Week 8: Diversity Action Plan
Giancarlo Martini
American Public University
HRMT640 Organizational Strategies for Diversity and Inclusion
Dr. Melissa Brooks
Week 8: Diversity Action Plan
Microsoft has a long history of being poised as an industry leader, not only in technology but also in fostering a corporate culture that values diversity, equity, inclusion, and belonging (DEIB). As a company with global reach and influence, Microsoft understands that the key to success is building a workforce that reflects the diversity of its global reach and influence. Recognizing the immense value of diverse perspectives, backgrounds, and experiences, Microsoft has committed to integrating DEIB principles into almost every facet of business, from their hiring process and employee engagement to their upper leadership representation and community impact.
Despite these strides and efforts, Microsoft suffers from what many large organizations do, the full realization of their DEIB goals. The organization’s workforce composition, while still diverse at many levels is still showing significant disparities in senior leadership positions, with fewer women and racial minorities represented in those executive roles. Also, open feedback from employee surveys has highlighted the need to address areas in DEIB such as needed improvements in belonging and authenticity to enhance employee experience. Most employees felt generally supported, however, an alarming percentage expressed concerns about feeling genuinely included at work and in the decision-making process. Addressing these concerns is not only vital for fostering a positive workplace culture but also essential for retaining top talent in the market and ensuring that all employees thrive and contribute to Microsoft’s overall mission.
This action plan presents a comprehensive strategy for Microsoft to build on its existing DEIB foundation, setting ambitious yet achievable goals to improve diversity representation, enhance inclusion practices, and create a stronger sense of belonging amongst all employees. By focusing on areas such as leadership diversity employee authenticity, talent retention, and enhanced DEIB training, this plan aims to provide Microsoft with a framework to evolve its DEIB initiatives to the next level. With clear objectives, measurable metrics, and actionable steps, Microsoft can work towards securing a more equitable and inclusive environment in their workplace.
DEIB Baseline
Microsoft has shown a significant progression in building a diverse workforce, with approximately 31 percent of its workforce identifying a women and 50 percent of its US-based employees identifying as a minority group. These statistics really underscore the commitment Microsoft put in to fostering a workforce that reflects the diverse backgrounds of its customers, users, and global communities. This diversity gives Microsoft a competitive edge in the technology sector. “Multifunctional product development teams are used in organizations to bring together diverse perspectives in service of innovation. Their use recognizes the fact that innovation usually happens at the intersection of alternative points of view, results in active disagreement, and requires conflict management to integrate those perspectives” (Weingart et Cronin, 2010). By fostering an inclusive environment, Microsoft not only supports the communities it serves but it also strengthens its global brand as an employer committed to equity and representation.
Even though Microsoft has made great strides in the field of diversity in the workforce, representation still declines significantly at senior management and executive levels. This reveals a gap in upward mobility for women and racial minorities. Microsoft’s leadership team includes a much lower percentage of these groups. While this might seem like a detriment for Microsoft, it is also important to note that many technology companies in the global market struggle with the same challenge where leadership ranks often do not reflect the diversity seen in the entry- and mid- level positions.
This disparity suggests a rising need for more targeted strategies that go beyond entry level hiring to address potential barriers in promotion and retention. Underrepresented employees will often face more challenges when it comes to accessing mentorship, sponsorship, and professional development opportunities critical to advancement. Implicit biases in performance evaluations, limited access to influential networks, and a lack of visible role models can further impede career growth for women and minority employees, especially in technical and leadership roles.
To reduce these gaps, Microsoft could implement focused recruitment, retention, and promotion strategies. Structured career development programs such as mentorship initiatives that place underrepresented employees with selected senior leaders, can facilitate skill development and provide guidance for navigating career pathways. Another way that Microsoft can mend the gap in representation is by implementing sponsorship programs. In these programs, leaders can advocate for high-potential talent and can ensure that diverse employees are being considered for promotions and key projects. By establishing these initiatives along with transparent promotion criteria and frequent performance reviews, Microsoft can ensure equitable advancement.
Microsoft employes Signals Surveys for its employees. These surveys allow Microsoft to gather feedback and assess how the workforce is feeling. While most of the employees feel supported and included, it was recorded that only 55 percent felt comfortable expressing their authentic selves at work. This indicated that nearly half of Microsoft employees do not feel comfortable or feel like they must mask whole they “really” are at work. This masking could potentially hinder full engagement and contribution in the workplace. Microsoft needs to address these barriers by fostering an environment where all employees feel accepted and empowered to contribute their unique viewpoints.
Microsoft has implemented foundational DEIB training programs that cover essential topics like anti-harassment and unconscious bias. However, the current training approach focuses primarily on awareness rather than ongoing cultural competence, allyship, and behavioral change. A more comprehensive, progressive approach to DEIB training could involve regular modules on cultural sensitivity, allyship, active listening, and empathy, equipping employees and leaders alike with skills to foster a more inclusive workplace. Additionally, extending training efforts to emphasize inclusive leadership and intercultural communication could empower managers to actively champion diversity, equity, and belonging, translating into more inclusive team environments.
