Expert Opinion

Why create an inclusive culture?

"Diversity represents a company's fundamental attitude that it not only respects and values the individuality of its employees but also understands how to tap the potentially significant contributions inherent in diversity" - Alexandra Groess [4]

C J Prince of Chief Executive journal [1] writes that the creation of an organisation which respects and welcomes all employees, regardless of gender, race, ethnic background and sexual orientation, will facilitate the winning of top talent from each one of these groups. In addition, a work force comprised of happy and loyal employees who enjoy diverse perspectives can combine to spark innovation and to attract a new spectrum of customers from their representative niches. The U.S. Bureau of Labour Statistics projects that by 2008 women and minorities are expected to make up 70 percent of the new entrants to the work force. This represents a major shift that will permanently change the complexion of both large and small U.S. companies bringing many new challenges for CEOs. Organisations that work primarily in the business to business domain have found that homogenous teams are at a disadvantage when negotiating with more diverse groups, or when pursuing government contracts which often specify diversity requirements. As organisations become more global in their operations and reach across culturally disparate continents, seamless operations depend on being able to recognise, appreciate, and celebrate differences. It is believed that a lack of knowledge concerning organisational directions in regard to multicultural initiatives is one of the largest roadblocks to implementing successful diversity programmes. Best practices involve serious CEO commitment, clearly outlined policies, measurable goals, and compensation systems that include incentives for meeting those goals. [1],

There is evidence to suggest that diverse cultures can provide a source of competitive advantage. Dr Pikay Richardson of Manchester Business School [2] believes that the concept of diversity management focuses on the human resource development aspect of the potential (along with the threat) of a diverse community or workforce. An important driver relating to equality from a management viewpoint is that discrimination and prejudice hinders the full use of skills and abilities which results in sub-optimal output. Ignoring diversity is no longer an option. Positive diversity management enabling workers to give of their best, is vital for achieving an overall productive and competitive workforce. Some of the benefits of diversity management are believed to be:

• Reduced employee turnover;

• Increased ability to attract the best talent;

• Reduced numbers of complaints and grievances and time taken to resolve these;

• Improved team working and communication;

• Greater equality in working practices and procedures;

• Compliance with equality legislation.

The result being more effective development and use of the organisation's human resources, in turn leading to a more productive workforce, a better understanding of markets and competitors, a more effective and efficient organisation, and a more profitable business [2].

Based on interviews with executives from public and private companies Edith Orenstein, manager of Research for Financial Executives Research Foundation (FERF) found [3] that, within organisations, business cases for diversity were usually related to one or more of the following purposes:

• Diversity was used as a driver for increasing revenue, or gross margin;

• Diversity plans were included for compliance purposes or to reduce the risk of litigation;

• Diversity was promoted to improve corporate goodwill and to become an employer of choice, and;

• It was an integral part of an organisation's culture or the leader's beliefs.

Orenstein cites Mary Green, senior vice president and treasurer for Sony Corporation of America who commented that as part of their business rationale organisations must welcome diversity in order to be successful. The business world of today is made up of diverse populations; hence by having a diverse membership, additional viewpoints and talents are brought to those organisations, which in turn are becoming more reflective of the world in which they operate [3].

Nancy Lockwood [4] a content expert from HRMagazine provides the following key reasons for tying workplace diversity to organisational strategic goals and objectives:

• Greater adaptability and flexibility in a rapidly changing marketplace;

• Attracting and retaining the best talent;

• Reducing costs associated with turnover, absenteeism, and low productivity;

• Return on investment (ROI) from various initiatives, policies, and practices;

• Gaining and keeping greater/new market share (locally and globally) with an expanded diverse customer base. Lockwood cited [4].

We are all influenced to some extent by the cultures from which we originate. Accordingly we need to appreciate that we are far from neutral observers. Richard Pooley, a consultant from Canning a London based organisation, provided the following four stages associated with cross-cultural awareness [5]:

• Lack of learning opportunities that compensate for lower levels of formal qualifications;

• The desire of older workers for flexible working plus the shortage of part time jobs available in London;

• Lower tolerance of travelling to jobs located some distance from home and lower mobility;

• Lack of mainstreaming of over-50s in the recruitment market;

• Age discrimination; and

• Lack of labour market confidence in older job seekers.

