Diversity in organizations and its management have been increasingly attracting the attention of managers and HR departments over the past few years. A sign of growing awareness in this area is the fact that nearly every HR conference now includes a section dedicated to Diversity, Equality & Inclusion (DE&I). How does it work in practice, and what should be considered when implementing diversity management solutions in an organization? You can find the answers in the article.
Before delving into diversity management, it’s essential to define the term. I find the definition proposed by the Forum for Responsible Business particularly insightful:
A conscious action by the organization that recognizes differences between people within (and outside) the organization and consciously develops strategies, policies, and programs that create an environment of respect and make use of those differences to benefit the organization. The aim of diversity management is to create a workplace environment where each employee feels respected and valued and can fully realize their potential, contributing to the organization’s success.
What are the benefits of diversity?
The definition of diversity management already suggests that its primary goal, aside from creating a friendly work environment, is to bring business benefits to the company. What are these specific benefits? Research shows that DE&I efforts can impact the following areas.
If an environment shows signs of intolerance, individuals from minority groups spend a significant amount of their attention hiding their identity to avoid unpleasantness. This stems from the minority stress theory proposed by Ilan Meyer. The 2021 report “The Social Situation of LGBTQ+ People in Poland” indicates that about 60% of individuals from this community hide or partially hide their orientation at work. Employees who feel accepted in the workplace and can freely express their identity are able to fully engage in their professional duties, which also leads to increased work quality. A diverse team brings new perspectives. If we provide a work environment that fosters the free exchange of opinions and ideas, we can expect improvements and innovative solutions. This is more likely than in a homogenous environment. For example, a study conducted by Cloverpop, a U.S.-based decision-making platform provider, showed that in 87% of cases, teams diverse in terms of age, gender, and ethnicity chose solutions that led to better results than homogeneous teams. Research shows that the generation currently entering the labor market places particular emphasis on potential employers’ social responsibility efforts, including the creation of an inclusive work environment. According to Deloitte’s 2021 report, “First Steps in the Job Market,” 92% of respondents would choose an employer that values diversity and builds an inclusive organizational culture. Young people are looking for workplaces where they will feel comfortable. Smart diversity management makes an organization more attractive in their eyes, increasing the talent pool and speeding up recruitment processes.
These are the most commonly cited benefits by companies with diversity management strategies, but the list could go on. Diversity management is a key part of the daily efforts of organizations to build a work environment where people enjoy working and want to stay long-term.
Market situation
In corporations, for many years, we have seen comprehensive programs supporting minority groups, procedures eliminating exclusion and discrimination, and increased awareness among decision-makers that such efforts bring measurable business benefits. One example of a broad-based program is the creation of the Business Women Leaders Foundation under the patronage of EY. Its goal is to support women in fully utilizing their potential, primarily through training and mentoring programs led by experienced experts. The Foundation is already recruiting for the 11th edition of its mentoring program. Last year, it also published a report, “Women in Publicly Listed Companies,” which highlights the underrepresentation of women in the boards of publicly traded companies.
However, is the situation equally optimistic everywhere? According to the Forum for Responsible Business’s 2023 report “Diversity Management in Poland,” only 34% of companies in Poland take action in this area. A detailed analysis of the statistics shows that smaller companies (with up to 250 employees) are less likely to engage in diversity management—only 29% of them, compared to 63% of large enterprises. Another critical issue is the public perception of diversity initiatives. In smaller companies, there is often a lack of understanding of the importance of the issue, with diversity being seen mainly through the lens of sexual orientation or nationality.
These statistics for smaller organizations are not surprising, given that some lack the necessary resources (time, budget, or skills) to address diversity management. In the next part of this article, I will explain how to start DE&I efforts even with limited budgets and resources, using solutions we recently implemented in our own organization.
Where we started and what worked for us
Diversity management is such a broad topic that it is difficult to address all aspects comprehensively. So where should you start?
In particular, if your company lacks an expert in this field, it’s worth considering external benchmarks and audits. Although audits focused solely on organizational diversity may be challenging to find, there are many initiatives related to ESG and business ethics that also cover DE&I issues.
This is where we started in our organization. We used external benchmarks, such as EU Directives, the results of the ROF (Responsible Companies Ranking) audits, and the “Ethical Company in Business” certification. These indicators helped us identify key areas requiring attention while also helping to determine which aspects are most important from the perspective of our company’s operations.
