Diversity

Scope

Diversity impacts employers, employees, and customers.

Regulatory citations

• None

Key definitions

• None

Summary of requirements

Requirements like those enforced by the Equal Employment Opportunity Commission (EEOC) and Office of Federal Contracts Compliance Programs (OFCCP) set up some guidelines supporting diversity. However, complying with the Americans with Disabilities Act and generating affirmative action plans are not the same as diversity.

No federal laws require organizations to be diverse. The statutes prohibit discrimination in employment and in employment decisions, but they don’t extend into requiring organizational diversity. Being diverse will, however, help you convince these agencies that you do not discriminate.

Diversity isn’t a new idea, but some employers have yet to embrace it, and some have paid the price in the courts. Many employers argue in support of diversity, reporting that it positively affects the bottom line, as well as other, more intangible areas of the organization.

As demographics have changed, the industrial market has evolved to a global one, and as such, organizations reflect this evolution. Diversity can strengthen and improve an organization by bringing a different viewpoint, a new method, a fresh approach, a broadened awareness, and a cultural expansion to it. Customers have become more diverse, and having employees who can understand them can help make organizations successful. Therefore, diversity is more than an outgrowth of political correctness. In many cases, it has become a business—a competitive—requirement.

Instead of wasting time, money, and effort responding to workplace members who feel they are discriminated against, organizations can be proactive and capitalize on the distinctions that individual employees bring to the competitive table. If quality employees feel undervalued, they may seek employment elsewhere, costing the organization in recruiting and hiring initiatives.

Beyond ensuring that your organization demographics reflect that of the surrounding community, and ensuring that the organization values the individual qualities of its employees, forward-thinking organizations capitalize on the differences.

Organizations in the early stages of incorporating a diversity initiative may want to obtain baseline information to compare to future data for return on investment reports. Such information as turnover rates, absenteeism, affirmative action plan information, and discrimination complaints can be used as a starting point.

A study conducted by the EEOC, indicated that leading companies adopted a SPLENDID approach to diversity issues:

• Study — Organizations need become aware of the laws and standards that define its obligations, and the various barriers to EEO and diversity.
• Plan — Know the organization’s own circumstances (workforce and demographics - locally, nationally, and globally). Define the problem(s); propose solutions; and develop strategies for achieving them.
• Lead — Senior, middle, and lower management must champion the cause of diversity as a business imperative, and provide leadership for successful attainment of the vision of a diverse workforce at all levels of management.
• Encourage — Organizations should encourage the attainment of diversity by all managers, supervisors, and employees, and structure their business practices and reward systems to reinforce those corporate objectives. Consider linking pay and performance not only for technical competencies, but also for how employees interact, support and respect each other.
• Notice — Take notice of the impact of the organization’s practices, after monitoring and assessing company progress. Self-analysis is a key part of this process. Ensure that a corrective strategy does not cause or result in unfairness.
• Discussion — Communicate and reinforce the message that diversity is a business asset and a key element of business success in a national and global market.
• Inclusion — Bring everyone into this process, including white males. Help them understand that EEO initiatives are good for the company and, thus, good for everyone in the company. Include them in the analysis, planning, and implementation.
• Dedication — Stay persistent in your quest. Long term gains from these practices may cost in the short term. Invest the needed human and capital resources.

Some organizations may not be poised for extensive and formal provisions of a diversity initiative, but implementing some level of effort should provide a return on investment.