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Diversity in the Workplace: Benefits, Challenges and

Solutions
by Josh Greenberg, President of AlphaMeasure, Inc. located in Boulder, Colorado.
Workplace diversity refers to the variety of differences between people in an organization.
That sounds simple, but diversity encompasses race, gender, ethnic group, age, personality, cognitive style,
tenure, organizational function, education, background and more.
Diversity not only involves how people perceive themselves, but how they perceive others. Those
perceptions affect their interactions. For a wide assortment of employees to function effectively as an
organization, human resource professionals need to deal effectively with issues such as
communication, adaptability and change. Diversity will increase significantly in the coming years. Successful
organizations recognize the need for immediate action and are ready and willing to spend resources on
managing diversity in the workplace now.

Benefits of Workplace Diversity


An organizations success and competitiveness depends upon its ability to embrace diversity and realize the
benefits. When organizations actively assess their handling of workplace diversity issues, develop and implement
diversity plans, multiple benefits are reported such as:

Increased adaptability
Organizations employing a diverse workforce can supply a greater variety of solutions to problems in service,
sourcing, and allocation of resources. Employees from diverse backgrounds bring individual talents and
experiences in suggesting ideas that are flexible in adapting to fluctuating markets and customer demands.

Broader service range


A diverse collection of skills and experiences (e.g. languages, cultural understanding) allows a company to
provide service to customers on a global basis.

Variety of viewpoints
A diverse workforce that feels comfortable communicating varying points of view provides a larger pool of ideas
and experiences. The organization can draw from that pool to meet business strategy needs and the needs of
customers more effectively.

More effective execution


Companies that encourage diversity in the workplace inspire all of their employees to perform to their highest
ability. Company-wide strategies can then be executed; resulting in higher productivity, profit, and return on
investment.

Challenges of Diversity in the Workplace


Taking full advantage of the benefits of diversity in the workplace is not without its challenges. Some of those
challenges are:
Communication - Perceptual, cultural and language barriers need to be overcome for diversity programs to
succeed. Ineffective communication of key objectives results in confusion, lack of teamwork, and low morale.
Resistance to change - There are always employees who will refuse to accept the fact that the social and
cultural makeup of their workplace is changing. The weve always done it this way mentality silences new ideas
and inhibits progress.
Implementation of diversity in the workplace policies - This can be the overriding challenge to all diversity
advocates. Armed with the results of employee assessments and research data, they must build and implement a
customized strategy to maximize the effects of diversity in the workplace for their particular organization.
Successful Management of Diversity in the Workplace - Diversity training alone is not sufficient for your
organizations diversity management plan. A strategy must be created and implemented to create a culture of
diversity that permeates every department and function of the organization.

Recommended steps that have been proven successful in world-class


organizations are:
Assessment of diversity in the workplace - Top companies make assessing and evaluating their diversity
process an integral part of their management system. A customizable employee satisfaction survey can
accomplish this assessment for your company efficiently and conveniently. It can help your management team
determine which challenges and obstacles to diversity are present in your workplace and which policies need to
be added or eliminated. Reassessment can then determine the success of you diversity in the workplace plan
implementation.

Development of diversity in the workplace plan - Choosing a survey provider that provides comprehensive
reporting is a key decision. That report will be the beginning structure of your diversity in the workplace plan. The
plan must be comprehensive, attainable and measurable. An organization must decide what changes need to be
made and a timeline for that change to be attained.
Implementation of diversity in the workplace plan - The personal commitment of executive and managerial
teams is a must. Leaders and managers within organizations must incorporate diversity policies into every aspect
of the organizations function and purpose. Attitudes toward diversity originate at the top and filter downward.
Management cooperation and participation is required to create a culture conducive to the success of your
organizations plan.

Recommended diversity in the workplace solutions include:


Ward off change resistance with inclusion. - Involve every employee possible in formulating and executing
diversity initiatives in your workplace.
Foster an attitude of openness in your organization. - Encourage employees to express their ideas and
opinions and attribute a sense of equal value to all.
Promote diversity in leadership positions. - This practice provides visibility and realizes the benefits of
diversity in the workplace.
Utilize diversity training. - Use it as a tool to shape your diversity policy.
Launch a customizable employee satisfaction survey that provides comprehensive reporting. - Use the
results to build and implement successful diversity in the workplace policies.
As the economy becomes increasingly global, our workforce becomes increasingly diverse. Organizational
success and competitiveness will depend on the ability to manage diversity in the workplace effectively. Evaluate
your organizations diversity policies and plan for the future, starting today.

