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Follow the leader: Embracing diversity from the top down

Diversity is playing an increasingly important role in helping companies maximize the potential of their people. HREonline's November 2005 article, A Whole New Diversity, reports that this trend marks the continuing evolution of diversity. In the 1950s, approximately 60 percent of the workforce consisted of white males, most of whom were sole breadwinners. By the late 1970s and early 1980s, increased government regulation, shifting marketplace pressures and an influx of women and minorities into the job market had corporate America launching affirmative-action programs labeled "diversity recruiting."

According to the U.S. Department of Labor and the U.S. Census Bureau, the majority of workers entering the workforce this decade will be women, minorities and foreign nationals. Through 2012, the U.S. Census Bureau estimates a three percent increase of whites in the workforce compared to a 51 percent increase for Asians, a 33 percent increase for Hispanics and a 19 percent increase for blacks.

Today, the need for a big-picture thinker on diversity issues is greater than ever and is driven by the demographic changes in the workforce. It is also driven by other factors, such as extending benefits to the significant others of workers regardless of marital status. However, while most organizations realize that diversity efforts can affect the bottom line, few take action. In the 2005 Society for Human Resource Management Workplace Diversity Practices Survey Report, nearly three out of four organizations said they ensure that diversity is a consideration in every business initiative and policy, but only 21 percent had staff dedicated to promote workplace diversity practices.

Clearly, no diversity program can succeed without commitment from the organization's top executives. Consider PepsiCo executives who demonstrate this commitment to diversity by holding themselves accountable. Each of the CEO's direct reports is responsible for helping develop a different group of employees. For example, one executive partners with black employees, another executive partners with women, another with Latinos, and another with gay, lesbian, bisexual and transgender employees. The executives hold themselves accountable for understanding the workplace issues that the diverse employee populations face. To help create a truly inclusive work environment for everyone, PepsiCo's general counsel, who happens to be black, is assigned to the company's white male community. PepsiCo's commitment and accountability ensures that no group of employees is left behind and that everyone is being represented equally at the executive table.

Certainly the biggest driver for higher-level diversity strategy is the need to tap the creative, cultural and communicative skills of a variety of employees and to use those skills to improve company policies, products and customer experiences. The Home Depot is an example of an organization that, due to its highly diverse workforce, has built a reputation for providing value to its customers. This reputation was established as a result of lessons learned from a class-action suit in 1996 involving alleged discrimination against women and minorities regarding pay equity and promotions. The company then developed written policies prohibiting discrimination and implemented nationwide diversity training programs as well as a job-awareness campaign. Today, the organization's work environment better reflects diversity in the community and provides The Home Depot with a competitive advantage.

The right CDO for the job
One indication of the importance of the role of a diversity executive is that many companies are adding "chief" to the title, namely chief diversity officer, even if the position reports to the chief HR executive. When looking for someone to fill the role of diversity leader, HR must first find someone who is a good business executive. That characteristic is needed to connect the dots from diversity initiative to business strategy to higher profits.

"A diversity leader must act as a role model and must be trustworthy, credible and consistent," said Yvette Trotman, Ceridian senior performance consultant. "Diversity leadership must foster a culture of inclusion and be able to effectively influence in all levels of the organization."

Listening skills are also a must for diversity executives since they are exposed to a variety of viewpoints on key issues. "Listening as symbolized by the Chinese characters that make up the verb "to listen" tells us about the importance of this skill. On the left hand side the ear represents listening with our head; on the right side we see listening from our own personhood, with our eyes for body language, with our undivided attention and our hearts which is the cornerstone of listening," explained Trotman. "What it comes down to, is truly listening to people."

In addition, diversity executives cite the importance of keeping an open mind because the job requires them to get out of their comfort zone and experience things they may not be familiar with or be naturally drawn to.

Obstacle course
Diversity executives often operate in an environment full of obstacles. According to an August 2006 SHRM article entitled Diversity Finds Its Place, to be successful, the executive must be able to overcome the following five challenges.

• Challenge 1: The difficulty of communicating effectively when diversity-related data includes sensitive information such as age, gender, ethnicity, religion and sexual orientation.
• Challenge 2: The slowness of change and progress brought about through diversity initiatives, which is especially difficult in fast-paced cultures that want immediate results.
• Challenge 3: Obstacles to ensuring the consistent and rigorous implementation of diversity programs across large, dispersed organizations.
• Challenge 4: "Diversity fatigue" which occurs when employees become desensitized to the many diversity messages they receive through diversity training, recruitment programs and outreach projects.
• Challenge 5: Keeping white males from feeling overlooked in diversity programs.

Diversity and inclusion are constantly changing and evolving, so diversity executives must keep current regarding trends and topics. Further, a looming talent shortage, demographic shifts and an increasingly global workforce indicate that top diversity executives will be in high demand. The enhanced role for CDOs promises to play a key part in the success of many organizations. The real success, however, comes from the CDO's ability to convince every employee that they own the commitment to diversity.

"When you have diversity of thought it is easier to retain people," added Trotman. "The lessons and experiences that employees get in the workplace teach them a lot about who they are as people. Positive lessons motivate employees to feel valued and included and that they can make a positive impact within the organization."

Ceridian's Training and Organizational Consulting services can help you foster a more inclusive work environment and embrace the diversity of talent within your organization. Our informative workshops can help you explore diversity by learning about its strategic importance, recognizing and respecting individual differences and understanding techniques for motivating and leading an intergenerational workforce. Contact your Ceridian representative and learn how to put diversity at the forefront of your organizational strategies.