2.0 Demographic Diversity
Learning Objectives
- Explain the benefits of managing diversity effectively.
- Explain the challenges of diversity management.
- Describe the unique environment facing employees with specific traits such as gender, race, religion, physical disabilities, age, and sexual orientation.
Diversity refers to the ways in which people are similar or different from each other. It may be defined by any characteristic that varies within a particular work unit, such as gender, race, age, education, tenure, or functional background (such as being a golf professional or course superintendent). Even though diversity may occur with respect to any characteristic, our focus will be on diversity with respect to demographic, relatively stable, and visible characteristics: specifically, gender, race, age, religion, physical abilities, and sexual orientation. Understanding how these characteristics shape organizational behaviour is important. While many organizations publicly rave about the benefits of diversity, many find it challenging to manage diversity effectively.
Benefits of Diversity
What is the business case for diversity? Having a diverse workforce and managing it effectively has the potential to bring about a number of benefits to organizations.
Higher Creativity in Decision Making
A benefit of having a diverse workforce is the ability to make better decisions. In a diverse work team, people will have different opinions and perspectives. In these teams, individuals are more likely to consider more alternatives and think outside the box when making decisions. When thinking about a problem, team members may identify novel solutions. “Diverse groups outperformed more homogeneous groups not because of an influx of new ideas, but because diversity triggered more careful information processing that is absent in homogeneous groups” (Phillips et al, 2010).
Better Understanding and Service of Customers
A company with a diverse workforce may create products or services that appeal to a broader customer base. A company with a diverse workforce may understand the needs of particular groups of customers better, and customers may feel more at ease when they are dealing with a company that understands their needs. The functional areas of the golf and club industry, such as Turf, Golf Services and Food/Beverage, work independently; however, they provide a positive customer/member experience.
More Satisfied Workforce
When employees feel that they are fairly treated, they tend to be more satisfied. On the other hand, when employees perceive that they are being discriminated against, they tend to be less attached to the company, less satisfied with their jobs, and experience more stress at work (Sanchez & Brock, 1996). Organizations where employees are satisfied often have lower turnover.
Higher Profitability
Companies that do a better job of managing a diverse workforce are often rewarded with higher profitability, indicating that CFO’s use this information to judge how well a company is being managed.
Lower Litigation Expenses
Companies doing a particularly bad job in diversity management face costly litigation. When an employee or a group of employees feel that the company is violating labour laws or is discriminating against them, they may file a complaint.
Higher Company Performance
As a result of all these potential benefits, companies that manage diversity more effectively tend to outperform others. Research shows that in companies pursuing a growth strategy, there was a positive relationship between racial diversity of the company and firm performance (Richard, 2000). A great reference is Canada’s Top 100 Companies to work for, based on employee feedback.
Challenges of Diversity
If managing diversity effectively has the potential to increase company performance, increase creativity, and create a more satisfied workforce, why aren’t all companies doing a better job of encouraging diversity? Despite all the potential advantages, there are also a number of challenges associated with increased levels of diversity in the workforce.
Similarity-Attraction Phenomenon
One of the commonly observed phenomena in human interactions is the tendency for individuals to be attracted to similar individuals (Riordan & Shore, 1997). Research shows that individuals communicate less frequently with those who are perceived as different from themselves (Chatman et al., 1998). They are also more likely to experience emotional conflict with people who differ with respect to race, age, and gender (Jehn et al., 1999; Pelled et al., 1999). Individuals who are different from their team members are more likely to report perceptions of unfairness and feel that their contributions are ignored (Price et al., 2006).
