Human Assets

The researchers proposed that ethnic minorities would place particular value on their organisation's effort to establish a climate that minimised discrimination compared to White (and particularly male) employees who are less likely to experience discrimination.  They also suggested that diversity climate impacts the effectiveness of an organisation, e.g. service quality and productivity, by affecting how employees feel about their job and about the organisation as a whole (organisational commitment).  In short, an organisation with a low diversity climate would lead to ethnic minorities feeling less valued, having less organisational commitment and in turn being more likely to leave the company compared to their White counterparts.

To verify these ideas, they conducted a study based on over 6000 managerial employees in a large, US retail organisation.  Managers were categorised into three groups: 'Whites', 'Blacks' and 'Hispanics'.  Findings confirmed that Black employees’ perceptions of diversity climate were more associated with turnover intentions compared to both White and Hispanic employees.  Interestingly, however, there was a consistent pattern across all racial groups - the higher the diversity climate perceptions, the more positive employees’ attitudes were towards their job and the organisation, and the more likely employees wanted to stay.  The researchers conclude that diversity management is relevant to all employees, not just Black and ethnic minorities, and emphasise how strongly it can influence employee retention and have a direct impact on the bottom line. 

In response to the title of this article, it appears critical that organisations learn how to manage diversity effectively as the result can have real bottom-line financial implications by helping to reduce avoidable turnover costs.

How Can Human Assets Help?

Engaging all of your talented people and making them want to stay with you and give their best is perhaps the greatest challenge facing any organisation today.  Organisations know the substantial costs of staff turnover, yet few actively and effectively address it.  At Human Assets, we have an expert understanding of how organisations can successfully manage diversity.  Through this, you will be able to keep your talented people motivated, performing to the peak of their abilities, and wanting to stay with you.