Building Leadership Diversity within the Next Generation

Diversity extends beyond race and gender. While organisations grapple with equity quotas and inclusion policies, those who remain open-minded to the true meaning of diversity are the ones making strides toward genuine diversity, equity and inclusion (DEI).

Workplace equity has been a hot topic across the world for years. While we’re always encouraged to see small, incremental changes occurring year-on-year, the growth and progression happening on the ground does not seem to match the noise that’s being made about it on public media platforms. In fact, McKinsey’s ​​Women in the Workplace 2023 study reveals that globally women’s representation in executive and C-suite positions remains alarmingly low, with only 6% of C-suite roles falling to women of colour.  

As we explore the factors that may hinder the transformation of these incredibly relevant conversations into tangible actions, it’s crucial to understand the true essence of diversity, equity, and inclusion.  

True diversity vs. Box-ticking 

Globally, the DEI conversation often seems to focus on gender equality, while in the South African context, diversity revolves around both gender and race. Equity policies hold state-owned enterprises to the highest expectations of equality and even impose very real limitations and penalties on private organisations that fail to implement Employment Equity hiring practices.  

The challenge we continue to witness is that once all the talk about transformation is done, organisations all too often fall into the trap of trying to fill a quota. In the executive search work we deliver in South Africa, a briefing with the client about a role or position is typically headlined with an ideal gender and race, which narrows the available skills significantly. 

Although addressing equity is important and valuable, true diversity holds vast potential. If we’re honest, we’re looking at diversity the way you might peer through a magnifying glass at a blade of grass, when there’s a whole landscape to be seen. It includes religion, socio-economic background, sexual orientation, capabilities and disabilities, neurodiversity, and even experiential differences.  

Taking a more expansive view of diversity can inspire us all to envision a future where workplace equity is truly realised. This is one of the most relevant services that an executive search firm can offer to clients: to encourage courageous talent acquisition that looks beyond ticking the box – by thinking outside the box. 

How purely filling a quota falls short 

At Signium Africa, we believe that equity policies are still relevant and important in redressing past imbalances. However, the risk associated with overly stringent equity practices to the point of merely ticking boxes is that it narrows the talent pool that an organisation can access. This often forces companies to forego the right skills, experience, and personality characteristics in favour of a particular race or gender.  

In South Africa, state-owned enterprises strictly adhere to employment equity requirements, almost to a fault, whilst private companies are more likely to fall behind. The irony is that while equity policies were designed to drive diversity, they can result in the complete opposite – a lack of diversity from a broader perspective – and some of the scenarios that we see playing out include the following:  

Echo chamber executive committees and boardrooms 

Lack of diversity at senior levels results in an executive echo chamber where executives think the same, behave the same, and agree on almost everything. It may sound like bliss but these environments may lack innovation, become stuck in irrelevant practices, and frustrate the enthusiasm and creativity of up-and-coming leaders. In the long term, this negatively impacts the acquisition and raising of the next generation of leaders.  

Executive cloning 

When executives resign or retire, many organisations’ knee-jerk reaction is to recruit or train replacements who bring the exact same management approach, skills, response to change, and the same mindset. This fails to create an environment that inspires discussion and collaboration, where young leaders may confidently innovate and challenge the norm.  

Lack of growth 

When an organisation has recruited entire teams from similar backgrounds simply to fill an equity quota, there may be very little natural growth and development opportunities for each individual person. To create a culture where colleagues and leaders learn from each other, there needs to be diversity of thinking, skills, and experience – diversity that goes beyond gender and race. 

Develop next-gen leaders through smart strategic succession planning 

Worldwide only 12.5% of executive positions are held by ethnically diverse people, a figure that remains consistently low across C-suite and board roles in general. Diversity at leadership levels is concerningly rare, indicative of failed internal succession planning where diverse junior employees should be moved upwards through the ranks into leadership roles. 

There’s a mindset in South Africa that says, “If my employment equity stats are right, I’ll secure more business.” And while that may be the case in some circumstances, we need to challenge the status quo to achieve meaningful change.  

1. Leverage the power of representation 

The more diverse your leadership is, the more employees are inclined to feel included and represented at that level. This improves employee buy-in and boosts productivity because each person feels a sense of connection and camaraderie with their seniors. When it comes to instilling shared values and goals, team members are more likely to be receptive to guidance and instruction coming from leaders they can personally relate to.  

On the contrary, if leadership is predominantly made up of one demographic, those who are in the minority may feel unnerved, unseen, and perhaps misaligned with the company culture. This could potentially impact productivity and retention, which further affects an organisation’s ability to grow and develop an up-and-coming team of diverse, impassioned leaders.  

2. Empower leadership growth from within 

In South Africa and across the world, junior levels within most organisations are made up of diverse individuals which typically include different races, genders, ages, orientations, religions, and socio-economic backgrounds. This presents an opportunity to draw future leaders from all walks of life, from within the company. This is achieved by investing in long-term, strategic succession planning.  

It might seem easier, faster, or more cost-effective for organisations to fill diverse leadership roles from the outside, but developing a varied talent pool already within reach has numerous advantages:  

• Leaders grown within an organisation are more loyal and committed to the shared objectives of the business. 

• Raising leaders within the company means that they are already in tune with the company culture and have developed relationships and trust with colleagues and stakeholders alike.  

• Employees who are offered a career pathway to leadership in an organisation gather and retain organisational knowledge as they progress, which enhances their transition to new roles and improves performance.  

3. Optimise talent on transferable skills 

When it comes to filling a senior role, organisations feel the immense pressure of being without the right leader, whether it’s for a day or several months. As a result, companies approach executive placements with a sense of urgency, and sometimes even consternation.  

This is why so many senior role vacancy descriptions tend to be prescriptive – the organisation wants the recruited candidate to hit the ground running from day one. A job spec typically demands a minimum number of years of industry experience and a shopping list of sector-specific requirements and skills. When the company adds a preferred gender or race to the list to improve its equity score, finding an individual who fits the picture with the right set of skills becomes increasingly difficult.  

In our work as executive search consultants, we’re able to suggest where organisations could potentially source talent from different sectors. This is especially effective when the other sector is ahead, in terms of technology and best practice. While this approach may require a greater investment in terms of training and acclimatising cross-sector executive placements, the reward of recruiting diverse thinking, creativity, and experience is exponential.  

4. Foster a culture of mentorship 

Leadership mentorship plays a role in training and development programs and inspires dedication and buy-in from those being mentored. However, we encourage companies to approach mentorship as a critical component of their long-term succession planning.  

Older generations of senior executives possess a wealth of powerful knowledge that is all too often lost when they leave. Instead of waiting until a key individual retires only to join the fray for an executive placement, organisations could plan and invest in equipping employees with the skills and knowledge needed to fill senior roles.  

The added benefit this offers is that companies have a wider talent pool to choose from and will find it easier to identify diverse individuals who possess the potential for senior mentorship.  

By exploring the deeper contexts of diversity and understanding the complexities around developing the next generation of leaders, organisations are able to recruit, develop, and retain the right skills, while still enjoying the best blend of talent and culture that comes with true diversity.