Ideally, companies with the necessary budget and resources should consider working with external consultants specializing in DE&I and ESG issues. Such cooperation ensures a professional approach and allows for the more effective implementation of best practices tailored to the organization’s specifics.
Internal regulations
Audits helped us identify gaps in our internal procedures and policies. First, we introduced a policy to prevent undesirable phenomena, including bullying and discrimination. This document safeguards employees’ rights to dignity, equal treatment, and a work environment free from violations.
To ensure employees can safely report violations of both this policy and other internal regulations, we also created a procedure addressing this topic. We outlined four reporting channels: in person, via email, by phone, or through an anonymous form. The new whistleblower law enacted in Poland obliges employers with more than 50 employees to provide reporting mechanisms and related protections. Employers can decide to extend the categories listed in the law, such as including labor law or internal policies. With the law’s enactment, we are adapting our procedure and are in the process of implementing a fully anonymous reporting method through an external platform. Implementing this solution increases the likelihood that employees who feel discriminated against or excluded will inform the employer about it.
The introduction of new internal regulations also requires training all employees on them. This can positively impact awareness of discriminatory behavior and make employees more aware of the consequences.
Raising awareness within the organization
Regular training for all employees, including management, is a key element of our strategy. We focus on education about diversity and also organize discussion panels and anti-discrimination workshops to help avoid biases. When searching for experts to lead training or workshops, it’s worth considering long-term collaboration with a selected foundation or organization and planning long-term actions. The DE&I area is often associated with only a few minority groups, so we continuously expand the topics of our webinars to broaden the understanding of this concept.
In some organizations, internal knowledge sharing works well, such as in the form of short presentations or discussion panels led by employees representing specific minority groups. However, for such actions to be effective, a culture of openness is necessary. Otherwise, employees may fear revealing their identity.
It is essential that management undergo broader training. Managers have the most influence on who is hired in the organization and how employees feel in the team. It’s crucial for them to avoid biases and unequal treatment in their daily actions, which are often unconscious. In such cases, anti-discrimination workshops, including topics related to microaggressions, work well.
Data-driven diversity management strategy
Implementing further solutions will be difficult without a thorough analysis of the current organizational structure and identifying key diversity management areas requiring attention. To do this, data is essential. Some of this data, such as salary levels that enable calculating the pay gap or the percentage of women in leadership positions, is relatively easy to obtain. We can also check how many employees with disabilities work in the company, what types of disabilities they have, what percentage of employees have small children, and many other aspects, depending on the data available.
To gain a fuller picture, it’s worth seeking employees’ opinions and experiences. If we want a comprehensive approach and to understand how employees feel within the organization and how we can address their inclusivity needs, a dedicated survey might be a good idea. A less invasive solution is to add a new section to the annual satisfaction survey. However, if we want to develop specific solutions, it’s worth considering employee consultations or discussions within focus groups.
Having this data, it will be easier to decide what will become the priority for the DE&I policy. We won’t be able to address all issues, so it’s crucial that those we choose address employees’ needs, align with the organizational culture, and bring business benefits.
Conversations with employees will undoubtedly inspire many internal solutions that meet the needs of various groups, such as parents of young children or neurodiverse individuals. When implementing these initiatives, it’s worth considering collaboration with foundations or organizations that have experience in similar initiatives. This will give us a trusted partner and access to expert knowledge based on practice.
In our organization, we are developing a data-driven approach to diversity management. We continuously monitor whether we are adequately addressing the needs of specific employee groups, such as parents or people from different locations. In addition to an extensive satisfaction survey, we engage in dialogue with employees at every opportunity. We add questions about their expectations to regular discussions and meetings. We also build a culture of openness, encouraging feedback on the HR team’s and the company’s actions.
Conclusion
Diversity management in a company is a complex topic. This process touches on deeply ingrained habits and beliefs, often unconscious. It requires patience, constant reassessment of assumptions, a great deal of humility, and flexibility from those who handle this issue in the organization, as well as from all employees. Ultimately, our goal is to ensure that everyone feels comfortable in the organization! I see tangible benefits from these efforts, not only in HR indicators. Creating an inclusive work environment fosters openness and creativity. It allows us to better respond to the needs of our employees and customers.
It’s important to remember that what worked for us is not universal, as every company has a different culture and specifics. However, I am convinced that open dialogue and listening to employees’ needs will never fail. Star§t with small steps, but take them consistently, revisiting your initial assumptions along the way.
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