It is Not Just About Workforce Diversity, But It is Also Time to Take Action on Board Diversity
November 4, 2021
Aboard of directors lacking diversity in composition and working mindset might have difficulty in creating a cohesive and integrated working environment.
The absence of diversity in the management team
Nowadays, businesses are familiar with the concept of diversity in building company culture. This is one of the HR strategies that contribute to the efficiency of business operations. However, most business leaders seem to only explore the side of workforce diversity while ignoring the group that has a greater impact on the whole company’s operations – the management level.
According to a Mercer survey in 2020, 71% of C-suite level leaders are male, while the number seems to be more balanced among the staff with 53% of them male. This result may be an effect of the tendency to avoid changes and embrace the tradition of numerous businesses. Businesses may fear that changing the existing leadership model and style can disrupt the current process and efficiency. However, this concern goes against the ongoing reality and implements barriers to your business growth.
Why is diversification in the management team necessary?
Firstly, businesses can benefit from the difference in perspectives, experiences, and knowledge brought about by a management team coming from different regions, ages, styles, and economic backgrounds. At the same time, this also makes it easier for the management team to understand many various customer segments compared to a monotonous management style, which is an advantage if the business wants to expand the market.
Secondly, the management team represents the business, which is also the determining factor in a business’s characteristics. The lack of board diversity indirectly affects the ability to retain talents. Employees might feel that they need to have the related style, background, and characteristics as the current managers if they want to be promoted. For this reason, employees might leave if they don’t have a sense of belonging. Conversely, a diverse leadership team will attract and retain diverse employees to join the organization.
Where should we start to implement “diversification” in the management team?
It’s unrealistic to radically overhaul the composition of the board overnight. This process requires businesses to be patient and do everything methodically. First, the diversification of the management level should start with recruitment and promotion. Most current managers will tend to look for people who have similar characteristics to take on important positions. Therefore, the human resources department needs to play a key role in this process to provide fair and objective assessments.
Second, businesses should frequently listen to employees’ feedback and analyze various data to understand which leadership model is being favored in the business. This analysis will help managers know which candidates to look for in the process of creating a diversified team to match the current workforce diversity.
In particular, businesses can look for human resources consulting firms to get advice from experts on building a suitable leadership model. With extensive experience and an unbiased perspective, the consultants will determine the current level of diversity and provide your business with an appropriate direction for workforce diversity. They can also participate in the company recruitment process and help businesses reach more candidates.
Hopefully, the above tips will give you an effective perspective on your management restructuring strategy.