CHICAGO — Four of the industry’s diversity, equity and inclusion (DEI) thought leaders gathered for an insightful panel discussion on what happens next after a company has its DEI framework firmly in place during the American Society of Baking’s BakingTECH 2023 conference.
The hour-long conversation, moderated by Joanie Spencer, editor-in-chief of Commercial Baking, brought together Joe Kenner, president and CEO of Greyston Bakery; Connie Dever, director of DEI at Flowers Foods; Ted Castle, owner and president of Rhino Foods; and Karen Bornarth, executive director of The Bread Bakers Guild of America.
The panelists covered a wide range of topics, including why an effective DEI strategy makes good business sense operationally and financially.
“Everybody has a need to be loved and to belong,” Dever said. “When you have a workforce that feels that way, you can imagine how much more productive they’re going to be. That’s really where you drive that engagement and get that loyalty and have people who want to come to work.”
Creating a work environment that fosters a sense of inclusion and belonging doesn’t have to carry a hefty price tag.
“People want recognition, and recognition does not always mean a bigger paycheck,” Bornath added. “It can literally mean someone saying, ‘Hey, you did a great job.’”
Dever agreed, noting, “There’s a huge return when you recognize your employees, and it’s a small thing to do.”
While inclusion plays a significant role in creating a more productive workforce and boosting the bottom line, it isn’t enough to realize a healthy ROI. Providing the training and tools employees need to do their jobs — in other words, investing in people — must also play a factor, along with smart operational decisions.
“It’s not just about inclusion,” Bornath said. “It’s about creating a strong healthy team that’s motivated and knows what they’re doing. Are we getting people the basic skills both to do their jobs and to move up? The ROI around that is, if I’m the business owner but I can’t delegate to someone else, there’s a huge opportunity cost for me. What am I not doing because I’m still shaping the baguettes? I’m not building sales channels. I’m not dealing with my social media. You have to think about the things you’re not doing when you can’t retain staff.”
“DEI is not a ‘nice to have;’ it's a ‘need to have. It's a must-have for the health and sustainability of a business of any size. You've got to invest in your people.” — Karen Bornarth | executive director | The Bread Bakers Guild of America
Staff retention continues to be a challenge for bakers of all sizes. Generally, the cost of turnover in the food industry is estimated to be 20% of a worker’s annual salary. Implementing programs that address employee needs as a part of a company’s overarching DEI strategy is one way to combat the problem. Such programs can be a win-win: they reinforce a company’s commitment to creating an inclusive workforce while improving the retention rate.
Castle shared details of a program his team put in place several years ago to help employees in need of financial help.
“Over 30% of the people in the United States have less than $400 in their savings account,” he said. “When someone who works for you has their car break down, it costs more than that. What are they going to do? They’re going to show up late for work. If you’re late to work, you lose your job and they’re off to the next place.”
To address the problem, Rhino Foods set up a program with a local credit union where employees could borrow up to $1,500, no questions asked. They pay the low-interest loan over six months through payroll deduction.
“Now, you’ve kept the person in their job,” Castle said. “Is that belonging? You bet it is. Is that trust? Is that making good business sense? You bet it does. Our retention rate went up 30% in three years because of that program.”
Such programs aren’t the only solution to the lingering labor shortage. Changing the thinking around how a company hires can also make a difference.
“Companies across the world are going through what I call a so-called labor challenge,” said Kenner, whose company is a pioneer in open hiring practices. “I say ‘so-called’ because the labor is out there in the people who are on the sidelines. We’re getting folks off the sidelines and into the workforce, people who want to work but are being excluded because of our own biases and because of our outdated practices. There’s a huge business case for that. It means you get your product out the door, you get your service delivered and you get good people. It’s really that’s simple.”
“DEI is not a ‘nice to have;’ it’s a ‘need to have,’” Bornath added. “It’s a must-have for the health and sustainability of a business of any size. You’ve got to invest in your people.”
