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Article #162: Do Diversity Policies Matter?

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A recent survey conducted by the National what additional benefits are Hispanics
Society of Hispanic Professionals (NSHP) expecting? Should opportunities for
asked 268 Hispanics their opinion on Hispanics and other "diversity groups"
diversity policies in the workplace. A abound because of increased diversity in
whopping 72 percent of those surveyed the workplace? In my opinion, the purpose
felt that diversity policies were more of workplace diversity never was to get a
words than actions or did not make a leg up on the white, straight,
difference, while only 27 percent felt non-disabled, male Christian worker, but
that such polices were necessary in the that may be one of the results we
workplace and benefited Hispanics. While currently expect. John Wrench, author of
it is probably true that most Hispanics the commentary "Diversity management can
surveyed believe in the ideals of be bad for you," says that the idea
diversity, it is apparent from the survey behind diversity policies is that
that a large majority of respondents do "encouraging a culturally diverse
not feel that its purposes have been workplace where differences are valued
accomplished to their satisfaction. On enables people to work to their full
the other hand, human resources potential in a more creative and
executives at many of the largest productive work environment." So if
corporations in the United States companies create work environments where
continue to tout their advanced diversity diverse employees are valued for their
policies and the great accomplishments cultural differences, then those
they have made in designing a workplace employees will essentially find creative
that closely reflects the US cultural solutions to problems and become more
landscape. Who really is correct, the productive. When I look at it that way,
respondents to the survey or human should I really be expecting any
resources execs? Do diversity policies financial or upwardly mobile rewards from
actually make a difference? The answer any company's well-executed diversity
depends on whom you ask. initiatives? Apparently not, because the
Employees and HR execs expect different goal is to make me more productive and
results from diversity policies. creative, not to give me a promotion and
Corporations and their execs generally a raise.
expect that diversity policies will If the purpose of diversity initiatives
foster creativity among their employees is primarily to develop a more productive
and have a positive effect on business and creative workforce, then the NSHP
outcomes. "Inclusiveness is…a win-win survey is probably right on the money.
dynamic: it generates opportunities for That said, maybe the reason why a
growth, flexibility and adaptation in the compelling majority of Hispanics surveyed
marketplace for both the employee and the felt that diversity programs are more
organization," writes Nancy Lockwood, a words than actions or make no difference
human resources expert, in "Workplace was because in terms of personal rewards,
Diversity: Leveraging the Power of they really don't make a difference! If
Difference for Competitive Advantage." If Hispanic workers expect to get some sort
that were the case, one would think that of personal financial benefit or a
diversity initiatives would perhaps promotion as a result of a more inclusive
increase growth, sales, and even workplace, the reality is that it may not
productivity and eventually positively happen. More likely is the case where
impact the bottom line. In some cases, because of Company X's public and
however, the results of diversity transparent commitment to workplace
initiatives appear to be nothing more diversity, their product or service
than periodic tallies of employees from becomes more appealing to a larger, more
"diversity groups" to save the corporate diverse market, thus spurring corporate
face. The Diversity Research Network's growth and more internal opportunities
(DRN) five-year study on the effects of for advancement, eventually leading to
diversity on business performance found the promotion and raise of many
"no strong positive or negative effects employees.
of gender or racial diversity on business I believe we expect too many results too
performance." It is interesting to note quickly from diversity programs. If we
that in conducting this study, the DRN examine the status of workplace diversity
found it very difficult to find companies in the United States as a whole, the
willing to participate for the duration reality is that although it has made
of the study. Of the twenty large and amazing strides over the past two
well-known Fortune 500 companies that decades, it is still a relatively new
initially agreed to participate in the concept. Bear in mind that it was just 42
study, only four actually completed the short years ago that the Civil Rights Act
study. The remaining sixteen withdrew was passed, the Equal Rights Amendment
from the study for a variety of reasons, was never passed, and we still struggle
some citing time commitments and with discrimination in all arenas of life
confidentiality issues, but the DRN found on a daily basis. Nevertheless, the US
that "not only had none of the workforce is continuously becoming more
organizations [they] contacted ever and more diverse, and the fact that there
conducted a systematic examination of the are people in your place of work that are
effects of their diversity efforts on different from you is an accomplishment
bottom line performance measures, [but in and of itself. Even though right now
also] very few were interested in doing it may seem that diversity policies are
so." Excuse me? They were not interested somewhat useless because we may not be
in measuring the results of their own able to reap immediate tangible benefits,
diversity initiatives? the fact that we have these policies in
Diversity initiatives cost a great deal this country is a strong indicator that
of money and require long-term we are on the right track. Diversity
commitments, especially large-scale polices are long-term investments and the
implementations of these initiatives. It link between these policies and personal
is baffling to me that with the amount of financial success may not be immediately
money many of these large Fortune 500 apparent.
