Do Diversity Policies Matter?

A recent survey conducted by the National Society ofemployees in an organization, then what additional
Hispanic Professionals (NSHP) asked 268 Hispanicsbenefits are Hispanics expecting? Should opportunities
their opinion on diversity policies in the workplace. Afor Hispanics and other "diversity groups" abound
whopping 72 percent of those surveyed felt thatbecause of increased diversity in the workplace? In
diversity policies were more words than actions or didmy opinion, the purpose of workplace diversity never
not make a difference, while only 27 percent felt thatwas to get a leg up on the white, straight, non-disabled,
such polices were necessary in the workplace andmale Christian worker, but that may be one of the
benefited Hispanics. While it is probably true that mostresults we currently expect. John Wrench, author of
Hispanics surveyed believe in the ideals of diversity, it isthe commentary "Diversity management can be bad
apparent from the survey that a large majority offor you," says that the idea behind diversity policies is
respondents do not feel that its purposes have beenthat "encouraging a culturally diverse workplace where
accomplished to their satisfaction. On the other hand,differences are valued enables people to work to their
human resources executives at many of the largestfull potential in a more creative and productive work
corporations in the United States continue to tout theirenvironment." So if companies create work
advanced diversity policies and the greatenvironments where diverse employees are valued
accomplishments they have made in designing afor their cultural differences, then those employees will
workplace that closely reflects the US culturalessentially find creative solutions to problems and
landscape. Who really is correct, the respondents tobecome more productive. When I look at it that way,
the survey or human resources execs? Do diversityshould I really be expecting any financial or upwardly
policies actually make a difference? The answermobile rewards from any company's well-executed
depends on whom you ask.diversity initiatives? Apparently not, because the goal is
Employees and HR execs expect different resultsto make me more productive and creative, not to give
from diversity policies. Corporations and their execsme a promotion and a raise.
generally expect that diversity policies will fosterIf the purpose of diversity initiatives is primarily to
creativity among their employees and have a positivedevelop a more productive and creative workforce,
effect on business outcomes. "Inclusivenessthen the NSHP survey is probably right on the money.
is…a win-win dynamic: it generates opportunitiesThat said, maybe the reason why a compelling
for growth, flexibility and adaptation in the marketplacemajority of Hispanics surveyed felt that diversity
for both the employee and the organization," writesprograms are more words than actions or make no
Nancy Lockwood, a human resources expert, indifference was because in terms of personal rewards,
"Workplace Diversity: Leveraging the Power ofthey really don't make a difference! If Hispanic workers
Difference for Competitive Advantage." If that wereexpect to get some sort of personal financial benefit
the case, one would think that diversity initiatives wouldor a promotion as a result of a more inclusive
perhaps increase growth, sales, and even productivityworkplace, the reality is that it may not happen. More
and eventually positively impact the bottom line. Inlikely is the case where because of Company X's
some cases, however, the results of diversity initiativespublic and transparent commitment to workplace
appear to be nothing more than periodic tallies ofdiversity, their product or service becomes more
employees from "diversity groups" to save theappealing to a larger, more diverse market, thus
corporate face. The Diversity Research Network'sspurring corporate growth and more internal
(DRN) five-year study on the effects of diversity onopportunities for advancement, eventually leading to
business performance found "no strong positive orthe promotion and raise of many employees.
negative effects of gender or racial diversity onI believe we expect too many results too quickly from
business performance." It is interesting to note that indiversity programs. If we examine the status of
conducting this study, the DRN found it very difficult toworkplace diversity in the United States as a whole,
find companies willing to participate for the duration ofthe reality is that although it has made amazing strides
the study. Of the twenty large and well-known Fortuneover the past two decades, it is still a relatively new
500 companies that initially agreed to participate in theconcept. Bear in mind that it was just 42 short years
study, only four actually completed the study. Theago that the Civil Rights Act was passed, the Equal
remaining sixteen withdrew from the study for aRights Amendment was never passed, and we still
variety of reasons, some citing time commitments andstruggle with discrimination in all arenas of life on a daily
confidentiality issues, but the DRN found that "not onlybasis. Nevertheless, the US workforce is continuously
had none of the organizations [they] contacted everbecoming more and more diverse, and the fact that
conducted a systematic examination of the effects ofthere are people in your place of work that are
their diversity efforts on bottom line performancedifferent from you is an accomplishment in and of
measures, [but also] very few were interested in doingitself. Even though right now it may seem that diversity
so." Excuse me? They were not interested inpolicies are somewhat useless because we may not
measuring the results of their own diversity initiatives?be able to reap immediate tangible benefits, the fact
Diversity initiatives cost a great deal of money andthat we have these policies in this country is a strong
require long-term commitments, especially large-scaleindicator that we are on the right track. Diversity
implementations of these initiatives. It is baffling to mepolices are long-term investments and the link between
that with the amount of money many of these largethese policies and personal financial success may not
Fortune 500 companies probably spent on diversitybe immediately apparent.
