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Learn what diversity in the workplace is—and how it can help improve business
performance.
What is diversity?
The word “diversity” commonly brings to mind categories such as age, gender, religion,
race, ethnic background, and sexual orientation. People often think the term refers just to
these areas.
But diversity is broader than these categories. It also encompasses things like
socioeconomic background, personality type, learning style, and many other factors.
Consider the many dimensions that make up you—and how each of these affects how you
view the world. * Your coworkers are equally complex. The varied backgrounds you and
your coworkers bring to the workplace are essential to your organization’s success.
But diversity isn’t just a moral or legal imperative. It’s a performance enhancer too.
Companies have discovered that a diverse workforce provides important competitive
advantages. Studies show diverse teams generate higher profits, greater innovation, and
increased productivity compared with homogenous teams.
Focus on inclusion
*
It’s not enough to hire diverse talent. To reap the benefits of diversity, you’ll need to create an
inclusive environment. Such an environment acknowledges and supports differences, rather than
pressuring people to conform. In an inclusive environment, people feel:
They are treated with respect and fairness.
The unique life experience, opinions, and ideas they bring to the group are valuable.
They belong within the team and are not “outsiders.”
They can be their “true selves” at work. For instance, a Muslim can talk about a friend in
his mosque community, and a gay man can bring his partner to a company party.
Barriers to inclusion
Though inclusion is essential, it can be difficult in practice. Some common obstacles managers
face include:
Employees’ preference for being around others most like themselves
Employees’ tendency to mask their differences in order to “fit in”
Managers’ tendency to unconsciously stereotype minority employees
Each of these factors can limit the contributions of diverse employees and hinder your team’s
performance.
In-groups and out-groups
*
Though it may be uncomfortable to admit, most people prefer the company of others of the same
race, nationality, and religion. We trust them more, cooperate with them more willingly, and feel
more comfortable with them in work settings. When a large group of employee has the same
values, attitudes, and beliefs, this can form a dominant faction or “in-group.”
In contrast, an “out-group” is often a group in the minority at your organization. It might be
members of an ethnic or cultural group. It could be a woman in a field that’s generally male-
dominated, or an older worker on a youthful team. Members of an out-group may feel they have
less “voice” in the organization because they don’t see many people like themselves as role
models in positions of power.
Most people want to feel accepted and liked by others. Some adaptation is healthy and
appropriate, such as adhering to a company’s dress code or recycling to honor a company
focus on sustainability. However, when particular individuals feel they have to cover their
true identities in order to be accepted by the larger group, that’s problematic. In those
situations, your team is losing the strength of its diversity.Consider the range of changes
your diverse employees may be making to fit in:
Type of Change Description Examples
Appearance Individuals alter their clothes, An African woman may straighten her hair to
mannerisms, hairstyles, etc. deemphasize her race.
Affiliation Individuals avoid behaviors A mother might avoid talking about her children
widely associated with their because she does not want colleagues to think
identities. that she is not committed to her career.
Advocacy Individuals avoid defending a A veteran might not comment on a denigrating
group with which they are joke about the military for fear of seeming too
affiliated. aggressive.
Association Individuals avoid contact with A gay man might not bring his partner to a social
other members of their gathering at work.
identity group.
Undervaluing employees
Because of unconscious habit or bias, managers may undervalue or marginalize some
employees. This not only hurts the affected employee’s morale and undermines his or her
talents, it sets a damaging example for the rest of the team.
Base work assignments on stereotypes. For instance, when a team’s meetings run
long, one manager always asks the sole woman in the group to step out and order lunch
for the rest.
Relegate racial minorities and women to junior status. For example, during a
strategy meeting, Horatio, the only Latino in the room, offers a suggestion for
implementing a new competitive strategy. The room is quiet until a white male team
member echoes the idea. The group manager then responds to the idea, expressing
interest and asking follow-up questions.
Assume racial minorities do not have a strong work ethic. * For example, Mark, an
African-American employee, misses a deadline. His manager takes note and assumes
Mark will be unable to handle challenging work assignments in the future. In contrast,
when a white employee misses a deadline, his manager assumes it is an aberration.
