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In this week's Whiteboard Wednesday, we're taking a look at a core business concept, and applying it to diversity and inclusion strategy.
The "leaky bucket" concept in business refers to companies that have a very high attrition. For example, think about a website that sells mattresses. More likely than not, any customer that buys today will not come back for a very long time, if ever, to buy another mattress. It's just not a recurring purchase. And so, any efforts by the marketing to get those new customers is negated by a very high churn product. This type of business can exist, but will never thrive.
What's App is an example of a product (bucket) that has no leaks. You download it, and very quickly this app becomes part of your life. In fact, you're likely to help it grow by inviting friends and colleagues to it so that you can stay in touch.
Many companies are focusing their DEI efforts on the recruiting funnel. They make sure their job descriptions aren't biased, do blind resume screens, and generally try to hire a diverse employee base.
However, if you do not have an inclusive workplace, you are wasting your time. Diversity candidates who become employees will be looking for a new job quickly if they don't feel welcome, don't see a career path for them, or face micro aggressions in their job.
It's important to think about how you get people from many backgrounds into your hiring funnel, and as employees. But, do not underestimate how much more important it is to foster this part of your culture through an inclusive workplace.
Phil is the founder of SelectSoftware Reviews, a website dedicated to helping HR and Recruiting teams find and buy the right software through in-depth, expert advice. He has bought over $1 million worth of HR and Recruiting tools. Additionally, as of 2023, nearly 3 million HR professionals have relied on his advice to determine which business software they should buy.
Phil studied finance at New York University and started his career working in venture capital before getting his MBA from Harvard Business School. His in-depth understanding of the Saas landscape, especially HR Tech, stems from nearly a decade of researching and working with these tools as a computer programmer, user, and entrepreneur.
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