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Diversity: Building a Competitive Workforce

There is no doubt that the American workforce is changing in dramatic ways. There is a much slower i n crease in the total number of Caucasian (white) workers than there are of other groups, especially Hi s panic or Latino.

Three decades ago the American workforce was predominately white and male: One of the reasons white males no longer dominate the workforce is that women have entered the workforce in record nu m bers. In 2010 about 60 percent of adult American women worked, and almost half of the American workforce is female. 47

The number of Hispanic, Asian, and older workers continues to increase. The baby boomers (those born between 1946 and 1963), or 76 million people, are staying in the work- force longer. Meanwhile, Ge n eration Xers (those born between 1964 and 1981) are vying

The answer is “maybe.” If you work for an “old school”

manager who believes that work only gets done at the workplace, then your desire to work from home two or three days per work may hurt your career prospects with that employer. Many managers (especially the baby boomers) paid their dues earlier in their careers by working long hours at the office where they were “seen” working hard and getting their jobs done. Thus, these older man- agers have a natural tendency to expect that the younger, junior employees of today will also see the value in “face time” and want to work (and be seen working) at the office.

A recent survey confirms that face time is still important to some managers. Professional office workers who were observed by their managers at the office (during regular and after hours) were more likely to be perceived by their managers as dependable and committed to the organiza- tion. Thus, face time still matters.

The good news for those employees who want to telecommute so that they can maintain a better work–life balance is that many organizations are embracing tele- commuting as a strategic HR policy that will help attract, motivate, and retain valued talent. Even if you work for firms that encourage telecommuting, you can protect your career interests and reputation as a dependable and committed employee by doing the following:

Stay connected. On those days that you work from home, make it a point to reach out (via e-mail, phone, or video conference) with your manager and/

or co-workers at the office. This will signal that you are working hard even though you’re not down the hallway or in the next cubicle.

Share your schedule with others. Meet with your man- ager to develop a telecommuting plan (e.g., what days and times you work from home each week).

Then, send this information to everyone with whom you work, including customers, so they feel comfort- able with your work schedule.

Adjust to changes at the office. If there are rumors of upcoming layoffs or that your manager might be leaving the firm, you may need to spend more time at the office until things settle down again. Changes can happen fast where office politics are involved, so you need to be there to defend your interests and career.

Share success stories. After landing a new account, finishing a difficult audit, or delivering a three-week training program, invite colleagues and your man- ager to a celebratory lunch. This will signal that even though you’re working from home a few days a week, you’re still performing your job well.

Sources: M. Kennett (March 2011), “Remote Control,”

Management Today, pp. 46–47; M. Murray (February 2011),

“Companies Save Office Costs with Telecommuting,” Mortgage Banking 71, no. 5, pp. 108–9; K. Elsbach, D. Cable, and J. Sherman (2010), “How Passive ‘Face Time’ Affects Perceptions of Employees: Evidence of Spontaneous Trait Inference,”

Human Relations 63, no. 6, pp. 735–60; Diana Ransom (April 21, 2010), “SmartMoney; Six Ways to Manage a Virtual Work Force,” Wall Street Journal (Online) (accessed on April 9, 2011); Sue Shellenbarger (April 22, 2009), “Does Avoiding a 9-to-5 Grind Make You a Target for Layoffs?” Wall Street Journal (Eastern Edition), p. D.1; Elizabeth Garone (April 29, 2008),

“How to Make Working At Home Work for You,” Wall Street Journal (Eastern Edition), p. D.4.

Your Career Matters Can Telecommuting Hurt Your Career?

for jobs held onto by older workers. The potential conflict between these two large groups is likely to increase. According to the Bureau of Labor Statistics, by 2050 about 45 million employees of the workforce will be older than 55. 48

In addition to diversifying based on race, ethnicity, and age, organizations also include in- dividuals with disabilities in their diversity efforts. In 2010, it was estimated that there were 20 million Americans with disabilities who were of working age. Included in this estimate are a growing number of military veterans who are returning from deployment with significant injuries. 49 According to the Bureau of Labor Statistics, only about 30 percent of individuals with disabilities were employed by U.S. organizations in 2010. 50 Given that many organiza- tions will confront labor shortages over the next 20 years and that there are large numbers of Americans who are disabled and who want and need to find employment, companies can create a win-win situation by hiring, training, and retaining employees who are disabled.

