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Diversity and Inclusion Strategies & Implementation

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Diversity and inclusion programmes help companies drive innovative results. Yet many industries still struggle with diversity and inclusion, often failing to attract diverse talent due to inclusivity issues in the workplace. For organisations looking to shape up their diversity and inclusion (D&I) programmes and policies, the change can be challenging, but also rewarding. Most companies enact change to deliver business value, and many who launch diversity and inclusion initiatives cite research showing that companies with more diverse teams outperform those with a more homogeneous workforce.

As 2018 research from McKinsey shows, greater diversity in the workforce results in greater profitability and value creation. The same holds true at the executive level, as McKinsey found a statistically significant correlation between diverse leadership and better financial performance. Companies in the top quartile for ethnic diversity at the executive level are 33% more likely to have above-average profitability than companies in the bottom quartile. When it comes to gender diversity, companies in the top quartile are 21% more likely to have above-average profitability than companies in the bottom quartile, according to McKinsey’s research.

While financial performance is a major driver of diversion and inclusion strategies, some organisations launching diversity initiatives in the face of government compliance regulations or to address shareholder pressure. In the United Kingdom, for example, companies are required to publish their diversity statistics. Organisations are also realising that make diversity and inclusion a business imperative will help them avoid tarnishing their reputation.

During 2020 and so far in 2021, many companies, including McDonald’s, Microsoft, Boeing, and Best Buy, made pledges to improve diversity hiring practices and introduce diversity and inclusion (D&I) training. The hiring of D&I professionals in general increased, too; more than 60 U.S.companies appointed their first-ever chief diversity officer (CDO). However, much of this work has not yet taken root. In one recent survey, 93% of leaders agreed that the D&I agenda is a top priority, but only 34% believed that it’s a strength in their workplace. In another survey, 80% of HR professionals viewed companies as  “going through the motions.” In other words, they didn’t notice any significant positive impact from the organisations’ actions. Another survey revealed that while 78% of black professionals believe senior leaders’ D&I efforts are well-intentioned, 40% hear more talk than action and have not noticed material changes to policies or culture. Meanwhile, many CDOs leave their roles because of a lack of strategic, financial, and political support.

One-off D&I “initiatives” do not effectively address these long-standing disparities. Instead, leaders should infuse D&I throughout their organisations. Based on our experience and research, we have developed five strategies that can turn diversity and inclusion into an improved employee experience and a strategic advantage for the enterprise.

Change starts from the CEO positions

The CEO needs to take a public stance, embed D&I in the organization’s purpose, exemplify the culture, and take responsibility for progress toward goals. They need to be out front, even if a CDO is part of the team.

PwC’s U.S. chairman, Tim Ryan, has been an exemplar for at least five years. He co-founded CEO Action for Diversity and Inclusion after police shootings in the summer of 2016 to spur business executives to collective action on D&I. The publication of PwC’s workforce diversity data in 2020 revealed that women and people of color are underrepresented, especially at senior levels, showing that even the most dedicated companies still have a lot of diversity and inclusion work to do.

Nielsen’s CEO, David Kenny, added the CDO title to his leadership portfolio in 2018 so he could “set hard targets for ourselves and make those transparent to our board and measure them like we measure other outcomes like financial results.” He relinquished that title to a new CDO in March 2020, noting the D&I progress his team had already made.

Diversity and Inclusion Should Be Key Part OF Business Strategy

D&I is far more than an “HR issue.” It should be a core ingredient in the design and execution of business strategy and embedded in the activities of the organisation day in, day out. Increasing the number of non-white individuals involved in the strategy process will help develop a core purpose that better reflects a broader group of customers and employees. It also gives the organisation more opportunities and places to succeed.

Alex Gorsky, chair and CEO of Johnson & Johnson, who has put diversity and inclusion at the center of his pursuit of sustainable competitive advantage, said, “The best innovations can only come if our people reflect the world’s full diversity of individuals, opinions, and approaches.” A diverse design group is more likely to create products and services that work for a diverse clientele, avoiding biased assumptions, generalizations, or shortcuts. When organizations test products and services on a diverse group of potential clients and employees, it’s easier to identify the variations necessary to enhance the adoption of the final offering. And, when a company has an enterprise-wide D&I strategy, leaders can use it to guide the selection of operating ecosystem partners that are aligned with its D&I intentions.

