Why Diversity Matters, Even for Small Businesses. You May Have Wondered, but Didn t Want to Ask. Diversity and Discrimination Mix-Up

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2 PAGE Why Diversity Matters, Even for Small Businesses You May Have Wondered, but Didn t Want to Ask Diversity and Discrimination Mix-Up A Business Case for Diversity The Impact of Millennials on the Diversity Discussion Diversity and Inclusion Snapshot Exercise Diversity and Inclusion Assessment Diversity Team Activity - Face Value 9 Conclusion 10

3 WHY DIVERSITY MATTERS, EVEN FOR SMALL BUSINESSES We naturally seek out others who are just like us. They are easier for us to predict, understand and get along with. We often (even subconsciously) avoid people who have different ideas and perspectives. This can often create work environments that lack diversity. However, your employees want a diverse and inclusive workplace that allows them to experience a flood of new ideas from people who have a wider breadth of perspectives to learn from Glassdoor.com online 2011 Forbes Insights survey Deloitte 2015 This toolkit has been designed to help you identify areas where you can positively impact diversity and inclusion in your workplace. ULTIMATELY, AMERICA S ANSWER TO THE INTOLERANT MAN IS DIVERSITY ROBERT KENNEDY

4 YOU MAY HAVE WONDERED, BUT DIDN T WANT TO ASK Diversity can be a sensitive topic for many people because it brings up ideas about and experiences with discrimination, bias, sexism and racism, among other things. Diversity should be discussed in the workplace and in order to do so, we all need to become a little more comfortable with the topic. Here are some questions you may have wondered about, but didn t feel comfortable asking: What is diversity? Diversity is the various differences each of us bring to the workplace or customer base. Diversity can refer to differences in race, gender, language, sexual orientation, where we went to school, and even the professions we work in. Managing diversity is the process by which we are educated about those differences to fully leverage the talents and skills of all employees. It is about creating an inclusive environment in which all employees feel valued and can contribute fully. DIMENSIONS THAT IMPACT DIVERSITY Adapted from the Dimensions of Diversity Wheel, developed by Marilyn Loden

5 Why do businesses of all sizes need diversity training? Diversity training is essential because each of us looks at the world through filters that are developed based on our own unique experiences. Diversity training helps us learn about those filters and how they impact business decisions, work styles and personal relationships that ultimately affect the success of an organization. By learning how to work more effectively together within our teams and organizations, we can ensure success in the global marketplace. Isn t diversity just a current business fad, a politically correct thing to do? No, diversity is a business issue. In the global marketplace, corporations compete for top talent, as well as customers. Companies with robust initiatives for managing diversity will be more effective at attracting, developing and retaining a diverse workforce, as well as developing and selling to a diverse customer base. Doesn t diversity work take time and resources from more important work like quality and customer service? In a global marketplace, demand for quality and customer service come from an increasingly diverse customer base. Who better to respond to a diverse customer base than a diverse workforce? A diverse workforce will be able to respond to quality and customer service issues with first-hand knowledge of the communities they serve. Do diversity initiatives include white males? Yes, absolutely. White males are diverse; for example, they have varying levels of education, different religious beliefs, divergent thinking styles, etc. For diversity initiatives to be truly successful, everyone in a company should be included. Successful efforts are based on inclusion, not exclusion. Why do we need to change our work environment? It works fine for me. Each of us is different. It s not enough for the workplace to be fine for one person. It is imperative that the work environment functions well for everyone. By managing diversity, a company can make sure that every employee feels included and respected d i bl f ll ib h f h i i

