Recently, I have been asked to conduct a training course on generational diversity (Babyboomer, Generation X and Generation Y) for a leading Thai company. Then I thought to myself “this will benefit human resources practitioner but will it make a difference to the organization?” The answer was no.
So, rather than focusing on just generational diversity, we should be discussing about “diversity and inclusion” or D&I for short. Diversity means anything that makes a person unique e.g. gender, age, sexual orientation, religion, race, nationality, marital status, income and disability. Inclusion means environment of respect and connection where different ideas and perspectives are harnessed to create business value.
D&I is more than regulatory compliance. D&I is proactively promoting inclusive behaviors and recognizing the business value of having a diverse workforce that can connect with diverse markets to an extent that it becomes another source of competitive advantage for the organization.
An interesting fact, according to research by Credit Suisse, mixed gender executive boards have outperformed all-male ones by 26%. Also, it is estimated that if the world engaged the whole disabled population, the world’s economic energy would increase by US$3.5 trillion, equivalent to the size of Germany’s GDP (source: UN, 2012). I am proud to report that I regularly shop at a fast fashion store operating in Thailand that has a clear D&I strategy; hiring hearing-impaired persons for stock refurbishment. Two other Thai firms have signed up to promote UN’s initiative in fighting Violence against Women. These are just a few examples. We as HR practitioner should encourage our organizations to embark on the D&I journey.
First, take stock of your diversity status quo and benchmark it against external sources. For example, global average percentage of women on boards stands at 12.7% vs. 10% in Thailand in 2013 (Women in Business research by Credit Suisse). We should seek comments from your potential candidates and employees on D&I issues. Other critical inputs would be your employee engagement survey and employee brand promise.
Next step is craft your D&I strategy. This is done by setting specific goals, targets and action plans. Ensure D&I strategy’s alignment to your firm’s business strategy. For example, if your company plans to double your workforce in the next 5 years, you may need a D&I strategy that calls for hiring from AEC countries. Or, if you want to attract local hires, women who are currently homemakers may be crucial to your business’s expansion plans. To do that your D&I action plans may require you to revise or in some cases rewrite your company’s work from home or work/life flexibility policies. Now, your D&I strategy has relevancy and business context.
Establish D&I training to create respectful environment and a mindset of diversity among your employees. Incorporate inclusive behaviors into your corporate culture do’s and don’ts. What’s left now is to measure. Some of the D&I metrics that can be included in your measurement are gender representation by job level, number/rate of discrimination complaints, employee turnover rate by diverse groups, gender pay disparities and employee engagement by diversity groups.
Eventually, your company’s human resources will be made up of highly engaged and diverse groups similar to the famous misfit super-heroes Avengers assisting you in outgunning your competitors.
