The business case for recruitment diversity

Our economy depends more than ever on the talents of well educated, skilled, flexible workers. The potential for major shortages of qualified workers in some occupations is quite alarming and could slow growth in many parts of the world. Yet if one examines the profile of people in senior positions in business, one soon recognises that there is under-representation of large segments of the population. Putting that right could therefore be a source of newly qualified, skilled staff. A positive approach to promoting diversity can simultaneously strengthen economic competitiveness, address labour market shortages and open doors to challenging and rewarding careers for many traditionally disadvantaged people.

In the workplace, diversity relates to the variety among people related to factors such as age, culture, education, employee status, family status, function, gender, disability, ethnicity, national origin, physical appearance, race, regional origin, religion, sexual orientation, intelligence and thinking style. Diversity also refers to the other ways in which people are different, such as educational level, life experience, work experience, socioeconomic background, personality and value systems. It might easily be claimed that the continent of Asia has the most diverse of workforces in the world, yet in many Asian businesses the whole issue of diversity is something very new.

In an era of critical skills shortages, organisations will find that they must attract, retain, motivate and use their valuable human assets more effectively if they are to maintain competitiveness. Diversity management can reduce staff turnover, increase retention rates and reduce absenteeism. In order to retain competitiveness a business must ensure that it has the best staff it can get. If it excludes any particular group then it runs the risk of excluding some of the best potential talent.

Data shows that people entering the workforce in the next twenty years will be more diverse than the current workforce. In Asia, we will be experiencing a rapidly aging workforce as people live longer and birth rates continue to fall. The demographics of many workforces will change with increased migration and women will become more economically active. Changes in cultural norms will see less reliance on traditional family structures and more people making alternative choices about their lifestyle habits and working patterns.

Valuing diversity means promoting the value that all individuals, all races, all voices, and all cultures have equal integrity and have the same fundamental rights. In respecting diversity it is important to recognise that there are other ways of viewing the world, solving problems, generating success, being happy and working.

Managing diversity successfully means creating an environment that values and utilises the contributions of people with different backgrounds, experiences and perspectives in an effective way. Organisations need to develop people management strategies that accommodate differences in the backgrounds, perspectives, aspirations and responsibilities of their employees. They need to recognise the contribution that a diversity of perspectives makes to generating new ideas and new ways of conducting business.

Managing diversity therefore means promoting inclusion, creating an environment where all differences are valued, and in which each employee can develop to their full potential. From a business perspective, managing diversity is valuable because it means an organisation gets the most from its staff. Companies that embrace diversity realise that it is not enough to hire employees from under-represented groups; they must also provide an environment where all employees are supported, valued, developed and engaged.

Workplace diversity principles need to underpin all aspects of human resource management, including planning, selection, career development, performance appraisal, training, occupational health and safety and workplace participation. They should incorporate flexible working conditions to allow employees to balance their work, other responsibilities and leisure time.

Workplace diversity strategies yield many benefits for organisations and the community: they help to build the organisation’s relationship with the community, enhance the contribution of its employees and improve the quality of its programmes, products and services because it is recognised as an engaged, sympathetic, proactive and trusted organisation.

A starting point for many businesses should be diversity training. This needs to be forward looking and promote a business case for diversity, in which businesses prosper through having a diverse workforce. This business case approach is clearly important in order to obtain senior management buy-in, corporate commitment and also to accelerate the rate of progress.

But diversity does not mean hiring those who are different and then forcing them to behave in the same way. Indeed, the diversity debate has shifted from an ethical obligation relating to non-discrimination and affirmative action to a business strategy that truly values difference. Business leaders, faced with intense competition in global markets, a global war for talent and increasingly sophisticated staff are now focusing on how to leverage diversity as a competitive differentiator. A good reason to engage with diversity includes a recognition of some of the significant benefits of a diversity strategy, which include the following:

Improved service to customers

A workplace that can reflect both the local community and global markets will understand its customers better, which will in turn lead to improved service.

A diverse workplace will have good communication with its customers based on a deep understanding of their needs.

Competitive management practices

Organisations that value and capitalise on employee diversity often have productive and fulfilling workplaces which help them attract and retain employees. This leads to savings in recruitment and training costs, as well as maintaining corporate knowledge and expertise.

Improved employee morale and motivation: A diversity strategy makes work more fun, improves communication between employees and increases people’s feeling of self-worth.

Personal development and education

Promoting and celebrating diversity in the workplace helps to develop many personal attributes of individual people. People begin to appreciate different ways of behaving, different value systems and different personalities. A wider set of experiences feed the mind and help to create better understanding and appreciation of others.

In line with personal development, a diversity strategy can also help the organisation develop itself and become a dynamic, flexible, learning organisation.

A diverse workforce with a range of different backgrounds and perspectives gives organisations a broader range of ideas and insights to draw on in decision making and policy development. Diversity can stimulate creativity, new perspectives and alternative values. It creates new opportunities and therefore makes good business sense.

So many companies have made mistakes when they have moved into new locations and brought with them inappropriate (and sometimes offensive) cultural norms and values. Disrespect for local culture is something that will not be tolerated any longer. Creating a diverse culture, rather than a monoculture, therefore allows a company to expand in a sensitive way.

Decreased complaints and litigation: The costs to an organisation of an unhappy employee can go far beyond low productivity, high turnover or absenteeism. Increasingly, they may include litigation and damage to corporate reputation and brands. Leading companies in the world already know that diversity is an important part of the wider business strategy and that it can add considerably to workplace efficiency and effectiveness. In short, world class companies celebrate diversity.

Indeed, diversity is central to internal aspects of corporate social responsibility and helps the company develop an external profile that demonstrates flexibility, inclusiveness and respect for all people.

Having a diversity strategy in the workplace is fun and rewarding. It empowers people, adds to the personal satisfaction of staff and helps to generate increased commitment, productivity and loyalty to the organisation.