Do Diversity Policies Matter?

A recent survey conducted by the National Society offor Hispanics and other "diversity groups" abound
Hispanic Professionals (NSHP) asked 268 Hispanicsbecause of increased diversity in the workplace? In
their opinion on diversity policies in the workplace. Amy opinion, the purpose of workplace diversity never
whopping 72 percent of those surveyed felt thatwas to get a leg up on the white, straight, non-disabled,
diversity policies were more words than actions or didmale Christian worker, but that may be one of the
not make a difference, while only 27 percent felt thatresults we currently expect. John Wrench, author of
such polices were necessary in the workplace andthe commentary "Diversity management can be bad
benefited Hispanics. While it is probably true that mostfor you," says that the idea behind diversity policies is
Hispanics surveyed believe in the ideals of diversity, it isthat "encouraging a culturally diverse workplace where
apparent from the survey that a large majority ofdifferences are valued enables people to work to their
respondents do not feel that its purposes have beenfull potential in a more creative and productive work
accomplished to their satisfaction. On the other hand,environment." So if companies create work
human resources executives at many of the largestenvironments where diverse employees are valued
corporations in the United States continue to tout theirfor their cultural differences, then those employees will
advanced diversity policies and the greatessentially find creative solutions to problems and
accomplishments they have made in designing abecome more productive. When I look at it that way,
workplace that closely reflects the US culturalshould I really be expecting any financial or upwardly
landscape. Who really is correct, the respondents tomobile rewards from any company's well-executed
the survey or human resources execs? Do diversitydiversity initiatives? Apparently not, because the goal is
policies actually make a difference? The answerto make me more productive and creative, not to give
depends on whom you ask.Employees and HR execsme a promotion and a raise.If the purpose of diversity
expect different results from diversity policies.initiatives is primarily to develop a more productive and
Corporations and their execs generally expect thatcreative workforce, then the NSHP survey is probably
diversity policies will foster creativity among theirright on the money. That said, maybe the reason why
employees and have a positive effect on businessa compelling majority of Hispanics surveyed felt that
outcomes. "Inclusiveness is...a win-win dynamic: itdiversity programs are more words than actions or
generates opportunities for growth, flexibility andmake no difference was because in terms of personal
adaptation in the marketplace for both the employeerewards, they really don't make a difference! If
and the organization," writes Nancy Lockwood, aHispanic workers expect to get some sort of personal
human resources expert, in "Workplace Diversity:financial benefit or a promotion as a result of a more
Leveraging the Power of Difference for Competitiveinclusive workplace, the reality is that it may not
Advantage." If that were the case, one would thinkhappen. More likely is the case where because of
that diversity initiatives would perhaps increase growth,Company X's public and transparent commitment to
sales, and even productivity and eventually positivelyworkplace diversity, their product or service becomes
impact the bottom line. In some cases, however, themore appealing to a larger, more diverse market, thus
results of diversity initiatives appear to be nothing morespurring corporate growth and more internal
than periodic tallies of employees from "diversityopportunities for advancement, eventually leading to
groups" to save the corporate face. The Diversitythe promotion and raise of many employees.I believe
Research Network's (DRN) five-year study on thewe expect too many results too quickly from diversity
effects of diversity on business performance foundprograms. If we examine the status of workplace
"no strong positive or negative effects of gender ordiversity in the United States as a whole, the reality is
racial diversity on business performance." It isthat although it has made amazing strides over the
interesting to note that in conducting this study, thepast two decades, it is still a relatively new concept.
DRN found it very difficult to find companies willing toBear in mind that it was just 42 short years ago that
participate for the duration of the study. Of the twentythe Civil Rights Act was passed, the Equal Rights
large and well-known Fortune 500 companies thatAmendment was never passed, and we still struggle
initially agreed to participate in the study, only fourwith discrimination in all arenas of life on a daily basis.
