What Is a Chief Diversity Officer and Does Your Company Need One?

Accountability is key in successfully meeting business goals of any kind, and DEI (diversity, equity, and inclusion) initiatives are no different. Someone needs to be responsible for their implementation and success, and the chances of success are considerably improved if that person has the executive-level authority to enact real change. That’s the role of a Chief Diversity Officer. 

How Many Companies Have a Chief Diversity Officer?

After the “MeToo” movement against sexual harassment, the events of 2020, and the Black Lives Matter movement that renewed the conversation about racism in America, many companies were motivated to recognize and take a stand against societal inequities. To make fundamental changes in their own cultures and operations, many went searching for a Chief Diversity Officer to lead their efforts. 

Recent research by executive recruiter Russell Reynolds Associates found that 53% of companies included on the S&P 500 index have a Chief Diversity Officer (CDO) or equivalent. Nearly two-thirds were recent hires or promotions. Overall, the number of people with the title "head of diversity" jumped 104% from 2015 to 2020, per LinkedIn data. And the number of people with the "Chief Diversity Officer" title increased 68% in that same period.

What Role Does a Modern CDO Play?

Although diversity leadership roles have existed for several decades, the role has changed, especially as research has revealed the business benefits of executing DEI strategies. A 2018 McKinsey study found organizations with diverse boards and executive teams were up to 35% more likely to outperform their less diverse competitors. That’s only one of many studies that show the positive effects of a diverse workplace on business outputs such as innovation, good decision-making, and profitability. 

So, while the main task of a CDO used to be developing a strategy for recruitment of diverse and underrepresented candidates, today’s CDO is tasked with this plus: 

• Developing an inclusive work culture to optimize the satisfaction, participation, and contribution of every employee

• Aligning diversity and inclusion goals with business outcomes such as attracting top-talent, innovating, and growing market share

• Building supplier diversity programs

• In many cases, also ensuring that a company’s products, services, and marketing are aligned with and respectful of multicultural customers the business serves or wishes to serve

Chief Diversity Officers are change managers. As such, today’s CDOs come from many different business backgrounds with a variety of skills. They need to be able to communicate and influence across department lines and hierarchical levels, design strategies and measurement metrics, understand the use of data in formulating strategies and policies, and drive results. 

How Do You Know If You Need a Chief Diversity Officer? 

Diversity is a complex topic that goes beyond race, ethnicity, gender, sexual orientation, and age. The end goal of DEI initiatives is to ensure that every person in your workforce feels supported in doing their best work, and a supportive culture benefits companies of every size and type. 

To determine if you are ready for a Chief Diversity Officer in your organization, try answering the following questions:

1. Do you understand the areas in which your organization needs change? 

2. Is leadership fully behind the change that’s needed? 

3. Is your organization prepared to give a CDO financial, personnel, and data resources to make change happen?

4. Are you looking for long-term fundamental change, not just quick wins?

5. Do you think of DEI as a compliance issue, an ethical issue, a business issue, or all three?

Kanarys is Your DEI Champion

At Kanarys, we are the diversity, equity, and inclusion people with the data-driven approach. Since 2018, Kanarys has aimed to change the world by creating equitable workplaces where everyone belongs. We guide your organization’s DEI path every step of the way with courage and collaboration. It starts with data, analytics and insights, and continues with recommendations and implementation. 

Our mission, as your partner and champion in the ever-evolving DEI journey: Help you understand what it takes to foster lasting, systemic change today and for tomorrow. Because when you succeed with DEI, your employees can thrive—and so can your organization.