What Does Diversity Really Mean for Modern Business?

Jan 25, 2016 | Blogs

Merriam-Webster defines diversity as “the state of having people who are different races or who have different cultures in a group or organization.” Yet, journalists have suggested we haven’t fully decided, and with a wide-range of corporate diversity reporting styles it is clear many companies have not decided either. An increasing amount of evidence reveals the way in which diversity is thought of within an organization is transforming. This is not only a social issue, but also a business one given corporate diversity can in fact impact business success.

A recent study indicated Millennials believe diversity to mean hiring those with different viewpoints and backgrounds, rather than solely based on race or gender as generations past have. The study also found that millennials frame diversity as a business outcome rather than in terms of compliance and equality.

It isn’t just Millennials who are referring to diversity in diffuse ways. A 2007 survey by the Society for Human Resource Management found that companies and diversity experts are increasingly considering factors from age and sexual preference, to disabilities and weight in defining diversity criteria. Yet, only 30% of human resources professionals said their company had an official definition of diversity.

Millennials see affirmative action as something that should already be imbedded, and therefore expect nuanced levels of diversity within a company in addition to equality in race and gender. These nuances could include distinct professional backgrounds and personalities, cultural differences, or unique experiences.  Johnson & Johnson, listed as a Top 50 Diversity and Inclusion leader, is exemplary of good diversity reporting by choosing to publish comprehensive company diversity data and by clearly outlining what diversity means to them. Diversity is not approached as merely a program, but defined and integrated into their company culture. Having a definition allows them to pave a clear path for improving on diversity goals and targets.

Why is this important? Millennials and top talent will be looking into these added qualities in choosing a workplace, and they are anticipating all of the above. In approaching issues in diversity and inclusion in 2016, companies will need a clear definition and scope of diversity in order to create transparent metrics for progressing in diversity goals. This will be necessary not only meet the expectations of current and future employees, but to remain a viable and competitive business.