The business case for creating a diverse, equitable and inclusive workplace grows more compelling each year. Research has shown that more diversity in an organization leads to greater innovation, better staff retention and more financial success. Building this culture requires vision, commitment, a solid organizational structure and strong leadership.
Hackensack Meridian Health CEO Robert Garrett breaks down how the largest health system in New Jersey is making progress.
Most healthcare leaders believe that there’s a moral imperative to create a diverse workforce. Are organizations also embracing the business advantages of an inclusive environment?
RG: We are proud to build a workforce that mirrors the diversity of New Jersey, which is integral to our organization. And like many health systems, we are educating our teams to understand that a diverse workforce also benefits communities and our financial health. Research from the World Economic Forum found that companies with above-average diversity scores drive 45% on average revenue from innovation compared to 25% for companies with below-average scores.
Here’s a great example. One of our goals is to diversify our supplier network to better reflect New Jersey, one of the most diverse states in the nation. We held our first diverse supplier showcase this year and attracted a dozen new partners, including one company that was able to procure Fluorouracil, a commonly used drug to treat cancer. It’s been in short supply throughout the nation. Even our traditional suppliers were having a difficult time acquiring it.
This is the benefit of being intentional in bringing in new perspectives, ideas and experiences. All told, we increased our year-over-year supplier diversity spend by 32% in 2022.
What specific organizational changes were necessary to advance Hackensack Meridian’s commitment to building a more inclusive workforce?
RG: We have made major organizational changes which include elevating the reporting structure and leadership title of our DEI department by creating a Chief Diversity Officer who reports directly to the CEO. We also launched the Executive Diversity Council to drive leadership accountability across the network. The council meets quarterly, and I serve as chair along with our Chief Diversity Officer, Avonia Richardson- Miller, EdD. The council aligned the overall DEI Governance Structure with best practices to provide oversight of DEI efforts and strategies and monitor progress. We also launched site Diversity, Equity & Inclusion Councils chaired by our local hospital presidents to ensure we reach everyone.
Additionally, we created a network-wide goal for tying executive compensation to measurable metrics focused on increasing the representation of underrepresented team members in leadership positions. We are also working diligently to diversify our boards.
For these efforts – improving governance structure, diversifying our workforce and supplier chain, talent management, and mentorship programs – Hackensack Meridian Health was recently ranked No. 1 in the U.S. on the 2023 Diversity Inc. Top Hospitals and Health Systems list.
Beyond organizational changes, how can health systems create a culture that truly embraces diversity, equity and inclusion?
RG: There’s no question that when employees understand they can bring their authentic selves to work, they feel comfortable staying. Research from Great Place to Work found that team members in diverse and inclusive work environments are more than 5 times as likely to want to stay on the job, a critical advantage as we continue to face staffing challenges.
Specifically, we have a few standout initiatives that are driving real connections throughout the network. We have 10 team member resource groups, each sponsored by an executive leader. We know that when our team members relate to coworkers with similar backgrounds, they feel more comfortable. The network also holds Days of Understanding so that team members and leaders can have difficult conversations about race, social justice, socioeconomic and other sensitive issues. Additionally, we are completing unconscious bias training for all 36,000 team members to improve cultural competency.
Any lessons you can share from your experience in enhancing DEI initiatives throughout the network?
RG: Keep in mind this is a journey. It takes time. The bottom line is there’s a moral and strategic imperative to create an organization that celebrates different backgrounds, cultures and experiences. When we achieve our diversity goals, we benefit our patients, our communities and create a more engaged and innovative workforce that strengthens our health systems.
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To learn more, visit: hackensackmeridianhealth.org