Difference is ‘Value Added’
by: Carole Spiers
Managing diversity isn’t just a moral and legal obligation, it can present tangible business benefits as well.
What is diversity?
We in the UK are fortunate to live in a country which is rich in the diversity of its population. Nowadays, your work colleagues might be any age, male or female, from any ethnic, religious or cultural background, married, single or living with a partner of the opposite or same sex, able-bodied or not. This has many advantages, but also presents organisations with the challenge of getting the best out of such a diverse workforce, while at the same time meeting their legal responsibilities. It is therefore important that companies give due consideration to how to achieve this if they want to maintain their place in the market.
The moral and legal case for diversity
In the UK:
• Women make up half the workforce, but just 9% of management grades and 2% of senior management (The Observer, September 2003)
• Ethnic minorities make up just 1.5% of management, and are almost non-existent at senior levels (The Observer, September 2003)
• By 2011, only a third of the workforce will be male and under 45. (2002-based projections issued by the government.)
• By 2014, the working age population will increase by one million, and ethnic minorities will account for half that increase. (2002-based projections issued by the government.)
Introducing and promoting diversity is morally the right thing to do. Diversity not only assumes that all individuals are unique and different, but that difference is ‘value added’. It acknowledges that everyone has the right to express their views and beliefs in a manner that is sensitive to those around them (i.e. free from racism, sexism, ageism and other forms of prejudice). Everyone should have the right to contribute to activities and grow within their workplace. A diverse work environment also demonstrates an organisation that it is a caring, inclusive and respectful.
While there is no one specific piece of legislation covering diversity, there are several Acts of Parliament, European laws, Regulations and examples of case law which together make up the legal framework for diversity. (The Equal Opportunities legislation in particular makes it mandatory.) Although the following list is not exhaustive, the key legal frameworks include:
• Pay discrimination (1970)
• Sex discrimination or marital status (1975)
• Race discrimination (1976)
• Positive action [1986]
• Disability discrimination (1995)
• Human Rights Act (1998)
• Gender reassignment (1999)
• Age discrimination (1999 code of practice)
• Genuine occupational qualifications [2000]
• Equality in sexual orientation (2003)
• Equality in religion and belief (2003)
The business benefits of diversity
According to a study published in 2003 by CREATE, an independent research centre (‘Harnessing Workforce Diversity to Raise the Bottom Line’), a more diverse workforce improves business performance. The study, which involved around 500 companies operating in the UK, USA and Europe, uncovered a range of business benefits including:
• Higher staff retention
• Reduced recruitment costs
• More satisfied customers
• Access to a wider customer base
• Better supply chain management
• Access to new ideas on process and product improvements
Diversity is also key to success in global markets – any organisation that wants to expand internationally cannot hope to do so effectively without a detailed understanding of the cultural background of the new markets in which it hopes to succeed. The study did however find that diversity management is a long-term process with no quick fixes. Two obstacles in particular were being widely experienced:
• Ingrained attitudes that make it difficult for senior managers to manage people who are very different from them
• The culture of long working hours, which makes it difficult for women to aspire to senior management positions
The report concluded that diversity produces maximum financial impact when it is linked with business strategy and has the support of senior executives. According to Professor Amin Rajan, chief executive of CREATE and co-author of the report, companies are beginning to see that diversity in the workplace pays. Rajan says “Instead of thinking about diversity as about equality, that is, in terms of the law or compliance, companies are now seeing it as an issue of merit and merit alone”. For instance:
• Customers want to be served by a company they can identify with, so a white male sales force might be too limiting
• Teams made up of mixed ethnicities, backgrounds and genders are likely to be genuinely more creative than teams made up of the same type of people
Other benefits of diversity are that diverse organisations will:
• find it easier to recruit as there will be a far greater market to choose from
• enjoy access to a greater wealth of experience, skills and talent
• gain improved public image – as an employer and as a service provider
• experience increased staff motivation
• encourage and develop entrepreneurs
• develop role models, thus helping future growth in management
• increase their market penetration
• show better overall financial performance
An additional spur has been the rash of multi-million dollar discrimination lawsuits brought against pillars of the US corporate establishment such as Texaco (a racial discrimination case settled for $176 million in 1996), Coca-Cola (a sex discrimination case settled for $192 million in 2000) and Wal-Mart (various disability discrimination cases settled for in excess of $7 million, plus a pending and potentially very expensive case alleging sex discrimination involving large numbers of both past and current female employees).
The keys to diversity
A diverse group inevitably draws on a wider range of experience, background and culture; but also benefits because, in the presence of diversity, the mind is encouraged to stretch and dares to move.
(continued...)
Difference is ‘Value Added’
Page 2
About The Author
Carole Spiers MIHE MISMA
Carole Spiers combines three roles of Broadcaster, Journalist and Corporate Manager in the challenging field of stress management and employee wellbeing.
Over the past 20 years, she has built up her corporate stress consultancy Carole Spiers Group (CSG), with prestige clients such as Sainsbury’s, Rolls Royce and the Bank of England.
Carole is frequently called upon by the national and international media and provides keynote presentations on stress-related issues.
Carole was instrumental in establishing National Stress Awareness Day™.
|
|
