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Understand the Importance of Diversity

Posted by: Today's Tip Contributor on January 12, 2011

Smart small businesses today understand diversity is more than just a feel-good notion on a human resources poster. It is, in fact, crucial to doing business in a world whose populations, by virtue of speedy air travel and even speedier Internet service, become more interconnected by the day.

In the U.S. alone, the wide range of people involved in both the making and the consuming of products could include the Indian automotive engineer who is helping to take Ford to the next level; the African American statistician at a Silicon Valley startup; the 65-year-old disabled man who, instead of retiring, has just been promoted; the Gen Y child of immigrants from Central America who excels in Web marketing at Procter & Gamble; the gay woman who is the mother of two; and so on.

As consumers, they are all buying what your business sells—or ignoring it—depending on whether your company is as diverse as they are.

Businesses can no longer dictate to consumers in this increasingly globalized and diversified world. More and more, customers call the shots, and their buying decisions are based in no small part on whether a company and its products are attuned to consumers’ demands and desires. If the company doesn’t pass that test, then the customers will keep shopping until they find one that does.

General Electric has it right when it states its vision of diversity this way: "As a global company, our talent must reflect the communities we serve and with whom we do business."

Once your workplace begins to diversify, how can you ensure a positive experience for all? First, acknowledge—and appreciate—that cultural differences exist; find ways of adapting to new hires rather than forcing them to adapt to the traditional office culture. Encourage communication about differences. Be alert for both verbal and nonverbal cues that might indicate tension. Consider that the root causes of tension could be cultural. Also, examine how your diversity strategy aligned with or differed from your expectations. And don’t neglect the bottom line: Look at how diversifying affected your organization’s performance in terms of sales, efficiencies, and customers gained or lost.

Diversity is a business reality, not just a slogan on an HR poster. The sooner your company understands the new face(s) of business, the greater your prospects of success.

Yash Gupta
Dean and Professor
Johns Hopkins Carey Business School

Reader Comments

Dr. Joel Martin

January 12, 2011 6:08 PM

I agree, the way businesses must regard the impact of diversity extends far beyond yesterday's focus on race and gender. While these diversity dimension remain critical, i am finding that generational differences are increasingly important. For several of my clients, the approaching retirement of the boomers mean that potentially 40% of their workforce will be walking out of their doors. If they are not thinking now about how to recruit and retain candidates of color and women - people that don't look like the majority of their workforce - they will suffer the consequences.

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