actually completed the study. The remaining sixteenNevertheless, the US workforce is continuously
withdrew from the study for a variety of reasons,becoming more and more diverse, and the fact that
some citing time commitments and confidentialitythere are people in your place of work that are
issues, but the DRN found that "not only had none ofdifferent from you is an accomplishment in and of
the organizations [they] contacted ever conducted aitself. Even though right now it may seem that diversity
systematic examination of the effects of their diversitypolicies are somewhat useless because we may not
efforts on bottom line performance measures, [butbe able to reap immediate tangible benefits, the fact
also] very few were interested in doing so." Excusethat we have these policies in this country is a strong
me? They were not interested in measuring the resultsindicator that we are on the right track. Diversity
of their own diversity initiatives?Diversity initiatives costpolices are long-term investments and the link between
a great deal of money and require long-termthese policies and personal financial success may not
commitments, especially large-scale implementations ofbe immediately apparent.We have a long way to go in
these initiatives. It is baffling to me that with the amountcrafting a completely diverse and inclusive workforce
of money many of these large Fortune 500in the United States before we can fully reap the
companies probably spent on diversity initiatives, theybenefits of diversity and inclusion in the workplace on
chose not to measure the results. When businessesan individual level. But as the nation continues to
make investments in new programs, entities, or assets,become more and more diverse, all companies will
it is because they expect the investment to yieldhave no choice but to seriously enact measurable and
additional revenue, competitive advantage, realizedeffective diversity policies to meet not only the needs
intangible gains such as enhanced productivity, or otherof their employees but also their clients and customers.
measurable results. Moreover, when businesses makeAccording to the human resources consulting firm
such investments the performance metrics are usuallyHewitt Associates, by 2008, women and minorities will
in place well before making the investment. Perhapsrepresent 70% of all new labor force entrants, and by
one of the reasons why Hispanics view diversity2010, 34% of the workforce will be non-Caucasian.
programs as inconsequential and nothing more than lipThis follows the general US population trend, as
service is because they are not presented withminorities, Hispanics in particular, are increasing in
verifiable results. In addition, as we all are part of thenumbers and purchasing power. In the next decade,
instant gratification society that we live in, we expectHewitt Associates expects that "there will be a
immediate results from workplace diversity programssignificant labor shortage (anywhere from 10-23 million)
that are relatively new. We often expect short-termlargely due to baby boomer retirements and a smaller
results and have the tendency to becomeemerging labor pool." If minority populations are
disheartened and disappointed when those results failgrowing, but the labor pool is shrinking, minorities will
to appear.I do not believe that any Hispanic wouldeventually make up a substantial majority of the entire
disagree with the notion that diversity initiatives havelabor pool. If this trend continues, we may need to
tremendous potential, and I am equally confident thatworry about our over representation in the workforce!
corporate execs believe that such programs willThe fact remains that diversity initiatives are
eventually lead to additional revenue, as they havenecessary and benefit almost everyone, but at this
expanded their applicant pools to include the best andstage, those benefits are more likely to be realized in
the brightest from all groups. But if diversity truly is thatthe long term. If deficient corporations don't get on
important, why not devise a means of measuring theboard and begin to create meaningful diversity policies
effectiveness of diversity programs prior tothat are more than just lip service and that actually do
implementing them? Sadly, it appears that somemake a difference to all employees-not just
corporations prefer the idea of a more colorfulHispanics-they'll miss the boat and the giant pile of
corporate photo and measure the effectiveness ofmoney that will float away with it.by Juan E. Rodriguez,
their diversity policies essentially by counting heads atMBA, diversity scholar, author, and editor of Diversity
the company picnic. According to Braun Consulting, aJobs (
Seattle based personnel and labor relations consulting
firm, "Many companies track the success of theirAcknowledgments:
diversity efforts in terms of what they DO, not1. National Society of Hispanic Professionals
necessarily what leads to RESULTS. Or in another(2005-2006) "Hispanic Values at Work Survey"
words, they measure what they put out, not what2. Lockwood, N. R. (2005) "Workplace Diversity:
results they achieve in terms of either profit orLeveraging the Power of Difference for Competitive
savings." Or in terms of employee satisfaction, for thatAdvantage" from SHRM Online
matter.While some corporations are clearly failing in the3. Kochan, T., Bezrukova, K., Ely, R., Jackson, S., Joshi,
performance metrics arena, it may also be true thatA., Jen, K., et al. (2002). The Effects of Diversity on
Hispanics, along with other minority groups, haveBusiness Performance: Report of the Diversity
somewhat unrealistic expectations of workplaceResearch Network
diversity programs. If we assume that one of the most4. Braun Consulting News, (2005) "Workplace
important results of diversity policies is the presence ofDiversity: Does it Work? Explaining 'Myth vs. Reality'"
more minorities, disabled, women, and LGBT5. Wrench, J. (2005) "Commentary: Diversity
employees in an organization, then what additionalmanagement can be bad for you"
benefits are Hispanics expecting? Should opportunities6.