Diversity And The Workplace


By Judith Lindenberger

A diverse body of talent with fresh ideas and perspectives is one of the essential ingredients to a company's longterm success.
As you look around your office, is everyone just like you? Probably not. The demographics of the American
workforce have changed dramatically over the last 50 years. In the 1950s, more than 60% of the American
workforce consisted of white males. They were typically the sole breadwinners in the household, expected to
retire by age 65 and spend their retirement years in leisure activities. Today, the American workforce is a better
reflection of the population with a significant mix of genders, race, religion, age and other background factors.
The long-term success of any business calls for a diverse body of talent that can bring fresh ideas, perspectives
and views to their work. The challenge that diversity poses, therefore, is enabling your managers to capitalize on
the mixture of genders, cultural backgrounds, ages and lifestyles to respond to business opportunities more
rapidly and creatively.
Here are two examples of the challenges inherent in managing a diverse workforce:
An American health insurance company hired employees from a variety of racial and ethnic backgrounds. The
variety of different native languages and cultures, however, did not mix. Instead of making employees feel that
they had a sub-group within their larger team, it gave rise to paranoia ("They must be talking about me.") and
assumptions ("They think they are smarter than everyone else."). When the group needed to learn a new intake
system, rather than pull together, they became even more estranged and productivity and morale plummeted.
In an American subsidiary of a global bank based in Japan, a few Japanese female workers complained to
management that their older Japanese male bosses were being disrespectful to them. The human resources
manager questioned all of the women in the office. Every Japanese woman reported problems with the Japanese
men. In contrast, the American women reported no problems at all. Confused, the human resources manager
questioned the Japanese male managers. The answer? The Japanese men responded that they understood
American expectations related to sexual harassment, so they were careful about what they said to the American
women. They were perplexed by the responses of the Japanese women. "What is the problem?" ?the Japanese
men wanted to know, "They know that we don't mean anything. Any Japanese person would understand."
Communication, which has never been straightforward and easy in the first place, is becoming even more
complicated as organizations take on global partners.
Diversity is no longer just a black/white, male/female, old/young issue. It is much more complicated and
interesting than that. In The Future of Diversity and the Work Ahead of Us, Harris Sussman says,
"Diversity is about our relatedness, our connectedness, our interactions, where the lines cross. Diversity is many
things - a bridge between organizational life and the reality of people's lives, building corporate capability, the
framework for interrelationships between people, a learning exchange, a strategic lens on the world."
A benefit of a diverse workforce is the ability to tap into the many talents which employees from different
backgrounds, perspectives, abilities and disabilities bring to the workplace. An impressive example of this is
found on the business cards of employees at one Fortune 100 technology company. Employees at this company
have business cards that appear normal at first glance. On closer inspection, the raised Braille characters of
employee information are evident.
Many companies, however, still face challenges around building a diverse environment. Part of the reason is the
tendency to pigeonhole employees, placing them in a different silo based on their diversity profile. If an employee
is male, over 50, English, and an atheist, under what diversity category does this employee fall? Gender,
generational, global or religious? In the real world, diversity cannot be easily categorized and those organizations
that respond to human complexity by leveraging the talents of a broad workforce will be the most effective in
growing their businesses and their customer base.
So, how do you develop a diversity strategy that gets results? The companies with the most effective diversity
programs take a holistic approach to diversity by following these guidelines:
1.

Link diversity to the bottom line. When exploring ways to increase corporate profits, look to new
markets or to partnering with your clients more strategically. Consider how a diverse workforce will
enable your company to meet those goals. Think outside the box. At a Fortune 500 manufacturing
company, Hispanics purchased many of the products. When the company hired a Director of