Areas of Concern
As stated earlier, Microsoft has made huge strides in increasing overall workforce diversity. However, the representation in leadership positions are leagues behind that of the broader employee population. Women and racial minorities hold fewer senior and executive roles, which creates a visible lack of role models for aspiring underrepresented employees. While this is an industry wide problem, “women currently hold 21% of the high executive positions in the technology sector” (Botella, et. Marzal, 2019), it is still an issue altogether. This can lead to a sense of stagnation for those employees, causing them to leave the organization. This offset in leadership diversity not only affects employee morale but also slows the progress of inclusion initiatives
While Microsoft provides foundational DEIB training, primarily focusing on anti-harassment and unconscious bias, the current approach lacks a sustained focus on long-term behavioral change and inclusive leadership. Effective DEIB training goes beyond awareness and aims to create lasting impact through continuous learning on allyship, cultural competence, and empathy. Without a more comprehensive and ongoing DEIB training strategy, unaddressed biases may persist, and employees may lack the skills to navigate complex cultural dynamics or support inclusive practices actively. For instance, inclusive leadership training could better equip managers to understand and address the unique challenges faced by their diverse teams, thereby fostering a more inclusive environment at all levels of the organization.
Another issue that Microsoft faces are higher than normal turnover rates among women and minority employees. This indicates areas for growth in the talent retention department. The reason behind the increased turnover rate could be due to a perceived limitation of upward growth by the employee. With little to no representation in upper management roles, women and minority employees could see working at the organization as a lost cause and decide to exit while there are still other opportunities to explore. Also, a lack of support or a disconnect between the organization’s DEIB messaging and lived experiences could be the culprit for the high turnover rates. By addressing these retention challenges, Microsoft can ensure that diverse talent not only joins the workforce but continues to grow with their organization.
Objectives
To ensure Microsoft’s continued success as an industry leader, four objectives have been created to align with DEIB initiatives.
Objective One:
Increase representation of women and minorities in leadership positions by 25 percent within the next five years.
Increasing diversity in leadership is crucial for creating a culture that truly reflects Microsoft’s commitment to DEIB values. By raising the representation of women and minorities in leadership roles by 25 percent in five years, Microsoft can aim to build a stronger leadership team who is more diverse and inclusive, thus fostering greater innovation and decision-making practices aligned with diverse perspectives. This objective should be completed first to give the greatest return on investment for Microsoft’s DEIB initiatives. To complete the objective, it will require targeted recruitment efforts and mentorship programs that can prepare high-potential candidates for leadership positions.
Objective Two:
Improve the sense of authenticity and belonging, with at least a 75 percent positive turnaround within three years.
It is important to make every employee feel comfortable and valued. By improving the sense of authenticity and belonging to at least a 75 percent positive turnaround rate within three years, Microsoft will be able to provide employees with a safe work environment and increase employee satisfaction. Achieving this safe psychological environment will allow employees to openly share their unique perspectives without fear of judgement and allow for more diverse problem-solving. To support this goal Microsoft could include listening sessions, Employee Resource Groups (ERGs) and supportive training programs for managers to recognize and reduce behaviors that undermine inclusion. Regular feedback and pulse surveys could also be implemented to continuously monitor progress towards the goal.
Objective Three:
Expand DEIB training to include allyship, cultural competence, and inclusive leadership, with a goal of reducing unconscious bias by at least 35 percent as measured by training assessments.
To create lasting change, Microsoft seeks to deepen its DEIB training by incorporating key topics like allyship, cultural competence, and inclusive leadership. These areas are essential for fostering a workplace where employees feel respected and understood, and where leaders are equipped to manage diverse teams effectively. The goal of reducing unconscious bias by 35 percent will be tracked through pre- and post-training assessments that measure employees' understanding and application of inclusive behaviors. This expanded training will focus on both awareness and behavioral transformation, encouraging employees to practice allyship actively and develop cross-cultural understanding. Additionally, offering inclusive leadership training for managers will empower them to lead teams more inclusively, promoting fairness and equitable treatment for all team members.
Objective Four:
Reduce turnover rates among underrepresented groups by 20 percent over the next three to five years through targeted retention strategies.
High turnover rates among underrepresented groups negatively impact organizational structure and diversity as well as affect the morale and sense of belonging for the remaining employees. The goal of reducing turnover rates among women and minority employees by 20 percent over the next three to five years will involve developing targeted retention strategies aimed at enhancing employee satisfaction and over all long-term commitment. To achieve this Microsoft can start implementing “stay interviews” to gather insights into the challenges and aspirations of underrepresented employees. Microsoft could additionally strengthen mentorship programs and offer more career broadening opportunities to create an environment where underrepresented talent feels supported and motivated.
