Piecing Together the Diversity Puzzle

Abstract
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The increasing diversity of the labor force is bringing to the workplace new strengths and
new challenges for human resource professionals. The responses to a recent survey of more
than 400 Society for Human Resource Management members provide insights into problems
and opportunities associated with diversity. The most frequently cited negative consequences
of diversity include communication problems and increased training costs. However, nearly
half of the respondents reported that diversity contributes to creating a corporate culture more
tolerant of different behaviors. The vast majority of respondents argue that gains from a
diverse workforce far outweigh the costs. When asked about successful programs relating to
managing diversity, the largest number focus on corporate efforts to open communication
channels and increase sensitivity to cultural and gender differences. Survey respondents were
emphatic that, without commitment and backing from top management, diversity
management can fall apart.

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The increasing diversity of the labor force is viewed by many as a mixed blessing -- bringing
to the workplace new strengths and new challenges for human resource professionals.

Organizations have relied on equal employment opportunity and affirmative action policies
and regulations to protect employees from discrimination. These programs emphasize
treating all employees equally. Now the corporate doors are open to women, minorities and
older employees. However, retention and advancement of this increasingly diverse work
force requires dramatic changes in corporate cultures and HR policies.

Revising corporate cultures to take into account ethnic, cultural, educational and gender
differences among employees represents a radical departure from equal-treatment norms.
New HRM policies are needed to explicitly recognize and respond to the unique needs of
individual employees. Organizations will have to move away from the longstanding tradition
of fitting employees into a single corporate mold to maintain a competitive edge.

What are the costs and benefits of greater diversity? How have companies responded and
what more needs to be done? These and other issues were examined in a recent survey
involving more than 400 Society for Human Resource Management members. Their
responses provide insights into problems and opportunities associated with diversity.

Problems and challenges

Survey participants reported that greater diversity has created a variety of problems, but has
also led to some important organizational contributions. Communication problems represent
the most frequently cited negative consequence of diversity. In some instances,
communication barriers refer to misunderstandings between managers and employees, while
in other instances communication problems are based on the need to translate verbal and
written materials into several languages.

Increased training costs, mentioned by more than a third of the respondents, represent another
major problem associated with diversity. Remedial work, in basic writing and problem-
solving skills, is becoming an increasingly important training objective.

Approximately one-fourth of the participants reported an increase in organizational

factionalism. Findings revealed an increase in friction among subgroups. In addition, human
resource professionals said they must now dedicate more time to dealing with special
interests and advocacy groups. They also indicated that charges of bias have increased.

A smaller number of organizations have experienced tardiness, absenteeism and turnover

problems associated with work force diversity. Fewer than 20 percent attribute increases in
grievances and disciplinary action to changes in work force demographics.

Along with new challenges, greater diversity also leads to new organizational opportunities.
For example, almost half of the respondents reported that diversity contributes to creating a
corporate culture more tolerant of many different behavioral styles. Respondents see better
business decisions coming from the melding of the unique views and perspectives of a
diverse group of employees. Another major payoff is greater responsiveness to diverse
groups of customers.

On the downside

In open-ended questions, we asked participants whether the gains from work force diversity
outweigh the organizational efforts. A small, but vocal, minority argued that costs associated
with diversity have been high and that organizations have reaped few benefits. Here is what
they said:

* Language barriers and cultural barriers have hurt the quality of work.

* While society has gained, there has been no gain whatsoever to employers.

* Too much valuable time and company expense directed at a work force who could care less
about their jobs.

* Morale is poor, productivity is down and bigotry is increasing despite company efforts.

* In the current economy, the efforts we must expend on diversity detract from corporate
needs and objectives.

The upside

On the other hand, the vast majority of respondents argue that the gains from a diverse work
force far outweigh the costs. Some state that managing diversity is the responsibility of
ethical organizations. Others state that corporate survival demands managing diversity
effectively. They say that diversity provides the competitive edge in a global economy. Here
is their perspective:

* It is morally and ethically the right thing to do.

* We are in a better position to compete on a global basis because we have a diverse work
force that understands other cultures and customers.

