Good Intentions Aren't Good Enough -- When It Comes to Diversity Management

Former U.S. President George W. Bush hit one nail on the head when he said, “Good intentions aren’t good enough!” Bush’s quote should be considered today by those organizations that strive for racially and ethnically diverse workplaces, but don’t necessarily meet their diversity goals.

As popular the topic, and with so much being written about valuing diversity and its management these days, many companies might recognize the value that diverse employees can bring, but as it turns out, few successfully exemplify those values.

In a recent study conducted by Commongood Careers and the Level Playing Field Institute, researchers found when it comes to promoting staff diversity there was little connection between intentions and actions of nonprofit organizations.

(Other studies show that private companies are having the same problem implementing diversity, as well. For instance, major European organizations display little diversity in the ranks of their top management according to an analysis by The Boston Consulting Group (BCG) of 40 randomly selected companies from the Euro Stoxx 50 index; on average, 93 percent of the executive directors were male; 86 percent were native Europeans; and 49 percent were between the ages of 51 and 60 years old. By contrast, the market demands on these same companies are far less homogeneous: the purchasing power of women is steadily increasing; the companies generate, on average, approximately 40 percent of their revenues outside of Europe; and their customers are growing older. "Diversity must be seen as a strategic response to major business trends such as globalization, demographic shifts, and the talent shortage," explained Dr. Rainer Strack, senior partner at BCG, HR expert, and an author of the report.)

Meanwhile, in the Commongood study, of the 1,638 nonprofit professionals surveyed, 90 percent of employees said they believe their organization values diversity, but 70 percent of respondents also said their employer does not do enough to create a diverse and inclusive workplace. Commongood Careers focused on diversity as it pertains to race and ethnicity.

James Weinberg, Commongood’s founder, says the extent to which an organization embodies diversity not only affects its ability to remain competitive but it also plays a role in fulfilling its founding mission.

“In the nonprofit sector, most organizations are in the business of helping people,” says Weinberg. “You run into a particular set of challenges when you run an organization that is not representative of the community you’re serving, and that opens you up to being disconnected to the nature and challenges of those in the community.”

According to the survey results, 64 percent of the respondents who reported that they left an organization because they experienced a lack of diversity or inclusiveness were people of color. Additionally, the cost to organizations to recruit and fill a vacancy can range from 30 to 150 percent of an employee’s salary – a much bigger loss for the big picture, the report indicates.

“In our experience working with the organizations who prioritize diversity and have a fundamental understanding of the full benefits of diversity and the costs that they incur if they don’t, is what separates a successful organization from those that aren’t,” Weinberg says. “This is a mission critical core value that is vital to organizations and it’s that perception shift that we really need to encourage in the sector.”

Commongood gives several suggestions for how to build diverse and inclusive workplaces in the nonprofit sector.

--Have open conversations that lead to clarity, consensus, and commitment.Talking about race can be difficult, and yet a productive exchange of ideas and openness can take place when there is a thoughtful process involved. To get a conversation going, leaders can form a staff committee with the assignment to organize trainings, structure settings for staff conversations, and report on results.

--Communicate effectively about diversity commitments. Create and share an organizational diversity statement and plan that clearly tells how the organization defines diversity, what its goals are related to diversity, and what strategies it uses to meet those goals.

--Develop partnerships and networks that enable effective recruiting. Target community organizations that represent diversity, such as professional associations, educational institutions, alumni networks, cultural societies, etc. in order to expand the possibility of locating a more diverse candidate pool.

--Ensure hiring processes that are equitable and inclusive. Take steps to ensure that unintentional bias doesn’t affect hiring processes, and to conduct an audit around hiring-related policies for subtle cues that could be interpreted as biased, unfair, insensitive, or offensive. Weinberg suggests involving diverse individuals in the design and implementation of the hiring process. The organization should also make sure that it is clear on its messaging about diversity throughout the interview process.

--Embrace, develop, advance, and retain employees. Simply succeeding in hiring diverse employees is not enough to maintain a commitment to diversity and inclusion. To keep new people, organizations must focus on activities that promote diversity. Consider a well-designed mentoring or coaching program for new employees. There are many other ways for organizations to demonstrate a commitment to diversity throughout all the ranks, while making sure that diverse employees have opportunities to advance to senior leadership positions.

Susan

I look forward to your comments and reviews on my newest eBook, Cashing In On Diversity.