Profit Through Diversity Hiring

Posted on: 2010-12-29

Profit Through Diversity Hiring & Five Ways to Implement Or Improve Your Strategy

Recent studies have provided proof that diversity-hiring efforts across a wide range of industries leads to both profits and customer satisfaction.

• Science Daily recently released a report detailing how diversity within a company’s work place has led to increase sales revenue, profits, and more customers.

• Cedric Herring, the interim head of the sociology department at the University of Illinois at Chicago, found that companies reporting the highest levels of racial diversity brought in nearly 15 times more sales revenue on average than those with the lowest levels of racial diversity.

• Mr. Herring also found that companies with a more diverse workforce consistently reported higher customer numbers than those organizations with less diversity among staff. Companies with the highest levels of gender diversity reported an average of 15,000 more customers than organizations with the lowest levels of gender diversity.

• According to the research, as racial and gender diversity levels increased in a company's workforce, its profits relative to those of its competitors also increased.

In a study conducted by C. Elizabeth Hirsh of the Cornell University, found that larger companies and those with more females in management were found more likely to promote workplace integration.

The above story is reprinted (with editorial adaptations by ScienceDaily staff) from materials provided by American Sociological Association, via EurekAlert!, a service of AAAS.

The Five Keys to Implement or improve your Diversity Strategy:

Knowing the benefits of diversity hiring is only the beginning. Implementing a diversity plan is the most important step. Below are five steps that your company can take in order to establish a diversity plan and begin to profit.

1. Assessing the Diversity of your Organization:

Study the retention and promotion trends, and review your existing recruiting programs. Finally, review how current management operates, communicates, and assesses the firm's culture. Is it inclusive? Does everyone have the chance to be heard?

2. Build Management Awareness:

Once management is committed and you have assessed the diversity of the firm, it is important to adopt a formal diversity policy statement and communicate it to the entire organization. An example of a diversity policy statement would be:

• Improvement of the level of diversity within the firm's leadership positions, firm committees and practice development efforts.

• Development of an administrative manager evaluation process to review and recognize the contributions made by managers to advance the firm's efforts to fulfill our commitment to diversity as set forth in this message.

• Emphasis of the firm's long-standing policy that encourages reporting of any discrimination or harassment based on sex, race, national origin or any other protected status.

• Participation in opportunities outside the firm to explore diversity initiatives underway with clients and minority organizations that share this common objective.

3. Education and Mentoring:

Managers need to address the key issues in diversity training- what is diversity; why the company cares about having a diverse workforce; what diversity brings to the organization; and how to promote diversity. Improving employee retention and promoting individual success are obvious goals of a diversity plan. Creating a mentoring program ensures that each employee learns the unwritten rules of the office and has a better chance of succeeding in the company.

4. Recruiting:

Start recruiting early by reaching out to high school and college students by way of job fairs, speaking at career days, recruiting at schools with significant numbers of minority students, creating affinity programs and joining external affinity programs, joining pipeline efforts, and hosting receptions for minority and women students.

Networking is a great tool.

Take advantage of professional and personal networks by offering a bonus for referrals of talented minorities and women who can be recruited to the firm. Other ways to recruit include: publicizing the firm's commitment to diversity through marketing and recruitment materials; updating and improving the firm's Web site to attract minority/diverse students and advertising in minority professional publications. Inwardly, start by appointing a diversity coordinator. Then, adopt specific and meaningful voluntary percentage goals based on the demographics of the community for hiring, retaining and promoting diverse attorneys and staff. Track the success of any initiatives and report on them annually.

5. Partnering with Minority Owned Business:

To express the commitment to diversity, some organizations work directly with minority-owned businesses from which they purchase goods and services. One way to do this is to join the local minority contractor association/minority business council. Supplier diversity provides an opportunity to meet client expectations, create a positive business image and gain market share.

To summarize, here are some key factors in achieving a successful diversity program:

• Encourage frequent, candid communication to correct misperceptions about diversity and diversity programs.

• Create an atmosphere of sensitivity and inclusion.

• Cultivate an attitude of respect and dignity in the workplace.

• Continue to evaluate the performance and results achieved; require accountability.

Obtain commitment by senior management, as evidenced in both words and actions.

• Provide effective mentoring and sponsorship.

• Reward and recognize diversity successes and achievements.

• Make the financial commitment inside and outside the legal organization.