How the 50 – 30 Challenge can help organizations improve representation at the board and senior leadership level

On March 28, 2024, 85 attendees tuned in for a webinar about the benefits, risks and challenges of implementing an equity, diversity and inclusion (EDI) strategy in an organization. Hosted by the Diversity Institute (DI) and Women of Influence+ (WOI+), panelists discussed the 50 – 30 Challenge (external link) , in which DI is an ecosystem partner. The Challenge is a voluntary code that aims to advance gender parity (50% women and/or non-binary people) and representation of other equity-deserving groups (30%) on Canadian boards and/or in senior management.

The event marked the final in a series of three events on women in leadership, with the others investigating what it means to be a women leader in science, technology, engineering and math; and to be a woman leader living with a disability. 

The speakers discussed the aims and benefits of the Challenge, highlighting that while more than 2,000 organizations have signed on to date, there’s still more progress to be made. The event was moderated by Nadine Spencer, CEO of BrandEQ Group. She welcomed the speakers and highlighted that the webinar aimed to explore not only the benefits that equity, diversity and inclusion (EDI) brings to organizations, but also the broader societal impact of these initiatives. “It's not just about meeting quotas,” she said. “It is fundamentally about reshaping organizational cultures to be more inclusive and representative of the rich tapestry of our society.” 

Spencer then asked the panelists, “Where do you see challenges for organizations when implementing EDI strategy? And what is the role of a voluntary code like the 50 – 30 Challenge?”

Shannon Pestun, senior advisor of business and finance at the Women Entrepreneurship Knowledge Hub, said that one of the biggest challenges she’s seeing is that organizations are still hesitant to begin implementing EDI. “There are still a lot of people who think that this is the politically nice thing to do or the socially nice thing to do,” she said. She added that it's important to also look at the economic impact of what happens when everybody is given a seat at the table. She drew attention to preliminary findings of the 2024 State of Women’s Entrepreneurship in Canada (external link) , which noted that advancing gender equality and women's participation in the economy could add up to $150 billion to Canada’s gross domestic product.

Nancy Mitchell, director of research-special projects at the Diversity Institute, said, “I think the 50 – 30 Challenge is really an opportunity for us to encourage organizations to be transparent and to take accountability.” She said that through the Challenge, organizations are creating a domino effect, and by setting the tone of commitment to implementing EDI in their organization, they’re causing a wave of change.

Spencer then asked the panelists, “What are the benefits of implementing EDI into an organization?”

Rumeet Billan, CEO of Women of Influence+ (external link) , said that when it comes to EDI it’s not only important to invite everyone to the table, but also to make sure they feel welcomed to share their ideas when they get there. In human resources, for example, Billian pointed to the  (PDF file) Tallest Poppy study (external link) , which found that many women experience being left out and undermined at work, leading to top talent experiencing burnout and ultimately leaving an organization. She said, “We talk about the war for top talent when actually we should be talking about retaining our top talent because they are the ones that are leaving.”

Mitchell added that the population of Canada is changing, and employers need to take note, given that research shows newcomers, especially those who are racialized, face significantly higher rates of unemployment. “If a company is not valuing international skills, [then] that’s a bias that's baked in, [and] that organization is not actually the best placed to attract and capture the talent that's coming in,” she said. “You're missing out on the talent pool.”

Tania Saba, BMO Chair in Diversity and Governance at the University of Montreal, said that small and medium-sized enterprises (SMEs) are the backbone of our economy. She said that while SMEs also generally have smaller teams, signing up to the Challenge can help them. “The 50 – 30 Challenge offers a framework that is coherent, that makes it easier for organizations to put in place something that is embedded in the mission of the organization, but also provides them with action that can be effective,” she said.

Mitchell said that when an organization signs up for the 50 – 30 Challenge, it gains access to free tools to support its EDI journey. “If your organization only consists of five people, that is a great place to start,” she said. “You're foundationally building up your mission, values and policies that frame your organization moving forward.” Mitchell said SMEs should bake EDI into their organizations from the beginning, so that as they grow they can evolve, rather than having to work backward to make major amendments.

As the webinar ended, Pestun said that change needs to start at the top. “EDI needs to get filtered down into the entire organization,” she said. “It’s not just C-suite positions; it’s governance as well.”  She added that employee engagement surveys are a great place to start because the surveys provide data that gives a clearer sense of what a company's culture is. “I can’t emphasize enough that what gets measured, gets done.”