Why should we have diversity in our business? - The different cases for diversity - business, legal, social, and wider economic.

There is more than one reason to embed diversity in your organization, and each reason is mostly dependent upon your motivation for thinking about diversity in the first place.

It can also affect how you go about implementing your strategy as differing aims can benefit from different approaches.

Before I take you through the main cases for diversity is important to point out that we are talking about reasons to embed diversity within organizations to make real long term change, this is very different from a marketing view of diversity where one or two individuals might be singled out and photographed repeatedly for company publications to create an image which is not embedded by practices. Whilst this approach will likely create the short term image required it will not bring the long term benefits of diversity and can quite often have a negative impact upon your workforce.

There are four main reasons to embed diversity these are business, legal, social and wider economic.

Let’s look at them separately

Business – This is the model that suggests that diversity is good for your business. That by having a diverse workforce you will be more productive, make higher profits and retain more staff. This is the model that I, being in the private sector most of my life, prefer to work to.

Basically employ different types of people because their difference will make you money!

Before we go any further though research in this area is very clear, diversity is only good for business if it’s well managed so don’t expect to hire more women and minority groups without considering how these groups will interact and how to support this interaction. You will need to employ a little change management, but don’t be put off by this depending on the size of your company that could mean anything from a tool box talk to an in-depth diversity strategy.

In recent years research to back up this model has been very popular and is suggesting that boards with 30% female representation have greater profits, diverse workforces are more productive and companies that embrace diversity are more likely to succeed.

There are also arguments that don’t need the scientific back up such as the majority (60%) of the public sector are women, the majority of construction work is currently in the public sector (again around 60%) so if we can mirror our clients, thus showing we are more likely to understand their needs we are likely to win more work. In other words with the current industry make up diversity can give us an edge and that is something I wouldn’t turn down in a recession.

Other arguments such as a variety of experience breeds a choice of solutions can also be considered, it’s a wide topic and this is only meant to introduce you to it, feel free to use the research page on our website to find out more.

Legal the legal argument is of course that you should embed diversity or you will fall foul of the laws of the land. I wonder though how much truth is in that? The new equality act came in last October and simplified equality law, but how much effect will it have? Historically in construction there is a high amount of discrimination recorded through academic research  but a low level of discrimination brought through the courts. This is usually down to individuals wanting to retain their jobs and being fearful of the consequences of reporting discrimination. Those that do decide to take legal action are usually paid off before their claim goes anywhere near a court room, meaning that organizations can still tick all the right boxes when it comes to PQQ’s. So far I’m not convinced.

Ah but what of the equality duties I hear you cry! These regulations originally brought in only for gender, race and disability now cover all of the protected characteristics and ensure that the public sector and its subcontractors are pro active about equality and diversity discrimination, the onus is on them to ensure it just doesn’t happen.

Well that’s good then, it’s all better now? Well no not really, the legislation is still new and not an awful lot of precedent has been set, especially not referring to the supply chain, more advances need to be made in procurement and policing so it’s more of a case of watch this space but at least we are headed in the right direction – sort of.

So in summary be equal and diverse or the law will punish you, except it probably won’t.

Social In its most basic form it’s the idea that we should be equal, fair and nice to one another because its, well the right thing to do. Oh by the by it would also help to improve our societies but I know that’s all sounding too left for some. Its true though but also an argument found mostly in the public sector. And whilst there are a few private companies who do embrace this model, some of them with much gusto, they are the exceptions to the rule.

Wider Economic This is the idea that by improving our company’s diversity and sifting the white male dominance of the industry we will as an industry improve our image, efficiency and bottom lines. With the construction industry being accountable for around 10% of the GDP that could create a real change in the wider economic picture.

Remember we are not saying women and/or minorities are better, but that diversity is better it brings a mixture of skills and abilities that can create a positive result.

The issues raised by Latham and Egan raise a stark resemblance to issues found in other male dominant industries.

As an industry we need to improve to survive.

I have covered only a tip of the tip of the iceberg to try and get you thinking about why diversity is important I could easily write a book on each, but what do you think? Please do post your views they are all always valuable.