initiatives, they chose not to measure the results. WhenWe have a long way to go in crafting a completely
businesses make investments in new programs,diverse and inclusive workforce in the United States
entities, or assets, it is because they expect thebefore we can fully reap the benefits of diversity and
investment to yield additional revenue, competitiveinclusion in the workplace on an individual level. But as
advantage, realized intangible gains such as enhancedthe nation continues to become more and more
productivity, or other measurable results. Moreover,diverse, all companies will have no choice but to
when businesses make such investments theseriously enact measurable and effective diversity
performance metrics are usually in place well beforepolicies to meet not only the needs of their employees
making the investment. Perhaps one of the reasonsbut also their clients and customers. According to the
why Hispanics view diversity programs ashuman resources consulting firm Hewitt Associates, by
inconsequential and nothing more than lip service is2008, women and minorities will represent 70% of all
because they are not presented with verifiable results.new labor force entrants, and by 2010, 34% of the
In addition, as we all are part of the instant gratificationworkforce will be non-Caucasian. This follows the
society that we live in, we expect immediate resultsgeneral US population trend, as minorities, Hispanics in
from workplace diversity programs that are relativelyparticular, are increasing in numbers and purchasing
new. We often expect short-term results and havepower. In the next decade, Hewitt Associates expects
the tendency to become disheartened andthat "there will be a significant labor shortage
disappointed when those results fail to appear.(anywhere from 10-23 million) largely due to baby
I do not believe that any Hispanic would disagree withboomer retirements and a smaller emerging labor pool."
the notion that diversity initiatives have tremendousIf minority populations are growing, but the labor pool is
potential, and I am equally confident that corporateshrinking, minorities will eventually make up a substantial
execs believe that such programs will eventually leadmajority of the entire labor pool. If this trend continues,
to additional revenue, as they have expanded theirwe may need to worry about our over representation
applicant pools to include the best and the brightestin the workforce!
from all groups. But if diversity truly is that important,The fact remains that diversity initiatives are
why not devise a means of measuring thenecessary and benefit almost everyone, but at this
effectiveness of diversity programs prior tostage, those benefits are more likely to be realized in
implementing them? Sadly, it appears that somethe long term. If deficient corporations don't get on
corporations prefer the idea of a more colorfulboard and begin to create meaningful diversity policies
corporate photo and measure the effectiveness ofthat are more than just lip service and that actually do
their diversity policies essentially by counting heads atmake a difference to all employees-not just
the company picnic. According to Braun Consulting, aHispanics-they'll miss the boat and the giant pile of
Seattle based personnel and labor relations consultingmoney that will float away with it.
firm, "Many companies track the success of theirSource:
diversity efforts in terms of what they DO, notAcknowledgments:
necessarily what leads to RESULTS. Or in another1. National Society of Hispanic Professionals
words, they measure what they put out, not what(2005-2006) "Hispanic Values at Work Survey" 2.
results they achieve in terms of either profit orLockwood, N. R. (2005) "Workplace Diversity:
savings." Or in terms of employee satisfaction, for thatLeveraging the Power of Difference for Competitive
matter.Advantage" from SHRM Online 3. Kochan, T.,
While some corporations are clearly failing in theBezrukova, K., Ely, R., Jackson, S., Joshi, A., Jen, K., et al.
performance metrics arena, it may also be true that(2002). The Effects of Diversity on Business
Hispanics, along with other minority groups, havePerformance: Report of the Diversity Research
somewhat unrealistic expectations of workplaceNetwork 4. Braun Consulting News, (2005) "Workplace
diversity programs. If we assume that one of the mostDiversity: Does it Work? Explaining 'Myth vs. Reality'" 5.
important results of diversity policies is the presence ofWrench, J. (2005) "Commentary: Diversity
more minorities, disabled, women, and LGBTmanagement can be bad for you" 6.