Diversity Management: Types, Best Practices, and Challenges Faced By Organizations

The act of establishing and leading a diverse team is known as diversity management. In today's organizations, diversity management is extremely important. Professional equality and fairness may result in better-functioning groups, employee morale, and more profitability.

Diversity management can make all of this a reality, although it appears like an HR manager's nightmare. However, to generate this additional money without causing further conflict, it's critical to understand diversity thoroughly.

Types of Diversity Management

•  Management of Intra National Diversity

This type of management deals with the administration of a workforce made up of citizens or immigrants working in a single country. In addition, employment possibilities for minorities and recent immigrants are the subject of diversity programs.

Employment possibilities for minorities and recent immigrants are the subject of diversity programs. A Japanese FMCG company, for example, may establish policies and initiatives aimed at increasing sensitivity and allowing the country's diverse ethnic communities.

Management is mainly responsible for executing a diversity management plan. Forty-five percent of employees feel that managers responsible for hiring and training new hires have the greatest influence in increasing diversity. In conjunction with supervisors, the CEO and HR department are essential stakeholders in a company's capacity to influence diversification.

• Management of Cross-national Diversity

The term "cross-national" or "international" diversity management refers to the administration of a workforce made up of people from several nations. It might also include immigrants looking for work from other nations.

An example is a firm established in the United States with branches in India, Canada, and China. The firm will create diversity initiatives and rules that apply to its US headquarters and its international locations.

The main issue with cross-national diversity management is that, regardless of where the staff lives, the parent business must consider the legal and cultural regulations of the host countries in which it operates.

Best Practices of Diversity Management

These best practices can help organizations maintain a competitive commercial edge while simultaneously maximizing the possibilities of a diversified workforce. The following are some of the best practices that a company may use:

• Top-level Management Commitment

Workforce diversity may thrive if its senior management embraces it as part of a common vision. Policy development is the responsibility of an organization's senior managers, and the regulations they create may either encourage or remove workplace diversity. 

According to a recent Pew Research Center demographic estimate, the United States will no longer have one national or gender majority by 2055. However, the diversification strategy remains severely constrained when top management fails to demonstrate commitment to executing the diversity measures.

• Find Fresh Sources of Talent

Management must promptly acquire new talent in a company where more individuals are leaving than are being hired. As a result, most firms turn to conventional new-employee sources like competing corporations and graduate schools to get the finest people.

Businesses must go outside typical new-hire sources and consider alternative talent pools, such as veterans, minorities, and people from different areas or nations. Hiring people with a wide range of talents and experience can help businesses provide higher-quality services to a global customer base.

• Create a Secure Space for People to Talk About Concerns Connected to Diversity

Professionals from comparable backgrounds should interact and discuss their issues in a secure atmosphere by forming resource groups. Unfortunately, people from minority groups frequently feel excluded from companies, leading to higher job turnover.

Employee involvement and performance may be improved by providing opportunities for mentorship, networking, and socializing. In addition, successful employees can demonstrate how they achieved success inside the company and coach new employees.

• Make Diversity One of the Company's Goals

An organization that values a diverse workforce must not hesitate to let the public know that it values diversity and collaborates with people from all walks of life. 

According to studies, organizations with more diverse upper management generate approximately 20% more income than those who do not. Start by identifying and encouraging employees who volunteer for various causes, including a mobility walk or an HIV/AIDS information forum. Next, it can organize fund-raising efforts to help underprivileged people. Finally, minority groups may be eligible for internships and scholarships via the organization.

Differentiate Between Affirmative Action and Diversification

Many governments have developed affirmative action programs throughout the world to give women and other ethnic minorities chances. However, organizations should distinguish between affirmative action and diversity, even when such positive actions enhance diversity.

Diversity is proactive instead of reactive, and it necessitates organizational transformation. People from various cultures, origins, and beliefs offer a variety of work methods and viewpoints to a company, increasing efficiency and stimulating product design innovation.

Challenges to Diversity Management 

•  Challenges in Implementing Diversity

On paper, having a diverse staff sounds great, but putting it into practice may be difficult. Despite the abundance of diversity guidelines available, there is no one-size-fits-all solution that works. This is because the variety has diverse meanings for different individuals.

Recruiters and top decision-makers are responsible for implementing diversity. The CEO is the major sponsor of diversity and inclusion efforts, according to 38% of chief executives.

• Language and Communication Disparities

A dynamic and diverse organization fosters creativity, new perspectives, and problem-solving techniques. Conflicts arising from differing points of view, on the other hand, are escalating at the very same time.

As per data from the US Census Bureau's 2016 American Community Survey (ACS), one out of every five Americans speaks a foreign language, with more than 65 million individuals speaking a language other than English. This is a 1.9 percent growth over the previous decade.

• There is a Decrease in Trust

Ethnic minorities may believe that they are treated unjustly in comparison to larger groups. They may also believe that the boss is kinder to persons from similar backgrounds. Thus, when faced with a crisis, these groups would scarcely raise their voices. For example, staff from various Asian nations may be hesitant to express their thoughts, especially if they are new to the work or in subordinate positions.

• Requirements for Obtaining a Visa and the Cost of Lodging

Building a global workforce is a time-consuming and expensive operation. Organizations must create rules for working visa arrangements and employment practices complying with local employment and immigration regulations. Organizations may fund the transfer of talents to new areas in specific situations. The sponsorship might result in paperwork and a (significant) sum set up for lodging and travel.

• There are Too Many Points of View

Various workers approach the same issue and present their thoughts differently due to their unique experiences and backgrounds. Employees who do so are highly important to your company because they will continue to drive new ideas and uncover problems. 

Many viewpoints, on the other hand, might make it difficult to achieve an agreement. Among the multitude of other ideas, particularly inventive answers to issues may slip undetected. Due to this decrease in productivity, having too many viewpoints might jeopardize the organization's ability to meet tight deadlines.

For businesses, embracing diversity is the way to go. Businesses that can effectively manage workplace diversity will have a distinct competitive edge over their competitors regarding distinction, creativity, and employer identity in an international talent market.