Diverse backgrounds lead to different perspectives on problems, which in turn opens up numerous approaches to solutions. Companies therefore benefit from diverse teams as they enable better decisions to be made. Investments in diversity are therefore particularly valuable. However, there is still room for improvement in diversity management in German companies. We explain what "diversity management" means and what benefits it offers your company.
Table of contents - What you can expect:
Diversity management goals
Diversity in companies offers these advantages
5 Strategies in diversity management
Diversity management is a specific area of human resources management that aims to actively utilise diversity among employees for the benefit of the company and to achieve corporate goals.
Originally, the main task of diversity management was to prevent discrimination in the application process, particularly on the basis of factors such as physical impairment, ethnicity, gender and age, in order to create equal opportunities.
In recent years, however, this area has evolved. Today, diversity management generally aims to promote equality and diversity in the workplace by valuing and increasing the social, cultural and ethnic diversity of employees. This is achieved through the application of measures and strategies that actively address and enhance this diversity.
The topic has also long since entered the public discourse. Since January 2019, for example, it has been mandatory for job adverts to include people who do not feel they belong to either the male or female gender. When looking for new team members, you should therefore add the "d" for diverse to the classic m/f in your job advertisements. This also corresponds to the General Equal Treatment Act (§ 1 AGG).
Companies that are ethnically diverse and inclusive have a 33 % higher success rate and are 1.7 times more likely to become innovation leaders in their industry. They are also more attractive to top talent. According to a Study by Glassdoor 67 % of jobseekers value diversity in the team.
Diversity management is therefore not just a buzzword in general business jargon, but a key strategic element in HR management. Is your company aware that diversity is now far more than just a competitive advantage? It is more than that: diversity is a necessity! Phenomena such as demographic change, the globalisation of markets and digitalisation mean that the customer base of many companies is becoming increasingly diverse and should therefore be addressed in an equally diverse manner.
In general, diversity management aims to utilise the benefits of different individual competencies, characteristics, skills, attitudes and cultural backgrounds for the success of your company.
Depending on the specific objectives of your company, three different approaches to diversity management can be distinguished:
1️⃣ Discrimination and fairness approach: All employees have the same opportunities and are treated equally.
2️⃣ Access and legitimacy approach: Diversity is utilised in a targeted manner for the economic benefit of the company.
3️⃣ Integrative approach: Combines both approaches and focuses on economic strategies, taking equal opportunities into account. Best suited in the long term to building a corporate culture that promotes diversity.
Your company can not only benefit economically from diversity management. Creating diversity in your company offers many other advantages:
Thanks to different backgrounds, your team is able to identify more potential solutions and master challenges better. This leads to fewer situations that block the organisation.
Different people bring different perspectives to everyday working life. This leads to new ideas and increases the innovative strength of your company. Cultural diversity in particular can be extremely valuable.
Shortage of skilled labour is a problem that is felt everywhere, but if you are open to hiring skilled labour from cultures that have not been considered before, you are at least one step ahead of some of your competitors.
Companies that pursue an open and tolerant strategy and present themselves to the outside world as a diverse organisation tend to receive more applications. This leads to a positive image as an employer and attracts more top talent and high potentials.
Demographic change, globalisation and digitalisation mean that your customers and target groups are also becoming increasingly diverse. In order to continue to fulfil the needs of your customers, it can pay off to be just as diverse internally.
If all employees feel understood and valued within their team, this leads to greater employee satisfaction. This in turn can increase your productivity and thus boost your company's business.
Living diversity can not only increase the satisfaction of your employees, but also their loyalty to your company. In times of a shortage of skilled labour, you can secure talented and well-trained employees for your company. Keyword: Retention management.
Diversity management may be primarily the responsibility of HR, but that does not mean that it can be implemented there alone. Like the topic itself, which is characterised by integration and team spirit, the successful implementation of the diversity approach requires important sparring partners for your HR managers.
The implementation is essentially divided into the following 5 steps:
The management level, in particular the top management of your company, plays a decisive role in whether diversity is actually implemented in the company. Therefore, make sure that the company management is prepared to review the existing corporate culture and adapt it if necessary.
Diversity in a company can only be successful if the process is supported by top management and management principles take cultural diversity into account.
Anchor the new values in clear principles to make them present and measurable. One example of this is the Volkswagen Group, which has set out its commitments to more equal opportunities and diversity within the company in its "TOGETHER Strategy 2025" has anchored.