Metrics to Measure Success
To measure the success of established goals four metrics will be monitored. These metrics will be leadership representation, authenticity and belonging surveys, training effectiveness and completion rates, and retention rates with the specified parameters on diverse talent.
Leadership Representation Metric:
Microsoft will need to track the representation of women and minorities in leadership roles biannually. By tracking this data, Microsoft will have clear data-driven insights on how well the organization is advancing towards their first goal.
Authenticity and Belonging Survey Scores:
Understanding how employees feel about being able to be their authentic self at work is crucial for fostering a culture of inclusion and belonging. Microsoft will need to conduct regular employee surveys to assess the percentage of employees that feel that they can be authentic at work. To maintain responsiveness, Microsoft may use follow-up pulse surveys to monitor short-term changes, especially after implementing new DEIB initiatives.
Training Effectiveness and Completion Rates:
The effectiveness of DEIB training is not only measured by the completion rate of mandatory training but also by the knowledge and behavior changes the training drives in the organization. Microsoft will need to track DEIB training completion rates to ensure company-wide compliance but will also need to conduct pre- and post- training assessments to measure the shifts in employee understanding of the subject matter.
Retention Rates for Diverse Talent:
Retention rates are a key indicator of an organization’s culture. Microsoft will need to compare retention rates of women and minorities to overall retention rates annually to see the numerical discrepancy. From there Microsoft can implement its improvement programs and reestablish the metric to see if there is any improvement.
Actionable Steps
To ensure the achievement of established goals five actionable steps will be formulated:
Step 1: Pathway to Leadership Program
To address the gap in leadership representation, a Pathway to Leadership program will be established. This program will be designed to support underrepresented employees in career progression through structured mentorship, networking opportunities, self-driven courses, and skill-building workshops. By offering this program, Microsoft can equip underrepresented employees with the confidence, knowledge and skills necessary to move into management and executive roles.
Step 2: Implement new Employee Resource Groups (ERGs)
“There is a trend for forward-thinking modern organizations to promote employee resource groups (ERGs) as a means of integrating staff from minority backgrounds, such as LGBT communities and various ethnic groups. A recent qualitative study of six ERGs in a for-profit organization in the USA found them extremely beneficial for the well-being of minority groups. The ERGs were powerful conduits for learning and development” (HRM International Digest, 2019). ERGs within Microsoft will play a critical role in fostering community support and enhancing the sense of belonging among underrepresented groups at Microsoft.
Step 3: Expand DEIB Training with Quarterly Modules
DEIB will be expanded to include new quarterly training modules covering crucial topics such as allyship, cultural competence, active inclusion, and empathetic communication. By offering these modules quarterly, employees will have ample opportunities to engage in training and the training will always remain fresh in their toolkit.
Step 4: Partner with Historically Black Colleges and Universities (HBCUs) and Minority-Focused Organizations
To strengthen the recruitment of underrepresented talent, Microsoft will establish a working partnership with HBCUs, and other minority-serving educational organizations. Through these partnerships, Microsoft can establish a foothold for recruiting top talent in the industry while building a new diverse connection with early career professionals.
Step 5: Implement a “Stay Interview” Program
To improve retention rates, Microsoft will implement a new “stay interview" program. In this program managers hold one-on-one interviews with underrepresented employees to discuss their experiences, aspirations, and any challenges they may be facing. These interviews will also act as a place for the employee to express concerns and offer a cooperative solution.
Evaluation of the Plan
To evaluate the plan the Microsoft DEIB committee will meet quarterly to assess the progress of DEIB goals, evaluate the current metrics, and identify any potential barriers to success. During the meetings the chair along with all presiding members will analyze data from surveys, retention metrics, and any other relevant information to ensure alignment with the company’s overall objectives. Additionally, Microsoft will need to publish a yearly comprehensive DEIB report that outlines that organization’s progress towards goals in representation, inclusion, and retention. This report will serve as a transparent reflection of Microsoft’s efforts to comply with DEIB initiatives and be at the forefront of the tech industry. With these reports along with continuous feedback loops between all levels of employees, Microsoft will surface as the technology champion of DEIB.
Summary
Microsoft’s commitment to diversity, equity, inclusion, and belonging (DEIB) reflects not only its vision for an innovative and inclusive workplace but also its dedication to supporting and empowering a diverse workforce that mirrors its global reach. Through this comprehensive DEIB action plan, Microsoft can build upon its already astounding success and grow as the shining beacon in the tech field. Each element of the strategic action plan is designed to remove barriers and ensure that equitable opportunities are available for all employees. These actionable steps followed by continuous feedback and rigorous evaluation will empower Microsoft to adjust and evolve its DEIB initiatives to respond to both internal insights and the broader industry standards needs.
References
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ERGs (employee resource groups) benefit employee wellbeing. (2019). Human Resource Management International Digest, 27(1), 45–46. https://doi.org/10.1108/HRMID-02-2019-0028
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