The similarity-attraction phenomenon may explain some of the potentially unfair treatment based on demographic traits. If a hiring manager chooses someone who is racially similar over a more qualified candidate from a different race, the decision will be ineffective and unfair. In other words, similarity-attraction may prevent some highly qualified women, minorities, or persons with disabilities from being hired. Of course, the same tendency may prevent highly qualified Caucasian and male candidates from being hired as well, but given that Caucasian males are more likely to hold powerful management positions in today’s organizations, similarity-attraction may affect women and minorities to a greater extent. Even when candidates from minority or underrepresented groups are hired, they may receive different treatment within the organization. For example, research shows that one way in which employees may get ahead within organizations is by being mentored by a knowledgeable and powerful mentor. Yet, when the company does not have a formal mentoring program in which people are assigned a specific mentor, people are more likely to develop a mentoring relationship with someone who is similar to them in demographic traits (Dreher & Cox, 1996). This means that those who are not selected as protégés will not be able to benefit from the support and advice that would further their careers. Similarity-attraction may even affect the treatment people receive daily. If the company CEO constantly invites a male employee to play golf with him while a female employee never receives the invitation, the male employee may have a serious advantage when important decisions are made.
Why are we more attracted to those who share our demographic attributes? Demographic traits are part of what makes up surface-level diversity. Surface-level diversity includes traits that are highly visible to us and those around us, such as race, gender, and age. Researchers believe that people pay attention to surface diversity because they are assumed to be related to deep-level diversity, which includes values, beliefs, and attitudes. We want to interact with those who share our values and attitudes, but when we meet people for the first time, we have no way of knowing whether they share similar values. As a result, we tend to use surface-level diversity to make judgments about deep-level diversity. Research shows that surface-level traits affect our interactions with other people early in our acquaintance with them, but as we get to know people, the influence of surface-level traits is replaced by deep-level traits such as similarity in values and attitudes (Harrison et al., 2002). Age, race, and gender dissimilarity are also stronger predictors of employee turnover during the first few weeks or months within a company. It seems that people who are different from others may feel isolated during their early tenure when they are dissimilar to the rest of the team, but these effects tend to disappear as people stay longer and get to know other employees.
As you may see, while similarity-attraction may put some employees at a disadvantage, it is a tendency that can be managed by organizations. By paying attention to employees early in their tenure, having formal mentoring programs in which people are assigned mentors, and training managers to be aware of the similarity-attraction tendency, organizations can go a long way in dealing with potential diversity challenges.
Faultlines
A faultline is an attribute along which a group is split into subgroups. For example, in a group with three female and three male members, gender may act as a faultline because the female members may see themselves as separate from the male members. Now imagine that the female members of the same team are all over 50 years old, and the male members are all younger than 25. In this case, age and gender combine to further divide the group into two subgroups. Teams that are divided by faultlines experience a number of difficulties. For example, members of the different subgroups may avoid communicating with each other, reducing the overall cohesiveness of the team. Research shows that these types of teams make less effective decisions and are less creative (Pearsall et al., 2008; Sawyer et al., 2006). Faultlines are more likely to emerge in diverse teams, but not all diverse teams have faultlines. Going back to our example, if the team has three male and three female members, but if two of the female members are older and one of the male members is also older, then the composition of the team will have much different effects on the team’s processes. In this case, age could be a bridging characteristic that brings together people divided across gender.
Research shows that even groups that have strong faultlines can perform well if they establish certain norms. When members of subgroups debate the decision topic among themselves before having a general group discussion, there seems to be less communication during the meeting on the pros and cons of different alternatives. Having a norm stating that members should not discuss the issue under consideration before the actual meeting may be useful in increasing decision effectiveness (Sawyer et al., 2006).
Stereotypes
An important challenge of managing a diverse workforce is the possibility that stereotypes about different groups could lead to unfair decision making. Stereotypes are generalizations about a particular group of people. The assumption that women are more relationship-oriented, while men are more assertive, is an example of a stereotype. The problem with stereotypes is that people often use them to make decisions about a particular individual without actually verifying whether the assumption holds for the person in question. As a result, stereotypes often lead to unfair and inaccurate decision making. For example, a hiring manager holding the stereotype mentioned above may prefer a male candidate for a management position over a well-qualified female candidate. The assumption would be that management positions require assertiveness, and the male candidate would be more assertive than the female candidate. Being aware of these stereotypes is the first step to preventing them from affecting decision making.
