Diversity in Human Resources

.
When people refer to diversity, they may be thinking first of ethnicity and race, and then, of gender; however, diversity is much broader than that. According to SAIT diversity is “the unique experiences, perspectives, and identities – both visible and invisible – that we all bring to campus as human beings.” ^[1] In other words, diversity can apply to anyone you perceive to be different from yourself. Dimensions of diversity include but are not limited to age, ethnicity, ancestry, gender, physical abilities/qualities, race, sexual orientation, educational background, geographic location, income, marital status, military experience, religious beliefs, parental status, and work experience. ^[2]

The makeup of the Canadian workforce has changed dramatically over the past 50 years. In the 1950s, more than 70 percent were composed of males ^[3]. Today’s workforce reflects the broad range of differences in the population—differences in gender, race, ethnicity, age, physical ability, religion, education, and lifestyle.

Most companies today strive for diverse workforces. HR managers work hard to recruit, hire, develop, and retain a diverse workforce. In part, these efforts are motivated by legal concerns: discrimination in recruiting, hiring, advancement, and firing is illegal under federal law and is prosecuted by the Canadian Human Rights Tribunal ^[4]. Companies that violate anti-discrimination laws are subject to severe financial penalties and also risk reputational damage.

Reasons for building a diverse workforce go well beyond mere compliance with legal standards. It even goes beyond commitment to ethical standards. It’s good business. People with diverse backgrounds bring fresh points of view that can be invaluable in generating ideas and solving problems. In addition, they can be the key to connecting with an ethnically diverse customer base. In short, capitalizing on the benefits of a diverse workforce means that employers should view differences as assets rather than liabilities. ^[5]

How Businesses Benefit from Diversity

There are many arguments for fostering diversity in business, including the availability of talent, the enhancement of interpersonal innovation, risk avoidance, and appealing to a global customer base. The business case for diversity is driven by the view that diversity brings substantial potential benefits, such as better decision-making, improved problem-solving, and greater creativity and innovation, which lead to enhanced product development and more successful marketing to different types of customers.

Innovation

It is widely noted that diverse teams lead to more innovative and effective ideas and implementations. The logic behind this is relatively simple. Innovative thinking requires individuals to go outside of the normal paradigms of operation, using diverse perspectives to reach new and creative thinking. A group of similar individuals with similar skills is much less likely to stumble across or generate new ideas that lead to innovation. Similarity can cause groupthink, which diminishes creativity.

Localization

Some theorize that, in a global marketplace, a company that employs a diverse workforce is better able to understand the demographics of the various consumer markets it serves, and is therefore better equipped to thrive in that marketplace than a company that has a more limited range of employee demographics. With emerging markets around the world demonstrating substantial GDP growth, organizations need local talent to enter the marketplace and communicate effectively. Individuals from a certain region will have a deep awareness of the needs in that region, as well as a similar culture, enabling them to add considerable value.

Adaptability

Finally, organizations must be technologically and culturally adaptable in the modern economy. This is crucial to reacting to competitive dynamics quickly and staying ahead of industry trends. Diversity fosters creative thinking and improved decision-making through a deeper and more comprehensive worldview. A company willing to diversify draws from a larger talent pool and hires individuals with diverse skill sets. The value of this, particularly at the managerial level, is enormous.

Commitment to Indigenous Engagement and Reconciliation

Commitment to Indigenous engagement and reconciliation is essential in Canada because of the country’s history of colonialism and the ongoing impact it has on Indigenous peoples. For centuries, Indigenous peoples in Canada have experienced systemic discrimination, oppression, and violence at the hands of the Canadian government and settlers.

Today, Indigenous peoples continue to experience high levels of poverty, poor health outcomes, and lower educational and employment opportunities compared to non-Indigenous Canadians. The Truth and Reconciliation Commission of Canada has outlined 94 Calls to Action aimed at addressing the legacy of residential schools and promoting reconciliation between Indigenous and non-Indigenous peoples.

For Canadian companies, committing to Indigenous engagement and reconciliation means recognizing and addressing the impact of colonization on Indigenous peoples and communities. This includes implementing policies and practices that support Indigenous employment and entrepreneurship, engaging with Indigenous communities and organizations, and ensuring that Indigenous peoples are represented and included in decision-making processes.

Furthermore, committing to Indigenous engagement and reconciliation is not only the right thing to do, but it can also benefit companies in numerous ways. By creating more inclusive and diverse workplaces, companies can enhance innovation, increase employee engagement and productivity, and build stronger relationships with customers and communities.

HRM’s Role in Diversity

When it comes to the workplace, the human resource department has a great deal of responsibility for managing the overall diversity of the organization. Human resources should consider diversity within the following areas:

• Hiring
• Promotion
• Compensation equality
• Training
• Employee policies
• Legal regulations
• Ensuring accessibility of important documents (e.g., translating human resource materials into other languages so all staff can read them)

The role of human resources is to ensure that all employee concerns are being met and that employee problems are solved when they arise. Human resource professionals must also pursue the corporate strategy and adhere to legal concerns when hiring, firing, paying, and regulating employees. This requires a meticulous understanding of both the legal and organizational contexts as they pertain to diversity management.

When Challenges Arise

Achieving workplace diversity presents various challenges, from defining the term to addressing individual, interpersonal, and organizational hurdles in implementing diversity practices. While the advantages of diversity are well established, establishing a more diverse workforce involves overcoming obstacles such as cultural assimilation, wage equality, and opportunities for minorities.

Common Challenges

Stereotypes – Biases and stereotypes held by individuals can narrow their worldview and hinder diversity efforts. Companies can address this by implementing bias training programs and promoting open dialogue to challenge and reduce stereotypes.

Culture – Managers need to understand and respect the cultural norms of their employees and work to foster an inclusive organizational culture. This involves adapting existing practices to support diversity and inclusion and encouraging cultural competency among staff.

Communication – Effective communication across different languages and cultural signals can be challenging. Companies can provide resources for translation and localization, and offer cross-cultural communication training to improve understanding and reduce misunderstandings.

Mismanagement – Mismanagement of diversity initiatives can lead to legal and ethical issues. Companies must ensure fair, ethical, and nondiscriminatory hiring practices and pay equity. Regular training for managers and HR professionals on diversity regulations and best practices can help mitigate legal risks and protect the company’s reputation.

Actionable Solutions

To successfully meet these challenges and harness the full benefits of a diverse workforce, companies can implement targeted strategies and practices that promote inclusivity and equity.

Bias Training and Awareness Programs – Implement regular training sessions to educate employees about unconscious biases and how to counteract them. Encourage open discussions to foster understanding and acceptance.

Cultural Competency Development – Provide managers with training on cultural norms and customs, and integrate cultural competency into the company’s values and practices. Celebrate cultural diversity through events and initiatives that promote inclusivity.

Enhanced Communication Resources – Offer tools and resources for effective cross-cultural communication, such as language translation services and cultural sensitivity training. Encourage a culture of patience and active listening to bridge communication gaps.

Legal and Ethical Compliance – Regularly review and update hiring practices to ensure they are fair and compliant with diversity regulations. Conduct audits to assess pay equity and address disparities. Provide continuous education on legal requirements and ethical standards related to diversity.