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Recruitment & Retention

Published November 2006

The Business Case for Workforce Diversity

 

  David C Forman

According to Coca-Cola, "Our differences make us stronger — in our workplace, in our communities and in the marketplace — each and every day." Any discussion of the business case for workforce diversity should begin with a time check. This discussion would have been very different two years ago, as it will be two years from now.

The New York Times supplement on leadership in diversity (Sept. 24) continues to grow and add more exemplary programs. Three of the time-based factors that need to be considered are highlighted here.

1. The Shifting Definition
Diversity initially was operationalized to mean women and minority groups. These continue to be vital constituencies, but the meaning of diversity should encompass "all the ways in which we differ" (Pillsbury). This says little about who is a majority or minority because that is changing rapidly. Previous minorities represent majorities in America's 10 most populous cities and its two largest states. So, it's not a question of percentage points — it is about diverse viewpoints, values and experiences.

From these initial constituencies, diversity also needs to encompass the valuable perspectives that can come from different experience and skill levels, religions, cultures, age groups, physical capabilities and groups of people not previously considered. According to the American Society for Training and Development (ASTD), diversity is "the mosaic of people who bring a variety of backgrounds, styles, perspectives, values and experiences as assets to the groups and organizations with which they interact."

2. Getting in the Door or Getting in the Boardroom
Early diversity programs were focused on getting different people in the door. Targets were set, and it became essential to meet or exceed these hiring quotas. Once these legal requirements were met, companies felt their responsibilities were completed. Diverse employees often were left on their own, and there was little attempt to capitalize on their unique strengths.

It took awhile for organizations to realize this was counterproductive. The very reason for bringing different people into the organization was lost. It has become clear that hiring is only a small part of a bona fide diversity program. Organizations had to be flexible and adaptable, and they had to develop different practices to begin capitalizing on the strength of differences. Among the types of changes that have been instituted are diversity-awareness programs, buddy pairings, diversity mentors, onboarding programs, affinity groups, expanded networks, targeted leadership and retention programs and specific diversity metrics. Once this infrastructure was built and supported, the boardroom started to have a very different look. According to Morgan Stanley, "Diversity. It's not an obligation — it's an opportunity."

3. Diversity Programs Are Now the Standard and Not the Exception
Diversity programs are now fully accepted — nearly everyone has one. Many company-value statements include references to diversity and inclusion. There are myriad titles that exist in companies, and Web sites prominently display a company's diversity brand, which, in turn, is a key component of its employment brand. The real difference among programs is in not whether there is a chief diversity officer or global vice president of diversity programs, but it is in the details and follow-through in both hiring and organizational diversity interventions. The rhetoric is great, but in some or many cases, the practice is disappointing. A lot of hard and careful work remains for all types of talent to be effectively deployed within organizations.