* When people feel their differences are valued, they become more loyal, productive and
committed.

* We have a more trusting and open atmosphere since we began to deal with diversity.

* Amalgamation creates a great corporate image.

* Learning how to manage diversity now will provide a competitive advantage in the future.

A great many HR managers perceive efforts to effectively manage a diverse work force as an
investment in the future. Clearly, the corporate investments are already paying dividends in
some, but certainly not all, organizations.

Impact on HR professionals

In a second open-ended question, we probed more deeply to learn how issues surrounding
diversity have directly affected HR professionals. Specifically, we asked respondents to
describe in what ways, if any, their jobs had grown more complex and difficult because of the
need to manage a more diverse work force.

Many discussed the difficulties associated with building corporate cultures to accommodate
the needs of many diverse groups. Some HR professionals have dramatically increased time
devoted to team building and conflict management. Others have worked hard on training and
counseling with supervisors to heighten sensitivity and awareness. Still others report devoting
more time to recruiting, scheduling, handling grievances, literacy training and managing
benefits programs. A few mentioned frustrations from coping with immigration laws,
disability regulations and equal employment opportunity guidelines.

Finally, many say that gaining top management support for diversity programs represents a
full time job. As one harried manager notes, "My work load has doubled because of these
extra demands."

Targeting of diversity programs

In an ideal world, organizations would strive to accommodate each individual employee's

special needs and unique problems. Given limited resources, however, HR managers have to
make some tough choices when targeting specific categories of employees with policies and
programs.

Respondents told us the following employee groups represent current and future priorities for
their organizations: Minority and women employees represent the highest priority groups;
disabled and older employees represent a somewhat lower priority and functionally illiterate
employees represent the lowest priority category. Here are specific programs and policies
aimed at each of these groups.

Building a valuing-diversity culture. A number of organizations have programs to foster

understanding and heighten awareness of diversity issues already in place. For example, half
of the respondents report that their organizations use discussion groups to promote tolerance
and understanding. More than a third report specific efforts to change the corporate culture in
order to value differences.

These efforts take the form of team-building, task forces to recommend changes, diversity
training for supervisors and holding managers accountable for increasing diversity in the
managerial ranks. Only a small number of organizations report company-wide awareness
training to reduce prejudice. (See Exhibit 2.)

Between one-half and three-quarters of organizations report the need for many of these
policies and programs. It seems likely that as work force demographics change, a great many
more organizations will be following the lead of those companies that have made efforts to
change their corporate cultures.

Educational initiatives. Almost two-thirds of the companies in our sample have already
adopted some type of incentive system to encourage younger workers to complete their
education. Incentives include tuition assistance, making promotions or pay raises contingent
on graduation, or rearranging schedules to help employees balance work and school demands.
In addition, about 30 percent of organizations offer basic education classes and more than 20
percent offer classes in English for nonEnglish speaking employees. One organization reports
using retired teachers as tutors to help employees prepare for the GED exam.

Career support. Survey findings clearly show that many organizations favor helping women
and minorities advance their careers. Specific programs include minority internships,
encouraging networking among minority groups, steering women and minorities into
"pivotal" jobs for rapid advancement and assigning mentors. More than a quarter of
organizations also reported setting specific goals to diversify middle and upper management.
Among organizations that do not currently have career support programs aimed specifically
at women and minority employees, about half see a need for these programs.

Accommodating special needs. As work force diversity increases, more flexible policies to
accommodate the employees' special needs are gradually emerging. For example, a majority
of organizations schedule days off to accommodate religious preferences. In order to allow
retirees to remain active, 45 percent of companies hire retirees for temporary assignments. To
accommodate working parents, about a quarter of the companies help with day care
arrangements.

A smaller number of companies support work at home arrangements or redesign jobs to

accommodate handicapped employees. To help ESL employees, a few companies have
started to translate written materials into several languages. Undoubtedly, perceived needs
differ as a function of size, industry and location.

