Is diversity the next green?

Green supply chains and eco-friendly procurement have been hot topics for years now and many firms are selecting their suppliers and partners based on their ‘green’ credentials. But could the next big thing be diversity?

Yes, many would argue diversity has been and continues to be a key issue for HR professionals, but if ‘true diversity’ becomes a key selling point in your business, much like your green credentials, how would you fare?

You may have a female on the board of directors and an African-American in your R&D team, but does that represent the diversity of the country? Or your local area? True workforce diversity should ideally reflect the local economy, according to Karla Porter that means considering age, nationality, disability, dual/multi citizenship, education, international work experience, language skills, life experience, marital status, multicultural/multiethnic background, parenting experience, personality, physical disability, religion, socio-economic background, veteran/military experience, work experience in different industries, work function, work style…the list could go on!

Often retaining minorities is more difficult than recruiting them. This is especially true for companies in less diverse regions where minority employees may feel disconnected. HR professionals may find the need to adapt workplace culture in order to accommodate.

Whilst all of this sounds expensive, a diverse workforce has many bottom-line benefits. For example, companies with more women on their boards outperform their rivals with a 42% higher return in sales, 66% higher return on invested capital and 53% higher return on equity.

A recent article in HR Magazine highlighted “The standard 12 point plan-style argument for diversity:

1. Widens the perspectives brought to bear on decision-making
2. Increases creativity and problem solving
3. Reduces people risk behaviours
4. Avoids too great a similarity of attitude
5. Offers access to a deeper pool of candidates
6. Helps companies understand and connect better with their customers
7. Engages employees and keeps them loyal
8. Opens up new areas of business opportunity and enhances adaptiveness to change
9. Secures investor/shareholder/government and regulatory confidence
10. Reinforces organisational cohesion
11. Helps drive HR as a strategic priority
12. Is a core driver of innovation, productivity and sustainability.

Now the key is how to move from here to there…