Modern Business in the Age of Diversity

The subject of diversity is not only the current sexy topic in the business world, but one of substantial controversy. So much so that in recent years tech companies who were once immune to questions of creating hiring barriers, have come under tremendous scrutiny; forcing Silicon Valley to change the way they procure talent.  At the most recent SXSW panel, Sarah Wagener, the Vice President of talent acquisition and diversity at Pandora, admitted as much.  She stated that pushing to search for more diverse candidates is “the right thing to do.” She quickly followed up with, "it's been the 'right thing to do' for a long time, and we’re still having this conversation.” 

Google, once thought of as the innovative hip place to promote unusual talent, came under tremendous fire when it became clear that they were blind to their own lack of diversity.  In a Washington Post article from 2014, a report indicated that, “70 percent of Google's employees are men, 61 percent of its total workforce is white, another 30 percent are Asian, three percent are Hispanic and two percent are African American.”  This put the tech giant in an awkward position.  Once reluctant to publish diversity numbers within their workforce, the report-initially broadcast on PBS, spurred Google to embrace change and offer a huge “mea culpa” to the public at large.  It also put them at the forefront of accountability in increasing their diversity numbers. As a result, many tech companies have followed suit.

So ultimately, is diversity and inclusion simply the right thing to do in business, or is it a sound business decision?  Due to the recent dramatic cultural shifts within the last five years, the palette of America is changing.  This has given rise to the discussion of opportunity gaps. Once ignored, the blatant homogenous approach to hiring is now at the forefront of the American landscape. Current American businesses are firmly entrenched in a crisis of consciousness. Once asleep, they are awakened to the reality that if they do not change, their way of life may slowly go the way of the dinosaur.  The American landscape has come of age where business no longer defines the individual, but the individual now defines business. 

The object of business is to create supply and demand. With that obvious principle in mind it becomes clear that diversity and inclusion is not another political correct initiative or a matter satisfying quotas.  Diversity and inclusion are vital for the future success of the marketplace. While human nature lean towards homogeneous tendencies, embracing individuals who are culturally similar to themselves, the future success of business while require divorcing from that tendency and embrace a more diverse workplace.  The problem which is prowling out in the wilderness is the immutable fact that if business continues to ignore the message the public is sending, this will impact the marketplace and not for the better.

The ability to adapt and understand different cultures, backgrounds, mindsets and methods to achieve goals will open up new marketable demographics. While there is an altruistic component to diversity and inclusion, the bottom line is that it more than simply ‘doing the right thing”, it is doing the smart thing.  Let’s be honest, the name of the game is not sitting around the campfire singing, “Kumbya.”, it is expanding and growing business through engaging consumers.  The future growth and sustainability of business depends on diversity and inclusion. If the business world does not embrace diversity and inclusion in the workplace, they will not enable a stable and broad expansion of consumerism.

This will ultimately depend on thought leader ignore the governing tides and embrace diversity and inclusion, in spite of corporate America’s aversion to address the subject.  It is not a matter of simply having leaders who are representative of diversification and inclusion measures in order to satisfy human resources quotas. This is a call that every leader in business must incline their ears to hear and be willing to embrace in order to sustain the future of their business.

The safety of a homogeneous business model in the workplace is creating a stymied and stale approach to how business is conducted.  The old guard who do not embrace a more open forum to discuss and engage a healthy diverse work environment will ultimately lose business to those who do.  The competition is fiercer now than ever, and every company needs to have the edge on companies who offer more variety and answers to the needs of the customers.  

The joke, ripe with irony which many business leaders do not want to tell is that the business world has ignored one of the greatest business ideas for generations: Diversity and inclusion generates business and stimulates the economy. The question then remains, why would any business want to alienate potential consumers by not having employees who represent and understand those customers?

Imagine the possibilities when a company is open to place value on perspectives and solutions that are different than what is considered “tried and true.”  This opens the doors to creative innovation which translates to more diverse and creative solutions.  This translates to product development, which translates to sales and income generation. Many companies have embraced the opportunity to reduce the opportunity gaps in order to develop a relationship between clients and service providers.  Due to the inclusion of individuals from backgrounds similar to their client base, it offers unique perspective on what the client values. This ability to reach the client has proven instrumental in fostering strong client / provider relationships.

Whether the world is ready to embrace diversity can be debated at great length. The truth of the matter is that due to demographic shifts the workforce is changing in the United States. This is true of any business, not just the service industries.  As a result, new leaders and decision makers are going to be in the position of making strides in unifying the workforce by embracing those with diverse backgrounds; and changing the American landscape in business.