Hispanic Markets, profits increased dramatically in less than one year because of the targeted
marketing efforts Your new customers may be people with disabilities or people over the age of 65.
How can your employees help you reach new markets?
2. Walk the talk. If senior management advocates a diverse workforce, make diversity evident at all
organizational levels. If you don't, some employees will quickly conclude that there is no future for
them in your company. Don't be afraid to use words like black, white, gay or lesbian. Show respect
for diversity issues and promote clear and positive responses to them. How can you demonstrate
your company's commitment to diversity?
3. Broaden your efforts. Does diversity at your company refer only to race and gender? If so, expand
your definition and your diversity efforts. As baby boomers age and more minorities enter the
workplace, the shift in demographics means that managing a multi-generational and multi-cultural
workforce will become a business norm. Also, there is a wealth of specialized equipment available
to enable people with disabilities to contribute successfully to their work environments. If your
organizational environment does not support diversity broadly you risk losing talent to your
competitors. How can your recruitment efforts reach out to all qualified candidates?
4. Remove artificial barriers to success. The style of interview - behavioral or functional- may be a
disadvantage to some job candidates. Older employees, for example, are less familiar with
behavioral interviews and may not perform as well unless your recruiters directly ask for the kind of
experiences they are looking for. Employees from countries outside the US and non-Caucasian
populations may downplay their achievements or focus on describing, "who they know" rather than
"what they know" Train your recruiters to understand the cultural components of interviews. How
can your human resources processes give equal opportunity to all people?
5. Retain diversity at all levels. The definition of diversity goes beyond race and gender to encompass
lifestyle issues. Programs that address work and family issues - alternative work schedules and
child and elder care resources and referrals - make good business sense. How can you keep
valuable employees?
6. Provide practical training. Using relevant examples to teach small groups of people how to resolve
conflicts and value diverse opinions helps companies far more than large, abstract diversity
lectures. Training needs to emphasize the importance of diverse ideas as well. Workers care more
about whether or not their boss seems to value their ideas rather than if they are part of a group of
all white males or an ethnically diverse workforce. In addition, train leaders to move beyond their
own cultural frame of reference to recognize and take full advantage of the productivity potential
inherent in a diverse population. How can you provide diversity training at your company?
7. Mentor with others at your company who you do not know well. Involve your managers in a
mentoring program to coach and provide feedback to employees who are different from them.
Some of your most influential mentors can be people with whom you have little in common. Find
someone who doesn't look just like you. Find someone from a different background, a different race
or a different gender. Find someone who thinks differently than you do. How can you find a mentor
who is different from you?
8. Measure your results. Conduct regular organizational assessments on issues like pay, benefits,
work environment, management and promotional opportunities to assess your progress over the
long term. Keep doing what is working and stop doing what is not working. How do you measure
the impact of diversity initiatives at your organization?
In the book, Beyond Race and Gender, R. Roosevelt Thomas defines managing diversity as "a comprehensive
managerial process for developing an environment that works for all employees." Successful strategic diversity
programs also lead to increased profits and lowered expenses.
The long-term success of any business calls for a diverse body of talent that can bring fresh ideas, perspectives
and views and a corporate mindset that values those views. It's also no secret that the lack of diversity can affect
your ability to communicate effectively with diverse clients. Link your diversity strategies to specific goals like
morale, retention, performance and the bottom line. Build your business with everything you've got, with the
complex multi-dimensional talents and personalities of your workforce, and make diversity work for you.
About the Author: Judith Lindenberger, Principal, The Lindenberger Group, LLC

Business Advantages of Diversity in the Workplace


The United States Office of Employment predicts that 29 percent of the U.S. labor
force will be comprised of minorities by 2008. More importantly, it estimates that
from 1998 to 2008 some 41 percent of the people entering the U.S. workforce
will be minorities. Most companies in America recognize that there are significant
advantages to diversity in the workplace. By integrating workers from culturally
diverse backgrounds into their workforce companies become much stronger.
However, many firms dont understand the importance or challenges of
workplace diversity. Diversity needs to be seen as an integral part of the
business plan, essential to successful products and increased sales. This is
especially true in todays global marketplace, as companies interact with
different cultures and clients.
Among the advantages of diversity in the workplace are: increased creativity,
increased productivity, new attitudes, new language skills, global understanding,
new processes, and new solutions to difficult problems.
1. Creativity increases when people with different ways of solving difficult
problems work together towards a common solution. There is no one best answer
to any question-- the more ideas you can obtain from different people, the more
likely you are to develop a workable answer. Other cultures can offer insightful
alternatives Americans might not have considered. This is a tremendous
advantage of diversity in the workplace.
2. Productivity increases exponentially when people of all cultures pull together
towards a single inspiring goal. Foreign executives are extremely successful in
the American corporate world because of globalization and internationalization.
People from China and India benefit U.S. firms with their stellar quantitative
skills. And European citizens-- Swiss, Germans, British, and French--do well here
in high-level jobs. Increased productivity is an obvious advantage of diversity in
the workplace.
3. New attitudes are brought to the business table by people from diverse
cultures. For instance, Americans may want to consider adopting the perspective
other cultures have about time. Our culture believes that time is money and
getting to the bottom line is paramount in business. However, in most other
countries around the world time is for building relationships and an integral
part of getting to know the other party you are considering doing business with
before starting a transaction. How much of an advantage would workplace
diversity be if we followed this practice more closely?
4. Language skills are obviously needed in todays increasingly global economy-and diverse workers often have this proficiency. If a company needs specific
knowledge or language skills, it may hire foreign nationals for help. In some
markets, international job seekers have the advantage. For example, companies
breaking into European, Asian or Latin American markets will need foreign
expertise. High-tech firms in particular are expanding into countries abroad. In
the United States, we like to believe that English is the language of the world.
While that may be true for business, our native tongue ranks second in the world
behind Chinese and just slightly ahead of Hindustani. To truly build relationships
with the other people of the world, we must speak their language. It is a

tremendous advantage of workplace diversity if we enable people from other


cultures can help us understand not just their words, but also the meaning
behind what they are saying.

