A Fortune 100 company with 62,000 employees has identified a "frozen mindset" among middle managers as a significant issue related to diversity, equity, and inclusion (DEI).

• The fight for diversity, equity, and inclusion (DEI) is losing ground in both the market and politics. Corporations are cutting back on diversity initiatives as part of wider budget cuts, and this week, Alabama passed a law that prohibits the use of public funds for DEI programs in universities and schools.
• Antonio Neri, CEO of Hewlett Packard Enterprise, is concentrating on a specific issue related to diversity, equity, and inclusion (DEI) in companies: the "frozen mindset" of middle managers, as he stated in a discussion with Sharon Epperson of CNBC during the virtual Equity & Opportunity Forum on Thursday.
• The CEO uses his own position as a demonstration of the work that needs to be accomplished: When he assumed the role of CEO in 2018, none of his direct reports were women. However, Neri emphasizes the importance of stepping away from technical jargon and focusing on the actual discussions that need to take place.

The corporate world and politics are putting DEI programs under attack, with budget cuts affecting diversity, equity and inclusion initiatives and a recent law in Alabama cutting off public support for DEI efforts in schools and universities.

Neri, CEO of Hewlett Packard Enterprise, is committed to DEI but faces challenges in corporate culture, such as the "frozen mindset" of middle managers.

The fear of uncomfortable conversations between managers and employees is a hindrance to the C-suite's focus on DEI filtering down throughout all levels of an organization.

"During an interview with CNBC's Sharon Epperson at the virtual Equity & Opportunity Forum on Thursday, Neri referred to these individuals as having a "frozen mindset." He explained that they were in the middle of the company and were not intentionally unhelpful, but rather lacked the knowledge on how to provide assistance. Neri added that sometimes, people struggle to ask for help, which can hinder their ability to progress."

Neri, the CEO of the 62,000-employee, Fortune 100 company, made a conscious effort to address gender diversity in his leadership team.

"On the first day, I had no women on my staff. Today, 50% of my direct reports are women. It's amazing, they are intelligent, talented, and enjoyable to work with. Our board is also made up of women. For me, it's all about having the determination to make changes, to do things that are difficult, and as we consider technology, it may be even more challenging."

Neri stated that we have attempted to establish a self-sustaining company by starting from the top and gaining more endorsements as people support that perspective.

This year, the company was ranked as the top large corporate employer on the annual Just 100 list.

Neri acknowledged that the recognition of an issue within the company led him to have uncomfortable conversations. He described the initial stages of the DEI efforts his leadership has implemented as "a little bit difficult," specifically mentioning the Covid period and George Floyd protests, and working with a Black female member of HPE's board. "It was a real emotional moment, in the height of the pandemic," he stated.

Neri stated that HPE has implemented internal programs to train managers and employees on how to handle "sometimes difficult conversations." He also mentioned that the company had to make a significant adjustment to truly listen to employee feedback and then implement programs that addressed their top concerns.

While there are indications of advancement with more managers stepping up as leaders, Neri cautions, "We still have a long way to go."

Neri's understanding of the challenges faced by managers and employees during initial conversations is influenced by his personal experience. He comes from a Sicilian family that immigrated to Argentina, joined the company in 1995 as a call center agent, learned English as a third language, and worked in a team that covered "21 languages, every race, every ethnicity, every culture."

"I carry it with me wherever I go, as it's a significant part of my identity. It's natural for me to have this type of conversation with my employees and managers. If you're not vulnerable, you're not growing. I attended over 20 listening sessions, and my first step was simply to listen."

Neri believes that compensation should be tied to DEI accountability in multiple ways, including advancing talent and addressing issues. The company has tracked pay equity data across its regions, including the U.S., UK, and India, and Neri confidently states that women earn the same dollar-for-dollar pay as men.

Neri emphasizes the importance of transparency in building public trust, particularly in the areas of politics, law, corporations, and the media. He believes that being more open about issues and involving the public in finding solutions can help rebuild trust. When speaking to his employees, Neri stresses the importance of clear communication, engagement, and honesty in dealing with issues. He values his employees' input and believes that their involvement in finding solutions can lead to better outcomes.

Many companies are becoming more reluctant to use acronyms such as ESG and DEI, and Neri agrees with this trend. Instead of focusing on these acronymic terms, it is important to have a rational and logical conversation about the advancement of people and inclusivity. Most people want to ensure that everyone has an opportunity to share their opinions and be included in the conversation. Therefore, it is essential to step back from acronymic language and focus on the actual conversations we need to have.

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