Eric, a VP of Business Development, runs a team that looks for new consumer products to acquire. When
his team has identified a potential target, Eric assigns them roles to pull the deal together. He
consistently gives Dev, a team member of Indian descent, the job of gathering the financials. When Dev
has asked to try negotiating a deal, Eric has been noncommittal. But unconsciously, quiet Dev doesn’t fit
Eric’s picture of a successful negotiator. Further, Eric sticks to the notion that Dev’s cultural background
means he’ll excel at financial analysis.
Dev becomes increasingly frustrated by his lack of growth opportunity. So when a competitor contacts
Dev with a position that will allow him to lead a negotiation, Dev accepts the offer and resigns.
Eric has lost a talented employee, someone who wanted to learn both the financial and deal-making
sides of the business and who could have potentially reached new audiences for the team.
Janice interviews two candidates for the same position. The first, Amy, reminds Janice of her own
daughter. Amy is nervous at the start of the interview and stumbles in her response to the first
question. Janice makes a small joke to reassure her. Amy laughs, relaxes, and the interview proceeds
smoothly.
The second candidate, Ray, has similar experiences and skills, but Janice doesn’t feel a personal
connection. He is nervous and awkward in his response to the first question. She wonders if he
prepared properly for the interview and moves directly on to the second question. Ray’s interview
continues to go poorly.
The next day, Janice tells her boss about the interviews. She recommends Amy for the job. She does
not remember the quick interaction she had with Amy after the first questions and is completely
unaware of how her unconscious affinity bias could have influenced the outcome of the two
interviews. *
Resist the Urge to Hire People Like You
Try to boost diversity in team. But while recruiting, he’s drawn to people who are like him. A
professional coach offers advice for avoiding this common bias—such as asking all job candidates
the same set of questions to objectively assess their qualifications.
Michael, an African-American vice president at a consulting firm, sees Jenna and Grace, two Asian-
American analysts, in the lunchroom. He asks Jenna a question about a project. Jenna looks confused
for a moment, and then responds that she isn’t working on the project. Grace then answers Michael’s
question. Embarrassed, Michael apologizes, thanks Grace for the information and hurries out of the
lunchroom.
A “cultural mistake” like the one Michael made isn’t unusual. Research shows that we
recognize faces of people who share our racial background more accurately than those of
other races. * These mistakes are more likely to happen when racial groups are
underrepresented in a particular setting.
How you respond to a cultural mistake can make the difference between a hostile
environment and an inclusive one.
EXAMPLE
Michael’s embarrassment could lead him to try to avoid Grace and Jenna in the future. He might
assign projects to other analysts whenever possible to avoid working with them. But if he follows that
path, he is compounding the mistake in a way that could harm both women’s careers.
A better response would be to visit both women’s offices, apologize for the mix-up, and invite them
to lunch to get to know them. He could look for future assignments to work on with them based on
what he learns about their individual interests and talents. Michael’s positive response to his cultural
mistake could ultimately help Grace and Jenna get better assignments and feel more connected to
the firm.
To avoid making a similar mistake in the future, Michael could commit to getting to know all the
analysts as individuals. Then he’s better positioned to match their talents and interests with
appropriate opportunities.
It can feel awkward to pursue cultural competence because it will force you outside your
comfort zone. You’re likely to make mistakes. When you do, acknowledge it, think about
how you’ll avoid a similar blunder in the future, and continue to pursue cultural
competence.
Foster Inclusivity
How do you help a diverse team perform at peak levels? Build an inclusive environment in
which individuals feel comfortable being themselves and motivated to contribute.
Josh, a young college graduate, and Shanette, an experienced professional, join Accounting Inc. the same
week. The team has hired many people like Josh—young, male, recent college graduates. But Shanette,
who has two children and who is making a career switch, is a less traditional hire for the group.
Both employees get the same training overview, and both are introduced around the office to coworkers.
At the end of the day, however, the team manager rounds everyone up for the customary new-hire
ritual: a trip to a local bar. Josh is able to attend because he has no after-work commitments. Shanette,
who was unaware of this tradition, has to leave to pick up her children from daycare.
As a result, Josh gets key insights into office politics over drinks and, when he expresses interest in a
major client, one of the senior team members offers to invite him to the next review meeting. When
Shanette hears about the evening gathering the next day, she feels she is already a step behind.