Every Voice Should be Welcomed, Heard and Respected

Most often employees quit jobs when they feel that their authentic self and uniqueness is not appreciated or valued. As such, it is vital to create an environment where they feel a sense of connectedness to the company and its people. Employees need to feel free to express themselves based on their unique perspectives. 

When it comes to supporting diversity and inclusion in the workplace, don’t play favorites, practice basic courtesy, and pay special attention to how you can embrace non-discriminatory practices and policies. Employees feel included when they feel “safe” to voice their concerns and opinions without fear of victimization. The freedom of expression without fear also empowers companies to not just listen to but also actively embrace diverse viewpoints.

One great way to do this is to invest in a workforce communications platform. By integrating all your communications channel into one platform, you will reach each worker on their preferred channel. You will truly help your workforce feel connected and included in larger company initiatives and goals. Also, you will gain insights from unified analytics to understand how best to meet their needs and help them thrive. And you’ll provide a personalized employee experience that is inclusive and allows all voices to be heard.

Multigenerational Workforce

Today, millennials make up the vast majority of the workforce. Having a workforce that recognizes and accommodates multiple generations is essential in building a diverse and inclusive workforce. And while millennials are generally known for being tech savvy, bear in mind this generation encompasses ages 22 to 38. The older millennials might not have the same proficiency with tech tools as their younger counterparts. You can really see this at work in communications practices. Sometimes certain employees are more comfortable using social channels, for example, or group chat functions. On the other hand, employees of older generations might not embrace such communications channels so readily.

Again, communications professionals can invest in a workforce communications platform to easily and efficiently create and send messages via channels that employees prefer; this will help communicators craft messages that will appeal to all generations, and encourage engagement. There’s widespread agreement on the need to improve diversity and inclusion in the workplace. But it’s not easy to deliver on the promises made. It’s time to adopt a more systematic, coherent approach. By following these strategies, leaders can make more progress and create a more representative, fair, and high-performing workforce.

Given our current situation knowing that your colleagues or employees are best suited for this new scenario we find ourselves in. Finding the right talent, the best fit for the job and your organisation can be a very challenging task. It is now important to find out whether your managers or your team is well-equipped of working together from various locations. It requires deep knowledge of their personalities, strengths, weaknesses, interests, work style and other characteristics. Our technology and solutions will do the work for you, helping you discover if your people are resilient during times of hardship, if they are autonomous, if they are team players, without actual human contact. Given that our platform is cloud-based, everyone can use it from home as well. Humanity finds itself at a crossroad for various reasons now, why not help people discover and develop themselves from the comfort of their own homes?

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Sources:

https://www.cio.com/article/3262704/diversity-and-inclusion-8-best-practices-for-changing-your-culture.html
https://socialchorus.com/blog/15-ways-to-improve-diversity-and-inclusion-in-the-workplace/
https://www.greatplacetowork.com/resources/blog/why-is-diversity-inclusion-in-the-workplace-important

Cultural Conflict in the Workplace

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Cultural conflict in the workplace is never healthy and may lead to significant drops in productivity and morale. Managing such conflicts leads to a more harmonious workplace and, more often than not, garnering more creative ideas through multiculturalism.

Nowadays, companies have culturally diverse teams and it guarantees them success in the long term. Besides common sense, scientific studies have also revealed the fact that people with distinctive points of view and personalities increases the creativity of a team in solving their tasks. This is an honest assumption if we consider that every team member is pulling in the same direction.

A few years ago, Harvard Business School Assistant Professor Roy Y. J. Chua started to think about the impact of various cultures when working on a case study about a Chinese luxury apparel company. From his observations he discovered that there was a lot of unresolved conflict, miscommunication and tension between people of different cultures. Even when asked about their issues people did not seem to think there is a problem between them.

From his previous studies, Chua has compared the cultural problems and discrimination to hostile work environments where sexual harassment or racial discrimination were the underlying troubles. In these instances as well, co-workers’ performance and morale dipped even when they were not the targets of the aforementioned abuses. This is what is called ‘indirect conflict’ and it happens more often than companies think. For example, children who observe tensions between their parents may grow sceptical of the idea of marriage and just as citizens of USA and Mexico may have a growing hatred for each other due to the bickering their leaders have. So isn’t it possible that it could happen in the workplace?