companies probably spent on diversity We have a long way to go in crafting a
initiatives, they chose not to measure completely diverse and inclusive
the results. When businesses make workforce in the United States before we
investments in new programs, entities, or can fully reap the benefits of diversity
assets, it is because they expect the and inclusion in the workplace on an
investment to yield additional revenue, individual level. But as the nation
competitive advantage, realized continues to become more and more
intangible gains such as enhanced diverse, all companies will have no
productivity, or other measurable choice but to seriously enact measurable
results. Moreover, when businesses make and effective diversity policies to meet
such investments the performance metrics not only the needs of their employees but
are usually in place well before making also their clients and customers.
the investment. Perhaps one of the According to the human resources
reasons why Hispanics view diversity consulting firm Hewitt Associates, by
programs as inconsequential and nothing 2008, women and minorities will represent
more than lip service is because they are 70% of all new labor force entrants, and
not presented with verifiable results. In by 2010, 34% of the workforce will be
addition, as we all are part of the non-Caucasian. This follows the general
instant gratification society that we US population trend, as minorities,
live in, we expect immediate results from Hispanics in particular, are increasing
workplace diversity programs that are in numbers and purchasing power. In the
relatively new. We often expect next decade, Hewitt Associates expects
short-term results and have the tendency that "there will be a significant labor
to become disheartened and disappointed shortage (anywhere from 10-23 million)
when those results fail to appear. largely due to baby boomer retirements
I do not believe that any Hispanic would and a smaller emerging labor pool." If
disagree with the notion that diversity minority populations are growing, but the
initiatives have tremendous potential, labor pool is shrinking, minorities will
and I am equally confident that corporate eventually make up a substantial majority
execs believe that such programs will of the entire labor pool. If this trend
eventually lead to additional revenue, as continues, we may need to worry about our
they have expanded their applicant pools over representation in the workforce!
to include the best and the brightest The fact remains that diversity
from all groups. But if diversity truly initiatives are necessary and benefit
is that important, why not devise a means almost everyone, but at this stage, those
of measuring the effectiveness of benefits are more likely to be realized
diversity programs prior to implementing in the long term. If deficient
them? Sadly, it appears that some corporations don't get on board and begin
corporations prefer the idea of a more to create meaningful diversity policies
colorful corporate photo and measure the that are more than just lip service and
effectiveness of their diversity policies that actually do make a difference to all
essentially by counting heads at the employees-not just Hispanics-they'll miss
company picnic. According to Braun the boat and the giant pile of money that
Consulting, a Seattle based personnel and will float away with it.
labor relations consulting firm, "Many Source:
companies track the success of their Acknowledgments:
diversity efforts in terms of what they 1. National Society of Hispanic
DO, not necessarily what leads to Professionals (2005-2006) "Hispanic
RESULTS. Or in another words, they Values at Work Survey" 2. Lockwood, N.
measure what they put out, not what R. (2005) "Workplace Diversity:
results they achieve in terms of either Leveraging the Power of Difference for
profit or savings." Or in terms of Competitive Advantage" from SHRM Online
employee satisfaction, for that matter. 3. Kochan, T., Bezrukova, K., Ely, R.,
While some corporations are clearly Jackson, S., Joshi, A., Jen, K., et al.
failing in the performance metrics arena, (2002). The Effects of Diversity on
it may also be true that Hispanics, along Business Performance: Report of the
with other minority groups, have somewhat Diversity Research Network 4. Braun
unrealistic expectations of workplace Consulting News, (2005) "Workplace
diversity programs. If we assume that one Diversity: Does it Work? Explaining 'Myth
of the most important results of vs. Reality'" 5. Wrench, J. (2005)
diversity policies is the presence of "Commentary: Diversity management can be
more minorities, disabled, women, and bad for you" 6.
LGBT employees in an organization, then






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