DEI and Gender Inequity in Insurance and Construction
Tricia Kagerer | September 13, 2024
In May 2020—during the height of the pandemic—I launched my book, The B Words: 13 Words Every Woman Must Navigate for Success. The book sheds light on how men and women can build bridges to create more opportunities for women in nontraditional industries such as construction; science, technology, engineering, and mathematics (STEM); and insurance, helping them achieve pay equity and rewarding careers. (Yes, I also wanted to sell books!) Despite my initial reluctance to launch during a pandemic, the experience turned out to be rewarding. Virtual events replaced in-person gatherings, leading me to promote the book through my network, social media, and Zoom presentations.
Initially, promoting in this new format was strange, but it allowed me to make unexpected and powerful connections that enriched my life. Writing and speaking on women's leadership has given me inspiration and a sense of belonging I hadn't anticipated.
During these 4 years, the world of business has shifted. Previously, there was a strong focus on intentionally creating pathways for women through diversity, equity, and inclusion (DEI) initiatives. But by 2023, the momentum behind DEI faced challenges. The perception has shifted, with some believing that the barriers facing women in the workplace have been solved.
Recent comments I've encountered reveal a growing resistance to DEI. For instance, after speaking at an industry event, a survey respondent remarked, "When I hear DEI, I immediately tune out." At another event discussing women in construction, a colleague asked, "Aren't we over this already?" These incidents prompted me to investigate why there has been such a significant shift in attitude toward empowering women.
My motivation to raise awareness and share stories about women in the workplace is deeply personal. My grandmother, an immigrant with little education, made the brave journey to America in 1930 with few resources, and my mother, in the 1950s, had only two career options: nursing or teaching. She chose nursing and became a role model by starting a consulting business at age 65. Strong women are a legacy in my family.
Despite progress, two major risks persist: the reputational risk facing DEI and the undervaluation of caregiving, which disproportionately impact women's careers and long-term financial stability.
Reputational Risk Facing DEI Initiatives
In 2023, the shift in acceptance and support of DEI Initiatives began wavering in the United States as court rulings impacted higher education and corporate policy. While support for equity and creating a culture of belonging remains a top priority, the DEI brand faces a reputational risk, creating potential liability for entities. The following is a summary of some of the key events driving the rebranding of DEI.
Higher Education
Several court rulings, such as the US Supreme Court's decision on Harvard's race-conscious admissions practices, required universities to reassess their DEI policies. These rulings have ended the ability of colleges and universities to consider race in admissions, leading businesses to reassess similar programs.
Businesses
Companies like Morgan Stanley and Starbucks have faced lawsuits claiming their DEI programs discriminate against specific groups, including white men and Asian Americans. This legal pushback has cast DEI programs as potentially discriminatory, creating broader concerns about their future.
The Shift from DEI to Belonging
While legal challenges persist, many organizations remain committed to fostering diversity. A 2024 survey by the Conference Board found that none of the responding companies planned to scale back DEI initiatives. Many are instead reframing these efforts around "belonging." Much like the evolution of safety in industries like construction, this approach emphasizes the creation of inclusive cultures that consider the entire person, including the emotional and mental well-being of the workforce.
Belonging fosters stronger connections within organizations, increasing productivity and retention and reducing turnover. Additionally, belonging resonates deeply with younger generations who prioritize community and purpose in their work. This shift could help attract talent to industries such as insurance and construction, where there is a need to revitalize aging workforces.
Career and Family
The pandemic amplified many existing challenges for women, especially childcare and eldercare. While remote work offers flexibility, it also introduces new challenges in learning, networking, and staying connected. Nevertheless, flexible work environments have the potential to keep women in the workforce while balancing caregiving responsibilities.
Economist Claudia Goldin's 2023 book, Career & Family, highlights the toll "greedy work" takes on women's careers. 1 Women often face an imbalance of caregiving responsibilities in their households, and even highly educated women struggle to balance family obligations with demanding careers. Dr. Goldin's work reveals that these inequalities are driven by the societal expectations around unpaid caregiving responsibilities and not due to biological differences. She identifies that only in the last 40 years were a career and a family a real option for women. Her Nobel Memorial Prize-winning work highlights the barriers to women staying in the workforce that have a lifelong impact on wage earning and opportunity.
The Pay Gap in Insurance and Construction
The insurance industry, where many women work, continues to have one of the most significant gender pay gaps. Female insurance sales agents earn only 67.6 percent of what their male counterparts make. 2 While flexibility is more common in the insurance industry, it often comes at the cost of financial progress for women, perpetuating economic inequality.
In construction, women constitute only 14 percent of the workforce and just 4 percent of field positions. However, construction has one of the most minor pay gaps of any industry, with women earning 96 percent of what men do. 3 Despite the positive financial trend, other barriers, including gender bias, lack of role models, and demanding work schedules, continue to discourage women from entering or staying in the field.
The Solution
As a mother of both a son and a daughter, I've always aimed to prepare them equally for the future. No parent wants their daughter to earn less than their son simply because of her gender. Workplaces need to reflect society's expectations for gender equality and provide safe, supportive, and equitable environments for women. The rebranding of DEI into a focus on belonging may be exactly what's needed to create equitable workplaces for the future.
One of the core messages from The B Words is "Believe you belong." Companies must extend this belief to everyone if they want to foster environments that reduce biases and reduce the risk of the status quo.
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