Fitting In with New Colleagues
Lily Robles — Creative Director, Opus Design LLC
Worried that you won’t fit in with new colleagues whose personal style differs radically from yours?
Don’t—once you get to know them as individuals and they get to know you, you’ll look beyond surface
differences and work well together.
Help people feel respected and valued
In an inclusive environment, managers believe that good ideas can come from anyone—and they
act in ways that demonstrate that faith.
This is important because individuals whose views differ from those of the majority may not
readily share their ideas. It’s not enough to simply ask, “Does anyone have anything else to
add?”
To demonstrate that you value contributions from all members of your team: *
Seek participation from everyone. During meetings, seek input regularly. When
someone makes a point that is different from the mainstream, ask probing follow-up
questions to further explore the idea. Or ask a question to solicit reaction—“How can we
build on Jai’s thought?"
Let individuals know you appreciated their ideas. During and after meetings,
acknowledge how difficult it can be to express a different perspective, but how valuable it
is to the organization.
Vary the ways you receive input. Some employees love to talk in a group—and others
don’t. Occasionally, email about an issue to be discussed and ask for written thoughts in
advance. Or invite an employee to discuss an issue one-on-one over lunch.
Thank employees for their work. When someone does something well, acknowledge
what you liked about it. Raise the profile of your diverse employees by putting such
positive feedback into an email and copying your manager. *
Show confidence in employees’ ability to meet high standards. Research shows
employees rise to positive expectations.
Power up participation
Collaboration by Difference
Cathy Davidson — Professor, Duke University
Encourage team collaboration by listening to the non-experts.
Be fair
Your employees may not like or agree with every decision you make, but they should trust
that you are fair, transparent, and honest.
Assess needs
Each time you hire, you have an excellent opportunity to increase your team’s diversity.
First, consider what the position you’re filling entails and what characteristics are required to
carry out its responsibilities successfully. Then assess what resources your team might need
to be more successful. Consider factors related to diversity, including:
What types of different skills, viewpoints, and connections would help improve your
team’s performance?*
Can you use diversity to reach desired customers–for example, by recruiting someone
from a community you want to serve better? *
Is there a personality style, approach, or experience set that’s missing from your team?
Consider how the partners at a public-interest law firm approached a hiring decision.
EXAMPLE
A public-interest law firm needed to hire an additional attorney. When the senior partners examined
the firm’s records, they discovered they were not reaching the area’s immigrant community and
speculated that their nearly all-Caucasian staff may have sent an inadvertent message that the firm
was out of touch with immigrant issues. Because the firm's mission was to advocate for all, the
attorneys were troubled by this. They consulted with local community groups, who called their
attention to Soledad, a Hispanic attorney who had an excellent reputation at a family firm. When she
met with senior partners, Soledad impressed the partners with her qualifications and passion for the
position.
After a year at the firm, the difference was significant. Soledad attracted many new clients from her
own community, advancing the firm’s desire to serve a broader spectrum of clients. Even more
valuable, Soledad offered new ideas about cases the firm should consider. For example, she involved
the firm in precedent-setting litigation protecting immigrant rights in the public and private sectors.
Challenge assumptions
Consider the last few times you’ve filled a certain position and look for a pattern—for instance,
have all your candidates attended a certain kind of university? Have you relied exclusively on
recommendations from current employees?
When managers rely on narrow assumptions about the background someone needs to succeed,
they may unwittingly exclude certain groups. Continually challenge your own beliefs and habits.
Look at diverse teams in your company for best practices, and talk to other leaders who have
made nontraditional hires about their experiences.
EXAMPLE
At a technology company that employs mostly men, one manager cited "ability to work with people" and
"compassion" as prerequisites for promotion to leadership. But then he admitted, "That's the official
story. In truth, it's aggressiveness that really gets people promoted here. And most women just don't
have that trait."
To hire and promote more women—and thereby gain the performance benefits that gender diversity
offers—managers need to challenge their actual criteria for hiring and promotion. Managers could ask,
"Do aggressive leaders truly get better results than compassionate ones?" They would also benefit from
challenging stereotypes about women, asking, "Are most women really incapable of being aggressive
when the need arises?"