A particular issue relating to employment in London was that half of the available jobs involved managerial and professional roles which were one of the most inflexible segments of the labour market for older people seeking opportunities. However both the public sector and the service sector had significant potential for employing older workers. [6 ]

Professor John Ivancevich of the University of Houston and Dr Jacqueline Gilbert of Middle Tennessee State University [7] ceated a schematic framework depicting diversity management. Fig 1 below is an adaptation of their work which outlines a sample of diversity management initiatives and their possible affects upon personnel and organisational outcomes. Surface-level and deep-level factors are recorded in the schematic along with a number of mediating variables such as racism and the diversity management history of the organisation.

Fig 1: Diversity, Mediating Variables & Consequences adapted from [7]

Creating an inclusive culture

The creation of an inclusive culture can provide all employees with an opportunity to reach their full potential. Achieving such a transformation within an organisation requires a commitment beginning with the realisation that no one is superior or inferior to anyone else-by race, sex, ethnicity, ability, or culture; the goal being to create a culture where relationships can be based upon honesty, trust, and mutual support. In such an environment the major drivers for change are ethical and moral ones, and diversity becomes "the right thing to do." William Guillory the president and chief executive officer of Innovations International, described [8] the following ten steps towards achieving inclusive organisational cultures:

• Develop a business case for diversity specifically customised for the organisation;

• Educate and train staff to develop an understanding of diversity along with its importance for organisational success, and provide diversity skills to use in their day to day work environment;

• Establish a baseline via a comprehensive cultural survey that explores diversity performance, inclusion, climate, and work/life balance;

• Select and prioritise all issues likely to contribute to a breakthrough in transforming organisational culture;

• Create a three to five year diversity strategic plan tied to the organisation's strategic business objectives;

• Secure the endorsement and financial commitment of leadership for the plan;

• Establish measurable leadership and management objectives which can be held accountable to executive management;

• Implement the plan with the understanding that surprises/setbacks are likely to occur along the way;

• Continue training to provide the skills and competencies necessary to successfully achieve the diversity action plan;

• Conduct a follow-up survey approximately one year after the initiation of the plan to determine the effectiveness of inclusion initiatives.

Simon Kettleborough , director of Performance Through Inclusion (PTI), a management consultancy, writes [9] that the full inclusion of diverse groups within the working economy is not merely an altruistic or politically correct option that happens to be fashionable at present, it is an inescapable imperative for any forward thinking management. The falling birth rates in the UK will cause an inexorable shift toward the recruitment of increasingly diverse workforces. To survive in competitive global markets organisations will become increasingly reliant on employees from minority groups. Acknowledging the intrinsic merit and inevitability of the 'diversity' argument in a changing and shrinking world comes as common sense; however the actual task of bridging the gap between token 'diversity' and real 'inclusion' remains a challenging task. Inclusive organisations tend to be more unified with the employees being loyal and having a high morale which can have a significant impact upon productivity. An inclusive organisation can have strengths in regard to relations with suppliers, retailers, wholesalers, distributors and agents. The skills of its diverse workforce may also be used to advantage along with their experience and mental models in international environments [9].

Training, mentoring, and information sharing are often required to facilitate the integration and empowerment of employees from diverse backgrounds, also an understanding of beliefs and appropriate cultural responses may improve working relationships between individuals and groups. Diversity initiatives can promote employee commitment, improve productivity, lead to lower turnover, and result in fewer employee relations challenges.

Diversity Training

Diversity training should be included as an integral part of an overall employee training programme. McLaughlin and Clemons of the Ballard Spahr Andrews & Ingersoll stated [10] that the goals of true workplace diversity training should be defined by both the culture, and the needs, of the workplace in question. Effective diversity training develops the ability of employees to work as a unit by understanding how differences in culture might cause barriers between employees that can affect morale and productivity. A key to a well-designed diversity programme is that management must embrace the concept of diversity by committing to make it part of the organisational culture, and by linking the goals of diversity with the business objectives of the organisation [10].

Employee Affinity Groups

Employee affinity groups are employer–recognised networks of people who share a common interest, background, or goal, and thereby can offer encouragement and assistance to one another in the workplace. Affinity groups often form a central plank of workplace diversity initiative programmes, and in some instances may be protected by law, or be a matter of company policy. Condon McGlothlen , a partner of Chicago based Seyfarth Shaw LLP, who advises employers concerning equal employment policies, practices, and systems, writes [6] that for many companies, workplace diversity has become a business imperative. Employers may support affinity groups by authorising the use of company premises, time, and facilities. The scope of the employer’s support should be recorded in a written company policy or guidelines to avoid claims of favouritism and to promote transparency. It is prudent to adopt a policy that requires each affinity group to be open to all employees. This can avoid legal liability issues and defuse divisiveness among employees [11].

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