The changing look, age, and needs of the workforce have resulted in more concern about child care, e l der care, and training in understanding diversity. High-quality day care has made it easier for women to raise a family and also begin a productive career. Unfortu- nately, however, although the need for child care is obvious, only about 5 or 6 percent of employers provide day care assistance. 51

Improved understanding of diversity (differences and similarities) also seems to be an obvious need, yet most firms fail to invest the time, resources, and energy needed to be- come “diversity-friendly.” A few success stories about diversity management are beginning to appear in the literature and serve as the best examples for practice.

Walgreens employs hundreds of employees with disabilities in its two innovative distri-

bution centers in Connecticut and South Carolina.

• United Airlines experienced an increase in Spanish-speaking travelers when it installed

a Spanish-speaking telephone reservation line.

• Avon Products had significant revenue growth after it hired African American, Hispanic

American, and Asian American sales and marketing personnel.

• Pillsbury Company and Kraft General Foods both recorded access to more of the African

American and Hispanic American markets after increasing the number of sales and advertising professionals from these ethnic-racial groups.

Another interesting story that illustrates the positive aspects of being diversity-friendly is presented in the next HR Journal. The story describes the case of Aurora Archer.

An increasing number of empirically based studies are illustrating that diversity-friendly strategies can have a significant impact on end results, such as being considered socially responsible and earning a f a vorable return on the products and services provided to consumers. 52

While diversity is a top corporate priority at Ford Motor Company, the real nuts-and- bolts diversity work is being carried out at the local level, within Ford’s divisions. Ford’s Marketing, Sales, and Service organization (MS&S), for example, has made a substantial commitment to diversity as a way to different i ate itself from its competition and in re- sponse to an increasingly diverse consumer marketplace.

MS&S developed a strategic communication plan that enlisted senior management to lead by e x ample and teach employees why diversity is critical to Ford’s success. The first phase of the plan centered on five half-hour modules, each of which forms the basis of a monthly discussion led by managers and supervisors for their staff. Each module is accom- panied by a video and a set of comprehensive instruction materials so that all 5,500 people in MS&S receive a consistent message from the 250 senior managers. Modules deal with such topics as leadership behaviors, tips for excelling in diverse work environments, how diverse teams function most effectively, and the role of work–life balance in diversity. 53

Chapter 2 A Strategic Approach to Human Resource Management 51

To strengthen the link between diversity and the bottom line, Aetna, a global provider of health and f i nancial services products, has put into effect a diversity stewardship structure that places responsibility for managing diversity squarely in the hands of senior line man- agers. At the top of this structure is Aetna’s executive diversity steward, a position that rotates every two years among the presidents of Aetna’s three major business units.

The Aetna Emerging Leaders Program is designed to groom the next generation of lead- ers by guiding participants through a rigorous multiyear development plan. One of the goals is to build wide-ranging d i versity into Aetna’s talent base. Candidates must have five to seven years of work experience either within Aetna or from outside; external candidates are usually recruited from MBA programs.

The program guides participants through a series of 12- to 24-month assignments in different areas of the business. According to Orlene Weyland , program director, “This pro- gram is different because it’s highly individualized, and it reaches people early in their careers. Each candidate receives coaching, ed u cation, mentoring, and a career path devel- oped from a mindful point of view.”

For Emerging Leader Ricardo M. Berckemeyer , who is in his first assignment in the Aetna Intern a tional unit, the program’s focus on mapping a career path is key. “A lot of young people get frustrated b e cause they don’t see a clear career path or where they’re going. This program gives you that advantage—it’s a great motivational tool.” Berckemeyer looks forward to develop- ing a network of fellow emerging leaders who will be able to rely on one another in the future.

Aurora knows she’s lucky to have made it out of the barrios of south San Antonio and into the boardroom.

She grew up amid gangs and crushing poverty. And the job descriptions of some former high school classmates include prostitute and drug dealer.

Given the hand Aurora was dealt, it seemed unlikely that a career as a corporate executive was ever in the cards. “My way out was an education,” says the self- assured mother of two. “That was cemented in my head by my parents.”