Managing Idiosyncratic Talent
Robert Austin — Dean, Faculty of Business, University of New Brunswick
People with certain cognitive conditions may not do well in job interviews—but they may have
exactly the talents you need for an open position in your team.
Describe the job in an appealing way. Emphasize what makes your organization a
good place to work and highlight benefits that might interest a diverse group of
applicants. For example, does your organization offer flexible schedules for those who
take care of extended family members or provide benefits for same-sex couples? Does it
provide opportunities for social good, such as reaching underserved communities?
Use targeted media. Advertise in magazines, newspapers, and websites that appeal to a
broad range of identity groups. Tweet support for key diversity issues. Use a broad
variety of media outlets to advertise job openings. *
Reach out to diverse communities. Sponsor special activities such as children’s sports
events or concerts in diverse neighborhoods. Sponsorship of such events not only
increases your organization’s visibility but demonstrates that you care about the
community. Such events also put you in contact with community leaders, who might be
able to identify potential talent. *
Build relationships with advocacy groups. Nonprofits and other organizations that
serve your target audience may be able to give you feedback about your company’s
reputation for diversity and inclusion. They may also be able to connect you with job
seekers. *
Involve your employees. Individuals within your organization that represent groups
you're interested in recruiting may know qualified candidates. To help employees find
qualified candidates, give tips on where to look. *
Involve affinity groups. Ask members of affinity groups to help "sell" your organization
to potential job candidates at career fairs. Also ask them to refer candidates from their
networks.
Make the transition smooth
After you’ve recruited diverse candidates, work to retain them. For example, if a person has
relocated for the job, be aware that geographic locations that lack diversity or are very different
from the employee’s previous home may present adjustment challenges. Thus, a new employee
who grew up in an urban location may feel out of place in a small town.
To ease the transition, help new employees make connections in the community. * For example,
if you learn that an employee enjoys playing soccer, you could suggest facilities that have adult
soccer leagues. Or, if an employee has children at a particular school, you could make
introductions to other parents you know with children at that school.
Prioritize employee career development
Talented employees from diverse backgrounds will be attractive not just to your company, but to
your competitors too. Keep them loyal to your organization by providing opportunities for career
growth.
Facilitate career development in the following ways:
Communicate often. Be clear about the criteria for promotions and the next steps your
employee needs to take. Introduce him or her to people within the organization who can
discuss the variety of career paths available at your company.
Provide stretch assignments. Choose challenges aligned with the person’s interests and
talents. Look especially for opportunities to make diverse employees visible to company
leadership. For instance, ask the employee to present part of your group’s results at a
company meeting.
Give regular feedback. Let employees know, specifically, what they do well and where
they can improve.
Provide mentors. Mentors are people who can offer advice, provide insights about the
organization, and discuss career paths. Diverse employees should have multiple mentors.
At least one should be someone with whom they feel comfortable discussing diversity
issues that they might not bring up with you.
Introduce employees to potential sponsors. These are senior leaders who can take an
active role in helping high-potential diverse employees advance.
The Best Feedback Includes an Action Plan
Marta Mitsumori — Product Manager, Harvard Business Publishing
Help your employees develop their skills by pairing feedback with opportunities for growth.
Your employees’ core interests. Core interests reflect how people engage with the
world and what kinds of activities feel most natural to them. For instance, they may have
a core interest in using technology to solve problems, or a core interest in teaching
others. Ask your employees: What have they loved doing recently? What experiences do
they seek, both at work and in their personal lives?
Their skills. Review new learning, training, or certifications. Staying apprised of
employees’ expanding capabilities also helps you delegate effectively to them and offer
new challenges.
Their goals. What milestones do they want to achieve in the next six months? The next
year? What about five years from now?
Their work/life balance. Are they able to balance work priorities with family or
personal needs? How are their stress levels? Prevent burnout by discovering what
obstacles you can eliminate.
The level of support they get from you. Do they need additional resources or guidance
from you? In contrast, is there anything they’d like to be able to do with greater
independence?
Sometimes, despite your best efforts, talented diverse employees decide to leave your group.
In this case, learn as much as you can about the factors that went into their decisions before they
go. Ask your human resources department to conduct a formal exit interview so you can gather
additional insight. Use the information to determine what, if anything, you could do differently
in the future to prevent others’ departures.*
Though workplace diversity offers major business advantages, it can also create
misunderstandings and tensions in the workplace.
