A common reason diversity initiatives fail


Workforce diversity is becoming increasingly important with rising awareness of the existence of overt and subtle forms of discrimination and the negative implications from them. While hiring a diverse workforce is strategic to an organization, a diverse workforce does not necessarily guarantee an inclusive workplace. Diversity programs are not increasing diversity (Dobbin et. al, 2016). Equal employment opportunity/ affirmative action (EEO/AA) laws promoting diversity are not necessarily translating into tangible diversity efforts or outcomes (Ng et. al, 2018).

Leaders have long recognized that a diverse workforce helps to build competitive edge in terms of selling products or services to diverse end users (Sherbin et. al, 2017). “Diversity” and “inclusion” are used interrelated, but they are different (Hafeez et. al, 2020). Diversity is only a representation; hence it is measurable. On the other hand, inclusion is intangible and it relates to the emotions of diverse workforce. Inclusion is a sense of belongingness. It includes engagement, involvement and active participation of employees, embracing diversity, giving value to one and another and engaging everyone in organizational activities (Hafeez et. al, 2020). The dimensions of inclusion are illustrated in Figure 01.

Figure 01: Dimensions of inclusion


Source: Hafeez et. al, 2020

Inclusive culture

Inclusive organizations have an in-built learning culture where practices are reviewed at regular intervals and updated to reflect the experiences with time. The first step towards building an inclusive culture is respecting everyone’s religions, culture, languages, beliefs, values and norms. Inclusiveness is not only about embracing diversity, but also about eliminating discrimination (Yarhouse, 2015). Inclusive organizations integrate High Performance Work Systems (HPWS) to reward employees based on their performance and ensure fairness (Roberson, 2017).

Inclusive leadership

Inclusive leadership plays a key role in forming inclusive organization (Qi et. al, 2019). According to Ospina (2011), the three traits of inclusive leaders are:

1. They tolerate employees’ views and opinions by listening to them, tolerate their mistakes rationally and encourage their subordinates and provide necessary assistance when they make mistakes.

2. They recognize the contribution of employees at all levels and train them and praise their achievements.

3. they treat all employees fairly, consider their needs and interests, and display fair attitude towards employees.

Why diversity initiatives fail

Companies adopt various approaches to managing diversity focusing on recruitment, education and training, career development, and mentoring programs (Roberson, 2006). Diversity initiatives fail because, companies are focusing on increasing diverse employees in the workforce rather than achieving equality and inclusion (Grissom, 2018). Precisely, companies are failing to create an inclusiveness.

For instance, the annual report of Seylan Bank states that no discrimination was identified during the recruitments and recruitments were done from the locality based on qualifications and merits expected of the candidates. The bank ensures gender equality and equal opportunity for employment with transparent process. Total workforce of the group is 3,251 of which female representation in the workforce is 43%.  Regardless, female representation in the board only 20% females and whilst 80% are male (Seylan, 2020).

The bank has taken necessary initiatives to improve diversity by hiring diverse employees belonging to different age groups, qualifications and ethnic groups. It is apparent that the workforce largely constitutes of employees belonging to 31-40 (35%) and 41-50 (43%) age groups. The bank should encourage generational dynamics by hiring more young talent and train them with appropriate succession planning in place, and retaining key employees aged above 50 years as they possess wide range of experience and expertise in the field.

Figure 01: Analysis of Academic and Professional Qualifications Based on Age and Gender 

Source: Seylan, 2020

The workforce at Seylan Bank PLC constitutes of Sinhalese, Tamil, Muslims, Burgers, and others. However, 88% of the workforce is represented by Sinhalese. The bank should improve its diversity in terms of ethnicity.

Figure 02: Workforce by ethnicity

Source: Seylan, 2020

Based on the above data, the bank needs to improve inclusiveness and integrate it as a part of its culture and leadership to ensure that diversity is effectively managed.

