Global companies are learning that race and ethnicity are viewed differently in Europe than in the U.S. This influences management’s ability to progress DEI in the workplace, adding new challenges they must tread carefully to address. -By Anna Gonsalves

During the pandemic, Europe’s marginalized groups experienced enormous growth due to the migration of millions of people from other countries on various continents. People of different races and ethnicities continue arriving on European shores and crossing borders, leading people to rethink what diversity, equity, and inclusion (DEI) mean in Europe. Before the migration, some European Union countries focused on advancing diversity and equity through quotas, and cities and regions were striving to create discrimination-free societies by implementing DEI policies at the government level. Countries can sign a diversity charter and recruit employers who voluntarily agree to commit to promoting workplace diversity and equal opportunities without regard for race, ethnicity, gender, age, or disability. Despite these efforts that continue post-pandemic, DEI progress remains slow (especially in businesses), so comparing the difference between Europe and the U.S may provide some insights. U.S. global companies operating in Europe soon discover that European and U.S. perspectives on DEI differ. Closing the gap takes a carefully designed strategy that moves the workplace beyond good intentions to measurable progress.

Diversity is More Than Gender

Progress in Europe’s diversity, equity, and inclusion (DEI) space is generally slow. Some countries have focused on increasing gender balance at the board level, with companies now required by the European Parliament to achieve 40% of the underrepresented gender as non-executive directors and 33% among all directors. There has been a strong focus on gender equality in government and at the business level, but there is still slow progress in many industries.

For example, DBRS Morningstar sampled 43 European banks and found that women represented 37% of board members in 2021 and 26% on executive management teams, and there were five female CEOs. But women are only one diverse group. A network of senior professionals surveyed 800 employees from 440 companies and found that 66% have experienced race discrimination, 28% said race discrimination was holding back career advancement, and 41% said their employer was not fully committed to developing an inclusive environment.

Becoming “Othered”

Why the slow progress, and what is the difference in perspectives on DEI in Europe compared to the U.S.? Visier asked a Filipina-American DEI consultant based in Spain, Kay Fabella, what workplace diversity looks like in Europe. In Europe, she says, race is associated with the country of origin, like European immigrants being identified as white non-British. The immigrants could come from Southern Europe or Eastern Europe and face racism in the U.K. because of their accents or cultural traditions. They become “othered” as historically-excluded ethnic groups. In the U.S., there are discussions about lived experiences through historical periods, such as slavery and the Civil Rights Movement and immigration through Ellis Island, but Fabella has found that in Europe, there is less understanding of the impact of the colonial past. By failing to learn about colonial history through a diversity lens, people are uncomfortable discussing race or non-European ethnicity. The countries in Europe that are monocultural-oriented view a different culture as anyone who crosses a border.

In Europe, says Fabella, “there is a need to create DEI practices around DEI formed by the culture that we’ll be working with.” Another issue is the resistance to DEI in Europe because they do not want to embrace anything considered an extension of U.S. imperialism, which is how some Europeans have interpreted DEI. Some Europeans are less comfortable discussing DEI, and are less willing to acknowledge a role in institutionalizing racism, partly due to feeling some shame over their history. “There’s no perfect place to have these conversations. But understanding those cultural lenses is really important. We cannot ask people to join commitments to a DEI structure that doesn’t reflect their own community, and each person defines community very differently depending on context, history, and culture.” Not talking about DEI and not holding honest difficult conversations about people’s experiences impedes diversity and inclusion.

Different Histories Lead to Different DEI Results

History plays a significant role in DEI’s progress rate in Europe. Data on race, gender, sexual orientation, disability, and so on are collected in the U.S. but European Union laws prohibit companies from collecting this information, because of the history of persecution of Jews during the Holocaust. Data is only collected when voluntary, meaning DEI professionals must get social agreement that data collection delivers critical insights. Poornima Luthra, Ph.D., is an associate professor at the Copenhagen Business School and author of the book Diversifying Diversity: Your Guide to Being an Active Ally of Inclusion in the Workplace. She says she has heard non-U.S.-based employees of global companies make this statement numerous times: “Diversity and inclusion are an American problem; we don’t have this issue here.” She recommends that global companies keep “glocal” in mind because it balances global and local strategies. DEI, through a global lens, defines a vision and broad areas of focus. DEI through a local lens enables adaptation based on the country, culture, and maturity. Like Fabella, Luthra reminds business leaders that bias and discrimination are experienced through the influence of history and culture. A homogenous society may focus on gender and age diversity, while a multicultural society may focus on the intersectionality of ethnicity, gender, and socioeconomic background. Culture can also be a barrier to acknowledging that bias exists because people assume it does not. There is much to unpack about DEI in Europe and what it will take to make more progress. Ten European countries surveyed led to eye-opening results. No majority in a country says diversity is a positive. Over half of the surveyed participants in two countries said that increasing diversity is making the country a worse place to live. Also noteworthy is that many people consider institutionalized racism a uniquely American problem, ignoring a European history of human trafficking and colonialism. Europe has focused on gender diversity but now needs to address diversity in its fullness. People are not only Black, White, Female, Male, Catholic, or Muslim. By focusing only on gender, the focus remains on the dominant identity, whereas people have different identities.

Springboarding From History and Moving Forward

These are just some of the European DEI issues and some differences concerning DEI between Europe and the United States. It is a highly complex issue requiring education, training, an open mind, and a willingness to accept a need for change. Recognizing cultural differences and history is important but should be a springboard for changing the status quo rather than a reason for perpetuating a lack of DEI. Europe, like the United States, has plenty of room for improvement as marginalized groups continue to face exclusion and discrimination in and out of the workplace.