An online monthly research publication by the Ivey Business School 

Volume 13, Number 9: Supplement
September 2007

Diversity in the Workplace

Click here to download audio/visual presentation.

Click here to listen to the Q&A.

Many companies have had diversity initiatives for years. So, have they done all there is to do? Are Canadian companies doing enough to show that they truly value equality in the workplace?
Alison Konrad, a professor of Organizational Behaviour at the Richard Ivey School of Business, says some companies have made progress, while others continue to waste human capital and lose out on an excellent source of knowledge, networks and ideas.

In this Q&A, she outlines the urgency for a more diverse workplace and why appointing a “head of diversity” often works. Ashleigh Murphy met with Professor Konrad and asked her what happens when new immigrants don’t feel welcomed in their jobs.

A. One of the important results is a waste of human capital because people end up being under-employed. By that I mean people are employed in a job that doesn’t even come close to using their skills and abilities. Research by Joerg Dietz here at Ivey has shown that the skills of immigrants are likely to be discounted by Canadians. And that means that we tend to underestimate their ability to contribute to our organizations. So that’s one loss.

Another loss is a lack of access to knowledge, networks, and new ideas. Immigrants are a great source of contacts in other countries as well as knowledge about how those countries do business. We are losing all of this information when we don’t employ immigrants at a level commensurate with their qualifications.

Finally, underemployment leads to disenchantment with Canada and that influences the next generation. Sadly, recent research by Reitz and Banerjee out of the University of Toronto showed that the children of immigrants who are visible minorities are considerably less well integrated into Canadian society than their white counterparts are.

Q. Can you talk about little bit about the differences between the experience of white immigrants in Canadian workplaces compared to visible minorities?

A. I would say the main thing that comes out for me is the ideas. People find that their ideas are not listened to as well in organizations. Ideas coming from an immigrant who has different personal experiences and a different perspective sound really different and sometimes peculiar to those of us in the white majority. And people react negatively to ideas that sound peculiar to them. Perhaps the ideas don’t resonate with our more monolithic background and experiences; perhaps the ideas are based on different assumptions and worldviews; and also the ideas that come from immigrants working in other countries they are untried in the organization, and so, the new person cannot point to a track record showing that idea has worked in Canada, and that’s part of the skills discounting also.

I’ve had more than one person tell me that after experiencing the skepticism of their colleagues, their Canadian colleagues, they just eventually just stay quiet and don’t share their knowledge and ideas with the organization anymore, and that’s not good for Canadian business.

Q. How does the aging of Canada’s population intensify the need to incorporate visible minorities into employment?

A. It’s very important as the Baby Boom generation retires in the next several years, there will not be enough native-born Canadians to fill the vacancies that they leave. That means we will have a labor shortage, especially in skilled occupations and professions.

As the large Baby Boom generation starts drawing out pensions and utilizing the healthcare services at a higher rate, that everybody does as they age, we will need a robust cohort of younger workers to pay their payroll taxes in order to fund the needs of us in the Baby Boom generation.

Deb Matthews did a study where she projected the future populations of 26 cities in Ontario. She found that cities with higher than average rates of immigration grew vibrantly, while cities with lower than average rates of immigration are projected to decline by 2050, some of them quite dramatically. So, we need to integrate immigrants to keep our cities strong too.

Q. Do we still need diversity initiatives? Or is this something that has already been done?

A. What I’ve found is leading Canadian organizations no longer view diversity initiatives as “a project that has already been done.” I’ve found that the more a company has done and advanced in the area of diversity, the more humble it is about the progress that they have made.
Real leaders, who have actually taken substantive action in the area of diversity, know how difficult it is to eliminate barriers in the organization, and they’ll tell me that the more they learn, the more they realize they don’t know.

Q. Do diversity initiatives amount to reverse discrimination?

A. I’m glad you asked that question because it’s a very common one and people don’t always want to ask it. Diversity initiatives are about removing barriers to equal participation by groups that have historically been denied opportunities in Canada.

Some of the barriers that continue to be identified in Canadian organizations include lack of inclusion in informal networks, lack of access to high visibility assignments, lack of mentoring, and the feeling that people being held to a higher standard of performance compared to their white male counterparts.

Removing these barriers is not reverse discrimination. It is leveling the playing field so that all demographic and cultural groups have the same opportunity to compete on the basis of merit.

Q. How can managers change the mind of people within companies who respond by saying something like, “I've never heard any complaints, so why do we need to do anything?”

A. My view on this is that feedback on diversity issues is a gift, and organizations that are willing to listen to it can learn things that put them ahead of the competition. People only give you that gift if they trust you to respond in a meaningful way. Most of the time when people encounter a situation they believe to be discriminatory, they say nothing to management. But that doesn’t mean there is no problem.

The reason people don’t raise these issues is because the first response many people often get is that the listener tells them they must be wrong. [They say something like,] “It’s not really a diversity issue, there is an alternative explanation for what happened, you are really misinterpreting the event.” That kind of response is really not helpful and it turns people off and they won’t ever talk to you again. It is true, sometimes people do misinterpret things, on all sides; however, the best leaders are capable of listening really openly when people raise diversity issues to make sure that they are considering multiple perspectives, and not just their own.

Q. What are a few key things that companies and managers can do to improve diversity?

A. Research has supported the effectiveness of having a “head of diversity” position in the company as well as a diversity council comprised of senior line managers. These structures hold people accountable for diversity, with the result that the organization employs a more diverse set of workers and managers.

Research has also shown that employee network groups are effective for attracting and retaining people to the organization. Being able to network with members of the same cultural or demographic group is very valuable for people to identify strategies to be successful in the organization. One really great example is a large bank in Canada that has developed an aboriginal network group. The network members help each other interpret events that happen to them at work and help each other identify ways to work effectively with their supervisors and colleagues who are not aboriginal themselves. And they say that the network group is absolutely critical to why they stay employed at the bank as opposed to leaving.

Finally, research has shown that mentoring programs are very useful for career development and satisfaction of a diverse workforce. A new study by Catalyst showed that visible minorities were significantly more satisfied with the career opportunities in their organizations if they had access to mentoring.

That was Alison Konrad, Professor of Organizational Behaviour at the Richard Ivey School of Business.
 

Professor Konrad's Homepage

Impact Vol. 13 No. 9: David Sharp on Doing the Right Thing

Previous Issues of Impact

Register for Impact