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A Robust Diversity, Equity, and Inclusion Workforce Strategy Is More Important than Ever

Unquestionably, companies with leading DEI practices tend to be better performers.

Tania de Decker, Managing Director—Global Strategic Accounts, Randstad Enterprise Group09.01.22

Medical device makers struggling to fill critical roles may want to take a closer look at their organization’s diversity, equity, and inclusion (DEI) workforce strategy; it isn’t just a feel-good initiative. Significant bodies of research show talent, especially Gen Z and millennials, are mindful of a company’s DEI policy when considering a prospective employer. For businesses with well-demonstrated practices and benchmarks, this can be a huge competitive advantage when recruiting top-quality candidates.

Unquestionably, companies with leading DEI practices tend to be better performers. As McKinsey has reported, DEI practices are also a way to win the competition for talent during the Great Resignation.¹ During the past two years, as the social justice movement has accelerated, many employers experienced growing interest from job candidates about corporate diversity and inclusion initiatives. In fact, Randstad’s Workmonitor research revealed that two out of five workers wouldn’t consider accepting a job offer from an organization that is not proactively working to improve DEI. The percentage was even higher among those 18 to 24 years old (49%) and 25 to 34 (46%).²

Talent’s focus on DEI is encouraging employers to prioritize these initiatives. Randstad Sourceright’s 2022 Talent Trends survey of human capital and C-suite leaders found that 63% of life sciences and pharma leaders believe DEI practices that are evident and embedded in the organization are important to candidates. And 57% say they benefit from workers with a broader range of talents, skills, and experiences thanks to their DEI efforts. Half (50%) also say they're better able to attract a more qualified workforce, and 40% are attracting a wider range of candidates to fill vacancies.³

Take Action to Improve DEI

Life sciences giants such as Johnson & Johnson, AbbVie, and others are among corporate leaders that have pledged funding and commitments to help bring about change.⁴ These initiatives include examining their own workforce practices and making changes that broaden recruitment and create greater transparency around career development and promotion of diverse employees, salary equity, and additional DEI training for managers. Companies are sensing that talent more than ever want to work in an environment of inclusion and diversity, and doing so will drive greater workforce engagement and satisfaction.

For instance, 3M reported the company raised its global diverse representation of management from 32.6% to 44.5% last year as part of its 2025 goal of 65.2%.⁵ In another example, Medtronic CEO Geoff Martha emphasized in the company’s 2021 Zero Barriers DEI report that a diverse workforce is key to innovation.⁶

“The business case for inclusion, diversity, and equity has never been stronger. ID&E means more creativity, better decision-making, and enhanced innovation—ultimately helping our life-saving technology reach more people who need it,” expressed Martha.

Still, the medtech industry—and life sciences in general—have a long way to go. According to the 2022 Talent Trends research, DEI is an area where life sciences organizations are lagging their competitors. Just 41% report their hiring practices supported their diversity goals last year—the lowest of all surveyed sectors. And even though nearly two-thirds of surveyed life sciences and pharma executives feel DEI practices are important to candidates, this figure is also the lowest among all of the key sectors examined.

Advamed, the medtech industry’s leading trade organization, reported black executives account for just 3.2% of leadership in the industry.⁷ And in a recent opinion piece, GE Healthcare Chief People Officer Betty Larson lamented that women represent only 27% of all science, technology, engineering, and math (STEM) workers and just 15% of all engineering roles.⁸ Paradoxically, women are the primary users and decision-makers for healthcare, but are underrepresented in the creation of many medical devices.

GE, like many other medtech companies, reports it is making progress but still has not reached parity in its workforce. For many manufacturers, total parity may be a long way away. In part, manufacturing is still dominated by male workers, according to the U.S. Department of Commerce. It reported just 30% of the 15.8 million Americans in manufacturing are women, and just one in four executives in this field are female.⁹

That means, however, medtech companies have more opportunities to nurture a more diverse and inclusive workforce in the future. Following are three ways in which they can do this.

1. Invest in Talent Partnerships

According to DiversityInc’s Top 50 rankings of leading DEI practitioners, 100% of Hall of Fame companies—those with best practices—have a formal recruiting relationship with historically black colleges and universities (HBCUs). Such a relationship enables participating companies to create a robust pipeline of candidates and interns from which to recruit. Additionally, companies that leverage diverse suppliers also have access to both contingent and permanent workers sourced from a large pool of diverse talent.

A variety of other diversity talent groups ranging from The Mom Project to OneTen can help employers source, hire, retain, and advance diverse talent within their organization. These groups support workers ranging from highly educated professionals to those undergoing basic training to acquire their first job. These partnerships have led to programs such as the Transcend initiative—a workforce inclusivity and community development program.

2. Use Inclusive Language in Job Postings

Consider how your job postings and requirements may discourage qualified diverse talent from applying. For example, one of the challenges for diverse talent is relocating to markets where jobs are located, such as Silicon Valley. Companies can better recruit diverse talent by relocating their jobs to where the talent is based.

According to Monster, 35% of the workforce are those 50 and older.¹⁰ To recruit this highly experienced group of workers who are often excluded, job postings should avoid asking for credentials such as SAT scores or college GPA, which clearly indicate a preference for younger candidates. Similarly, avoid gender-coded words such as empathy, sensitive, affectionate (female biased), or words such as aggressive, ambitious, and assertive (male biased).

3. Reconsider College Requirements.

Some companies have eliminated the need for college degrees and are focused on skills-based hiring. Doing so expands the talent pool to include a greater number of diverse workers. In part, diverse talent are increasingly exploring alternative ways to acquiring skills, including credentialing institutions that are alternatives to four-year colleges. According to the OECD, the proliferation of these types of skilling programs means those without the means to attend universities can still acquire the competencies they need for a successful career.¹¹

Conclusion

Embracing these and other initiatives can help your organization to better attract and hire diverse talent. Even as scarcity continues to plague the global labor market, companies investing in best practices, technology, and data to enhance their DEI benchmarks will certainly improve the overall outcome of their business.

References

Tania de Decker is managing director of global strategic accounts for Randstad Enterprise Group. She works with Fortune 500 companies to develop and implement processes that improve and drive recruitment and retention solutions. de Decker has over 28 years of recruitment experience and has worked over 18 years with life sciences companies. The emphasis has always been improving the quality of her clients’ talent acquisition.