaders agreed!

If you’re considering implementing a D&I initiative in your company, Chari suggests some key ways in which organizations can ensure a discrimination-free environment;

• Employees from the same community can form networks to safeguard themselves and create a supportive environment where they learn from each other.
• Members from top management can share their own struggles dealing with mental health or similar issues, which would create an open environment for employees too to discuss these issues.
• A flexible work policy even in a post-COVID era would help employees be more productive impacting retention directly.

About the author: Poorvi Gupta is a freelance journalist working in the gender space. She is mostly optimistic about the progress women are making in male-dominated spaces and feels passionately about women speaking up at the workplace or in public spaces battling intersectional odds.

Ungender Insights is the product of our learning from advisory work at Ungender. Our team specializes in advising workplaces on workplace diversity and inclusion. Write to us at contact@ungender.in to understand how we can partner with your organization to build a more inclusive workplace.