6 What's really in it for me? By addressing diversity issues and personal biases, managers will improve their relationships with employees, thereby enhancing their success. For individual employees, participating in diversity initiatives improves their communication and teamwork skills, reduces conflict in the workplace and improves their ability to work effectively in the increasingly competitive marketplace. DIVERSITY AND DISCRIMINATION MIX-UP These two terms, although associated, are not the same. The topics of diversity and discrimination are oftentimes blended into the same category. The law forbids discrimination in every aspect of employment. As result of this, businesses generally have strict guidelines in place to ensure that discrimination is prevented. Diversity pertains to the differences among people, and discrimination is inappropriate actions taken as a reaction to differences. Making a distinction between discrimination and diversity allows a shift in focus from preventing discrimination in the workplace, to promoting diversity within a work culture. The bonus in making the discrimination-diversity focus shift is that the actions a work culture takes to promote diversity will naturally result in the deterrence of discrimination. Discrimination is the treatment or consideration of, or making a distinction in favor of or against, a person based on the national origin, color, religion, social class, socioeconomic stratum, sexual orientation, gender, age, disabilities, or other category to which that person belongs to, rather than on individual merit. Diversity is about the differences of individuals representing more than one national origin, color, religion, social class, socioeconomic stratum, sexual orientation, gender, age, disabilities, or other categories.

7 A BUSINESS CASE FOR DIVERSITY There are countless research studies showing that a diverse workforce improves decision making, problem solving, creativity, innovation, and flexibility. Even still, diversity initiatives, particularly in small businesses, often hit the back burner. If you are looking to improve employee retention, engagement and creativity, consider the impact that a lack of diversity in your organization could have on these areas. Additionally, companies that embrace diversity gain higher market share and a competitive edge in accessing new markets. In a 2015 Diversity Matters survey conducted by McKinsey & Company*, the following results were reported: 366 public companies surveyed Companies in the top quartile for racial and ethnic diversity are 35 percent more likely to have financial returns above their respective national industry medians. Companies in the top quartile for gender diversity are 15 percent more likely to have financial returns above their respective national industry medians.

8 If you think that considering diversity in your organization is becoming less important, think again. According to research by Deloitte, millennials, who will make up almost three-quarters of the workforce by 2025, define diversity differently than previous generations. For millennials, a diverse workforce includes individuals with a mix of unique experiences, identities, ideas, and opinions. Prior generations, on the other hand, think of diversity in terms of demographics, equal opportunity, and representation of identifiable demographic characteristics. The next three activities are designed to give you and your employees a better idea of the current state of diversity within your organization, and to provide some ideas for how to positively impact inclusion in the workplace. DIVERSITY AND INCLUSION SNAPSHOT EXERCISE As a business owner, it is one thing to say you promote workplace diversity. It's another to determine how your business s diversity measures up. Here s a simple three-step method for measuring diversity within your business with a quick snapshot of your community, your employees, and your competitors.

9 Ask yourself the following questions: STEP 1 Does your business resemble your community? What demographic data does the U.S. Census Bureau report for your community? This information can be easily obtained by going to the United States Census Bureau web page and entering your business s zip code to retrieve the latest demographic data. Goal: Examine as many of the data points as possible. For example, do not limit your diversity focus to national origin and color. Expand and include relevant sub-categories, such as religion, social class, etc. Now that you are aware of the demographic makeup of your community, compare your workforce to your community data. If you uncover opportunity areas, consider the following to improve your diversity and inclusion snapshot: STEP 2 Where do you go to recruit new team members? What groups are potentially being excluded by your current recruiting process? What could be done to attract those groups? Talk to local organizations, including community agencies, churches, community groups and universities, to determine how best to increase your recruiting pool. Goal: Examine your team members and choose one or two areas you can immediately work on to improve the diversity within your company to match your community. For this step, you may need to do some undercover work to get a clearer picture of your competition. STEP 3 Look at a few of your competitors workforces. How does yours compare? You can try using corporate websites as well as LinkedIn for your research. What does their workforce look like when visiting as a customer? Stop by (or ask a friend to stop by) and report your initial take on their diversity. What, if any, diversity and inclusion indicators are you able to notice just from casually investigating? Goal: Brainstorm what diversity and inclusion practices your competitors may have implemented that your business might benefit from as well.