Race Diversity in the Workplace
Diversity in the workplace refers to the presence of employees from a wide range of backgrounds, races, ethnicities, cultures, ages, genders, abilities, religions, and other characteristics within an organization (Scott, n.d.).Workplace diversity creates a dynamic and inclusive environment. In addition, promoting workplace diversity creates a space where everyone feels valued and respected and can contribute to the organization’s success. It’s important for HR professionals to understand the different types of diversity in the workplace, as some of the characteristics, like race, gender, and religion, are protected by law. Recognizing this helps ensure compliance with anti-discrimination regulations and fosters an inclusive and respectful work environment.
Age Diversity in the Workplace
The workforce is rapidly aging. According to the International Labour Organization (ILO), out of the world’s working population, the largest group is those between 40 and 44 years old. In contrast, the largest segment in 1980 was the 20- to 24-year-old group (International Labour Organization, 2005). In other words, age diversity at work will grow in the future.
What happens to work performance as employees get older? Research shows that age is correlated with a number of positive workplace behaviours, including higher levels of citizenship behaviours such as volunteering, higher compliance with safety rules, lower work injuries, lower counterproductive behaviours, and lower rates of tardiness or absenteeism (Ng & Feldman, 2008). As people get older, they are also less likely to want to quit their job when they are dissatisfied at work (Hellman, 1997).
Despite their positive workplace behaviours, employees who are older often have to deal with age-related stereotypes at work. For example, a review of a large number of studies showed that those between 17 and 29 years of age tend to rate older employees more negatively, while younger employees were viewed as more qualified and having higher potential (Finkelstein, Burke, & Raju, 1995). However, these stereotypes have been largely refuted by research. Another review showed that stereotypes about older employees—they perform on a lower level, they are less able to handle stress, or their performance declines with age—are simply inaccurate (Posthuma & Campion, 2009). The problem with these stereotypes is that they may discourage older workers from remaining in the workforce or may act as a barrier to their being hired in the first place.
What are the challenges of managing age diversity beyond the management of stereotypes? Age diversity within a team can actually lead to higher team performance. In a simulation, teams with higher age diversity were able to think of different possibilities and diverse actions, leading to higher performance for the teams (Kilduff et al., 2000). At the same time, managing a team with age diversity may be challenging because different age groups seem to have different opinions about what is fair treatment, leading to different perceptions of organizational justice (Colquitt, Noe, & Jackson, 2002). Age diversity also means that the workforce will consist of employees from different generations. Some organizations are noticing a generation gap and noting implications for the management of employees. For example, in the golf and club industry, one of the biggest challenges from a management perspective is the age gap of our workforce. We hire students as young as 15 and also employ people well into retirement age. Managing age diversity is challenging due to the motivating factors of the workforce. Someone who is 15 years old
Employees with Disabilities in the Workplace
Employees with a wide range of physical and mental disabilities are part of the workforce. Particularly, employees suffering from illnesses that last for a long time and require ongoing care seem to be at a disadvantage, because they are more likely to be stereotyped, locked into dead-end jobs, and employed in jobs that require substantially lower skills and qualifications than they possess. They are also more likely to quit their jobs (Beatty & Joffe, 2006).
What can organizations do to create a better work environment for employees with disabilities? One legal requirement is that, when an employee brings up a disability, the organization should consider reasonable accommodations. This may include modifying the employee’s schedule and reassigning some nonessential job functions. Organizations that offer flexible work hours may also make it easier for employees with disabilities to be more effective. Finally, supportive relationships with others seem to be the key to making these employees feel at home. Particularly, having an understanding boss and an effective relationship with supervisors are important for employees with disabilities. Because the visible differences between individuals may act as an initial barrier against developing rapport, employees with disabilities and their managers may benefit from being proactive in relationship development (Colella & Varma, 2001).
