The business case for diversity

Not all companies have specific recruitment practices in place to ensure diversity. Not all companies are still entirely sure why they need to have a diverse team. Some companies continue believing that hiring for diversity will put hiring for talent in the back seat. Here’s some data that proves that paying attention to diversity is critical to having the best talent onboard.

Deloitte Australia found that inclusive and diverse organizations see better business performance in terms of ability to innovate, (83% improvement) responsiveness to changing customer needs (31% improvement) and team collaboration (42% improvement).

Think about it this way, if you want creative, progressive-thinking people in your team you have to make yourself attractive to them. The best talent will want to work with a diverse team because it is not just about demographic parity but about diverse thinking. Cognitive diversity will also ensure that one doesn’t focus on a specific demographic. Don’t appear charitable or patronising towards who you believe is the minority, instead target skills and career growth. Leveraging intersectionality by including people who have different perspectives and different educational backgrounds might seem like a more positive approach and will prevent claims of ‘reverse racism’.

Another reason to represent intersectionality? Data suggests that diversity correlates with better financial performance.

Why hiring for diversity is not enough

Anti-discrimination laws in the workplace have been in place in its various forms for nearly half a century. In the United Kingdom, the Race-Relations Act enforced in 1976 and the Equality Act first introduced in 1970 and then 2010 and its amendments over the years have ensured legal framework for a more diverse workplace. In the U.S, the Equal Pay Act in 1963, Title VII of the Civil Rights Act and subsequent amendments to include pregnancy discrimination, age discrimination and family and parental leave provide evidence that the conversation on discrimination has had a long litigious history. Yet, what last year’s Black Lives Matter protests revealed was that legal frameworks only go so far, ensuring inclusivity within the workspace requires far more energy than institutions and corporations are willing to put in.

Women in Google have been fighting a lawsuit against the tech company for fair wages after a study showed that women made $2000 less on average than men on paper. The popular food magazine Bon Appetit saw several prominent figures quit over race discrimination and pay gap issues with its longtime editor Adam Rappaport quitting. The California Department of Fair Employment and Housing filed a lawsuit against Cisco a multinational tech company over caste discrimination.

Many corporations meanwhile went out of their way to declare support for the Black Lives Matter Movement. Walmart pledged to stop locking up multicultural hair and beauty products, Sephora pledged 15% of its shelf space to Black-owned beauty products. James Gorman, Chief Executive Officer at MorganStanley announced positions to two black women in its operation and management committees. But data shows that only 4% of JP Morgan Chase’s top executives are Black. Well Fargo has seen a drop in their percentage of Black senior executives.

The public facade of corporate allyship and the reality of their workplace culture is vastly different despite all the systems they have in place to encourage diversity. Why?
At Curzon, we acknowledge that we are a work in progress. 81% of our workforce is female, 72% is non-Caucasian. We also have consultants working with us from different parts of the world and different time-zones so we emphasise work flexibility. As half the world has shifted to remote-work and bedrooms and living rooms have become makeshift workplaces we are forced to make considerations for what we used to understand as professionalism. We are making greater allowances for kids crashing into Zoom meetings, attending homeschooling sessions, noise in the background and multi-tasking.

But we know the buck doesn’t stop there. Diversity is not simply about hiring but also about inclusivity. How do we make sure that the systems and structures we have set up within our workplace makes people of diverse backgrounds feel included?

How to create an inclusive culture

Here are some small and big measures for 2021 that can change the complex landscape of diversity, equity and inclusion.

1. Being intercultural, not just multicultural

While you may have a multicultural team, that is, it comprises people from several different cultural backgrounds a question to ask yourself is, ‘Is it also intercultural?’ Is there a deep understanding and respect for all cultures? Is there a mutual exchange of ideas and cultural norms?
If people of various nationalities and cultures celebrate a different set of festivals that we haven’t accounted for on our calendar, do we take notice of it? In India for instance, while Christmas is an important religious festival, Dussehra, Diwali and Eid are equally important. Working remotely in a globalised world also means that the work ethic, standards of communication and language itself will develop different perspectives.
In some countries it is appropriate to burn the midnight oil, but in others work-life balance is prioritised. When the company does not acknowledge the particularities of these cultural traditions we risk two things: alienation of the workforce and a lack of creative thinking.
Curzon’s focus for the new year is to rewire our system and become a workforce that is culturally intelligent.