10 DIVERSITY AND INCLUSION ASSESMENT Being a diverse company does not necessarily mean that you have a workforce that looks different. A diverse work environment is an environment where employees feel like the organization values and appreciates their unique experiences and background. The following assessment tool can be used to assist in calibrating your own and your team s assessment of your workplace diversity and inclusion. 1. Take the assessment below and record your results. 2. Have each member of your team take the assessment and share their results with you. Ask them to share their results anonymously if there are concerns. 3. Take time in your next team meeting to discuss the results and identify those areas that could benefit from diversity and inclusion initiatives. 4. As a team, brainstorm what can be done today to positively impact diversity and inclusion in your organization. Perhaps you do have a diverse team, but you haven t successfully communicated and celebrated that diversity. Think about ways you can improve. Yes No Check the response that is MOST reflective of you and your organization. Does your mission statement include diversity? Do you include diversity as part of your new employee orientation? Has anyone on your team been involved with a small business startup before? Has anyone on your team worked at a non-profit? Has anyone on your team worked for a Fortune 500 corporation? Has anyone on your team grown up in a different state? Has anyone on your team grown up in a different country? I have felt discriminated against based on my gender, race or ethnicity, religion, ability or disability, sexual orientation, or socioeconomic status. Does anyone on your team have different religious beliefs? I have attended a religious or spiritual service that is not of my own religious and spiritual identity. Does anyone on your team place science above religion? Do any members of your team have different political views than you? I feel comfortable talking to others who have different political views than me. I have felt ashamed of myself because of my body, my intellect or education, or my family. Someone in my extended family (grandparents, aunts, uncles, cousins) lives in my house with my family. I have or someone in my family has a physical disability. I have a hidden disability (physical or learning). I have had to check other on forms that ask my race or ethnicity. Do any members of your team speak English as a second, not primary, language?

11 I feel comfortable talking about race and ethnicity with people who are not of my race. I know someone who is lesbian, gay, bisexual or transgender. I feel comfortable talking about lesbian, gay, bisexual or transgender topics. Have any of your employees served in the military? Are any members of your senior leadership team women? Are members of your direct work team 10 years older or younger than you? Add up the total number of questions to which you answered yes. Diversity and Inclusion Assessment Results Wow! You have a diverse company, can I come work for you? You are on the right path. Consider ways that you can amp up your diversity efforts Your company would benefit from identifying ways to create a more diverse and inclusive work environment. 9-0 Your company is opportunity-rich for diversity. Don t hesitate to call us to consider ways to create a more diverse and inclusive work environment. DIVERSITY TEAM ACTIVITY FACE VALUE Materials: A deck of face cards and a large open space Instructions: Tell participants that this is a non-verbal activity. Pass out cards face side down, reminding participants to not look at their cards. When everyone has a card, have the group put their cards on their foreheads (without looking at them) with the value facing out so others can see it. Without using verbal cues, participants should treat each other based on the value of their card. For example, if a person has a high value card, you may want to bow. If a person has a low value card, you might want to snub them. Let the group mingle for three to five minutes. (For a large group, you might to add a few extra minutes.) After a few minutes of quiet mingling, have the participants form groups based on what they think is the value of their card. High cards on one side, low cards on the other, and middle cards in the middle.

12 Once each group is formed, participants may look at their cards. Debrief with the questions below: How did you know if you were a high, low or middle card? How did you treat high cards? Low cards? Middle cards? Who decided which cards are more valuable than others? How about aces? Are they high cards or low cards? How were they treated? How does this activity relate to how we communicate in everyday life? How do we treat people that we do not know how to value? Notes: For smaller groups, you may have to choose the cards, rather than hand out cards at random, to be sure that there is a good mix of high, low and middle cards. Always be sure to include at least one ace. Also remember, there is no right or wrong way to answer. It is important for participants to look at how they actually reacted, rather than at how they think they should have reacted or will react in the future. If someone doesn t want to participate, ask them to observe the group and share their observations during the debrief. Source: Michelle Cummings, M.S. Playing with a Full Deck. United States: Kendall/Hunt Publishing Company, Posted online by Monica Miller CONCLUSION Diversity doesn t have to be overwhelming - no matter the size of your business. Taking a few small steps can get you on the path to a more diverse and inclusive work culture. If you have further questions, please feel free to reach out to our Human Resources team at or humanresources@aplusbenefits.com. The PDF versions documents and forms in the toolkit can be found at: