Many people dream of becoming entrepreneurs, and often the biggest...
Letting technology do the heavy lifting for certain monotonous tasks...
Growth often hinges on capable leadership at every...
Reaching $10 million in Annual Recurring Revenue (ARR)...
May 18, 2023
As a small business owner or leader within your company, you’re probably constantly thinking about ways to make your workplace more inclusive, collaborative and welcoming for your team. But one issue many leaders are often unaware of is the bias of “colorism”.
Leaders who aren’t familiar with colorism — or who don’t actively work to combat the biases that naturally emerge in diverse workspaces — may unknowingly perpetuate this bias through their actions and decisions. And as a result, the workplace they believed to be inclusive and welcoming may actually be divisive and harmful.
In this article, we’ll share a handful of ways colorism shows up in the modern workplace — from hiring decisions to team influence — plus four ways you can stop colorism from dividing your small business.
Colorism is one form of discrimination that’s based on skin color, tone or shade. Colorism typically favors lighter skin over darker skin, and the bias may be overt or unconscious. Unfortunately, if left unchecked, colorism can lead to negative stereotyping, prejudices, and harmful discrimination against people who have a darker skin tone.
Unlike other forms of bias built on the mentality of us-versus-them, even members of the same community and racial identity can experience a colorism bias towards one another.
While colorism can impact any individual, women from marginalized groups are the most likely to experience the bias in action.
Because colorism isn’t one of the more obvious forms of bias, it can often sneak in under the radar. Leaders and employees may be totally unaware of their bias towards lighter skin tones, forcing those with darker skin to work harder for the same opportunities — if those opportunities are even available to them.
According to a survey of nearly 3,000 professional women, Catalyst, a global nonprofit that supports women in the workplace, a full 51% of respondents from marginalized groups have experienced racism in their workplace. Even more surprising, multiple studies have revealed that skin tone can be a bigger factor in the career opportunities and long-term earning potential of an individual than their education level.
Colorism is also a difficult bias to prove and prevent. For example, a diverse team that employs individuals from a variety of backgrounds and cultures may look inclusive and equitable on the surface. At face value, listening to multiple voices from marginalized racial and ethnic groups is a step in the right direction. But if a few members of the team are continually passed over for opportunities, ignored in meetings and given less influence, and those members also have naturally darker skin, the bias of colorism may still be at work.
Individuals who experience colorism in their workplace often have no official form of recourse. It’s difficult to document bias in general — and even more complicated when that bias occurs within racial and ethnic groups. Until HR teams recognize colorism as a real issue in the workplace, individuals that experience the negative effects of this bias are likely to face two choices: Continue experiencing the bias or find a new job.
Minimizing the impact of bias in your small business isn’t just the right thing to do, or good for workplace morale — it’s an investment that pays off for years to come.
Employees who feel psychologically safe in their workplace are 2.4 times less likely to quit their job, and they’re happier, more productive and more vocal. And at companies where senior leadership is clearly committed to DEI initiatives, a full 84% of employees report feeling valued and respected. That’s compared to just 44% of employees who feel valued and respected at companies that don’t prioritize DEI efforts.
The case for combating colorism is clear. When your employees feel safe, happy and empowered at work, they want to be present, engage and give their best.
Today, combating colorism isn’t just a nice idea — it’s a necessity for companies that want to thrive, grow and keep their best employees engaged. By understanding how colorism impacts your team, the ways it shows up in your workplace, and how to interrupt its negative effects, you can create a workplace where everyone can find success.
This material has been prepared for informational purposes only. Escalon and its affiliates are not providing tax, legal or accounting advice in this article. If you would like to engage with Escalon, please contact us here.
Our team is made up of seasoned professionals who bring years of industry experience to the table. You gain a trusted advisor who understands your business inside out.
Say goodbye to the hassles of hiring, training and managing in-house finance teams. You will never have to worry about unexpected leave of absence or retraining new employees.
Whether you’re a small business or a global powerhouse, our solutions scale with your needs. We eliminate inefficiencies, reduce costs and help you focus on growing your business.
Growth often hinges on capable leadership at every level. Yet many medium-sized businesses focus on filling immediate management vacancies rather...
Reaching $10 million in Annual Recurring Revenue (ARR) is a major milestone, but scaling further brings new operational hurdles. From...
April 30, 2025– Escalon Services, a leading provider of back-office solutions for startups and SMBs, proudly announces that it has...
Moving from 25 employees to 100 is a tipping point for many businesses. What worked with a lean, close-knit team...
Compensation isn’t just about paying people to show up and do work; it’s a strategic tool that can attract top...
Accurate accounting is the bedrock of any successful business operation. Yet, medium-sized businesses—those that have grown beyond the small-business stage...
Distinguishing between independent contractors (1099) and employees (W-2) is a pivotal compliance matter for U.S. businesses. Misclassification can result in...
Spring symbolizes renewal, making it an apt metaphor for startups aiming to secure fresh capital to fuel their next growth...
Payroll is more than just issuing paychecks—it’s a complex, high-stakes process that can significantly impact employee satisfaction, legal compliance, and...