What Does Diversity Mean for Employees?

Few companies have a clear definition of what diversity means

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Despite the claims by many companies that diversity is a priority, few companies have a clear definition of what diversity means. A study by the Society for Human Resource Management indicates that for most companies, diversity is a nebulous concept. The 2007 report, State of Workplace Diversity Management, found that of the 880 public and private companies surveyed, only 30%reported having an official definition of diversity. The report surveyed human resources professionals, academicians, and other “diversity practitioners” whose primary function included diversity initiatives, and international human resources management.

“You can’t say something is important and not be able to articulate what it is,” says Shirley Davis, Ph.D., director of diversity and inclusion initiatives at SHRM. “The lack of a definition is related to a lack of strategic alignment around building a more inclusive culture.”

Eric Ellis, president and CEO of Integrity Development, a consulting firm, says he sees a direct correlation between companies lacking a diversity definition and those that haven’t established a strategic plan for developing a culture of inclusion. Having neither plan nor definition can prevent companies from leveraging the talents already available to them in their employee base. According to the SHRM report, larger companies do a better job of outlining diversity principles, partly because they have greater access to resources and defined business cases tied to specific diversity goals. Of large companies (500 or more employees) that responded, 43% had developed a definition of diversity, but only 14% of small companies (fewer than 100 employees) had a definition of diversity. “Small companies receive less scrutiny from the public and government or they have a far simpler business model, so they may not need to focus as much on diversity to be successful,” says Sharon Hall, partner at Spencer Stuart Management Consultants. Certain industries also lag in recognizing the need for diversity. “Companies in a business-to-business sector took a little while to come around, because diversity wasn’t immediately relevant to their sales and profits,” she says.

Patricia Crawford, chief diversity officer at Wells Fargo, admits that the financial services company lacks a companywide definition of diversity. For guidance, it looks to industry surveys, trade journals, and organizations that determine industry standards. The company follows a three-pronged diversity effort. “We look at talent acquisition, team member engagement, and community involvement,” Crawford says.

According to the diversity survey Wells Fargo submitted to BLACK ENTERPRISE for our annual diversity issue, last year 221 of nearly 2,300 Wells Fargo senior managers were ethnic minorities. Crawford says the company’s Diverse Leaders Program for Asians, Latinos, and African Americans aims to increase the retention of employees with leadership potential. To date, participants have a 94% retention rate and are periodically tracked by reviewing their job status. Leaders at companies such as State Farm Insurance (See “40 Best Companies for Diversity,” July 2008) understand that diversity initiatives offer a competitive advantage.

State Farm developed its companywide definition of diversity in 2002 after it established an

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  • http://blackenterprise jon hill

    As i see it most companies have no clue, case in point the company i am with. A blind man can see the white employees here first of all do not know how to mingle socialize or even talk to /with black people, from what i see upon being hired many have never even been around black people. One can feel it, see it if you listen to them talk amongst them selves the proof is in the pudding. On the day of the election it was so quiet as well as after the election as i heard one say whats so good about the day the reason it is so easy to tell this about these white folks is they mostly listen to who RUSH LIMBAUGH OR anything NEO-CON one jewish lady who lives in Germantown, MD made comments about Obama that other companies i have worked at she would have been written up for her CHRONIC COMMENTS

  • Mike Skinner

    I think in many cases small minded companies feel that to have a diverse company lowers their standards. When in reality it broadens the scope and landscape of talent and ideas that can increase their inovation and market shares.

  • Darrell Mitchell

    It is amazing to me that now that things look a little shaky for all businesses, the topic of diversity is like a wild fire. This should have been the thought process at the turn of the 1900′s, when field hands and house workers were looked at raising others families and farm businesses. We have been doing all the work and they have been receiving all the credit. When I look at the creation of mankind I don’t remember any that about the color of the skin of a man, but I do remember the talk of the soul that a man posses. And we call this the land of the free and the home of the brave. The American dream was not brought forth with diversity in mind. It was for those who knew what they wanted in the first place and that’s success for my gender and my kinfolk.

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  • Manish Tiwari

    Every person or group has unique characteristics, abilities, beliefs, opinions, traditions, and appearances that can be different from others around them.Diversity means to me all types of religions, races, ethnicities, cultures, etc., living in harmony, free of any and all prejudices. Equality and diversity should go hand in hand.
    Diversity can refer to many variations of experiences, backgrounds, values, beliefs, etc. present within our communities and our world.
    The existence and, more importantly, the acceptance of differences or heterogeneity in class, color, sex, sexual orientation, age, physical capabilities, and other cultural, social and political backgrounds.
    A celebration of individuality.Dissimilarity and variety.A variety of people working together as a whole and not letting differences divide them.

    “Human diversity makes tolerance more than a virtue; it makes it a requirement for survival.”