Successes and failures

Organizations learn from both their successes and their failures. Much of the time and
expense associated with trial-and-error learning can be saved when organizations adapt
programs successfully implemented elsewhere, avoiding others' mistakes. In a series of open-
ended questions, we asked survey respondents to describe their organization's most
successful program or policy related to managing diversity.

Several respondents described the establishment of new corporate offices or committees

dedicated exclusively to managing diversity. One firm created an office for minority and
multicultural affairs. Another company established "COPE" --Committee on Personal Equity.
The committee chair reports directly to the president and works to resolve equity and
diversity problems. A number of companies emphasized new programs that hold managers
accountable for reaching corporate diversity goals.

Many respondents described specific strategies for attracting and developing a diverse group
of employees. Particularly successful programs included:

* Hiring disabled and disadvantaged employees through a school cooperative program.

* Using college relations teams to recruit women and minorities.

* Participating in job fairs.

* Offering minority summer internships.

* Developing mentor and preceptor programs.

By far, the largest number of success stories focus on corporate efforts to open
communication channels and increase sensitivity to cultural and gender differences. One
company conducts focus-group interviews with minority employees to identify problems.
Another organization uses employee surveys to learn about special needs. Many others hold
meetings to explore differences in values. As one personnel executive stated, "We work hard
to understand and value differences, and we celebrate our diversity."

Not every program or policy to manage diversity succeeds. We also asked survey participants
to describe some of their organizations' least successful programs, policies or efforts related
to managing diversity. In many instances, respondents provided their personal insights on
what went wrong.

One major theme echoed by many HR managers was the lack of acceptance and commitment
in the managerial ranks to managing diversity programs. One respondent noted that, "top
management pays only lip service to accepting minorities and women at higher levels."
Another noted the "cavalier attitude of some middle managers." A third respondent
commented that managers must change their thinking from "each person fitting a mold to
acknowledging cultural differences." According to another respondent, "too many stereotypes
get in the way of our managers' decisions."

Hiring and promotion quotas that compromise quality standards undermine the effectiveness
of diversity programs, according to our respondents. "We have failed every time we hire less-
than-qualified minority applicants," notes one participant. Another indicated that his
company's promotion-from-within system was unsuccessful due to the failure to identify
qualified candidates. In the words of one participant, "we get in trouble whenever we expect
less of minority employees."

The experiences of our respondents clearly show that changing a deep-rooted corporate
culture takes time. Organizational success stories suggest that diversity committees or task
forces can be effective catalysts for change. Assessing the special problems or concerns of
various categories of employees allows organizations to consider alternative approaches to
accommodating each group's special needs. However, the best efforts of HR managers and
employees will go for naught without support from the managerial ranks. And managers are
not likely to buy in to any policies or programs that impose mandatory quotas or threaten to
compromise quality standards.

Specific behaviors cited

In a series of open-ended follow-up questions, we asked the human resource managers to

share their own personal observations about career management. Specifically, we asked them
to consider members of their own organization's diverse work force who have experienced
problems with work performance, career advancement and assimilation into the corporate
culture and to describe what they considered self-defeating behaviors. Of course, many of the
observations regarding career problems could easily apply to all employees. However, there
are some specific behavioral patterns perceived by HR specialists to be particularly self-
defeating for women and minority employees.

Participants observed that a pattern of isolation or clannish behavior --interacting only with
one's own group -- could create behavioral problems. They stressed the importance of
mainstreaming and assimilation into the organization's culture for career advancement.

Participants also warned of the dangers of passivity. They cited the tendency of some
employees to cling to the attitude that "the world owes them a living." Often passivity
extended to avoiding organizational opportunities for training and development. They also
noted some employees' reluctance to seek out assistance when needed.

Breaking out of a personal comfort zone was viewed as necessary for career success.
Participants also described some women and minority employees as hypersensitive to
criticism. Many referred to the dangers of a chip-on-the-shoulder attitude. Others cited the
tendency of some employees to play the role of victim -- blaming performance problems on
bias and discrimination.

Concerning individuals who have advanced their careers, participants described the personal
characteristics associated with success, including strong feelings of self worth, adaptability,
flexibility and a good work ethic.

