High Time to Attack Company Monocultures - How diversity and inclusion can be a win-win situation for companies and their employees

High time to attack company monocultures

How diversity and inclusion can be a win-win situation for companies and their employees

The pursuit of diversity by national and international companies is not an altruistic adaptation to the zeitgeist, but an economic success factor. Diverse teams are said to be up to 25 percent more profitable than single-gender ones, according to a 2020 McKinsey survey of more than 1,000 companies in 15 countries. Diversity therefore makes companies more attractive to employees – because it enriches the company, both culturally and ultimately materially.

Those businesses which want to become more successful have far greater chances to do so with diversity in their teams – and this is not only a question of gender, but also of nationality, social origin and age. And this is especially important when it comes to retaining talent. For example, a survey of 11,000 people by the job portal Stepstone in 2021 showed that 77% would be more likely to apply to a company that stands for diversity. 78% explicitly want to work in an environment characterised by openness and diversity. Anyone who ignores the results of this survey in view of the current shortage of skilled workers is acting with serious negligence regarding the future success of their company.

The topic of diversity is about nothing more and nothing less than an attack on monoculture in companies. This is not least a generational issue. More and more 'boomers' are retiring – voluntarily and involuntarily. People over 50 are facing an icy wind on the labour market. Their chances of finding a job are rather modest – recruiters, it seems, would prefer to hire people who have two degrees, ten years of professional experience, have already worked abroad and are 30 years old. An impossibility. Moreover, it is madness to dispense with the wealth of knowledge and experience of the over 50′s generation.

There are a few simple principles on how companies can promote an inclusive culture and diversity in their workplace:

• Address the issue consistently: Culture and diversity are first and foremost a matter for the boss.
• Recognise the situation as it is: Companies should know how they are positioned in terms of equality, diversity and inclusion in the workplace. An analysis of HR data can tell us a lot about diversity among employees and especially in the leadership team - which should lead by example.
• Develop and promote a culture of freedom of expression: It is important that employees are encouraged to openly express their thoughts and concerns to move the organisation forward. The management team and employees should also be heard on how they perceive the company culture in their daily lives. Where are there blind spots? Where does unconscious bias hold back positive change?
• Make diversity management part of the corporate DNA: Based on this preliminary work, we recommend developing a mission statement on equality, diversity and inclusion in the workplace and deriving concrete goals. Afterwards – and more important than the written documentation – Is to review the successes, talk about and celebrate them, and keep engaging the organisation on how everyone can pull together to achieve the goals.
• Set measurable goals and follow them up: If you want to go one step further and see successes quickly, make a public commitment to recruit and promote a diverse workforce and link these goals to the annual management bonus. In our experience, one key is not only to hire or promote people who fit into the existing – often less diverse – corporate culture, but also to consciously hire those who are 'different' and can thus enrich it.

One thing is certain: diversity and inclusion require a basic understanding that communication, cooperation and, ultimately, the corporate culture change as a result of diversity. Diversity is above all the departure for new horizons and thus the conscious letting go of old habits. Therein lies the great opportunity to gain new perspectives and to give space to innovative ideas. At AvS, we use our "Management Potential Analysis (MPA)" tool for this purpose – not only looking back but above all evaluating future development potential, and the ability of managers and teams to leverage diversity and inclusion. We support organisations in taking stock, in a trusting dialogue with employees, of which competences are available and whether – in contrast to a monoculture – a supportive 'mixed culture' has already been achieved at levels one and two. From this, we derive recommendations for action on how the company can tap into the economic and human-added value of diversity in the short, medium and long term.

Finally, here are four tips for managers:

1. Be a role model yourself: Managers should approach their employees to find out how they perceive diversity in practice. Talk about your observations and ask your employees about their perceptions. In doing so, you not only show empathy, but also learn a lot about the overall mood.
2. Be attentive in conversations: Listen carefully to what your interlocutor is talking about and in what way. Are these incontrovertible 'truths'? Or are distinctions being made and the diversity of people being emphasised? What does this mean for the desired corporate culture in which diversity is to be lived?
3. Be approachable: Especially when conflicts arise, everyone in the team should know that you are available and committed to finding a good solution. If team members are sure that you deal openly with disadvantages or grievances, it is possible for you to declare war on injustice or on the 'monoculture' in the company.
4. Communicate the corporate culture: If diversity is to be lived successfully in the company, it is crucial to talk about it again and again. Above all, you as a manager have the power to actively address this issue. Be it at lunch, in conversations with employees or in town halls in front of the entire staff. It is and remains your responsibility to ensure that diversity and inclusion can have a positive impact.

Eva Schulz-Kamm is part of the consultant team of AvS - International Trusted Advisors. She advises family businesses as well as decision-makers from associations and politics, on leadership and governance issues – in particular on digital transformation, change management and sustainability / ESG. ?

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