Data Analytics and Recruiting

HR Tools Improving DEI also Raise Business Performance

Performance-driven behaviors in an organization that further the competitive advantages can unintentionally create barriers to diversity and inclusion. Employees do their jobs as best they can and are unaware of the impact. Proven HR tools and processes, adapted for diversity and inclusion, unleash the potential in every employee, not just minorities, to drive business performance higher. Four examples illustrated by prominent American companies follow.

1: Authority to Lead Excellence Shouldn’t be Confused with Status; Managed by DEI-Sensitive “Personas”

Companies with leading technologies need to give managers the authority to determine and apply the excellent technologies in an industry-leading manner. Often authority is given to those who enjoy status in society, education, or work experience, where typically minorities face barriers to attaining such status. In contrast, when the authority of leaders from diverse backgrounds is recognized and included bottom-up based on expertise and leadership skills, rather than imposed top-down due to status, leadership can be more effective and collaborative. Employee “personas” map ideal career paths with the associated hard and soft skills at each level, and show how potential develops over time. Personas orient candidates and decision-makers for recruiting and promotion to these factors, rather than status.

Bloomberg is the leader in excellence for business and financial information and news. The former reporter Nafeesa Syeed from Dubai was passed over for foreign policy correspondent positions in favor of male colleagues, some of whom were “far less qualified,”. A male editor told her the “position was not designated a ‘diversity slot’ and, therefore, she would not be considered.” [1] Her case against Bloomberg suggests the company is not making the best use of available talent, where “personas” would help re-orient decision-making.

2: Microaggressions Arise in Processes Generating All-Around Benefits; Managed by DEI-Conform Interactions

All-around benefits in products require smooth processes to gather and meet market requirements, often relying on standardized interactions in the processes reflecting the norms of privileged groups. Communication with minorities can be reduced to stereotypes expressed in microaggressions, forcing minorities into “code-switching” where they hide their real selves in order to conform. More diversity in interactions would increase employees’ ability to deal with variation, increasing resilience and innovation. HR tools can improve inclusion in interactions: e.g. training in intercultural communication, a code of conduct, and as agenda item in team meetings.

Adidas gathers market information to produce mainstream products with all-around benefits. Black employees in the USA have written protest letters and demonstrated against the daily microaggressions they face, but leadership is not willing to acknowledge the need for changes in the internal culture. [2] In Adidas’ strategy until 2025, 90 – 95% of sales growth is expected to come from five existing product categories in three existing global regions. [3] Can this be seen as a relative lack of innovation in the highly dynamic sportswear industry?

3: Avoidance Linked to Products which Master Activities; Managed by Mentors Using DEI-Conform Skill Charts

Some companies offer products and services which help customers master their activities, such as an SUV with an adjustable interior for variety in transporting suburban families. Employees in such companies are expected to master their own activities, i.e. to some extent work autonomously and build their own personal skills and networks. Autonomous employees naturally network with colleagues who have similar work styles and assign them the best work assignments to build skills in a quasi-monoculture. Minority employees can be simply avoided. Including employees with diverse backgrounds brings more variety in work styles across the organization, which can lead to more originality and agility. HR tools can systematically chart all employees according to their skill levels and mentors can systematically oversee skill development plans, work assignments, and networking.

Marriott Hotels offers the world’s largest selection of tours and activities and specifically highlights its inventiveness in customer travel activities. A former bellhop in Mariott Newport, Rhode Island, sued the company because the bell captain assigned him and other Black bellhops less desirable and lucrative shifts while favoring White employees. [4] Perhaps customers would have appreciated the originality of diverse bellhops and their varied inventiveness.

4: “Othering” Linked to Lifestyle Products; Managed via DEI Collaboration

Lifestyle products are creative, and their design, production and marketing are synthesized by creative employees resonating across functions to raise engagement. In this resonance, privileged groups can ally based on commonalities and view minorities as others who are outsiders, i.e. “othering”. In contrast, including culturally diverse employees can foster a sense of all employees as insiders who can be even more creative in collaboration. 360-degree feedback evaluates all employees on collaboration and resonance. Coaches promote career development in more diverse skills for synthesis and resonance in cross-functional collaboration.

Social media platform Pinterest offers lifestyle services. A gender discrimination lawsuit brought by the former female COO referred specifically to problems in collaboration. [5] Pinterest shareholders sued the company and top management for harming investors by creating a discriminatory culture, in which a White, male clique of allies was formed around the CEO, marginalizing women. [6] Two Black female former employees felt discriminated in their career development, referring to White, male managers defending themselves against complaints like a clique. In response to the complaints and Twitter comments the CEO wrote a letter to employees including the statement “It’s been devastating to hear the stories of Black employees who feel like they don’t belong at Pinterest,” [7] i.e. suffering from othering. It seems not all employees at Pinterest can resonate and engage in creative ways with work colleagues.

By embedding diversity and inclusion into the processes that generate competitive advantages, companies can both address diversity issues and improve business performance. The associated HR tools and processes unleash the potential of all employees and do not create fear of bias against certain groups, such as white males.

Authored by Benjamin Wall

[1] https://www.hrdive.com/news/former-bloomberg-reporter-alleges-discrimination-in-lawsuit/584357/ Viewed March 30, 2021

[2] https://www.nytimes.com/2020/06/10/business/adidas-black-employees-discrimination.html?action=click&module=RelatedLinks&pgtype=Article Viewed March 30, 2021

[3] https://www.adidas-group.com/en/media/news-archive/press-releases/2021/adidas-presents-growth-strategy-own-the-game-until-2025/ Viewed March 30, 2021

[4] https://eu.providencejournal.com/story/news/courts/2020/07/30/former-bellhop-accuses-newport-marriott-of-race-discrimination-in-lawsuit/113861146/ Viewed March 30, 2021

[5] https://www.businessinsider.com/pinterest-francoise-brougher-gender-discrimination-suit-coo-2020-12?r=US&IR=T Viewed March 30, 2021

[6] https://www.businessinsider.com/pinterest-lawsuit-shareholders-allege-racial-sex-discrimination-toxic-culture-2020-12?r=US&IR=T Viewed March 30, 2021

[7] https://www.businessinsider.com/two-black-former-pinterest-employees-discuss-their-fight-for-pay-2020-6?r=US&IR=T Viewed March 30, 2021