What Is Diversity?
Diversity in the workplace can be understood in two key ways: inherent diversity and acquired diversity.
Inherent diversity refers to traits people are born with—such as gender, ethnicity, sexual orientation, and age.
Acquired diversity develops through experiences. For example, an employee who has worked abroad may have a greater appreciation for cultural differences and global perspectives.
According to the Harvard Business Review, businesses with both types of diversity—known as two-dimensional diversity (2-D diversity)—consistently outperform others. The study revealed that companies with 2-D diversity were 45% more likely to report year-over-year growth and 70% more likely to capture new markets.
This demonstrates a direct link between workplace diversity, innovation, and business success.
Diversity in Practice: TransUnion’s Example
One real-world example of workplace diversity initiatives comes from TransUnion, a global information and insights company. The organization has made intentional efforts to improve diversity and inclusion (D&I) within its leadership team, moving beyond male-dominated executive positions to include more women leaders.
Debra Wasserman, Senior Director of Compensation and Benefits at TransUnion, explained that the company adopted a top-down approach:
“We started with the senior-most leaders and followed it down throughout the organization. To some degree, there needed to be awareness. So, we had to get this front and center in front of everyone.”
TransUnion has also focused on pay equity—not just in U.S. states where it is legally required, but on a global scale—showing how diversity efforts must go beyond compliance to create lasting impact.
Impacting Diversity
Diversity and inclusion continues to be one of the dominant topics for HR professionals. There are some way’s HR can really impact change for their respective companies.
In most companies it can be difficult to get a clear picture of what diversity is like for that particular organization.
To combat this, HR teams should monitor diversity. This can be done through audits. This should be done, not only for current employees, but in recruitment practices as well. This will allow for progress to be measured effectively.
When it comes to diversity, HR should focus on building a diverse workforce through recruitment or development. There are a myriad of ways of doing this. Some can be through internal or external partnerships.
Like recruitment, mentoring can be internal or external. For instance, some HR professionals work with schools or local youth groups. This helps with fostering talent early and making sure more diverse individuals are aware of the opportunities.
HR teams should understand it is vital to ensure the diversity of your supply chain. Furthermore, it should reflect your consumer base, but also that there is a business case for supply chain diversity.
In Summation
It is clear HR has a role in diversity. Companies should start, if they’re not already, thinking about making these changes to recruitment, but they will have to implement them as soon as possible.
That said, these steps can help propel the company onto a positive trajectory. Even with positive changes in recruitment, other areas such as mentoring, supplier chain diversity and progression and leadership still need to be focused on to ensure companies are aiding ethnic minority progression within their organizations.
