3 Ways Allyship Programs Prevent Business Risk

In a presidential-election year, it’s common for organizations to wait for the results of the election to make significant business decisions. This year seems to be no different with political divisiveness at an all-time high in the U.S. While it might feel safer to hit pause on diversity, equity and inclusion (DEI) initiatives, organizations are instead pivoting to allyship programs because they want to prevent business risk in ways that don’t necessarily shine a spotlight on DEI. Allyship programs a great way to do that effectively.

Given recent anti-DEI laws passed in Florida, Utah and Texas, some organizations have paused or quieted DEI activities due to fear of lawsuits or backlash like Target, Chick-Fil-A and Bud Light experienced in 2023.

In my interview with former Google DEI leader Wema Hoover, she said, “Sadly, DEI has gotten mixed up in ‘partisan football.’ Now is the time for the DEI pendulum to reset in the middle of these extremes. Allyship is a way to bridge our differences.”

According to a 2023 report by Diversity for Social Impact, organizations that prioritized allyship initiatives reported 21% higher employee-engagement levels, and 82% of those organizations facilitated comprehensive allyship programs in 2023, up from 62% in 2022. Allyship programs are increasing because they are positively impacting business results.

In addition, allyship programs help businesses prevent risks like lawsuits and political divisiveness, and they help increase retention rates of employees in a period of low unemployment and labor shortages.

Lawsuits

By actively engaging employees in allyship initiatives, businesses can create environments where discrimination, harassment and bias are less likely to occur. Allyship programs educate employees on things like the following: recognizing and addressing instances of injustice; fostering empathy and understanding; and building solidarity across identities. By promoting allyship, companies not only bolster their reputations as socially responsible entities but also reduce the likelihood of costly legal battles stemming from discrimination or hostile-work-environment claims. In 2022, employers paid $513 million in discrimination-lawsuit penalties, up from the previous year, harming not just the bottom line, but also their reputations.

Organizations appear to be caught between the political divisiveness of anti-DEI rhetoric in the news cycle and protecting against lawsuits. For long-lasting change, Hoover says that “corporations can adapt their DEI programs to comply with potential legislation while still maintaining their commitment to inclusion.”

Political Divisiveness

Effective allyship programs help build connections among people from diverse backgrounds and beliefs, dismantling the barriers erected by polarization. Through education, listening sessions and community initiatives, participants gain valuable insights into the lived experiences of others, challenging preconceptions and curbing stereotypes.

Allyship programs empower individuals to become active agents of change, equipping them with the tools necessary to advocate for social justice and equality beyond the workplace. Rather than it being about what political party you belong to, allyship is about understanding, empathizing and bridging different perspectives. Allyship sets the tone for respectful workplace interactions, diffusing political divisiveness that can distract employees and hinder innovation and productivity.

Retention

Strong allyship programs focus on a consistent set of intentional actions to address systemic issues. They teach leaders how to model inclusive behavior and address bias beyond the hiring-and-recruiting processes, focusing on the full employee lifecycle.

Hoover reinforces, “Organizations need to shift from diversity recruiting to inclusive recruiting. This is a mindset and behavior shift, not just a recruiting goal.”

Allyship is positively correlated with employee engagement, which is known to reduce turnover and increase retention, especially of historically marginalized groups. It is futile to hire diverse talent if they do not feel included and do not stay. Humans tend not to stay in places where they don’t feel they belong. That’s why allyship programs have a distinct advantage in creating a culture of belonging where people of all identities can thrive.

When employees perceive that their colleagues and leaders are actively committed to advocating for their rights and well-being, they are more likely to develop a sense of loyalty and attachment to the organization. Furthermore, allyship initiatives often provide opportunities for mentorship, professional development and networking, enabling employees to cultivate meaningful connections and advance their careers.

Allyship programs solve business problems. They prevent risks like lawsuits and political divisiveness, and they improve retention rates. In a challenging election year with an uncertain economy, one thing is certain: allyship programs can help leaders get better results.