Will the Market Research industry withstand the anti-DEI era?
Picture this. A well-known brand emails your company (a market research firm) to announce a new, innovative product aimed at Asian and African markets. They ask for moderators and researchers of matching ethnicities. Would your team’s racial diversity enable you to support this brand’s request, or would a lack of diversity cause you to miss this potential business opportunity?
For many market research companies, the outcome would likely be having to pass up on a potential project. Why? A survey by Insights Association found that only 31% of market researchers are Black, Asian, Hispanic, or “non-white”.
The limited presence of minorities in market research globally is a serious concern. Primarily because it hinders the inclusion of diverse viewpoints. This lack of diversity can lead to research that overlooks cultural relevance, potentially alienating target audiences. Participants may be less willing to share information with researchers from different backgrounds, and moderators might miss important cultural nuances. These mishaps can result in confusing or exclusive research questions, which could ultimately skew results and/or damage a brand’s reputation.
Despite the increasing diversity of the world, our industry has failed to keep up. Let’s examine the United States. In 2020, the U.S. saw a shift where individuals under 18 years old became the “majority minority,” with multiracial and racial/ethnic minorities outnumbering white Americans. By 2044, the entire U.S. population will achieve this status, according to the US Census Bureau. Despite the diversity of the United States population as a whole, the market research industry in the US lacks representation from minority groups.
According to Zippia’s market research analyst demographics research summary, only 12.4% of employees in the market research industry are Hispanic/Latino, 9.6% are Asian, and 5.2% are Black/African American. And although women make up 48.8% of market research analysts, there is a pay disparity where they are still being paid less than men. Additionally, in June 2023, the U.S. Supreme Court overturned affirmative action, preventing colleges and universities from considering race in admissions. Experts predict this will greatly affect diversity on campuses and in the future workforce (i.e. your next researcher).
DEI is a topic that extends beyond the borders of the US, as individuals from marginalized communities face similar challenges in their work environments in various countries. While the United States focuses on race as the main concern for diversity, equity, and inclusion, the United Kingdom ranks 15th in the global gender map index due to gender inequality.
In the UK, the Office for National Statistics (ONS) reports that in April 2023, the median hourly pay for full-time employees was 7.7% lower for women than for men, and Black UK-born employees had the largest pay gap, earning 5.6% less than white employees. While the UK’s workforce is becoming more diverse, only companies with over 250 employees must track and report gender pay gaps, and ethnic pay gap reporting remains optional. These global DEI obstacles in the market research industry may result in a homogenous workforce and hinder client and brand connections with diverse consumers.
As a Latina HR professional in the market research industry, I’m concerned, though not surprised, by these statistics.
The market research industry cannot turn their back on DEI just yet, even as businesses like Ford, Harley-Davidson, and John Deere are scaling back their DEI efforts out of concern for legal repercussions and political backlash. And big global companies like McDonald’s are retiring specific goals for achieving diversity at senior leadership levels. The market research industry cannot follow this trend.
The lack of diversity within the market research industry poses a significant challenge in maintaining a strong connection between brands and their global consumers. This challenge is increased by the underrepresentation of minorities in leadership and decision-making roles. This lack of diverse perspectives can lead to blind spots and missed opportunities, hindering a brand’s ability to resonate with diverse audiences and understand their unique needs and preferences.
To remain competitive and relevant in an increasingly globalized and diverse world, the market research industry must prioritize diversity and inclusion at all levels and continue to expand its DEI policies. This includes actively recruiting and promoting individuals from underrepresented groups, fostering a culture of inclusion, and providing opportunities for professional development and advancement. In a global study done by the Boston Consulting Group, they found that companies with above-average total diversity had both 19% higher innovation revenues and 9% higher EBIT margins, on average. McKinsey’s 2020 report: Diversity Wins: How Inclusion Matters found that “Companies in the top quartile for gender diversity on their executive teams were 25 percent more likely to experience above-average profitability than companies in the fourth quartile,” as well as “36 percent likelihood of outperformance on EBIT margin for ethnic and cultural diversity.”
