Diversity in Work-place-Top Management – Part 2

Many Have Argued That Greater Diversity in the Top Management Team of an Organization is good for Profits and Customers. What would you recommend As Ways to Achieve Greater Diversity? “

Every Organization has its own combination of values, vision and mission statements that will enable her to achieve her stipulated goals and objectives. Profitability is one of these. The quality of the human capital available to an organization is a major determinant factor that determines the level of success or otherwise of the Organization in the Operating Business environment.  Employees see things from different perspectives; bring different ideas from their past experience which helps the company to achieve its set objectives.

Diversity in the workplace means that a company hires a wide range of diverse individuals. It also applies to a diversity of gender, race, ethnicity, age, sexuality, language, education, background, and so on. It also ensures that the participation of these employees is equal.

Workplace diversity is gaining momentum. LinkedIn’s 2018 Global Recruiting Trends report found 78 percent of the US companies surveyed are focusing on diversity.

The three top reasons identified by companies why they are introducing the concept of diversity into their operating environment are: to improve corporate culture, elevate company performance and to better represent their customers. Further research shows companies with more diverse workforces see increasing profits. A report by global management consulting firm McKinsey & Company, observing more than 300 companies in the US, Canada, the United Kingdom and Latin America, found that companies ranking in the top 25th percentile for gender diversity on their executive teams were 21% more likely to turn a profit above the national average.

McKinsey and Company also reported that when ethnic and cultural diversity were taken into account for executive teams, companies were 33% more likely to see better-than-average profits.

Diversity of ideas leads to innovation which leads to fresh thoughts about how to improve on the business processes that leads to an improved business model in conformity with the business environment, create a new blue ocean strategy that gives the organization a competitive edge which in turn increases market share and hence profitability.Diversity

Proposed Recommendations

 Redefinition of the Company’s business culture: The Company must fully research into and fully understand how the diversity of all types affects profitability. With this understanding, the Company can then incorporate diversity into the Company’s business culture.

Recruitment Policy:

The company as a matter of policy must source candidates from a diverse base thereby employing people with diverse characteristics. People from dissimilar walks of life approach the world from a wide range of perspectives and offer unique intellectual capital to the companies for which they work.

Decision-Making Process:

In making major decisions that affect the Company, deliberate efforts must be made to listen to the viewpoints of those who have had different experiences. This engenders richer brainstorming sessions, which foster outside-the-box thinking and higher levels of creativity for today’s companies. These sessions can in turn lead to an idea or invention that will help a company distinguish itself from its competitors and become more successful.

Use of diverse teams for Improved Customer/End User Service:

Serving the end-user is difficult if a company’s decision-making team does not include people who can relate to that customer. A diverse team is more likely to relate to a particular audience’s wants, needs and pain points, creating greater opportunities to resonate with customers. Also, a diverse staff introduces the potential to reach new demographics in ways that might not have come to light with a homogenous group at the helm. Ultimately, customer volume and satisfaction can be improved through higher levels of diversity, which raises profitability.

Expansion of Corporate Social Responsibility Policy to include Environmental, Social and Corporate Governance (ESG):

Today’s investors and customers are keeping a keen eye on Environmental, Social and Corporate Governance (ESG) when it comes to the companies they invest in and do business with. Diversity is playing an increasing role in how these groups assess ESG. As clients and customers become more diverse, they want to work with and support diverse people; therefore, these groups seek out companies that actively and openly champion diversity as a pillar of their philosophy. Having a more diverse workforce gives entrepreneurial firms a better chance of connecting with the investors and customers who will help them grow their businesses.

In Summary, a diverse workforce can improve innovation, customer relationships and employee retention, which are essential elements for business growth.