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THE BUSINESS CASE FOR DIVERSITY & INCLUSION. CAPITALIZING ON DIVERSITY. Presented by Georgia Coffey Deputy Assistant Secretary for Diversity and Inclusion U.S. Department of Veterans Affairs. MAXIMIZING PERFORMANCE. HISTORICAL PERSPECTIVE. 1960s : Civil Rights Enforcement
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CAPITALIZING ON DIVERSITY
Deputy Assistant Secretary for Diversity and Inclusion
U.S. Department of Veterans Affairs
1960s: Civil Rights Enforcement
1970s: Affirmative Action
1980s: Respecting Diversity
1990s: Diversity Management
2000+:The Business Case for Diversity & Inclusion;
Diversity of Thought
Equal Employment Opportunity (EEO)
The set of laws, regulations, and policies that guarantee every individual’s right to EEO in the workplace, irrespective of race, color, religion, national origin, sex, sexual orientation, age, or disability (reactive, legally driven).
The requirement under Executive Orders 11246 and 11478 to measure the representation of certain demographic groups in the workforce in comparison with the available labor market, in order to identify potential barriers to equal opportunity and take affirmative steps to correct manifest imbalances through expanded outreach (assimilation).
A proactive effort that responds to the changing demographic profile of the workforce through the implementation of programs and services that support and empower a diverse workforce through multicultural approaches (program-oriented).
Business Case for Diversity & Inclusion
The return on investment (ROI) in terms of performance and economic outcomes that results from leveraging the variant knowledge, skills, abilities, talents, intellectual capital, perspectives, working styles, etc. of a diverse workforce (process-oriented).
EEO COMPLIANCE is about ensuring that we comply with all the laws, regulations, and policies prohibiting discrimination and requiring affirmative employment in the Federal workplace.
DIVERSITY is about valuing and promoting differences, similarities and unique characteristics of groups and individuals in the workforce.
INCLUSION is about empowering and leveraging diversity in the workforce by enabling individuals to contribute to their fullest potential through individual development, retention, and pluralistic work processes.
WHY DIVERSITY & INCLUSION?We know there is a legal imperative, but is there a…
Does workforce diversity have a quantifiable effect on business/performance outcomes?
Is there a financial/economic benefit to workforce diversity?
What is the human cost? How does organizational culture impact one’s contributions to the mission?
What does the research show?
Diversity Research Network
* The Effects of Diversity on Business Performance: Report of the Diversity Research Network, October 2002.
Center for Creative Leadership
* Marian N. Ruderman et al. (eds.). Selected Research on Work Team Diversity. 1994.
Diversity enhances performance but requires attention.
* Somnath Saha et al. “Student Body Racial and Ethnic Composition and Diversity-Related Outcomes in US Medical Schools,” Journal of the American Medical Association, September 10, 2008.
The Conference Board
* Linda Barrington and Kenneth R. Troske.Workforce Diversity and Productivity: An Analysis of Employer-Employee Matched Data. April 18, 2001.
** Rebecca Sausner et al. "Diversity and Profit: Working the Fundamentals, U.S. Banker, October 2008.
National Urban League
Wall Street Journal
Workforce diversity reflecting consumer/market diversity results in:
* National Urban League. Diversity Practices That Work: The American Worker Speaks, 2004.
** Carol Hymowitz.“The New Diversity,” Wall Street Journal, November 14, 2005.
American Sociological Association
* Cedric Herring. "Does Diversity Pay?: Race, Gender, and the Business Case for Diversity," American Sociological Review, April 2009.
UNC Business School
Conclusion: Diversity requires investment, but the ROI
outweighs the cost.
* The Gallup Organization.Employee Discrimination in the Workplace, Public Opinion Poll. December 8, 2005.
** Stella M. Nkomo. “Identities and the Complexities of Diversity,” in Susan Jackson and Marian Ruderman (eds.), Diversity in Work Teams: Research Paradigms for a Changing Workplace, 1999.
Gallup Survey: Employee engagement is a validated predictor of organizational performance; diverse workplaces with culturally competent workforces have the highest employee engagement.*
Sirota Survey: Key motivators for employees are equity, achievement, and camaraderie.**
Conclusion: Empirical data show a quantifiable link between diversity and employee engagement and performance outcomes.
* Gallup Organization. Q12 Employee Engagement Survey, performed in the Food and Drug Administration, February 2005.
** David Sirota et al. The Enthusiastic Employee: How Companies Profit by Giving Employees What They Want, 2005.
*Walter Pincus and Peter Baker. “Dissent on Intelligence is Critical, Report Says,” Washington Post, March 30, 2005.
** TheCommission on the Intelligence Capabilities of the United States Regarding Weapons of Mass Destruction, March 31, 2005.
SCIENTIFIC COMMUNITY: NASA
“Organizational culture refers to the values, norms, beliefs, and practices that characterize the functioning of a particular institution.”
* Columbia Accident Investigation Board Report, 2003.
“A culture that is too strong can also end up too rigid and can shut out diversity, especially diversity of perspective.” *
Issues leading to its bankruptcy and one of the worst economic meltdowns of the 20th century:
Many of these issues are identical to those that led to Enron’s Failure a decade earlier.
* Hope Greenfield. “Culture Crash” The Conference Board Review, Fall, 2009.
Equity in employment, advancement, & recognition
Diversity & Inclusion principles incorporated in strategic planning
Accommodation for diverse physical, cognitive, and developmental abilities
Powerful communication and information sharing (transparency)
Shared accountability and responsibility (Shared Leadership)
Competency-based diversity training (starting with managers and supervisors)
Participatory work processes
Interdisciplinary, pluralistic teams for optimum perspective
Inclusive organizational culture
Culturally competent retention and rewards strategies (empowerment, not just $)
Collaborative, constructive conflict management
ATTRIBUTES OF INCLUSIVE ORGANIZATIONS
Correlate: Establish baseline in year 1, then correlate annually thereafter to gauge progress.
U.S. Department of Veterans Affairs
Office of Diversity and Inclusion