Diversity has come of age in the American work place. Diversity training and aggressive recruiting of employees of varied races and backgrounds are now benchmarks of successful businesses. “It’s included in all the decisions they make,” said Karlene Wagner-Jackson, human resources manager of diversity and inclusion at Hallmark Cards. “It’s seen as a business imperative, not as an add-on.”
Hallmark is deeply involved in recruiting, retaining and nurturing diverse employees. So is Sprint, recently named by Black Enterprise magazine as one of the nation’s top 40 companies for diversity. But no one is ready to say that corporate diversity has matured to a comfortable level—especially among smaller businesses.
“I think it’s a mixed bag,” said Kirk Perucca, president of Kirk Perucca Associates Inc. and of Project Equality, an organization that promotes inclusion. “Clearly, the work force is more diverse. We are seeing better representation of women and people of color. But a lot of organizations just talk the talk and don’t walk the walk.”
Some data bear that out. Black Americans comprised 11.4 percent of the civilian labor force in 2009, about the same as in 2003, according to the Bureau of Labor Statistics. Hispanics were 14.5 percent of the work force in 2009, up from 12.8 percent since 2003, figures showed. The percentages slightly under-represent the 2009 populations of blacks and Hispanics nationwide.
The Challenge Ahead
Small businesses are particularly lagging in diversity programs and recruiting, observers said. They often do not have the resources of larger companies to hire diversity specialists, Perucca said.
But cost doesn’t have to be an obstacle, said Denise Drake, a labor and employment lawyer in Kansas City.
“You can do so many things in an organization for free,” Drake said, noting, for example that jobs can be posted with minority-based associations. “If you put your ad out there in a wide-ranging area, you will attract a broader pool of people.”
Some small business owners say they simply don’t have enough minorities applying for jobs, said Emmanuel Ngomsi, president of All World Languages & Cultures, Inc., a Kansas City-based diversity consultancy.
Ngomsi said, however, that many employers don’t take sufficient initiative in recruiting a diverse work force. Employers, he said, should devote as much attention to getting minority employees as college coaches do in searching far and wide for top athletes.
Sometimes companies come nowhere near reflecting the population they serve, Ngomsi said.
Recently, he visited a school district where about one-fourth of the students were black or Hispanic, yet there wasn’t a single black administrator or coach in the district.
“I tell the school district or the bank or the hospital that you want to diversify your staff because your clients are diversified,” Ngomsi said. “You have to make that effort.”
A Cultural Shift
Small businesses tend to have a tight-knit culture that doesn’t lend itself to recruiting a diverse staff, Drake said. They are often run by families, who have a familiar network of people they look to for hires, Drake said.
“They tend to go with people they know,” Drake said. “When you get to 15 or so employees, that’s when they have to go out and start looking for people.”
High joblessness of the past two years has especially hurt minorities looking for jobs, said Patrice Manuel, CEO of P/Strada, a diversity consultant to corporations and minority contractors. They are losing out to more educated and experienced people who are willing to work at salaries below their previous jobs just to get work, she said.
“I’m seeing companies being able to hire very skilled and talented people at a lower pay rate,” she said. “So those who are not prepared are not hired.”
Regardless of a company’s size, Perucca advises against hiring someone simply because he or she is of a racial or other minority. Rather, he said, the employer should look hard to make sure that person will be a standout hire.
“Recruit until you find someone who matches the qualifications and personality you want so that person will be a star,” Perucca said.
What's in it for Business?
The benefits of hiring a diverse work force are clear, said Perucca and others.
For starters, diversity can benefit the bottom line because the market for a company’s products and services is likely to be a diverse customer base. Who better to understand the product and service needs of certain population groups than one of its own?
“Diversity brings innovation; we look at it as an imperative,” said Ralph Reid, vice president for corporate social responsibility at Sprint.
Wagner-Jackson of Hallmark agreed. “Consumers look to companies that speak to them and their needs,” she said.
Sprint and Hallmark don’t simply hire diverse employees, but reach out to them and make the most of their presence.
Both companies have Employee Resource Groups representing various diverse people, such as blacks, Hispanics, Asians, women, veterans and gays. While formed around certain characteristics, the groups are open to anyone. They are social and professional in nature and are consulted by the companies on diversity issues and product development.
The resource groups are also important to retaining diverse employees, Reid said.
“They get here and they like it,” Reid said. “They see that Sprint is engaged in cultural awareness.”
Recent figures show 43 percent of Sprint employees are from minority groups, up from 39 percent in 2006. Women comprise 46 percent of employees, up from 42 percent in 2006.
Reid said he appreciated Sprint being recognized by Black Enterprise as one of America’s best 40 companies for diversity. The magazine said the 40 companies maintained their commitment to diversity in tough times.
“They realize that hiring diverse employees and leveraging differences sharpens their competitive edge,” the magazine wrote. Sprint, incidentally, was a co-sponsor of the recent NAACP national convention in Kansas City.
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