Annelie Gildenhuys

Summary: diversity management is the key to business success in the new era. Annelie Gildenhuys explains the details of diversity management.

The cost of losing trained talent in business is significant! In spite of the recent controversial debate on the topic, there can be little doubt that critical skills are in short supply in an ever-changing work environment resulting from factors such as the changing demographic profile of the working-age population, globalisation and technological change. The debate intensifies with some demanding “the death of affirmative action”, and others accusing, blaming, defending, and excusing the lack of progress.

The issue is not about the ‘obligation’ of affirmative action but rather the benefit it offers, which should be the focus in business. Perceptions of diversity management go well beyond the number of “designated employees” in companies and the future of affirmative action compliance is the focus on managing new era diversity.

Generation Y, people born between 1982 and 1993, is the largest generation since the Baby Boomers to enter the workforce. This brings a new dimension to workplace diversity. If companies want to drive business for the future, they need to attract and retain diverse talent. That is diversity management. A company’s ability to manage and optimise the evolving nature of diversity will prove to be critical to their business success.

Talented individuals leave companies not because of pay related issue but rather because of feeling marginalised as a result of the style of leadership they encounter, which is typically characterised by an inability to effectively manage diversity. These findings apply to black and white professionals alike. This trend is particularly noticeable amongst the younger generation Y professionals and will not be solved by simply offering higher salaries.

Diversity studies indicate that black females in particular perceive persistent stereotyping in the workplace, which stifles their growth and development and detracts from their overall employment experience. Black employees generally are less positive than their white counterparts in their belief that companies are succeeding in managing diversity. Similar findings prevail in North America, where 80% of black females claim that racial attitudes diminish their ability to be effective leaders, according to a 2007 research report published by DiversityInc. Given the demographic realities of our country, these findings have significant implications.

Looking at the economically active population, Generation Y is now entering the workplace and a large portion of this demographic segment is comprised of black females; companies need to ensure that they create a new paradigm for managing diversity if they wish to benefit from the skills and perspectives of this new workforce. Ideally, they should consider incorporating a ‘generation Y outlook’ into their culture and business strategy.

If companies are to keep pace with the growth anticipated in the years to come, they should adjust their practices to effectively attract and retain this new generation of human capital. Creating inclusive organisations where all employees feel valued is increasingly important to the reputation of a company and ultimately its employer brand.

There is a strong business case for strategically aligned diversity management. Aggressive management of diversity has been shown to offer a substantial return on investment. Innovation comes with diversity - companies cannot expect new ideas to emerge if everyone thinks the same. Diversity management is about building connections across race, gender, sexual orientation, disability, life style and – very importantly - age.

Companies need to get people to connect in meaningful ways in a diverse workplace, to guaranteed good relationships with customers, suppliers and investors. The bottom line connection for diversity management is the business case for it. DiversityInc show their Top 50 outperforms the NASDAQ, S7P 500 and the Dow Jones Industrial Average on a one to five as well as a one-year basis!

These companies are those who establish deep understanding of the complexities of contemporary diversity management. They fully integrate diversity and inclusion into the strategic agenda and people management practices, driven by top leadership. Valuing people, appreciating them for who they are, their values, experiences, beliefs and most of all their insight and perspectives become ingrained in how these companies do business.

By providing employees with real life experiences to stretch their capabilities, providing them with mentors, identifying deep-rooted skills, building networks to enhance interaction, open and honest conversations, enhancing new era diversity management, companies can generate commitment which will take care of attraction and retention of skilled talent, according to the Deloitte Institute of the Future.

Perhaps the time has come to move beyond the ‘affirmative action or not’ debate, and develop a corporate willingness to address diversity management if South African companies are truly serious about being market leaders, and competing globally.

Deloitte is committed the Business Case for Diversity and Inclusion management and have established a Global Centre of Diversity Excellence to advise their clients on global diversity strategies.