A more diverse workforce improves the business performance, according to a new study commissioned by the London Central Learning and Skills Council and the London Human Resource Group*.
Companies are creating a diverse workforce, with a variety of styles, in order to tap into new customer groups at home and abroad. Such a workforce has involved recruiting employees in the image of customers.
Considerable progress is being made toward today’s workplace being much more a reflection of our diverse community. This brings business benefits as well as creating a more equable society Jacqui Henderson, Executive Director of London Central LSC.
Covering a sample of around 500 companies operating in the UK, the USA and the Continent, the study found that diversity is being achieved by having a more even balance between gender, ethnicity, disability and age; greater representation of women and ethnic minority groups in senior roles; and an engaging management style.
Diversity is about getting the best people, irrespective of their background, and getting the best out of them added Geoff Tucker, chairman of London Human Resource Group, comprising 16 leading City institutions.
The study found that diversity has produced a number of business benefits. They include higher employee retention, reduction in recruitment cost, more satisfied customers, access to wider customer base, better supply chain management and access to new ideas on process and product improvements (see figure). Many companies are also relying on diversity to provide resilience in the face of rapid change. Including diversity in public procurement guidelines has also reinforced these benefits.
However, diversity management is a long-term process, with no quick fixes. Two obstacles have been widely experienced: ingrained attitudes that make it difficult for senior managers to manage people who are very different from them, and the culture of long working hours which makes it difficult for women to aspire to senior positions.
Commenting on the study’s findings, Mark Mansell, head of Employment Law Group at international law firm Allen & Overy, one of the study’s sponsors, said:
Given the demonstrable business benefits, smart employers should promote diversity by retraining senior managers and introducing specific provisions into employee performance criteria and flexible working policies to ensure that under-represented groups have a clear career progression to senior management positions
The study concludes that diversity produces maximum bottom line impact when it is linked with business strategy and has the support of senior executives.
*Harnessing Workforce Diversity to Raise the Bottom Line
By Professor Amin Rajan, Barbara Martin and Jenny Latham
Price 65 (inc. p&p). Available from:
Jenny@create-research.co.uk.
Tel: 44 (0) 1892 526757
Employers raising the bottom line through diversity
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