[ARTICLE TITLE]

Citation

Martin, J. (2013), "[ARTICLE TITLE]", Strategic HR Review, Vol. 12 No. 3. https://doi.org/10.1108/shr.2013.37212caa.002

[ARTICLE TITLE]

Article Type: Strategic commentary From: Strategic HR Review, Volume 12, Issue 3

Thought leaders share their views on the HR profession and its direction for the future

Jean MartinBased at CEB.

In 2012, there was a strong agreement across the corporate world that diversity was good for business. The impact a more diverse workforce has is significant. Research from CEB, the member-based advisory company, found that in a more diverse and inclusive workforce, employee performance improved by 12 percent, intent to stay by 20 percent, and collaboration and commitment by almost 50 percent. The research was carried out between 2011 and 2012 and includes data from more than 10,000 employees at global organizations.

Despite multi-year investments and a commitment to the concept of diversity, companies did not progress as far as they would have liked, especially in increasing the number of diverse talent in leadership roles. Organizations have run into challenges around who is accountable for diversity, where to find a diverse talent pool and diversity management, each of which has slowed efforts to create a truly diverse workforce. Adding to this challenge, our research has confirmed that there is no single solution – for most companies, achieving diversity and inclusion (D&I) requires ongoing efforts and a sustained focus.

Our member companies experience in dealing with diversity has shown that there can be no question that some companies have made more progress than others. Through these insights, we have found that the most successful companies have oriented themselves around the seven key imperatives discussed below. These observations drive both action and real results from a D&I approach for the overall benefit of the organization.

Establishing a global framework for diversity while enabling regional ownership

The best organizations determine a global framework for D&I, guiding regional leaders in setting aligned but locally relevant objectives. A key example is international security solutions group G4S, which operates eight specific global HR processes critical to its D&I approach. However, it also relies on local teams to self-assess their progress. As a result of this collaborative dialogue, both employee engagement and diversity are up at G4S.

Rewarding interim progress, not just final outcomes

The aerospace and defense company, BAE, requires each of its business leaders to set interim goals for D&I, year by year, and review progress in monthly calls with the head of D&I. A percentage of leaders’ year-end bonus is tied to goal achievement.

Expanding the pool of diverse talent through the sources candidates trust most

Many diversity recruitment efforts are focused on impersonal channels – job boards, print media, and social network sites. However, the best organizations turn to more personal sources of career leads – teachers and career counselors especially can help draw diverse individuals into the talent pool.

Hiring for inclusive behaviors

Sodexo, a food and facilities management company, is one organization that uses a competency-based interview guide that includes several questions related to “championing diversity and inclusion” and “respecting diverse opinions.”

Reinforcing D&I across the employee life cycle

Organizational approach to diversity and inclusion should not begin and end with a one-off course held once a year. Instead, initial training should be supplemented with periodic reinforcement of the right inclusive behaviors. The HR team at Australian telecom company Telstra provides managers with guidance for talking about inclusion at onboarding, during performance reviews, and in team meetings.

Aligning the goals of diverse high-performing employees to leadership opportunities

Diverse talent often does not recognize their potential to move up the career ladder and organizations need to ensure that this is a perceived and attainable desire. Medical device manufacturer Cochlear, for example, has helped rising women leaders structure their approach to achieving a leadership position. It holds a workshop in which women create personal mission statements that map to their career goals and the company’s needs, and build their professional networks to increase their insight into leadership roles.

Neutralizing biases in talent management decisions

Bias, whether conscious or unconscious, affects talent management decisions – it is inescapable. We can bring in inclusive managers, build and reinforce inclusive behaviors, but that is simply not enough. We must modify talent management processes to neutralize biases. Companies like Duke Energy and CEMEX have developed hiring tools that match employee and position profiles – an objective-fit analysis helps ensure that all qualified candidates, are being considered in hiring decisions, even those not known to the hiring manager.

Despite the obvious challenges faced by organizations when trying to recruit and sustain a diverse workforce, our research has found that 49 to 74 percent of employees are aware that their companies are working to build an inclusive workforce. In order to continue to grow diversity across the workplace, organizations need to review both their approach to recruiting and how they design senior roles to ensure they are as inclusive as possible to all their employees. If this is done successfully, the outcome will provide a positive impact on the overall business performance.

About the author

As executive director of CEB’s HR Practice, Jean Martin directs the research, business practices, and operations and, together with the leadership team, sets the strategic direction for CEB’s HR research. Her areas of expertise span the HR spectrum and range from the future of the HR function to leadership to labor market trends. Specifically, she spends time working on issues relating to employee engagement, how companies can attract and keep the best employees, and how companies can seek out top talent globally and build their global leadership bench. Jean Martin is the corresponding author and can be contacted at: jmartin@executiveboard.com