5. Understanding how the United States fits into the world picture is crucial. By
relating to people of all backgrounds, Americans will gain a greater perspective
on how different cultures operate and experience greater success in global
business as a result. The average American believes that this countrys residents
account for about 25 percent of the worlds population. People from outside our
borders are not surprised to learn that the figure is actually less than five
percent.
6. New processes can result when people with different ideas come together and
collaborate. In todays fast-moving world, there is no longer room for thinking,
We have always done things this way and cannot change. American workers
must bring multiple skills to the environment, think cross culturally, and adapt
quickly to new situations. Those who meet these criteria are likely to do well,
regardless of culture--even in tough economic times.
Workplace diversity can make American companies more productive and
profitable. They also bring differences that we must understand and embrace for
those benefits to be realized.
This article was written by Michael D. Lee, MBA, a professional speaker, diversity
consultant and the author of several books on diversity in the workplace. He is
the first Asian American to earn the Certified Speaking Professional designation
in the 30-year history of the National Speakers Association. Michael can be
reached at: Michael@EthnoConnect.com.

Chapter 12: Managing Diversity in the Workplace


The Chancellor's Committee on Diversity defines Diversity as:
"The variety of experiences and perspective which arise from differences in race, culture, religion,
mental or physical abilities, heritage,age, gender, sexual orientation, gender identity and other
characteristics."
So why is it when many people think of diversity, they think first of ethnicity and race, and then gender?
Diversity is much broader. Diversity is otherness or those human qualities that are different from our
own and outside the groups to which we belong, yet present in other individuals and groups.
It's important to understand how these dimensions affect performance, motivation, success, and
interactions with others. Institutional structures and practices that have presented barriers to some
dimensions of diversity should be examined, challenged, and removed. A good starting-point for thinking
about diversity is to become familiar with UCs systemwide Non-Discrimination Statement:
It is the policy of the University not to engage in discrimination against or harassment of any person
employed or seeking employment with the University of California on the basis of race, color, national
origin, religion, sex, gender identity, pregnancy, physical or mental disability, medical condition (cancerrelated or genetic characteristics), ancestry, marital status, age, sexual orientation, citizenship, or status
as a covered veteran. This policy applies to all employment practices, including recruitment, selection,
promotion, transfer, merit increase, salary, training and development, demotion, and separation.
Of course, diversity also encompasses a wide variety of other differences, including work experience,
parental status, educational background, geographic location, and much more. And managing diversity
means more than simply observing legal and policy requirements. It also means actively promoting
community and comfort with difference, as noted in UCSFs Principles of Community:
We recognize, value, and affirm that social diversity contributes richness to the University community
and enhances the quality of campus life for individuals and groups. We take pride in our various
achievements and we celebrate our differences.
As this suggests, workplace diversity can provide tremendous benefits in terms of improved morale,
outside-the-box thinking, greater teamwork, and an atmosphere of mutual understanding and respect.

Guiding Principles

How Well Do You Manage Diversity?

Managing Diversity

Managing Diversity is Different from Affirmative Action

Consequences of Ignoring Diversity

Other Resources

Guiding Principles
Workforce diversity is a reality at San Francisco. We already reflect the national demographic trends
predicted for the year 2000 by the Hudson Institute in its 1987 report, Workforce 2000. Accommodation
issues for our diverse workforce, such as childcare, elder care, flexible work arrangements, disability
accommodation, and literacy are being addressed in the workplace.
Managing diversity is defined as "planning and implementing organizational systems and practices to
manage people so that the potential advantages of diversity are maximized while its potential
disadvantages are minimized," according to Taylor Cox in "Cultural Diversity in Organizations."
Managing diversity well provides a distinct advantage in an era when flexibility and creativity are
keys to competitiveness. An organization needs to be flexible and adaptable to meet new customer
needs.
Heterogeneity promotes creativity and heterogeneous groups have been shown to produce better
solutions to problems and a higher level of critical analysis. This can be a vital asset at a time when the
campus is undergoing tremendous change and self-examination to find new and more effective ways to
operate.
With effective management of diversity, the campus develops a reputation as an employer of choice.
Not only will you have the ability to attract the best talent from a shrinking labor pool, you can save time
and money in recruitment and turnover costs.
The campus will fulfill its role as a public institution by reflecting the diversity of the state as well as
meeting the increasing demand to provide informed services to an increasingly diverse customer base.

How Well Do You Manage Diversity?

Do you test your assumptions before acting on them?

Do you believe there is only one right way of doing things, or that there are a number of valid
ways that accomplish the same goal? Do you convey that to staff?

Do you have honest relationships with each staff member you supervise? Are you comfortable
with each of them? Do you know what motivates them, what their goals are, how they like to be
recognized?

Are you able to give negative feedback to someone who is culturally different from you?

When you have open positions, do you insist on a diverse screening committee and make
additional outreach efforts to ensure that a diverse pool of candidates has applied?