2. Opportunity parity

Last year, Facebook announced it was undergoing massive restructuring in its work-model and expected half its employees to switch to remote working in 5-10 years from now. It came up with a slight catch though, this would also mean that employees would now get paid relative to the local market. On the surface, this looks like a large pay cut. But the other hand, the facade of the diverse workforce will only get better because now you can work for the tech giant from anywhere in the world with a WiFi connection.
Outsourcing worked on similar principles of hiring cheap labour from developing markets and now reverse outsourcing is doing the same – Wipro’s growing Atlanta firm that leverages American labour for high transport costs of shipping from India. So what does parity mean when it’s all relative?
Being business shrewd by hiring diverse talent because the labour comes cheap is a sophisticated version of running a sweatshop. To make the culture of the workplace inclusive and equitable you have to commit to the principle of the idea, even when it starts looking different. Adobe, after achieving global gender parity moved to opportunity parity by looking at two principles – advancement and movement. It helped ensure that both kinds of movements vertically and laterally are possible and encouraged for all talent to keep those scales balanced.
Look for hints such as, is your diverse talent overburdened with work while others are not? Do you hire for diversity only for non-executive roles? Do you give your diverse talent an equal chance at promotions? What was the mix of your last three large-scale projects, who headed them and who did the grunt work?
At Curzon this year, we are laying the groundwork for building a system of mixed teams that allows for movement and advancement.

3. Anonymous surveys

Many small companies do not have standardised grievance redressal mechanisms. So one alternative to check for your unconscious biases is by having periodic anonymous surveys – and looking for patterns in the responses amid your senior or junior talent, diverse and other talent will help gain clarity on where we’re failing and what’s working. Publishing the results for the company to access and then setting up mechanisms to address specific issues that crop up, might ease the tension in smaller environments.
Are surveys effective? They are not when the surveys are too frequent, the questions remain the same and no visible action takes place. A survey must always accompany a follow-through conversation, setting up Learning & Development plans and specific action steps that address every question. Follow-up surveys must gauge the efficacy of the actions taken. This is the only way to encourage honest answers and position your HR or Talent Head as non-threatening.

4. Making diversity trainings voluntary

In the popular U.S version of the tv series, The Office, the first season kicks off with an episode where Dunder Mifflin the paper supply company undergoes diversity training. The data on the effects of diversity training reflect pretty much the confusion and chaos reflected in the episode. An article in the Harvard Business Review suggests that the positive effects of diversity training don’t last more than a couple of days and many firms see adverse effects of undergoing training. Why? Because people don’t like to be pointed fingers at. Managers, whether they are Presidents or a Regional Manager of a mid-size paper supplying company don’t appreciate being patronized.
Instead of establishing grounds for how societal structures are built, diversity training often uses negative messaging that sound vaguely like threats. When threatened, it is likely that the very prejudice that may not have been acted upon until then will suddenly make itself visible. Research findings by the University of Toronto suggests that when managers are forced to read brochures critiquing racial prejudice it results in increased animosity.
This is not to say that diversity training is bad, but a good way to think of it is to make it voluntary. Making diversity training voluntary will change the perception of why it is necessary, giving people the agency to make the right choice.In the present climate, it has become important to not just believe in the right thing but to do the right thing. So people will show up and participate because this is a discussion most people would want to be a part of.

5. Clear and transparent company policies

It is important to have company policies that address discrimination and encourages inclsuivity. Training measures and hiring strategies will not ensure that the workplace remains inclusive. Clear and transparent policies will encourage the type of behaviour that aligns with company values. Company policies must set in place a structured system at all levels, including recruitment, training, performance management and leadership assessment.
We have to remember that values are encouraged not mandated. So an employee handbook and clear terms in the Memorandum of Understanding should reflect policies that follow employment laws and ensure that there is due process in tackling unacceptable behaviour. This will help target any unintentional bias, because let’s face it we are all on a learning curve.
Lastly, show don’t tell. Share the metrics on diversity, equity and inclusion publically. That’s the only way to commit to it. Admit to the failure in methods if your results are poor and celebrate the successes small or big. Both clients and colleagues want to know you are taking a step in the right direction.

Conclusion

What we are looking at is an emerging paradigm of work where empathy is going to be critical. Investing in a diversity officer or an entire department dedicated to creating an equitable environment at the workplace will ensure that we build a workforce committed to organisational success.

Curzon PR is a London-based PR firm working with clients globally. If you have any questions, please feel free to contact our Business Development Team [email protected]