Sexual Orientation Diversity in the Workplace
Lesbian, gay, bisexual, transgender, queer, and other sexual and gender diverse (2SLGBTQ+) employees continue to face unique challenges and barriers in the workplace. These may include discrimination, harassment, underrepresentation in leadership roles, and fear of disclosing their identities due to potential negative repercussions. In Ontario, the Ontario Human Rights Code explicitly prohibits discrimination based on sexual orientation, gender identity, and gender expression in employment, housing, and services (Ontario Human Rights Commission [OHRC], n.d.).
One of the most significant issues for 2SLGBTQ+ individuals in the workplace is the fear associated with disclosing their identity. Studies indicate that a substantial portion of 2SLGBTQ+ employees—especially transgender individuals—choose not to come out at work due to concerns about negative treatment (Catalyst, 2023). Research suggests that the impact on workplace outcomes is less about disclosure itself and more about the fear of disclosure. Employees who are concerned about being outed or judged for their identity report lower job satisfaction, decreased organizational commitment, and higher turnover intentions (Ragins et al., 2007).
To support inclusion, organizations can implement clear, enforceable policies that prohibit discrimination and harassment based on sexual orientation, gender identity, and gender expression. These policies should be accompanied by employee training, inclusive leadership development, and the creation of Employee Resource Groups (ERGs) or affinity networks for 2SLGBTQ+ staff. Moreover, extending health and family-related benefits to same-gender partners and recognizing diverse family structures signals respect and equity.
OB Toolbox: I think I am being asked illegal interview questions. What can I do?
In the United States, demographic characteristics such as race, gender, national origin, age, and disability status are protected by law. Yet according to a survey of 4,000 job seekers, about one-third of job applicants have been asked illegal interview questions. How can you answer such questions?
Here are some options.
- Refuse to answer. You may point out that the question is illegal and refuse to answer. Of course, this may cost you the job offer, because you are likely to seem confrontational and aggressive.
- Answer shortly. Instead of giving a full answer to a question such as “Are you married?” you could answer the question briefly and change the subject. In many cases, the interviewer may be trying to initiate small talk and may be unaware that the question is potentially illegal.
- Answer the intent. Sometimes, the illegal question hides a legitimate concern. When you are being asked where you are from, the potential employer might be concerned that you do not have a work permit. Addressing the issue in your answer may be better than answering the question you are being asked.
- Walk away from the interview. If you feel that the intent of the question is discriminatory, and if you feel that you would rather not work at a company that would ask such questions, you can always walk away from the interview. If you feel that you are being discriminated against, you may also want to talk to a lawyer later on.
(Cottle, 1999; Thomas, 1999).
Suggestions for Managing Demographic Diversity
What can organizations do to manage diversity more effectively? In this section, we review research findings and the best practices from different companies to create a list of suggestions for organizations.
Build a Culture of Respecting Diversity
In the most successful companies, diversity management is not the responsibility of the human resource department. Starting from top management and including the lowest levels in the hierarchy, each person understands the importance of respecting others. If this respect is not part of an organization’s culture, no amount of diversity training or other programs is likely to be effective. In fact, in the most successful companies, diversity is viewed as everyone’s responsibility.
Make Managers Accountable for Diversity
People are more likely to pay attention to aspects of performance that are measured. In successful companies, diversity metrics are carefully tracked. When managers are evaluated and rewarded based on how effectively they are in diversity management, they are more likely to show commitment to diversity, which in turn affects the diversity climate in the rest of the organization. In the golf and club industry ~ Diversity, Equity & Inclusion are at the forefront of training at all levels of the organization.