The long and short of it is, companies who make diversity a priority will gain a better understanding of their target audience, obtain more valuable data insights, establish stronger connections with a wider range of consumers and employees, and ultimately build a stronger brand. Companies like Costco, who champion DEI as a priority, in a recent Forbes article, “Costco’s site messaging includes a quote directly from the CEO about the value of appreciation for inclusion: “We flourish from having employees with different views, experiences, and ideas.”. In another Forbes article, Apple and Delta Airlines said they are staying committed to DEI, with Apple asking its’ shareholders to block an Anti-DEI proposal. Big banks like JP morgan and Goldman are also staying committed to DEI with JP Morgan CEO, Jamie Dimon, saying “working to include marginalized groups in JPMorgan’s business is good for its bottom line”. And that he regularly receives praise for the bank’s DEI efforts from community leaders and local government officials across the country. “We’re going to continue to reach out to the Black community, the Hispanic community, the LGBT community, the veterans community,”. So, hats off to those diverse agencies who increasingly recognize and incorporate a wide range of demographics and promote diversity, equity and inclusivity.
The data confirms it: incorporating DEI is beneficial for businesses! As our society grows increasingly diverse, prioritizing DEI efforts will significantly benefit your market research team, business and/or brand.
SO, how can market research companies and other corporations ensure they are diverse, equitable, and inclusive, while also remaining competitive in the market? Yes, you guessed it, AI can help with that…
AI is one tool to support you as it has the ability to transform the workforce pipeline and also play a crucial role in preserving DEI in market research. Remember, AI needs Human Intelligence and oversight to ensure there is no bias in data or algorithms but here’s a starting point:
- Recruitment and Hiring: AI can play a pivotal role in reducing unconscious bias during the hiring process by offering tools that anonymize resumes and applications. This ensures candidates are assessed solely on their qualifications and experiences, without consideration of demographic factors. Additionally, AI-powered algorithms can expand the candidate pool by identifying diverse communities and sourcing talent from a broad range of platforms.
- Data Analysis and Insights: AI can analyze large datasets to uncover trends and patterns related to DEI within an organization. This includes tracking employee retention and advancement across different demographic groups, identifying pay inequities, and assessing the effectiveness of current policies. These insights enable leadership to make data-driven decisions that foster greater equity and inclusion.
- Personalized Employee Experiences: AI can help create customized training and development programs tailored to individual employee needs. This approach addresses specific skill gaps, enhances personal growth opportunities, and fosters an inclusive culture where everyone has the chance to thrive and advance in their careers.
- Bias Detection and Reduction in Decision-Making: AI tools can actively monitor organizational decision-making processes—such as performance reviews, promotions, and day-to-day interactions—to identify and flag potential biases. Providing real-time feedback on these decisions can support employees in making more equitable choices and help organizations establish fairer practices.
- Employee Feedback and Sentiment Analysis: AI can analyze feedback from employees across various channels to assess overall sentiment regarding inclusivity and workplace culture. By identifying emerging concerns, AI allows organizations to address issues proactively and adapt their DEI strategies to better meet the needs of their workforce.
By leveraging AI in these ways, organizations can enhance their DEI efforts, leading to a more inclusive, equitable, and diverse workplace. Again, Humans need to stay at the forefront of any AI initiative and remain the final/primary decision maker; so it’s crucial to ensure that AI systems themselves are designed and implemented without biases, which requires continuous monitoring and updating of AI models to reflect fair and unbiased decision-making.
As we incorporate AI in the workplace to enhance DEI practices, it is crucial to understand that DEI encompasses more than just fulfilling a requirement or recruiting a “token” minority employee as a display of diversity in your company. The issue extends beyond simply having one hispanic woman at the table, but failing to cultivate an inclusive environment that allows her to succeed or treating her unfairly by paying her less than her male counterparts. DEI initiatives should go far beyond simply ticking “race” boxes on compliance checklists.
In essence, embracing DEI is not just a moral imperative but a business one. It enables companies to be more adaptable, innovative, and competitive in a global market. The holistic success derived from DEI practices underscores why it’s increasingly viewed as integral to long-term business strategy rather than an optional or peripheral issue.
True commitment to DEI involves embedding these principles into the core values and daily operations of an organization. It’s about creating a culture where diverse perspectives are genuinely valued, where equitable opportunities are provided for all, and where inclusive practices are lived out consistently. This approach ensures that DEI becomes a transformative force that not only enhances organizational culture but also drives innovation and growth by harnessing a wide range of experiences and ideas.
As we end January and you’re thinking about your company’s goals and plans for 2025, don’t turn your back on DEI metrics. The future of your agency or business depends on it.
I take it as a given that there are people of various races, ethnicities, orientation, etc. that are regularly excluded from hiring consideration. By extending our hiring search to include them, we can find people that are more qualified. The loss of DEI-phobic companies is my gain.” – Mark Cuban