When you hire a new employee, do you not only explain job responsibilities and expectations
clearly, but orient the person to the campus and department culture and unwritten rules?

Do you rigorously examine your unit's existing policies, practices, and procedures to ensure that
they do not differentially impact different groups? When they do, do you change them?

Are you willing to listen to constructive feedback from your staff about ways to improve the
work environment? Do you implement staff suggestions and acknowledge their contribution?

Do you take immediate action with people you supervise when they behave in ways that show
disrespect for others in the workplace, such as inappropriate jokes and offensive terms?

Do you make good faith efforts to meet your affirmative action goals?

Do you have a good understanding of institutional isms such as racism and sexism and how they
manifest themselves in the workplace?

Do you ensure that assignments and opportunities for advancement are accessible to everyone?

If you were able to answer yes to more than half the questions, you are on the right track to managing
diversity well.

Managing Diversity
To address diversity issues, consider these questions: what policies, practices, and ways of thinking and
within our organizational culture have differential impact on different groups? What organizational
changes should be made to meet the needs of a diverse workforce as well as to maximize the potential
of all workers, so that San Francisco can be well positioned for the demands of the 21st century?
Most people believe in the golden rule: treat others as you want to be treated. The implicit assumption is
that how you want to be treated is how others want to be treated. But when you look at this proverb
through a diversity perspective, you begin to ask the question: what does respect look like; does it look
the same for everyone? Does it mean saying hello in the morning, or leaving someone alone, or making
eye contact when you speak?
It depends on the individual. We may share similar values, such as respect or need for recognition, but
how we show those values through behavior may be different for different groups or individuals. How do
we know what different groups or individuals need? Perhaps instead of using the golden rule, we could
use the platinum rule which states: "treat others asthey want to be treated." Moving our frame of
reference from what may be our default view ("our way is the best way") to a diversity-sensitive
perspective ("let's take the best of a variety of ways") will help us to manage more effectively in a
diverse work environment.

Your Role
You have a key role in transforming the organizational culture so that it more closely reflects the values
of our diverse workforce. Some of the skills needed are:

an understanding and acceptance of managing diversity concepts

recognition that diversity is threaded through every aspect of management

self-awareness, in terms of understanding your own culture, identity, biases, prejudices, and
stereotypes

willingness to challenge and change institutional practices that present barriers to different
groups

It's natural to want a cookbook approach to diversity issues so that one knows exactly what to do.
Unfortunately, given the many dimensions of diversity, there is no easy recipe to follow. Advice and
strategies given for one situation may not work given the same situation in another context.
Managing diversity means acknowledging people's differences and recognizing these differences as
valuable; it enhances good management practices by preventing discrimination and promoting
inclusiveness. Good management alone will not necessarily help you work effectively with a diverse
workforce. It is often difficult to see what part diversity plays in a specific area of management.
The Office of Affirmative Action, Equal Opportunity and Diversity is experienced in providing help with
training and advice on the variety of situations that occur, tailored to your specific environment. Their
website is www.aaeod.ucsf.edu.
To illustrate, the following two examples show how diversity is an integral part of management. The first
example focuses on the area of selection, the second example looks at communication:

Issues

How do you make the job sound appealing to different types of workers?

How can recruitment be effectively targeted to diverse groups?

How do you overcome bias in the interviewing process, questions, and your response?

Strategies

Specify the need for skills to work effectively in a diverse environment in the job, for example:
"demonstrated ability to work effectively in a diverse work environment."

Make sure that good faith efforts are made to recruit a diverse applicant pool.

Focus on the job requirements in the interview, and assess experience but also consider
transferable skills and demonstrated competencies, such as analytical, organizational,
communication, coordination. Prior experience has not necessarily mean effectiveness or
success on the job.

Use a panel interview format. Ensure that the committee is diverse, unit affiliation, job
classification, length of service, variety of life experiences, etc. to represent different
perspectives and to eliminate bias from the selection process. Run questions and process by
them to ensure there is no unintentional bias.

Ensure that appropriate accommodations are made for disabled applicants.

Know your own biases. What stereotypes do you have of people from different groups and how
well they may perform on the job? What communication styles do you prefer? Sometimes what
we consider to be appropriate or desirable qualities in a candidate may reflect more about our
personal preferences than about the skills needed to perform the job.

Fair vs. Same Treatment


Many people think that "fairness" means "treating everyone the same." How well does treating everyone
the same work for a diverse staff? For example, when employees have limited English language skills or
reading proficiency, even though that limit might not affect their ability to do their jobs, transmitting
important information through complicated memos might not be an effective way of communicating with
them. While distributing such memos to all staff is "treating everyone the same," this approach may not
communicate essential information to everyone. A staff member who missed out on essential
information might feel that the communication process was "unfair." A process that takes account of the
diverse levels of English language and reading proficiency among the staff might include taking extra
time to be sure that information in an important memorandum is understood. Such efforts on the part of
supervisors and managers should be supported and rewarded as good management practices for
working with a diverse staff.