Before HR managers and company management decide on the implementation of diversity management measures, it is advisable to take a close look at your corporate goals. Which skills are of key importance to your company? How can you grow? What challenges do you face?
If your organisation has a higher than average turnover rate, consider how you can improve the working environment, improve staff retention and attract the right talent. If you're struggling to connect with international customers, you may want to consider your Priorities to better understand these customers.
Is your product range uninspiring? Then multicultural workshops could help to boost your company's innovative strength.
Get down to the details! Once you have identified the benefits you expect from cultural diversity in your company, it is time to draw up a comprehensive catalogue of measures. The measures can either start at a strategic level or be designed directly as offers for your workforce.
The following ideas can promote your company's success in terms of diversity:
Ensure that responsibilities within and outside the HR department are clearly defined! For example, your recruitment department should focus on reviewing the recruitment processes and ensure that job advertisements are formulated free of discrimination.
Language courses or the implementation of measures to promote diversity in management tend to fall within the remit of HR development. On the other hand, creating a position for an equal opportunities officer or adapting the company's own communication strategy are tasks for management.
Did your efforts bear fruit? You can use various key figures to determine this. For example, ask about the satisfaction of your team and customers. Check the staff turnover rate compared to before the measures. See how various offers are accepted by your workforce.
Additional measures that can be implemented as part of diversity management include, for example, the barrier-free design of workplaces - including on the technical side. Here, it is particularly important to focus on software that everyone in the team can use equally well.
From the simple Work time tracking up to the agile project management you can rely on our ZEP software solution, for example.
ZEP offers comprehensive functions to support diversity management through targeted optimisation of working time recording, holiday planning, project controlling and resource planning. These features help to create an inclusive and fair working environment.
| Work time tracking | Through transparent Recording of working hours promotes equal opportunities and flexibility for all employees, especially those with special needs or flexible working time models. |
| Holiday planning | The software enables a fair and comprehensible Absenteeism managementwhich takes into account cultural and personal holidays as well as individual needs. |
| Project controlling | Efficient Project controlling ensures that diversity targets are taken into account in projects and that resources are distributed accordingly in order to optimise the use of different talents. |
| Resource planning | The targeted Resource planning and distribution helps to ensure that teams can be put together in a variety of ways in order to make optimum use of different perspectives and skills. |
Diversity management can fail if it is not sufficiently supported or strategically implemented. A lack of commitment at management level, inadequate training and a lack of clear objectives can lead to initiatives not achieving the desired success.
Diversity management is far more than just a modern buzzword - it is a decisive factor for corporate success in today's dynamic market environment. By specifically promoting diversity and inclusion, companies can not only boost their innovative strength and increase their attractiveness as an employer, but also improve their customer focus and secure their long-term sustainability. However, successful implementation requires management commitment, clear goals and sufficient resources.
When introducing diversity management measures, a strategic approach should therefore be taken that considers both cultural diversity and the economic benefits. Companies that take this approach consistently are not only better equipped to meet the challenges of today, but also benefit from the diverse perspectives and skills of their employees.
One particularly important aspect is the continuous monitoring of the success and adaptation of diversity measures. Only through regular evaluation and feedback can companies ensure that their initiatives actually have the desired effect and, if necessary, be adapted to address new challenges and opportunities.
The implementation of suitable software solutions such as ZEP can support this process by creating a transparent and fair working environment and helping to effectively pursue diversity goals. With a thoughtful and flexible approach, diversity management can become a real competitive advantage that both strengthens the internal culture and promotes external success.
The four dimensions of diversity include demographic, cultural, personal and organisational aspects. Demographic dimensions relate to characteristics such as age, gender and ethnicity. Cultural dimensions relate to values and beliefs, personal dimensions include individual skills and experience, while organisational dimensions relate to differences in roles, tasks and responsibilities within the company.
Gender diversity management focuses on gender equality in the workplace in order to ensure equal opportunities for all genders and avoid discrimination. It includes measures to promote diversity in terms of gender and gender identity, such as the gender-equitable organisation of working conditions and support for career opportunities for all genders.
A lack of commitment at management level and inadequate training can speak against diversity management, leading to a lack of understanding and resistance. In addition, unclear objectives and inadequate provision of resources can impair the effectiveness of the measures and jeopardise their success.
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