Diversity isn't a buzzword, it's a bottom-line issue
by Denise Drake
Forward-thinking business leaders know that diversity is a key ingredient in their recipe for success. But why?
And, how do small businesses take advantage of the benefits of diversity, while avoiding potential pitfalls? The answers to a few questions may help shed some light.
What is diversity? Diversity is the recognition, acceptance and respect of all individual differences. It is not a big-company-only initiative. And it is not merely a “race thing” or “woman’s issue.” Indeed, educational backgrounds, socio-economic status, sexual orientation, age, physical abilities, religious beliefs, political beliefs, personality, cultural experiences, and many other differences are at the heart of true workplace-diversity initiatives.
Why is diversity important for a small business? There are many examples of how diversity helps businesses succeed in our ever-changing, global economy. Small businesses, in particular, benefit from:
Added creativity. Most small businesses are born out of the creativity of one person or a small group of individuals. But even the best and brightest entrepreneur’s well of creative resources may run dry without help. A diverse work force that feels comfortable communicating varying points of view feeds the well, creating a larger pool of ideas. Small businesses that continue to think and act in creative ways are better at identifying customer needs, solving problems, and recognizing future business opportunities. They not only survive, they thrive.
Better agility. Employees from diverse backgrounds bring unique talents and experiences to the small business, empowering the business to be more flexible. Diverse businesses are more capable of easily changing course when needed, allocating resources to specific issues and handling problems efficiently. Homogenous organizations are not nearly as nimble when trying to adapt to a constantly changing business environment.
Increased capability to provide services. The more diverse the work force, the more capable the company is of providing services to customers on a global, cross-ethnic, cross-generation, cross-everything basis. The more diverse the workplace, the broader the business may naturally reach into the marketplace.
Enhanced productivity. Companies that encourage diversity in the workplace inspire all employees to perform to their highest abilities. Employees know it is not a particular characteristic that results in the employee being rewarded. Instead, all employees who perform well, regardless of their particular characteristics, are rewarded. And, of course, company-wide strategies are best executed with employees performing at their highest level, resulting in higher productivity, profit, and return on investment.
Aren’t there legal challenges involved with trying to hire a diverse work force? Federal, state, or local laws prohibit employers from making decisions based on some characteristics typically associated with having a diverse work force (race, age, gender, sexual orientation, etc.). Indeed, establishing “quotas” related to these and other protected characteristics is illegal. More important, any plan focused only on characteristics and not on qualifications is legally and strategically detrimental.
Small businesses may steer clear of legal problems by simply focusing on recruiting the best qualified individuals from the most diverse applicant pools. Expanding recruitment efforts in an at-tempt to reach women, people who live in rural areas (or cities), potential applicants who are involved in various ethnic organizations, retirees looking for second-life opportunities, individuals who attended different educational institutions, etc., is not illegal. In fact, it is encouraged and will help businesses find what they really need—the best person for a job.
What other challenges exist? Business owners must be vigilant to make sure perceptual issues, cultural differences, language barriers, etc., do not undermine the benefits of having a diverse work force. Effective communication, strong commitment from the top, and conflict resolution resources are critical to success. As with all potential problems, business owners must be proactive to help keep problems from occurring (by training, mentoring, leading by example, etc.) and to resolve problems.
Isn’t having a diversity initiative expensive? As with most things, there is no one-size-fits-all diversity initiative. Small businesses need not copy-cat any large corporation’s diversity program. Small businesses can (and should) keep it simple—expand recruitment, lead by example, communicate openly, encourage different opinions and creative thinking, share articles about diversity, do business with service providers (law firms, banks, insurance brokers) that embrace diversity, etc. The list of creative, and free or inexpensive ideas is unlimited. In fact, diverse members of a small business’ work force are best-positioned to compile a comprehensive list of ideas.
Diversity is not a “big” business plan, it is an every business plan. Diversity is not a choice, it is a requirement for success. And, diversity is not tomorrow, it is today.
Denise Drake is the office managing shareholder for Littler Mendelson in Kansas City and Overland Park.
P | 816.550.7557
E | DDrake@littler.com