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. Investments in diversity are therefore particularly valuable. In German companies, however, there is still room for improvement in diversity management. We explain what “diversity management” means and what benefits it offers your company.
What does diversity management mean?
Diversity management is a specific area in human resources that aims to actively use diversity among employees to the advantage of the company and to achieve corporate goals.
Originally, the main task of diversity management was to prevent discrimination in the application process, in particular due to 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 by applying measures and strategies that actively address this diversity and thus increase it.
The topic has also long since been incorporated into public discourse. Since January 2019, for example, it has been mandatory that job advertisements must include people who do not feel that 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 is also equivalent to General Equal Treatment Act (§ 1 AGG).
Why is diversity management important?
Companies that are ethnically diverse and inclusive have a 33% higher success rate and are 1.7 times more likely to become an innovation leader in their sector. They are also more attractive for top talent. According to one Study by Glassdoor 67% of job seekers value diversity within the team.
Diversity management is therefore not just a buzzword in general business jargon, but a key strategic element in personnel management. Is your company aware that diversity now goes far beyond a mere competitive advantage? In fact, it is more than that: Diversity is a necessity! Phenomena such as demographic change, the globalization of markets and digitalization mean that the customer base of many companies is also becoming increasingly complex and should therefore be addressed in just as complex ways.
ℹ️
No one may be disadvantaged or favored because of their gender, origin, race, language, homeland and origin, beliefs, religious or political views. No one should be disadvantaged because of their disability.
What are the goals of diversity management?
In general, diversity management aims to utilize various individual competencies, characteristics, abilities, attitudes and cultural backgrounds for your company's success.
Depending on the specific goals of your company, there are three different approaches to diversity management:
Diversity Management Approaches
1 ️ Discrimination and Fairness Approach: All employees have equal opportunities and are treated equally.
2 ️ Access and legitimacy approach: Diversity is used effectively for the economic advantage of the company.
3 ️ Integrative approach: Combines both approaches and focuses on economic strategies, while respecting equal opportunities. Best suited in the long term to build a corporate culture that promotes diversity.
Opportunities & benefits of diversity management
Your company can not only benefit economically from diversity management. Creating diversity in your company offers many other benefits:
Increasing resilience
Through different backgrounds, your team is able to identify more potential solutions and overcome challenges better. This results in fewer situations that block the organization.
Fostering innovation
Different people bring different perspectives to everyday working life. This leads to new ideas and increases the innovative power of your company. Cultural diversity in particular can be extremely valuable.
future viability
Shortage of skilled workers It's a noticeable problem for everyone, but if you're open to hiring professionals from previously ignored cultures, you're at least one step ahead of some of your competitors.
Increasing employer attractiveness
Companies that pursue an open and tolerant strategy and present themselves to the outside world as a diverse organization tend to receive more applications. This leads to a positive image as an employer and attracts more top talent and high potentials.
Improve customer focus
Demographic change, globalization and digitalization mean that your customers and target groups are also becoming increasingly diverse. In order to continue to meet the needs of your customers, it can pay off to set yourself up just as diverse internally.
Increasing employee satisfaction
When all employees within their team feel understood and valued, this leads to higher employee satisfaction. In turn, this can increase your productivity and thus move your company forward economically.
Better employee retention
In addition to the satisfaction of your employees, lived diversity can also increase their loyalty to your company. In times of a shortage of skilled workers, you can secure talented and well-trained employees for your company. Keyword: Retention Management.
Implementing diversity management successfully — 5 strategies
Diversity management may be primarily the responsibility of human resources, but that in no way means that it can be implemented there alone. Like the topic itself, which is characterized by integration and team spirit, the successful implementation of the diversity approach requires important sparring partners for your HR managers.
Implementation is essentially divided into following 5 steps:
Step 1: ensure operational readiness 🔧
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, ensure that company management is prepared to review and, if necessary, adapt the existing corporate culture.
Diversity in the company can only be successful if the process is supported by the highest level of management and leadership 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 is meeting its commitments to greater equal opportunities and diversity within the company in its “TOGETHER Strategy 2025” anchored.
Step 2: Set priorities & goals 🎯
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 central to your company? How can you grow? What are the challenges?
If the turnover rate in your company is above average, you should think about how you can improve the work environment and employee retention and attract the right talent. If you're having trouble connecting with international customers, consider your priorities focus on understanding these customers better.
Is your product range uninspiring? Multicultural workshops could then help drive your company's innovative strength forward.
Step 3: Plan measures 📅
Get to the details! After you have determined what benefits you expect from cultural diversity in your company, it is time to create a comprehensive catalog 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:
Step 4: Distribute roles 👥
Make sure that responsibilities within and outside the HR department are clearly defined! For example, your recruiting should keep an eye on reviewing hiring processes and ensure that job advertisements are formulated free from discrimination.
Language courses or the implementation of measures to promote diversity in management are more the responsibility of personnel development. On the other hand, creating a position for an equal opportunities officer or adapting the company's own communication strategy are tasks of management.
Step 5: Measure success 📊
Has your efforts borne fruit? You can use various key figures to determine this. For example, ask about the satisfaction of your team and customers. Check the turnover rate compared to before taking action. See how various offers are being accepted by your workforce.
Additional other measures that can be implemented as part of diversity management include, for example, the barrier-free design of workplaces — including from the technical side. The main thing here is to rely on software that everyone in the team can use equally well.
From the simple Working time recording up to agile project management For example, you can rely on our software solution ZEP.
Software support in diversity management: These are the benefits of ZEP!
ZEP offers comprehensive functions to support diversity management through targeted optimization of working time recording, vacation planning, project controlling and resource planning. These features help create an inclusive and equitable working environment.
Working time recordingThrough transparent Recording of working hours equal opportunities and flexibility are promoted for all employees, in particular for those with special needs or flexible working time models.Vacation planningThe software enables a fair and comprehensible absenteeism management, which takes cultural and personal holidays as well as individual needs into account.Project controllingEfficient Project controlling ensures that diversity goals are taken into account in projects and that resources are distributed accordingly in order to make optimal use of different talents.resource planningThe targeted resource planning and distribution helps teams to be put together in a variety of ways in order to make optimal use of different perspectives and skills.
How can diversity management fail?
Diversity management can fail if it is not adequately supported or implemented strategically. A lack of commitment at management level, inadequate training, and a lack of clear goals can mean that initiatives do not produce the desired results.
conclusion
Diversity management is much more than 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 increase their innovative strength and increase their attractiveness as an employer, but also improve their customer orientation and ensure their long-term viability. However, successful implementation requires management commitment, clear goals and sufficient resources.
When introducing diversity management measures, a strategic approach should therefore be taken that takes into account both cultural diversity and economic benefits. Companies that consistently follow this path are not only better equipped to meet today's challenges, but also benefit from the diverse perspectives and skills of their employees.
A particularly important aspect is the continuous monitoring of success and adjustment of diversity measures. Only through regular evaluation and feedback can companies ensure that their initiatives actually have the desired effect and are adjusted if necessary 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 well-thought-out and flexible approach, diversity management can become a real competitive advantage that both strengthens internal culture and promotes external success.
