Businesses that fail to successfully manage diversity will
suffer economic and social consequences. A workplace culture
that allows low morale, employee turnover, harassment,
discrimination, absenteeism, and disruption to work teams
results in a loss of productivity. When individuals are
marginalized or isolated by their co-workers and/or managers
because of cultural differences, the outcome is a poisoned work
environment, contributing to employee absenteeism.
Additionally, the direct costs of non-compliance with employment
laws are continuing to increase; six-figure damage awards are
becoming more common. The indirect costs of non-compliance are
more difficult to quantify. Claims alleging sexual harassment
or discrimination have a devastating effect on all employees.
As well, failure to respect and comply with the Americans with
Disabilities Act (ADA), Family and Medical Leave Act (FMLA),
Equal Employment Opportunity (EEO) and affirmative action laws
or the Canadian labor and human rights laws make employees
wonder how they will be treated, resulting in a devastating
effect on employee retention. Any negative publicity will
damage the corporate image, making it even more difficult to
attract and retain talented and skilled employees.
Businesses with an effective diversity strategy will have a
leading edge in employee productivity and retention. At a time
when the pending retirement of the baby boomers will strip the
workforce of massive numbers of skilled workers, businesses will
experience a shortage of workers to replace retirees. An
inclusive work environment is simply good business. The loss of
one employee due to poor management practices is too many!
Managing Diversity for
Success™ is a program that goes far beyond valuing individual
differences or developing human resources policies. It takes
into account the globalization of the world economy, as well as
changes to the domestic demographic characteristics of the
population (diversity). Business leaders that recognize these
changes as a business and social opportunity to increase
productivity and growth will invest the time and money needed to
develop, implement, monitor, and review a diversity strategy
that will have a positive effect on business, employees,
suppliers, customers, products, and services. Businesses
taking a strategic approach for Managing Diversity for Success
will be in a position to gain a competitive advantage.
Managing Diversity for Success is a four-step process:
1.
Recognizing the economic consequences to the
business.
2.
Developing an effective strategy for managing
diversity.
3.
Implementing an action plan for organizational
change.
4.
Evaluating the diversity strategy.
Step 1 – Recognizing the economic consequences to the business
Businesses that do not have an effective strategy for managing
diversity will likely experience all or some of the following
consequences: loss of productivity, employee turnover, lost
opportunities, and potential employment law mistakes. To avoid
these consequences, decision makers need to recognize this
deficiency as a business problem and acknowledge the need to
develop an effective strategy for Managing Diversity for
Success.
Step 2 - Developing an effective strategy for Managing Diversity
for Success
i.
Communicating with employees
Communicating with employees begins when management commits to
the four-step process for Managing Diversity for Success. The
method used to communicate will vary depending on the number of
employees and locations. Informing employees of the diversity
efforts the business will undertake will position the MDS
process as an opportunity to enhance productivity and growth.
As well, communicating with employees at this step of the
process will prevent or lessen opportunities for the circulation
of misinformation and rumors that could undermine the MDS
process.
ii.
Assigning responsibility
It
is the responsibility of management to develop, implement,
monitor, and review the organization’s diversity efforts.
Significant consideration is required in the selection of the
individual who will lead the strategy for Managing Diversity for
Success. When selecting the individual to lead this process, be
sure that the person is a respected employee who consistently
demonstrates a commitment to the principles of inclusion, and
that the person is a decision maker with the authority to lead
and act on recommendations.
Allocating financial resources
There are costs to implementing the four-step process for
Managing Diversity for Success. Demonstrating a commitment to
this process requires management to allocate a budget in order
to ensure that the diversity action plans are not subject to
shifting priorities and efforts. Allocating a diversity budget
sends a clear message to employees, suppliers, and customers
that management is serious about bringing about changes to
enhance productivity and opportunities for growth. Costs can
include the diversity council, communication, diversity
assessment, and employee training.
iii.
Establishing a diversity council/task force
Does
the organization require a diversity council or task force?
Generally, a task force is time and task specific, ending with a
report of the findings prepared for management. The diversity
council is an integral business partner in the development,
implementation, monitoring, and review of the action plan.
Establishing a diversity council is an opportunity to directly
involve employees who often are the company’s “diversity
champions.” Many factors need to be considered when selecting
committee members and determining the committee’s goals.
iv.