Further Analysis Requirements

In order to further his discoveries professor Chua had decided to test his hypothesis with a series of studies. In the first study, a group of online participants were asked to make a list of their most important people on their own social media profiles, making note of their cultural backgrounds and if they were in good relations with one another. In the second part of the study, professor Chua has asked the participants to do a word association exercise in order to test their ability to connect distinct ideas from various cultures – this being the precursor to creativity on a global scale. In the exercise, they have been given the words “great”, “street” and “Berlin” and their answers should have been “Great Wall”, “Wall Street” and “Berlin Wall”. The findings from this exercise revealed that participants who had a more diverse pool of people on social media and disliked each other did around 23% worse on the test.

In Chua’s second study, he had asked the participants to think about 2 or 3 people from the same or different cultural backgrounds who have a reputation for not getting along too well with other people. Furthermore, study participants were asked to read professor Chua’s Chinese fashion house case study and then make their own suggestions for the collection that was going to be launched next year which would blend Asian and Western fashion styles. After this, fashion experts were asked to judge the creativity of their ideas. They have determined that the people with the least creative side were the ones who recalled friends from various cultural backgrounds who had conflicting relationships (e.g. 23% lower creativity score than the rest). Another interesting point discovered by Chua was that participants who saw people from different cultures having a good relationship, that it did not promote creativity, leading professor Chua to the conclusion that “As human beings, we pay more attention to negative information because it is a signal of danger. Positive information tends to be given less weight.”

CULTURAL SHOWDOWN

The experiments performed by Chua have demonstrated that for people working in multicultural business environments, it may be a slight risk but at the same time it underlined the importance of creating an environment that reduces intercultural disharmony. He went on to say “It is inevitable to have conflict when you bring people from different cultural backgrounds together,” he says. “It’s about how you manage the conflict. A lot of times managers try to put together a multicultural workplace without trying to integrate people better.”

It is fair to assume that if you were to be exposed to different work environments and ethics which differ to the ones you have grown accustomed to. This will most likely lead to wrong assumptions regarding your colleagues or managers and not with you. For instance, there may be a problem for people who celebrate Ramadan or the Lunar New Year who are living in Europe, because most Europeans do not value the importance of these holidays.

The reason this usually happens is because people have a tendency to over-value their own culture. We tend to believe that the way we do things, we communicate, we make decisions or lead is the most natural, polite, civilised and effective. Due to the clash between 2 cultures, we under-value and disapprove the new culture due to the fact that we are so set in our own ways.

There isn’t a simple recipe to manage cultural friction in the workplace, but solving it does create a harmonious workplace and the company can use the creative force which brought on by multiculturalism.

In order to manage cultural conflict here are a few things companies can do:

  • Cultural background research on all employees.
  • Remember never to pass on judgement through you own cultural frame of reference.
  • Developing self-awareness in all employees in order to be more conscious in approaching another person
  • Reconciliation is key as a leadership skill
  • Becoming as culturally competent as possible and develop traits such as compassion, empathy, behavioural and thinking flexibility and emotional resilience.

In conclusion, it is fair to assume that this information does not mean the company’s cross-cultural conflict is completely and forever solved, but it definitely is a step in the right direction.

There is a real value in providing companies with the tools to carry out regular organisational assessments and this is where Great People Inside comes to your aid. Our online platform offers the best solutions and tools for your company to thrive in every type of industry and any possible situation your organisation may find itself. In terms of lowering your employee turnover rates, we recommend our GR8 Full Spectrum assessment for hiring and 360° Survey for retention. Finding the right talent, the best fit for the job and your organisation can be a very challenging task. It requires deep knowledge of your own organisation’s culture and a keen understanding of the candidate’s personality, strengths, interests, work style and other characteristics. Our technology and solutions will do the work for you, helping you find employees who can flourish and reach the highest performance required to constantly bring your company forward.

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Sources:

https://www.londonschool.com/lsic/resources/blog/conflict-workplace-its-personal-even-when-its-cultural/

https://www.expatica.com/employment/employment-basics/dealing-with-cultural-conflicts-at-work-422715/

https://www.forbes.com/sites/hbsworkingknowledge/2013/12/09/how-cultural-conflict-undermines-workplace-creativity/#5cf7b03e214f