Diversity Training Programs
Many companies provide employees and managers with training programs relating to diversity. However, not all diversity programs are equally successful. You may expect that more successful programs are those that occur in companies where a culture of diversity exists. A study of over 700 companies found that programs with a higher perceived success rate were those that occurred in companies where top management believed in the importance of diversity, where there were explicit rewards for increasing diversity of the company, and where managers were required to attend the diversity training programs (Rynes & Rosen, 1995).
Review Recruitment Practices
Companies may want to increase diversity by targeting a pool that is more diverse. For example, some golf courses sell memberships to minority groups that belong to associations that work to arrange group discounts for memberships. When recruiting staff, it would be an advantage for a new hire to be bilingual, having the ability to speak the same language as the members
Affirmative Action Programs
In Canada, affirmative action, also known as employment equity, is legally permitted under Section 15(2) of the Canadian Charter of Rights and Freedoms. It aims to address historical disadvantages faced by specific groups and ensure equal opportunities in employment, education, and other sectors. This section allows for affirmative action programs that are designed to ameliorate the conditions of disadvantaged individuals or groups, including those disadvantaged due to race, national or ethnic origin, colour, religion, sex, age, or mental or physical disability (Department of Justice Canada, 2021).
It is plausible that people who are against affirmative action programs may have unverified assumptions about the type of affirmative action program the company is using. Informing employees about the specifics of how affirmative action is being used may be a good way of dealing with any negative attitudes. In fact, a review of the past literature revealed that when specifics of affirmative action are not clearly defined, observers seem to draw their own conclusions about the particulars of the programs (Harrison et al., 2006).
In addition to employee reactions to affirmative action, there is some research indicating that affirmative action programs may lead to stigmatization of the perceived beneficiaries. For example, in companies using affirmative action, coworkers of new hires may make the assumption that the new hire was chosen due to gender or race as opposed to having the necessary qualifications. These effects may even occur in the new hires themselves, who may have doubts about the fact that they were chosen because they were the best candidate for the position. Research also shows that giving coworkers information about the qualifications and performance of the new hire eliminates these potentially negative effects of affirmative action programs (Heilman et al., 1993; Heilman, Rivero, & Brett, 1991; Heilman, Simon, & Repper, 1987; Kravitz, 2008).
Toolbox: Dealing with Being Different
At any time in your career, you may find yourself in a situation in which you are different from those around you. Maybe you are the only male in an organization where most of your colleagues and managers are women. Maybe you are older than all your colleagues. How do you deal with the challenges of being different?
- Invest in building effective relationships. Early in a relationship, people are more attracted to those who are demographically similar to them. This means that your colleagues or manager may never get to find out how smart, fun, or hardworking you are if you have limited interactions with them. Create opportunities to talk to them. Be sure to point out areas of commonality.
- Choose your mentor carefully. Mentors may help you make sense of the organization’s culture, give you career-related advice, and help you feel like you belong. That said, how powerful and knowledgeable your mentor is also matters. You may be more attracted to someone at your same level and who is similar to you, but you may have more to learn from someone who is more experienced, knowledgeable, and powerful than you are.
- Investigate company resources. Many companies offer networking opportunities and interest groups for women, ethnic minorities, and employees with disabilities, among others. Check out what resources are available through your company.
- Know your rights. You should know that harassment based on protected characteristics such as gender, race, age, or disability, as well as discrimination based on these traits, is illegal in the United States. If you face harassment or discrimination, you may want to notify your manager or your company’s HR department.
Exercises
- What does it mean for a company to manage diversity effectively? How would you know if a company is doing a good job of managing diversity?
- What are the benefits of effective diversity management?
- How can organizations deal with the “similarity-attraction” phenomenon? Left unchecked, what problems can this tendency cause?
- What is the earnings gap? Who does it affect? What are the reasons behind the earnings gap?
- Do you think that laws and regulations are successful in eliminating discrimination in the workplace? Why or why not?
“2.2: Demographic Diversity” from Organizational Behavior by LibreTexts is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 International License, except where otherwise noted.