Building accountability
Building accountability into the organization’s diversity
efforts begins with a clear statement from the CEO stating
his/her expectations and outcomes for the diversity strategy. A
business leader that sets standards and leads by example in
organizational and personal actions demonstrates commitment to
employees, suppliers, and customers about the importance of
diverse ideas, opinions, knowledge, and skills. Although
achieving diversity business success is the responsibility of
all employees, long-term sustainability is achieved by holding
management accountable for integrating diversity within all
business functions, and by evaluating managers based on their
ability to achieve diversity goals.
Step 3 - Implementing an action plan for organizational change
i.
Communicating the action plan
The
components of an organization’s diversity action plan will vary
depending on corporate strategic goals, size of the
organization, time for committee work, and human and financial
resources. One of the key components for success is
communicating with employees throughout the Managing Diversity
for Success process to deliver a clear message: MDS is an
ongoing process, not a quick fix program. The goal is to bring
about real organizational change to benefit the business,
employees, suppliers, and customers.
As
the business moves to the implementation of the diversity action
plan, responsibility for MDS is shifting from a top-down to
circular approach that involves all business functions and
organizational levels. The process utilizes the diverse
knowledge, thinking, and talent of employees and community
alliances to meet business diversity goals. Be aware that the
organization is now potentially exposed for its shortcomings; it
is time to walk the walk. If senior management, advisory
boards, and directors do not reflect the diversity of society,
change is required, or very quickly employees and the public
will know that there is no commitment or action for real
organizational change.
ii.
Conducting the initial diversity assessment
Now
that employees are informed about the MDS process, it is time to
conduct an organizational diversity assessment. The diversity
assessment results will give insight into the perceptions of
employees relating to the workplace environment, management’s
contribution to creating a harmonious and productive workplace,
and employee working relationships.
Including all employees in the diversity assessment provides
information about the organization as a whole as well as its
employee groups, i.e., position, age, gender, years of service,
race, sexual orientation, etc. The diversity assessment results
provide a baseline of information to measure future progress.
Utilizing the diversity assessment results to plan future
initiatives ensures the organization’s diversity efforts are
developed based on a solid foundation of information.
iii.
Setting diversity business goals
Achieving diversity means a shift from a non-diverse business
(workforce, suppliers, products, customers) to one that reflects
the demographic characteristics of the population within all
functions and organizational levels. Achieving diversity
requires management to set specific, measurable, achievable, and
realistic goals based on business needs and by selecting key
areas where diversity can help move the business forward.
iv.
Providing employee training and development
Memos and team discussions clearly state that achieving
diversity is the responsibility of all employees. Opportunities
for diversity training must be provided for employees to further
develop their understanding of diversity and to learn the
necessary skills to achieve diversity business goals. Good
diversity training gives employees the skills that they can use
to deal with workplace diversity, its implications and effects.
Begin with awareness building to ensure that all employees
understand the business and ethical reasons for implementing a
diversity strategy. A second-stage diversity program should
further develop employees’ skills and knowledge to contribute to
business success in a meaningful way.
Step 4 – Evaluating the diversity strategy
To
restate, Managing Diversity for Success is an ongoing process,
not a program. The goal for MDS is to establish diversity as an
organizational and business value. To achieve MDS, it is
imperative that management evaluates each component of the
diversity strategy to determine successes, setbacks, and new
opportunities in order to revise the diversity strategy.
Communicating the outcomes and future goals of the diversity
strategy should be expanded beyond employee groups to include
additional stakeholders and the public. The purpose of your
communication strategy at this point is to talk about business
goals and achievements relating to the diversity strategy for
Managing Diversity for Success. The goal is to be recognized by
employees, suppliers, customers, and the public as an inclusive
organization that places a high value on diversity that is
reflected in the business products and services.
Elizabeth McArthur established Diversity At Work Ltd, a company
that specializes in diversity consulting, training, and
assessment. She developed the web-based Diversity Assessment
Scale (www.diversityassessment.com),
a tool to determine the degree of organizational and personal
commitment to workplace diversity. Based on her experience, she
has developed Managing Diversity for Success™, a
four-step process to assist organizations to develop and
implement an effective diversity strategy.
Source: DIVERSITY AT WORK Ltd. |