Diversity-related conflict can result when:
Team members’ behavior is misinterpreted because of cultural differences.
Team members form biased impressions of others based on negative stereotypes.
Team members discriminate against those who aren’t like them.
Individuals who have been subject to bias in the past act defensively when others
challenge their expertise.
Address tensions
It’s tempting to ignore diversity-related tension and hope that it will resolve itself. But if not
addressed, small tensions often escalate to bigger conflicts. This can cause distractions, drain
morale, and result in the loss of valuable talent. In extreme cases, unaddressed conflict can lead
to outright hostility, discrimination, or even violence.
Instead of ignoring tension, address issues openly and establish positive guidelines for working
together.
Consider the following guidelines—either introduce them to the team, or encourage the team to
brainstorm similar ideas:
Think about others as individuals, not as members of certain groups. * This helps
avoid stereotyping.
Treat each other with kindness and respect. Think about how you would like others
to treat you.
Appreciate that differing viewpoints bring new insight. Though unfamiliar points of
view might not resonate at first, they are often an important step along the path to the
best solution.
Assume everyone has good intentions. Interpret mistakes as honest and not malicious.
Focus on the team’s shared goals and objectives. See everyone as part of the same
team, with the same end goal.
Address tension or conflict honestly and directly. Allow yourself a “cool down” and
reflection period if necessary, but address the situation in a timely fashion.
Seek advice. A mentor or human resources staff member may be able to provide insight
about how to handle a conflict, particularly if an individual feels uncomfortable
addressing a particular situation directly with a coworker.
Invited Versus Welcomed
Audrey Lee — Principal, Perspecitva LLC
For diversity initiatives to work, managers must ensure that everyone truly feels included.
Manage conflicts
When you notice conflict among members of your team, first analyze the cause. Is it diversity-
related or does it stem from other issues such as conflicting goals or confusion about work roles
and responsibilities? Often, it’s a combination of the two—a work-related confusion that’s
exacerbated by cultural misunderstanding or bias.
When you address diversity-related tension, involve your team members in generating a solution,
rather than prescribing one. People who think about an issue, talk it over, and arrive at a mutual
agreement will be more invested in making meaningful change.
Mediate conflict
Follow these steps to mediate employee conflict. Your role as a mediator is not to solve the
problem yourself, but to facilitate a productive discussion.
Step 1: Help define the problem. Use open-ended questions and prompts, such as “How
did you experience that?” or “Share your concerns about that interpretation.” Encourage
employees to describe the conflict and to express their emotions, motivations, and
viewpoints. Model paraphrasing and other active listening skills to demonstrate how this
is done.
Step 2: Identify areas of agreement. For example, perhaps both people have a project's
best interests at heart, but they have different views about how to carry out the work.
Step 3: Brainstorm alternative solutions together. Encourage the parties to consider
multiple ideas. Evaluate how well the proposed solutions satisfy each person’s concerns
and issues.
Step 4: Create a plan. Help the parties create a plan and help them anticipate barriers.
Ask questions, such as “How would you handle a setback?” Set next steps, including a
follow-up meeting to discuss how things are going and whether the solution is working.
Harness conflict
Not all conflict is bad. If every meeting is harmonious, it’s likely your people don’t feel
comfortable expressing their full selves at work. When managed properly, conflict can result in
creative breakthroughs.
Clarify team roles up front. Define individual roles and ensure that employees are
empowered to do a significant amount of work on their own. Otherwise, team members
are likely to waste energy negotiating roles or protecting turf, rather than focusing on
achieving their team goals.
Let the team decide how to achieve its goal. You’ll gain more from your team’s
diversity if the problem-solving approach is not predefined and therefore requires
creativity.
Coach employees to view disagreement as valuable. Emphasize resilience—that even
after a disagreement, a relationship can still be productive. Praise team members when
they resolve conflict and draw out each others’ distinctive talents.
Foster community. Plan activities that bring team members together for fun. Shared
jokes and common experiences help people build mutual goodwill.
Seek training. Provide training in basic collaboration skills such as goal setting, conflict
resolution, and listening.