 

References

Dobbin, F. & Kalev, A. (2016). Why Diversity Programs Fail. Harvard Business Review. Retrieved on May 04, 2021 from https://hbr.org/2016/07/why-diversity-programs-fail

Grissom, A., R. (2018). Workplace Diversity and Inclusion.  Reference & User Services Quarterly, Retrieved on May 04, 2021 from https://www.journals.ala.org/index.php/rusq/article/viewFile/6700/9025

Hafeez, I., Yingjun, Z., Rehman, K., U., Hafeez, S. & Jahan, S. (2020). Inclusion: another seed for fragmentation and a new field of research. International Journal of Information, Business and Management, Vol. 12 Issue: 01, Retrieved on May 04, 2021 from http://ijibm.site666.com/IJIBM_Vol12No1_Feb2020.pdf#page=47

Ospina S. Leadership, Diversity and inclusion: Insights from scholarship. Graduate School of Public Service. 2011; 3(1): 3–30.

Ng., E., S. & Sears, G., J. (2018). Walking the Talk on Diversity: CEO Beliefs, Moral Values, and the Implementation of Workplace Diversity Practices. Journal of Business Ethics, Vol. 164, pp. 437-450, https://doi.org/10.1007/ s10551-018-4051-7

Qi, L., Liu, B., Wei, X. & Hu, Y. (2019). Impact of inclusive leadership on employee innovative behavior: Perceived organizational support as a mediator. Frontiers in Psychology, Retrieved on May 03, 2021 from https://doi.org/10.1371/journal.pone.0212091

Roberson, Ryan, A. M., & Ragins, B. R. (2017). The evolution and future of diversity at work. Journal of Applied Psychology, 102(3), 483.

Seylan. (2020). Annual report. Seylan. Retrieved on May 06, 2021 from https://www.seylan.lk/uploads/3BdAqsoAMIYoAOSxbhKwIxTk52oJ__Seylan%20Bank%20AR%202020.pdf

Sherbin, L. & Rashid, R. (2019). Diversity Doesn’t Stick Without Inclusion. Harvard Business Review. Retrieved on May 10, 2021 from https://www.cof.org/sites/default/files/documents/files/HBR%20-%20Diversity%20Doesnt%20Stick%20Without%20Inclusion%20-%20Sherbin%20%26%20Rashid_2.1.17....pdf

Shares, M. (2018). Workplace Diversity and Inclusion. Reference & User Services Quarterly, Vol. 57 Issue: 04, pp. 242-247, Retrieved on May 02, 2021 from https://www.journals.ala.org/index.php/rusq/article/viewFile/6700/9025

Yarhouse, M. A. (2015). Understanding gender dysphoria: Navigating transgender issues in a changing culture: Inter Varsity Press.





Comments

  1. Oshadee WanasingheMay 14, 2021 at 6:12 AM

    Yes Sathaharan, I have noticed similar diversity initiatives in my work place as well. The Bank of Ceylon possess an equal opportunity policy during recruitment, promotion and determination of remuneration (BoC Annual Report, 2019). Further, Bank of ceylon has the highest female representation of 60% in the financial services industry. According to the 2019 Annual Report, the bank's recruitment policy indicates a quota of up to 1% for differently abled employees.

    However, Dobbin and Kalev (2016) have mentioned that most diversity initiatives does not increase diversity at all times. It was found that methods such as diversity training, hiring tests and grievance systems can activate bias rather than stamp it out.

    ReplyDelete
  2. Wasantha BasnayakeMay 15, 2021 at 9:55 PM

    Agree with you. Adding to that , chief executive officers of major companies took to social media last year with carefully crafted statements of support and promises of real change. While well-intentioned, they often rang hollow, because words without actions do not meaningfully increase diversity. There is a false notion that proximity to people who are different will result in meaningful change. However, without action to bridge gaps and without reflecting on one’s own first-hand experience, diversity initiatives will be superficial at best and offensive at worst(Kriska, L.,2021).

    ReplyDelete

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