Today Aurora is a rising star in the tech industry, work- ing as director of global marketing communications for Hewlett-Packard in Houston. And she got there by work- ing hard and seizing opportunities. For instance, prior to her employment at HP, she used her fluency in Spanish to work with a group launching subsidiaries in several Spanish- speaking countries. “I got to see the establishment of an operation from the ground up,” says Aurora, who was recently named one of Houston’s top women in technol- ogy by the Association for Women in Computing.

Now this bilingual star oversees communications for three different organizations that market HP prod- ucts. Improving HP’s efforts to reach out to its custom- ers requires Aurora to communicate with colleagues from Latin American to Europe to Asia practically around the clock. Though the job is challenging, “it can’t compare to the hardships my parents went through,” she says.

Her African American father and Mexican immigrant mother toiled for years as domestic help, enduring abu- sive employers and working for menial wages. When Aurora and her older sister, Violeta Babic-Archer, reached their teen years, their parents decide to become live-in help, moving the family above the garage of the home where they worked in a tiny San Antonio neighborhood so the girls could get a better high school education.

“My parents set the bar really high for us,” says Aurora, who went on to graduate with a bachelor’s de- gree in business from Syracuse University. “My mother used to say, ‘Dime con quien andas y te diré quien eres’:

Tell me who you’re hanging out with and I’ll tell you who you are,” she recalls.

Because her responsibilities are at a worldwide level, Aurora’s hours follow the sun wherever it rises. She starts her day as early as 4:00 A.M., when she’s heading to the gym and trying to get some “me time.” Before most people have had their first morning cup of coffee she is already dressed, showered, and sporting a wireless telephone headset as she takes conference calls from col- leagues around the globe to discuss such things as project status and marketing requirements. Her laptop stays within reach as she moves from room to room, preparing her family for their day before she heads to the office.

Source: From Working Mother, June 1, 2005 © 2005 Bonnier Corp.

HR Journal A Rising Star

Addressing diversity on a global level is also critical at IBM, where the global diversity theme is “None of us is as strong as all of us.” Diversity at IBM is being leveraged world- wide through a system of diversity councils and task forces.

IBM’s 48 diversity councils operate in geographic areas around the world, including Latin America, Asia Pacific, Europe, and several U.S. sites. Their purpose is to advise management in their region on d i versity issues.

Work–life balance is one of six global workforce challenges being addressed by IBM’s Global Dive r sity Council. The other challenges are the global marketplace, cultural awareness/acceptance, diversity of the management team, advancement of women, and integration of people with disabilities.

Diversity-unfriendly examples still emerge, however—showing that much more needs to be done within organizations and across society. Texaco, Inc., tape-recorded a group of ex- ecutives who were di s cussing the shredding of documents relevant to a race- discrimination lawsuit and using vulgar racial ep i thets while talking about African American employees.

Texaco claimed that the racial remarks caught on the tape were an isolated incident, but some experts claim that racism is widespread in the oil industry. Almost as disturbing as the racial epithets—from a legal and ethical standpoint—are Texaco manag e ment’s com- ments about withholding or shredding documents. The tapes revealed Texaco managers di s cussing how they would purge all accounts and documents pertaining to minority hiring practices. Such destruction of documents has become a hot topic in legal circles.

Texaco settled the race-discrimination lawsuit for $176.1 million (for the six plain- tiffs). 54 In addition, as pressures from outside the firm were increased, Texaco established some ambitious hiring goals for m i norities and women and pledged to increase purchases from minority firms.

Texaco, in the years 1996–1999, made significant progress in hiring more minorities and women, i n creasing the number of African American owned gasoline stations, and increasing the number of female and male managers and executives. The company’s image in the mar- ketplace is still not as bright as before the discrimination settlement, but it is improving. 55 Workforce diversity is a reality that influences every HRM area and issue from strategic planning to recruitment to training to health. There is a steadily growing body of empirical evidence that managing diversity is becoming a necessary part of the job responsibilities of managers. There is no one best way or best formula available with regard to managing the increasing diversity of the workforce. However, there is likely to be increased demand to find fair, ethical, and prompt ways to manage diversity.