Kate Vernon, Managing Director of Community Business gives her take on Diversity and Inclusion (D&I) in the workplace.
What do you think are the greatest challenges facing HR managers in Asia?
Companies in Asia are faced by an acute war for resources so they need to ensure that they attract and retain the best talent—no matter what shape or form that comes in. That means they need to develop diversity strategies and policies that help create an inclusive workplace where all can contribute. We have found through our work that key diversity issues in this region focus on issues such as developing Asian talent, progressing women in the workplace and addressing the ageing workforce. Companies in Asia are not doing enough to develop Asian leaders—particularly those who can lead regionally and globally. With regard to women in the workplace, despite claims of equal opportunities, the participation rate of women at senior levels is low—companies need to do more to retain and empower female talent. Companies are not yet addressing the impact of the ageing workforce—yet this is an issue that will challenge all companies within the next decade or so.
These issues were addressed at our third Diversity & Inclusion in Asia Conference held in November in Hong Kong. The Following is an Extract from Community Business 2007 Report—Diversity Priorities in Asia: Challenges and Actions to Impact Change.
Background
Community Business, a leader in the field of workplace diversity in Asia, is dedicated to understanding the challenges and issues facing companies operating in this region. It is the organiser of the Diversity & Inclusion in Asia Conference, which was first held in 2005, then in June 2007 and in November 2008. The conference attracts over 200 delegates from across the region: a combination of senior business leaders and human resource professionals from the corporate sector across Asia. The companies represented are primarily multinational companies operating in Asia. A key component of the conference programme is a facilitated discussion where delegates are given the opportunity to engage in structured dialogue with their peers.
Key D&I issues explored by delegates at the 2007 Conference:
the priority diversity issue for their organisation in Asia from the four diversity themes presented at the conference: gender, culture, disability and generation;
the specific challenges relating to the diversity issue that they said was their top priority and the countries most affected by this issue;
the specific actions they believe their company can take to impact change in this area.
Key D&I issues and recommendations from community business
As in 2005, in 2007, culture and gender were identified as the most pressing diversity issues for many western multinationals operating in Asia. In 2007, participants were much more vocal about the lack of support for Asian leadership in the region and were clearly frustrated by the lack of progress in this area. In terms of gender, many companies in Asia continue to struggle with getting more women in leadership positions.
It is interesting that generational issues are challenging a significant number of companies in the region. They see the business case for appealing to the young—particularly in terms of being an employer of choice, and appreciate the need to understand the demands of Generation Y.
Disappointingly however, the issue of disability still remains on the fringe of corporate discussions and was evidenced by the small number of companies that cited this as a priority in their Asia operations. For each of the issues discussed, participants raised the importance of senior leadership commitment. Leadership backing is more likely to bring an integration of diversity into business, a change in corporate culture and a commitment of resources. Leadership needs to understand also that even with the best possible intentions, strategies and resources go only part way. What is needed over time is for leadership in Asia to be diverse in itself—particularly in terms of having Asian and female representation.
Traditional, often outdated, attitudes prevail in many workplaces in Asia—be it the view of Asian people as future leaders, women in leadership positions, young people as having inappropriate work styles or stigma around people with disabilities. More work needs to be done to break down these stereotypes. Training is used as a change agent but often fails in delivery in Asia as its focus and development is often US or Europe-centric. What is needed is a concerted effort for companies to engage experts from Asia in developing such programmes. In addition, mentoring can be used much more in Asia to impact change in attitudes and behaviour.
For some companies, investing in the development of local employees, women, young people or people with disabilities can be challenging and can represent a certain level of risk—hence their reluctance to do so. We heard that in some cases there is a lack of willingness to address the challenges head on and assign the necessary resources. However these companies are being myopic in their focus and will inevitably lose out to those employers who are committed to operating a system of meritocracy—where it is essential to attract, recruit and retain the best regardless of any form.
In Asia some processes may need to be adapted to accommodate more flexible requirements of women in leadership, more informal ways of working may need to be introduced to harness the energies of the younger generation, or workplace adjustments might need to be made to ensure the productivity of people with disabilities. All of this requires leadership commitment, a change of corporate culture, investment of time and resources. It requires a process of stakeholder engagement and a genuine dedication to create an inclusive environment where all individuals can realise their full potential.
With it comes creativity and fresh perspectives—one of the greatest values of diversity. The companies that are prepared to turn risk into opportunity will be the winners in the war for talent and leaders in our global economy.
In what way do policies of D&I benefit companies who integrate them?
More diverse organisations equate to greater business success. This is on several levels.
From a commercial perspective, companies need to reflect the diversity of the global market place they are serving. For example, organisations that hire more Asian talent are likely to benefit from greater knowledge of the Asia market.
Secondly, if they are to be an employer of choice and attract the best and brightest talent they need to create inclusive workplaces for all employees—whether it is for women, people from a certain ethnic group, young, old, straight or gay or disabled employees. Such an environment leads to greater staff engagement and loyalty.
Thirdly it is well recognised that greater diversity of thought that comes with a diversified talent pool, promotes creativity and innovation—and that’s critical in today’s fast moving business environment. For example, companies that encourage greater participation from women may benefit from softer skills deemed critical for the future workplace including: teamwork, collaboration, relationship building, etc. Organisations that encourage greater engagement of Gen-Y may be exposed to new ways of thinking and working.
How can companies work together further to advance these D&I interests?
To date, little research has been done on these issues in Asia. Community Business is proactive in this field and is working with leading companies to explore the issues in Asia. It is important for companies to collaborate with one another, engage in dialogue, share experiences, both good and bad, and share best practices in this field.
How can HR Directors approach reluctant CEOs and convince them to adopt this element into a company’s overall business strategy?
The HR Director must clearly demonstrate the business case for diversity to help bring the CEO on board. They could also refer to successful examples in other companies to help substantiate their case.
Paul Arkwright
Publisher
