DEI Without Backlash: Making Money Through Inclusion
In a thought-provoking conversation on the Living the Dream Podcast with Curveball, Paolo Gaudiano founder of DEI tech company Aleria and author of "Measuring Inclusion"—unveils a revolutionary approach to diversity, equbbity, and inclusion efforts that challenges conventional wisdom while delivering tangible business results.
Gaudiano's journey to becoming a DEI advocate is unusual. As a white, cisgender, heterosexual man born in Italy who immigrated to the United States as a teenager, he acknowledges being part of what he calls "the privileged majority." This unique perspective, combined with his advanced degrees in aerospace engineering and neuroscience, has shaped his data-driven approach to DEI. Upon arriving in America, Gaudiano was struck by the differential treatment based on race, gender, and disability status. His computational background eventually led him to apply mathematical models to workplace dynamics, seeking to demonstrate quantitatively that business leaders can treat employees better while simultaneously improving financial outcomes.
The current political climate surrounding DEI presents both challenges and opportunities for Gaudiano's work. While executive orders and general backlash have negatively impacted many DEI practitioners, his focus on inclusion and measurable outcomes has resonated with companies seeking to navigate these turbulent waters. Gaudiano sees his approach as avoiding the legal and perception issues that have plagued other DEI efforts. His philosophy—"inclusion is what you do and diversity is what you get"—positions inclusion as the primary goal rather than diversity itself.
A particularly compelling aspect of Gaudiano's approach is his critique of traditional business cases for DEI. He argues that studies showing correlations between diversity and financial performance, while helpful, fail to provide executives with actionable insights for their specific organizations. Instead, Aleria quantifies the financial impact of exclusive workplace behaviors by demonstrating how differential treatment reduces productivity and increases turnover costs. Rather than relying on generalized statistics across hundreds of companies, this methodology calculates the precise cost of inclusion failures within a specific organization.
Gaudiano challenges the common objection that DEI initiatives lower standards or represent "reverse discrimination." He argues that focusing on diversity first creates a zero-sum game mentality, where gains for underrepresented groups are perceived as losses for majority groups. By focusing instead on creating environments where all employees can succeed, companies naturally become more diverse while avoiding the perception and reality of discrimination. He notes that many DEI failures stem not from hiring unqualified candidates but from failing to create environments where diverse talent can thrive.
Aleria's innovative approach includes technology that measures inclusion through data collection and analysis of workplace experiences. Their platform can quantify the financial impact of inclusion failures, showing companies that they're typically losing 20-30% of their net profits through poor inclusion practices. This shifts the conversation from aspirational discussions about fairness to concrete business decisions with measurable ROI. Companies that have collected engagement or satisfaction survey data can leverage Aleria's calculator to translate existing information into financial metrics and strategic recommendations.
As DEI faces political attacks and public scrutiny, Gaudiano encourages listeners to look beyond inflammatory rhetoric. He reminds us that fundamentally, everyone wants the same thing: to be judged on merit, to have equal opportunities, and to advance based on their contributions. The zero-sum mentality that suggests someone else's success necessitates your failure is, in his words, "deeply, deeply flawed." By approaching DEI through the lens of inclusion first—creating environments where everyone can succeed—organizations can achieve both the moral and business benefits of diversity without triggering backlash or resentment.
Want to be a guest on Living the Dream with Curveball? Send Curtis Jackson a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/1628631536976x919760049303001600