Political savvy appears to be a second dimension of career success. Many stressed the
importance of learning and playing the political game. Others talked about the need to expand
personal networks throughout the organization. Learning to work within the system was
stressed. As one respondent put it, "They have learned the culture and values of the company.
They produced results and were good team players."

Pieces of the puzzle

Clearly, there are no quick fixes when valuing and managing diversity. The message that
emerges from our survey findings is that corporate planners and HR professionals must
carefully fit together the pieces of a corporate diversity puzzle.

A shift in perspective provides the necessary framework for assembling the diversity puzzle.
In order to attract and retain the best and brightest employees, organizations will have to
move from a "one mold for all" perspective to full fledged recognition and appreciation of
employee differences. Many years ago, HR professionals introduced cafeteria-style benefits
to better serve the needs of single parents, dual-career families and older employees, among
others. The goal of cafeteria benefit plans was not to give any one group a greater share of
employee benefits, but to better fit an array of benefit options to the special circumstances of
individual workers.

Substitute the concept of career opportunities for benefits, and you have the framework for a
managing diversity initiative. Organizations now need to consider how to best accommodate
the special needs of a diverse work force with respect to work scheduling, skills training,
career development and many other areas of corporate life.

The goal of diversity management is not to give one group of workers a greater share of
opportunities, but to provide a package of opportunities tailored to individual needs. The end
result should be many more employees contributing their full potential. Our survey findings
indicate a growing number of organizations ready to change perspectives out of both a sense
of social responsibility and a recognition of economic necessity.

Once the framework has been established, assembly of key diversity puzzle pieces can
proceed. Helping employees at all levels come to grips with their own values, perceptions and
expectations is the centerpiece of the puzzle. Workshops, exercises and team-building efforts
have helped employees gain valuable insights into the frustrations, motivations and behaviors
of others in the organization. The short-run objective is to break down ethnic, gender and age
stereotypes. Learning to work comfortably and to recognize and remove barriers in the path
of others is the awareness workshops' ultimate goal. Our survey findings show a majority of
HR professionals see a sizable gap between corporate needs to heighten diversity awareness
and current practices.

Implementation of a variety of HR programs and policies in support of work force diversity

should help fill out the puzzle. Flexible schedules, job redesigns and work-at-home
arrangements go a long way to accommodate parents of young children, employees with
adult-care responsibilities, disabled workers and older employees. Basic education programs
and language training should prepare many educationally disadvantaged employees and
nonEnglish speaking employees for more challenging jobs. Career tracking, mentoring, and
development programs should open new advancement opportunities to many groups of
employees who have not traditionally reached the management ranks.

The final pieces of the diversity puzzle are the attitudes and behaviors of diverse groups of
employees. According to survey respondents, unless all employees recognize their own
responsibilities and obligations for managing themselves and their careers effectively, the
puzzle remains unfinished. Respondents deplored passivity, isolationism and
hypersensitivity, but they applauded initiative, adaptability and team orientation.
Top management support is the cement that holds the puzzle together. In some organizations,
this support is the articulation of a vision of a diverse group of employees complementing
each others' strengths. In other organizations, top managers provide financial resources for
the implementation of new human resource diversity programs.

In describing their own organizational successes and failures, survey respondents were
emphatic that without commitment and backing from the top, the entire diversity puzzle can
easily fall apart.

The Survey Approach

A survey instrument was developed based on a comprehensive review of the professional and
academic literature. Questions focused on:

* The organizational consequences of work force diversity.

* Specific implications of diversity for the HR function.

* Organizational strategies for managing diversity.

* The responsibilities of management as well as individuals for creating a culture where all
employees are valued for their organizational contributions.

A stratified random sample of HR professionals was drawn from the SHRM membership
roster. A package of materials was mailed to 4,000 potential respondents. By the survey
deadline, 416 questionnaires had been returned from all regions of the country. For
characteristics of the HR professionals and their organizations see Exhibit 1.

Benson Rosen, Ph.D., is a professor of business management at the University of North

Carolina, Chapel Hill, N.C.

Kay Lovelace is a doctoral student of management at the University of North Carolina,

Chapel Hill, NC.