Human Resources: Executive Summary:Diversity And Inclusion

As companies strive to hire the best employees in an increasingly diverse workforce, the idea of "inclusion" has become a business imperative. While many diversity programs are still likely to focus on race, ethnicity and gender, a range of other issues such as age, religion, nationality, disability, and sexual orientation are now included in mainstream initiatives.

The term "inclusion" is replacing diversity in the emerging literature of the 21st century, writes Quinetta M. Roberson of the Columbia University School of Industrial and Labor Relations. According to Roberson's studies, diversity refers to a group's demographic qualities, while inclusion involves the degree to which "individuals feel a part of the organizational process" and are therefore encouraged to maximize the use of their skills.

At HRI's 33rd Annual Issue Management Conference in February 2005, Edward N. Gadsden, Jr., Coca-Cola's vice president of Workplace Fairness and Diversity Strategy, said that inclusion is a must for today's multinationals if they expect to be competitive in the global marketplace. In late 2003, HRI conducted a survey asking HR professionals what they considered the most important issues impacting people management. Out of 120 issues, "Managing/Valuing Diversity" ranked 22nd, up from 48th just two years before.

Jackson Lewis, the national employment law firm, found that diversity programs are increasing. The study polled 456 human resource executives during 2003 and discovered that 41% of surveyed companies reported such programs at their companies in 2003, up from 37% in 2002 and 33% in 2000.

It's no wonder that diversity is rising fast as a priority. For one thing, the demographics of the U.S. workforce are undergoing a rapid change. For example, in 2004 Hispanics surpassed African Americans in the U.S. population to become the largest ethnic minority group in the country. Immigration trends and the processes of globalization and overseas outsourcing are also making ethnic and cultural diversity more important in the workplace.

Some corporations have also been supporters of political actions seen as boosting the skills and education of today's diverse population. For example, during the 2003 Supreme Court case concerning the University of Michigan's use of affirmative action in student admissions, a number of major firms supported the school's goal of diversity. "We had no stance on the University of Michigan's methodology. Our interest was purely in a diverse, well-educated workforce," said Eastman Kodak spokesman David Kassnoff.

Globalization presents new markets at home and abroad, and firms increasingly recognize the importance of hiring a workforce that reflects their potential markets. The benefits of a diverse workforce have long been accepted. These are best achieved by encouraging culturally diverse employees to participate fully, increasing the talent base and eliminating cultural bias. Well-managed initiatives create a competitive advantage by increasing productivity, promoting creativity and enhancing problem-solving, but poorly implemented initiatives can create more problems than they solve, leading to conflict and resentment.

Managing diversity takes an all-encompassing and ongoing organizational commitment. Companies should view it as a continuing process, one that grows more inclusive as the workforce becomes more diverse.
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