By Janet M. Stovall, CDE
In a recent conversation on the In This Moment podcast, LaQuenta “Q” Jacobs offered a simple explanation for why so many companies get it wrong on diversity, equity, and inclusion: “If you don’t have it internal, you can’t take it external.”
Three gaps that cost
When what a company says on its website doesn’t match what it’s like to work there, it’s hypocritical. It’s also expensive, thanks to three big gaps.
First, there’s the talent gap. These days, potential employees don’t stop at the job description. They investigate companies. They read Glassdoor reviews. They reach out to former employees on LinkedIn. They’re trying to find out what a culture is really like before they even apply. And when they find a gap between said and done, they walk away. That costs money in recruitment and retention. When a new hire leaves because the culture doesn’t match the brand, that’s a wasted investment.
Second, there’s the market share gap. If a company is trying to build something for a market and doesn’t have representation from that market inside the organization, it can miss the mark. A homogeneous team can’t design products for a diverse world and expect to win. Jacobs provides the numbers:
- Black and Hispanic consumers represent over 25% of the U.S. consumer goods market
- Asian American households spend more per capita than any other group
- Women control 85% of consumer purchasing decisions
- The LGBTQ+ community has $1.4 trillion in buying power
Third, there’s the brand reputation gap. We’ve all seen the ad or commercial that made us ask, “Who approved this?” Campaigns and products like the Gucci “blackface” sweater, the H&M monkey t-shirt, and the American Eagle/Gap jeans controversy are what happen when what a company actually is punches through what it claims to be. Reputation hits have real financial cost.
Three moves leaders can make to close those gaps
From symbolism to systems. No more DEI statements without structural accountability. Embed inclusion in talent planning, compensation frameworks, leadership development, supplier diversity, and product design.
From psychological safety to cultural sustainability. Safety isn’t enough. Employees want to know they have a voice, influence, and alignment with the organization. They’re giving their unique gifts and talents. They need and want more than a generic paycheck in return.
From representation to redistribution. Representation—diversity—is the entry point. Redistribution of power, access, and opportunity—equity—must be the goal. That means rethinking who leads, who decides, and who benefits.
Talent, market share, and brand reputation are real assets that put a real cost on gaps between what a company says and what it does. Companies that understand this win. Companies that don’t lose big.
Listen to the full conversation with LaQuenta “Q” Jacobs on the In This Moment podcast at inthismoment.network.