Managing Diversity is Different from Affirmative Action


Managing diversity focuses on maximizing the ability of all employees to contribute to organizational
goals. Affirmative action focuses on specific groups because of historical discrimination, such as people
of color and women. Affirmative action emphasizes legal necessity and social responsibility; managing
diversity emphasizes business necessity. In short, while managing diversity is also concerned with
underrepresentation of women and people of color in the workforce, it is much more inclusive and
acknowledges that diversity must work for everyone.

Consequences of Ignoring Diversity


Ignoring diversity issues costs time, money, and efficiency. Some of the consequences can include
unhealthy tensions; loss of productivity because of increased conflict; inability to attract and retain
talented people of all kinds; complaints and legal actions; and inability to retain valuable employees,
resulting in lost investments in recruitment and training.

Other Resources
Human Resources Web site http://ucsfhr.ucsf.edu/
Diversity Toolkit
Employee Development & Training classes and workshops
Staff Diversity Program, Staff Equity and Diversity Services
Title IX Compliance Office
Campus ADA Coordinator (Americans with Disabilities Act)
Staff Internship Program
Employment, Employee Relations, and Labor Relations Units in Human Resources
LGBT Web site http://www.ucsf.edu/cge/lgbtr/
Center for Gender Equity Web site http://www.ucsf.edu/cge/
Office of Affirmative Action, Equal Opportunity, and Diversity http://www.aaeo.ucsf.edu/

Why should Malaysian companies care about


diversity and inclusion?

Diversity is what you have, and Inclusion is what you do with it.
October 24, 2014 | MALAYSIA | Lim Chin Han

Rapid technological change, globalisation, the demand for skills and education, and greater
inclusion of women and Generation Y in the workforce have forever changed the employment
landscape in Malaysia. Towers Watson research of high performing companies has shown that
Diversity and Inclusion is one of the key drivers for employee attraction, engagement and
retention resulting in improved business performance. This can also play a key role in winning
the war for talent, reduce brain drain and contribute to the success of the Economic
Transformation Programme and turn Malaysia into a high income economy by 2020.
The definition of diversity and inclusion now extends well beyond the traditional view that was
once focused primarily on gender and race. Its all about creating an environment that maximises
the potential of all employees. Its about encouraging and enabling all employees to draw on their
talents, skills, and experience for the benefit of business. HR plays a key role in diversity
management to create and empower an organisational culture that fosters a respectful, inclusive,
knowledge-based environment where each employee has the opportunity to learn, grow and
meaningfully contribute to the organisation's success.
There are, though, still barriers to implementing diversity in practice. At a recent Engagement
Network seminar run by Towers Watson, over half of HR specialists (57%) felt traditional
structures including factors such as a fear of change and an unconscious tendency for those in
the majority to surround themselves with people of a similar background were the biggest block
to implementation in their business. More than a fifth (22%) felt the biggest barrier to diversity is
down to a range of misconceptions, such as the view that diversity can lead to impaired
organisational effectiveness, that some groups lack commitment, or that it may drive up the
overall cost of employment.
TOWERS WATSONS MODEL FOR FOSTERING DIVERSITY & INCLUSION
An inclusive culture occurs when differences are valued, people are treated fairly and feel
accepted and respected, and opportunities are open to all. Explicit policies and programmes
create the infrastructure for such an environment. Senior Leadership and middle management
set the example, while clear expectations for behaviour and actions help all employees to walk
the talk on a daily basis. Over time these efforts result in an inclusive culture recognised
internally and externally.

HOW TOWERS WATSON CAN HELP


Towers Watsons research based model for fostering diversity and inclusion for corporates
follows a step by step approach. It comprises the following key phases.

IN SUMMARY
Forward thinking companies are taking a leadership role to maximise the benefits of a diverse
workforce. An effective Diversity and Inclusion strategy results in motivated and engaged
employees that power creativity and innovation. It leads to a better understanding of the different
needs of customers, better marketing strategies and improved sales performance. It enhances
the employer brand attracting high quality talent. It also leads to reduced reputational, legal and
financial risk. All of these combine to deliver a strong competitive business advantage.

