In The Institute for Diversity in Health Management’s fall 2007 newsletter, Bridges, HR Solutions’ Principal Consultant Murat Philippe was featured in the article, “Attention to Diversity Pays Off.” Compiled by Carrie Parks, Marketing Communications Specialist, the article addresses the linkage between Diversity and Employee Engagement.
Diversity is inevitable. As American society becomes more diverse with each passing generation, a dynamic marketplace is emerging. The U.S. Census Bureau estimates that by 2030, 43 percent of the U.S. population will qualify as racially diverse (e.g., Hispanic, African American, Asian, Native American or multiracial).* Murat Philippe, Principal Consultant with HR Solutions International, Inc., notes that diversity also encompasses sometimes overlooked factors such as generational and religious differences, sexual preference and socioeconomic status. In the 21st century, organizations must embrace diversity in order to be productive, remain competitive in the global marketplace, and win the battle for top talent.
According to Philippe, the Employee Engagement research is clear: A more engaged workforce results in better financial performance because it is a workforce that has less absenteeism, better customer relations and is high performing. An engaged employee has a sense of ownership, which leads to innovation and organizational progress.
In the past, some executives undermined the importance of diversity efforts, classifying them as a “warm and fuzzy” topic to be dealt with if time allowed. However, according to HR Solutions’ research, a correlation exists between diversity and engagement: If a company’s employees rate the organization as fair to diverse people (both employees and customers), then employee satisfaction and engagement are also more favorable. The reasonis simple: An organization positioned to treat diverse individuals fairly, treats all individuals fairly, and great organizations ensure that diverse individuals are treated fairly. Strong performance on diversity measures is linked to engagement, which is linked to bottom-line financial performance.
HR Solutions conducted a study using extensive employee data from three of its most popular diversity survey items. The research unveiled a correlation between diversity satisfaction and overall job satisfaction/engagement. In fact, the findings indicate that a positive and significant relationship does exist between job satisfaction and employees’ satisfaction with diversity. (See the table below.)
Employee Opinion Survey Item |
Pearson Correlation with Overall Job Satisfaction |
| Diverse customers (differences in race, gender, age, religion, sexual orientation, etc.) are treated fairly at this organization. | 0.415 |
| Diverse employees are treated fairly with regard to their career advancement at this organization. | 0.410 |
| Diverse employees are treated fairly with regard to their career advancement at this organization. | 0.400 |
Correlation Coefficient (r) - is a value between +1.00 (positive correlation) and -1.00 (negative correlation). A positive correlation signifies that as one variable becomes larger, the other variable becomes larger. Alternately, a negative correlation signifies that one variable becomes smaller as the other variable becomes larger; therefore a perfect correlation would yield a score of +1.00 or -1.00 and the absolute lack of a correlation would yield a score of 0.0.
Disregarding the importance of workplace diversity is a thing of the past. This study provides ground-breaking evidence that diversity satisfaction is a key component of employee satisfaction. CEOs and general managers who have neglected the importance and value of diversity efforts can no longer afford to do so.
According to Philippe, Senior Management should ask themselves two key questions regarding the topic of diversity in the workforce:
- How do you create a culture where employees want to stick around?
- How does a strong management team help increase an employee’s perception of your organization’s diversity efforts?
To address the first question, Philippe suggests organizations:
- Provide challenging work and tailored learning opportunities;
- Create a supportive work environment which nurtures small work groups;
- Good benefits that fit your workforce’s needs (e.g. retirement health benefits);
- Create flexible work schedules; and
- Provide fair and competitive pay.
When tackling the second question, Philippe suggests Senior Management:
- Communicate the importance of diversity throughout the organization;
- Model the desired behaviors through their own actions;
- Provide resources for recruiting, education and training; and
- Highlight likely scenarios requiring diversity awareness at their organization.
The unique characteristics that distinguish one employee from another can result in innovation, more opportunities and a prosperous workforce. “In order to thrive in the human marketplace, be prepared to utilize the inherent differences between us all. What makes us different makes us stronger,” Philippe said.
Murat Philippe is a Principal Consultant with HR Solutions who specializes in the topic of diversity. In 2007, Philippe was invited to speak at several conferences regarding the linkage between diversity and employee engagement. His research on this emerging subject provides insight and reasoning into the significance of workplace diversity.
*Source: U.S. Census Bureau, 2004, “U.S. Interim Projections by Age, Sex, Race, and Hispanic Origin,” http://www.census.gov/ipc/www/usinterimproj. Internet Release Date: March 18, 2004.