When the U.S. Census Bureau released its 2000 data, it served as a clear precursor for America’s changing workforce demographics. At the same time, the agency announced the rapid growth of the Latino population in the United States. Employers watched and listened—but many have continued to operate according to the “status quo.”
Statistical research conducted in 2006 has overwhelmingly confirmed that people of color now account for 100.7 million of the population, with Latinos accounting for 44.3 million. Simply put, there are more minorities in this country today than there were in the entire population of the United States in the year 1910. Although women are responsible for approximately 83% of all consumer purchases, they represent only 14.6% of Corporate Board Directors for Fortune 500 companies. (Source: Catalyst, 2007)
Those staggering numbers, coupled with the impending shortage of talent in the workforce because of the upcoming retirement of the “baby boom generation,” has strengthened the business case for effective diversity management across America. Successful corporate leaders had the foresight to keep abreast of these changes over the years and adequately prepare for the impact such changes would have on their bottom line.
Today, they have strategically positioned themselves in the marketplace by incorporating diversity as an integral part of their overall business plan. Additionally, a more open-minded approach in recruitment techniques by some corporations has led to the removal of traditional barriers in their selection criteria. These companies are also offering innovative mentoring programs and have implemented solid succession plans. The reality is that the up-and-coming “Generation X” will not sufficiently solve current talent shortages, and those organizational gaps could prove devastating to businesses in the short and long-term.
The globalization of our society has occurred at a lightning rate of speed – and has essentially reshaped the American economy. We are experiencing an increasing globalization of the U.S. economy, which means that markets for products, services and capital will become broader and deeper, not to mention the increase in competition through rapid economic growth in certain developing nations. Social cohesion is stronger than ever, as we all strive for prosperity and greatness, regardless of our position on the workforce ladder.
Given these factors, why is it that diverse companies, as a whole, are performing better than non-diverse companies? These companies are cornering the market for top talent by “casting a wide net” over the best and the brightest from around the world. Retention rates are significantly higher for these companies who have not only embraced the cultural similarities and differences which are characteristic of today’s performance-driven employees, but have also capitalized on their skill sets through continuing education for promotional opportunities. Top-notch job candidates are augmenting those best practices by seeking employment with organizations that show significant representation of women and minorities in senior management ranks, regardless of industry affiliation.
As a result, educated consumers/clients look to conduct business with companies that have their “finger on the pulse” of societal change and have the capability to provide a cadre of services on both domestic and international fronts. The total economic picture then becomes much more palatable and profitable, fostering a mutual benefit to all parties involved. So, what can companies in today’s marketplace do to survive the winds of change?
- Assess your organization’s current situation. How culturally diverse is your employee base? Do you currently have a mentoring program in place? Even more importantly, do the have the affirmation or “buy-in” for this diversity initiative from your senior managers? Where do you stand in relation to your succession planning efforts? Identify the areas of opportunity within this matrix and amend your strategic diversity plan accordingly. Remember to focus on “inclusion” as opposed to “diversity” to incorporate opportunities for advancement within the management ranks.
- Provide a strong corporate infrastructure that will support your own unique diversity initiative. A “one size fits all” approach is not always a practical solution. Diversity training alone cannot provide the necessary tools to implement a successful diversity initiative, as each environment has its own culture and individual workplace issues. Concentrate on the best practices, recruitment techniques and employee development programs within your specific organization to ensure that the program is in alignment with the company’s business objectives.
- Recognize the complexities inherent in any diversity initiative and embrace those challenges. The new business environment has become one of global proportion. Corporate leaders must recognize that diversity is no longer simply an adjunct to the civil rights movement, nor a recruitment issue for your Human Resources staff. Managing diversity is a business imperative. Its reach extends from our local communities to international countries. Utilize methodical and tactical measures to address those key issues that extend beyond race and gender (political, social, religious, worldwide cultural tensions, etc.). Include both internal and external perspectives to get a feel for what might work best. This may seem a daunting task at first, but in the end everyone involved will benefit.
- Establish benchmarks. There is some truth to the old adage, “what gets measured, gets done.” Set realistic goals and objectives for your specific organization and make a commitment to review and address the areas of opportunity on a regular basis. Celebrate even small successes; realizing that achieving an inclusive environment takes time. View your diversity initiative as an ongoing journey, not simply a means to an end.
Surviving the winds of change requires a concerted effort on the part of every individual, on every level within the organization. True success in those efforts to leverage diversity is achieved through continuous learning and a sincere commitment to experiencing a gradual change in mindset. Once that wheel has been set in motion, the sky is the limit to future opportunities for greatness.