Why workplace diversity is


important for every organisation
By LILY CHEAH

While the traditional notion of workplace diversity may refer to representations of


various races, genders and religious backgrounds, todays concept of workplace
diversity is all-encompassing. Aside from these variables, considerations are also
made on personality, age, cognitive style, skillset, education, background and more.
The focus of workplace diversity now lies on the promotion of individuality within an
organisation, acknowledging that every person can bring something different to the
table.
An organisation that is committed to a diverse workforce, therefore, is one that aims
to harness a pool of individuals with unique qualities, seeing this combination of
differences as a potential for growth rather than opportunities for conflict. Attached to
this commitment is also an intention to nurture and develop the potential of each
individual.
So what is it about diversity that can give organisations an edge? Here are several
advantages of having a diverse workforce:
1 Various opinions and perspectives
Employees with different background and experiences will bring together a variety of
perspectives, thereby evoking alternative solutions and approaches when discussing

a topic or issue. If managed well, the strengths and best insights of every individual
can be harnessed to heighten productivity and deliver better results.
According to Claudia Cadena, director of strategic human capital management at
SapuraKencana Petroleum Bhd, the composition of a team will dictate its potential
for success. There needs to be a mix of capabilities to ensure that essential
components and skills from strategic planning, execution, follow up to
communication abilities and conflict resolution are present.
At times we overlook the need for diversity given the pressures that a limited pool of
resources puts in organisations. However, if we give in to this pressure, we will
ultimate suffer the consequences of having a workforce composed of individuals that
can only see things from the same perspective and are unable to contribute different
points of view or alternatives due to their limited and similar background, exposure
and experience, adds Cadena.
This amalgamation of diverse individuals also sets the stage for creativity as different
ideas can be tested against one another, and new ones may be birthed. Employees
stand to experience more personal growth in an environment where they are
exposed to differences in culture, opinions and ideas.
The more you know, the more you know you dont know, goes the Aristotelian
saying. The following can is also be said: The more you know, the better your
capacity to test and refine your own perspectives and opinions.
2 Growth of employees
Employees stand to experience more personal growth in an environment where they
are exposed to differences in culture, opinions and ideas.
The more you know, the more you know you dont know, goes the Aristotelian
saying. The following can is also be said: The more you know, the better your
capacity to test and refine your own perspectives and opinions.
Employers will have to improve their ability to adapt to different circumstances in a
diverse environment. They have to work through differences in personality, culture
and background. Underlying ethno-centric notions may finally be brought to the fore
and confronted as they learn to work with different styles and cultures.
3 Unity of diverse strengths
Diversity also presents the opportunity to unite specific strengths to the advantage of
the organisation. As every person has different skills and possesses varying

strengths, these can be combined for greater performance and productivity.


Technical strengths in one individual can be united with the management strengths
of another, and the sales strength of yet another.
Likewise, the cultural expertise of diverse individuals can be leveraged for the benefit
of the company. Especially for global organisations, diversity in a workforce can
optimise an organisations ability to meet the needs of each market. Representatives
of specific demographics can be paired with clients of the similar backgrounds,
helping clients feel more comfortable and sense an affinity with the employee, and
thereby, the organisation.
4 Makes company attractive
From the marketplace perspective, a company that promotes workplace diversity
and an inclusive work environment adds to its attractiveness as an employer.
A work place that is open to exploring new ideas and styles is especially appealing
for the adventurous open-minded employees of Generation Y.
If an organisation makes it known that they focus on what individuals can bring to the
table more than the candidates socio-economic background, ethnicity and the like,
they are more likely to attract a diverse range of applicants.
5 The schedule advantage
There is also a practical advantage in having a diverse workforce. As individuals
have their unique time commitments, having a varied group helps ensure that work
tasks can be fulfilled at all times of the year.
Power generation company Malakoff Corp Bhd ensures that various races are
represented particularly in their roles that involve shift work, as pointed out by Siti
Hajar Mohd Dahlan, AVP of human resources. Acknowledging that various ethnicities
and religions have different celebrations they adhere to, making sure they have a
diverse group of employees ensures there is a workforce across different festival
periods during the year.

THE CHALLENGES OF DIVERSITY


There are, however, natural obstacles to embracing and implementing diversity in an
organisation. Feel good images of effortless synergy, the harmonious combination of
different perspectives and a melting pot with a fantastically delicious mix of
ingredients may be easy enough to talk about. However, we would be ignoring the

challenges firstly of advocating diversity and then managing it in a manner than


ensures it is a strength, and not a human resource and operational nightmare.
Earlier this month, I sat down with Victoria Martin, senior director of diversity and
inclusion (AMEA and APAC) at AIG, to discuss some of the obstacles to establishing
and harnessing the power of diversity. The goal, according to Martin, is to create an
environment where every employee has opportunities to be successful and where
their differences are leveraged for the success of the organisation. The challenge,
she says, is the issue of inclusion. <
b>OVERCOMING MUSCLE MEMORY
Martin identifies muscle memory as one of the main obstacles to workplace
diversity, referring to the attitude that says This is how it has always been done.
Why change it?
Hidden biases form a major component in the formation of this muscle memory.
Subconsciously, every person has a tendency to draw on their hidden biases when
making decisions about who they think will be the best candidate for a particular role
or opportunity. They may favour people of a particular race or educational
background, gender or individuals of a certain a personality type. A quick glance at
the leadership composition of an organisation can reveal predispositions that they
are inclined towards.
Its not intentional, Martin consoles. Its just this feeling that Im more comfortable
with people like me. She advises that people, especially managers, must be aware
of their personal biases and understand that they may be preventing them from
considering other possibilities.
CLASH OF APPROACHES
There is also the very real issue of differences in perspectives leading to a clash of
approaches. Culture, personality and background differences can erect social
divisions between employees that they need to recognise and overcome. Naturally,
this can present disruptions when working in teams as individuals learn to adapt and
understand on another.
However, this can turn to an advantage if individuals recognise that different,
sometimes conflicting ideas, are important to make sure a team does not have
tunnel vision. Martin sees it as a dynamic tension that can bring the best results.
IMPLEMENTING DIVERSITY

