Benioff: I said, “That’s not possible here.” You know, it’s — it’s not possible.
Stahl: Why was it impossible?
Benioff:
It’s impossible because we have a great culture here. We’re — we’re a
“best place to work.” And we don’t do that kind of thing. We don’t play
shenanigans paying people — paying people unequally. It’s unheard of.
It’s crazy.
Benioff isn’t an anomaly in exhibiting that kind of denial. In 2020, when Michelle King, the director of inclusion at Netflix,
interviewed
72 senior executives about the pay gap between the sexes, the majority
of them — men and women alike — told her that at their organizations
everybody has “identical opportunities, workplace experiences, and
career paths.”
Given how much time and money companies are now investing in diversity initiatives (
estimated
at up to $15 billion by 2026), it’s vital that they understand what’s
behind this kind of denial, so that they can better overcome it and put
their money to good use. Practitioners, academics, and the popular press
have tended to identify two explanations. Some managers, they argue,
behave this way because they’re part of a privileged demographic group
(usually white men), and diversity initiatives threaten their hegemony.
Other managers do so, they argue, because they’re members of politically
conservative groups that are opposed to the initiatives on ideological
grounds.
There’s surely something to both of those explanations. But we’ve recently conducted a
series of studies
that suggest a different and perhaps more powerful explanation.
Managers are resisting diversity initiatives, we’ve found, because …
they’re managers.
“Not Here” Bias
Why would that be a problem?
Because
managers identify with their company, in ways that lead them to
consider the company’s good traits to be reflections of themselves. As a
result, maintaining positive views of the company becomes vital to
their sense of themselves, at times warping their perspective. This
phenomenon, often referred to as
motivated reasoning,
is common. If you’re a sports fan, you know it well: Calls made against
your team tend to be “bad.” Calls in your favor tend to be “good.”
In
the context of the workplace, motivated reasoning prevents managers
from recognizing problems in their own organizations even though they
can easily recognize them in others. This form of bias, which can be
called a “not here” bias, is precisely what Marc Benioff exhibited in
the example cited above — he couldn’t believe that inequity was possible
“here,” at his company. To be fair, his reaction was natural. After
all, who wants to be responsible for a department or group where
inequity is an issue?
In
our research, across multiple studies, we asked respondents to indicate
to what extent they believed inequity was a problem. In one survey,
managers reported that inequity was 13% less of an issue in their
workplace compared to non-managers. In a different survey, we found that
managers scored only 2% lower than non-managers when rating inequity in
other workplaces — but when rating it in their own workplace, they
scored 17% lower.
Such
differences have consequences. In a third survey, we found that because
managers tended to diminish the importance of inequity as an issue in
their own workplaces, they were 19% less supportive than non-managers of
diversity initiatives that were intended to address the problem.
What to Do?
This
poses an obvious challenge. Managers are the ones who have the power to
implement and enforce diversity initiatives, but because they don’t
recognize the extent of the need for these initiatives at their own
organizations, they are less supportive of them.
To overcome that challenge, we recommend three courses of action, all rooted in findings that have emerged from our research.
Challenge default positive views.
In
one experiment, we divided a group of managers into two and then asked
half of them to describe a typical day in the office and half of them to
recall specific instances of inequities there. They were then asked to
allocate a percentage of a hypothetical budget surplus to a diversity
initiative. Those managers who were asked to recall inequities ended up
saying they would allocate 30% more funding to diversity initiatives.
(The effect was less pronounced among non-managers, where the question
led only to a 10% increase.) Such differences occur, we believe, because
asking managers to recall specific inequities challenges their
motivated reasoning — it’s harder to maintain a positive view of your
workplace when you’re forced to confront its inequities.
That’s
precisely what happened to Marc Benioff at Salesforce. When told that
inequities existed at the company, he denied it was possible. But, after
his executives confronted him with specific examples, he acknowledged
the problem and committed several million dollars to the alleviation of
gender-based discrepancies. Salesforce has since then also adopted
another effective strategy for addressing inequity: data dashboards,
which record examples of inequities in compensation, development
opportunities, promotions, and performance ratings. Organizations
looking to garner support for diversity initiatives can require managers
to engage with such data or examples on a regular basis.
Consider your “not here” bias.
In
another study, we had participants read a short article describing our
research on a “not here” bias, and then we asked them to describe the
inequity in their workplace. Compared to a control group, we found that
these managers rated inequity in their workplace as 10% higher (as
opposed to 3% higher from non-managers). This suggests to us that
regularly asking managers to reflect on how the “not here” bias applies
to their workplace can help them apply the same standards they use for
other companies to their own workplace.
Redefine what it means to be “good.”
Our
research suggests that managers view their workplaces as equitable
because they want to have positive views of their organization — and in
their minds, “good” workplaces are those where inequity doesn’t exist.
Such an outlook makes acknowledging inequity hard, even for people who
believe in working against it. The solution here is to work to define a
“good” organization differently — that is, as one that actively
identifies, acknowledges, and combats inequity. Such a change can help
managers align their perceptions and actions with their organization’s
diversity goals.
* * *
Can
managers perceive inequity in their own workplaces? Our research
suggests that they often can’t — and that those with the power to
implement initiatives designed to address inequity are therefore less
likely than others to see the need for such initiatives. To address that
challenge, companies will need to understand how managers can fall prey
to “not here” bias and motivated reasoning, and how those problems can
be countered using the tactics we’ve laid out in this article.
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