SARAVANAN M P, Director - People, Communications & CSR at KONE Elevators India Pvt Ltd.
In today’s dynamic business landscape, diversity and inclusion have become more than buzzwords. They represent a significant shift in the ways organisations are approaching the workforce. Promoting diversity and inclusivity not only gives employees a sense of belonging but also propels innovation, enhances productivity, and contributes to overall organisational success.
In a bid to foster this equitable engagement at the workplace, the human resources (HR) department has a critical role to play. They are expected to work in this direction to ensure that diversity and inclusion are reflected in all aspects of the organisation. This can be effectively done by employing the Equal Employment Opportunity (EEO) Policy, facilitating DE&I training, establishing employee resource groups (ERG), and bridging pay gaps.
Implementing the Equal Employment Opportunity (EEO) policy
The meaning of Equal Employment Opportunity (EEO) means that all employees will experience fairness, impartiality, and equal access to the career opportunities that an organisation provides. And the company that promotes an equal employment policy ensures that the workplace is free from all forms of discrimination. The HR department holds the primary responsibility for implementing the EEO policy and ensuring that it is followed in their hiring practices.
This enactment ensures that there is no discrimination based on colour, caste, religion, age, nationality, disability, and more. HR also makes sure that the company adheres to this policy, enabling fairness in recruiting, promoting, and other employee-related practices. In a bid to conduct this efficiently, a data-driven approach can be utilised so that the organisation can seek out candidates from a variety of backgrounds.
Providing DE&I training
Diversity and inclusion go beyond visible differences as they encompass variable backgrounds, experiences, perspectives, and identities. Merely implementing DE&I practices is not enough; they must be embraced and also fostered well in the work culture by the HR department. The policies they implement must have mandatory training for diversity, equity, and inclusion. Inducing this training programme is a significant way to address biases and prejudices at the workplace.
The training needs to be customised according to the requirements, values, and goals of the organisation. By providing information and tools to employees, HR can foster an inclusive environment where employees from all backgrounds work together. Moreover, the role of HR here is also to measure the impact of this programme through pre-and post-training assessments that would provide a clear picture of the change in attitudes and behaviours.
Establishing employment resource groups (ERG)
An ERG is an internal community of employees who share common identities and interests. According to a report by McKinsey, 90% of Fortune 500 companies have employee resource groups (ERG). The report also states that having an effective ERG is paramount for fostering an inclusive environment at work, as it provides the internal support that an employee is actually seeking. HR can establish these employee-led ERGs, which will provide a platform for the employees to connect, support, and advocate for one another.
The HR policies must encourage the establishment of different ERGs that are able to represent the issues that are specific to a certain underrepresented group. This will give employees a sense of belonging and foster a diverse and inclusive work environment. The HR department can further analyse the participation of employees and the impact of ERG on them to determine its overall effectiveness.
Bridging pay gaps
Research released by Harvard Business Review states that a gender pay gap of 11% still exists in terms of take-home pay in organizations. This lacuna is in dire need of being bridged so that diversity and inclusivity are promoted. Here, HR is in the best possible position to instil certain policies that would close this pay gap. Primarily, HR can conduct regular audits to identify any gender or ethnicity based pay gap.
There should be transparent salary structures and guidelines that determine the compensation for a certain role. It will help reduce any disparity among the employees and foster a sense of trust. Moreover, as a good practice, HR must refrain from asking potential candidates to reveal their past salaries to foster a fair talent acquisition process.
To summarise, diversity, equity, and inclusion (DE&I) practices have become paramount for organisations as they also foster a sense of belonging among employees, making them feel more connected. As a result, the companies gain a variety of talent that helps them enhance innovation, expand market reach, and gain a competitive edge in their markets. McKinsey's report on diversity and inclusion states that enterprises that are culturally and ethnically diverse are 36% more profitable.
The role of HR here is to ensure the organisation follows the best diversity and inclusion practices to foster equitable engagement at the workplace. This can be done by implementing EEO policies, providing DE&I training, establishing different ERGs, and bridging pay gaps. By embracing these principles, HR allows organisations to attract top talent, leverage diverse perspectives, and create a healthy workplace where everyone can thrive.