In implementing diversity within an organisation, there is no one-size-fits-all ratio of


optimal differences, as this will vary from company to company depending on needs
and dynamics.
The starting point, therefore, is to first define the type of diversity that your
organisation needs to succeed. Identify what is important for your organisation and
then set the appropriate goals and measures so that employees understand what is
needed to succeed in this endeavour.
Different companies adopt different approaches. AIG adopts a target-setting
approach in relation to gender and ethnic representations at senior levels of the
company. Malakoff reviews its diversity mix on an annual basis at its manpower
planning meeting, discussing talent needs with heads of divisions and departments.
Quota systems are an option as well; however, a danger here is that hiring managers
can sometimes feel pressured to recruit for the sake of diversity more than talent.
Cadena of SapuraKencana points out that while every organisationss diversity
requirements are different, communication is crucial across the board. Leaders
should be made aware of the reasons behind the importance of achieving this
diversity mix, says Cadena. This ensures not only understanding of the goal, but will
also lend the essential perspective and context to their everyday decision-making.

CREATING A CULTURE OF DIVERSITY


Internally, the culture of the organisation should echo this commitment to diversity.
Foster an appreciation for diverse individuals, and encourage teamwork and
collaboration.
This can be ingrained into the company culture by embedding diversity within the
companys value system. Alliance Bank Malaysia, for instance, integrates its diversity
commitment into its core values. The values of Respect (We are fair in all matters,
always listening and valuing the contributions of each individual) and Teamwork
(We are a champion team, not a team of champions) succinctly encourages each
of our employee to embrace diversity in the workplace, says Chew Siew Suan,
executive vice-president and head of group human resource.
As diversity involves the recognition of the strength of individuality, and the
combination of differences, organisations will strengthen its diversity call by giving its
employees equal opportunity for career development. This may involve internal
training programmes and putting in measures to build the internal talent pipeline,

such as providing them with the tools, resources and opportunities to plan their own
career path and reach their career goals.
WORKING WITH A DIVERSITY PERSPECTIVE
Implementing a diversity mind-set into decision making will help to support diversity.
For instance, when discussing internal talent, have a group participate in this
discussion, and assess not only talent in your own sphere but look at talents across
the organisation. This is because youre not only looking for talents for your own
team, but for the organisation as a whole, Martin advises.
Similarly, in the recruitment process, expand the pool of talent you are considering.
Post vacancies both internally and externally. Commit to interviewing diverse
candidates so that hiring managers get to consider all possibilities.
Also, include diverse perspectives in the selection process. Have interview sessions
with a diverse panel, as opposed to scheduling the candidate to meet different
managers at different times. The advantage of this is that the panel will hear the
same answers at the same time in the same context. In doing so, their perspectives
lend to better comparisons.
In making a decision on recruitment and who to give growth opportunities to, AIGs
Martin says that the impact of bias and stereotypes can be reduced by shifting the
focus from the specific type of people you require, to the skills necessary. When
considering candidates for a position, managers should first identify the specific skills
needed by an individual to fulfil that role. In focusing on the skillset required rather
than the type of person the manager would like, this helps managers to think from a
diversity perspective.
We challenge managers to think of diversity as broadly as possible, says Martin.
Consider individuals who have worked in different countries, or manage with a
transformational style rather than a transactional style. This way, the chances of
recruiting a diverse range of individuals increases.
As the geographical divisions of the world become increasingly irrelevant and
organisations are poised more than ever to service a global community, the
advantages of a diverse workforce become especially pertinent. The question to ask
is no longer whether diversity is required, but what kind of diversity is needed in
every organisation, and how diversity is best managed in the organisations
particular environment.
In doing so, a mind-set change is often required, as biases and stereotypes can
impede us from viewing the full potential of differences. But instead of proceeding

always on auto-pilot without questioning our underlying beliefs, perhaps turn on your
minds manual mode. Take some time to examine the diversity composition and
diversity needs of your organisation. It could be the secret to taking your company to
the next level.

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