Multiple studies have backed this up. Pittinsky rightly notes that there are other kinds of diversity in the Valley, particularly foreign workers on H-1B visas. But we do need to be more honest about our motives and about the case to be made for diversity. Workplace diversity has an impact on social good, Pittinsky says.
Related topics No other industry has such a high degree of customer interface and reliance of customer service than that of the hospitality and tourism industry HT.
In the manufacturing industry, profit is significantly driven by operations and plant, and in the technology industry profit is driven by technology, but in service industries, profit is dominantly driven by people. Moreover, in service industries people customers and staff are diverse, hence the imperative to get diversity management right the HT industry is amplified.
While this may make intuitive sense, the question remains, does increased diversity management and performance within the HT industry lead to better financial performance in fact?
This research conducted by Assistant Professor Singal Virginia Tech, United States explored this question, as well as more broadly commenting on the business case for diversity across all industries. Professor Singal argues that while diversity management is important in all industries, Business case of diversity management is mission critical within the HT industry given the diversity characteristics of customers and staff, and the high level of interpersonal interaction between customers and staff.
Industries may vary in their emphasis on diversity management due to factors such as level of competition, differentiation strategies, employee skills and technology, however Professor Singal suggests that the HT industry has become more effective at diversity management than other industries because of necessity, i.
That the HT industry would outperform non-HT industries in relation to diversity management and performance That financial performance would be increased by investment in diversity management, and particularly in the HT industry.
Method Singal analysed company data, collected from 3, companies between and Given the time span, 31, observations were captured during this period. Data to measure diversity performance was extracted from the Environmental, Social, and Governance ESG database, which captured two dimensions of diversity strengths and concerns and was not a self-reported measure.
Statistical analysis was then conducted to identify the correlations between these three measures of performance. Findings After reviewing multiple studies on the business case for diversity, Singal found that arguments fell into six categories, namely; Talent pool: Diversity in the workforce energises individual performance and company identification, and reduces turnover Quality interactions: Enhanced job satisfaction improves the quality of interactions between employees, and employees when dealing with customers Access to information: Diverse networks provide access to information and networks Innovation: Diversity facilitates greater levels of congruence between customer needs and employee service provision.
Singal found that each of these arguments resonated across industries, but argued that the importance of customer congruence heightened the need for diversity management in HT.
As a corollary, Singal suggested that the opportunity for diversity mismanagement is also heightened in HT, and may explain the number of high profile discrimination complaints against HT businesses. However, since HT firms have greater diversity performance than non-HT firms, the gross effect on financial performance due to diversity performance is larger for HT firms than for non-HT firms.
HT organisations performed better than non-HT organisations in relation to diversity management and performance. That is, the findings suggested that HT organisations managed diversity more effectively.
The results also showed that HT firms had statistically significant better overall diversity performance and higher diversity initiatives when compared with non-HT organisations.
Notably, the results showed that when an organisation had higher diversity performance in a prior period, the next period showed higher financial performance for both HT and non-HT organisations Financial performance is increased by investment in diversity management, and particularly in the HT industry.
While results showed that the effect of diversity performance on financial performance was the same regardless of industry, given that HT organisations showed stronger diversity performance, this lead to a greater gross effect on financial performance for HT organisations compared to non-HT organisations.
Implications The implications for managers, particularly those in the HT industry, are that investment in diversity management is paramount.
Pondering the business case for diversity, Todd L. Pittinsky, a professor of technology and society at Stony Brook University, observes something isn’t quite right. Our latest report, Diversity Matters, examined proprietary data sets for public companies across a range of industries in Canada, Latin America, the United Kingdom, and the United States. In this research, we looked at metrics such as financial results and the composition of top management and boards. 1 1. Sep 17, · If diversity programs primarily rest on a business case, then the answer would be yes. Indeed, there have long been concerns that diversity leads to conflicts and reduces social cohesion.
This research only adds to the business case for diversity in that effective diversity management has a positive impact on the bottom line. This is particularly heightened in the HT industry. As this industry in particular has a high reliability on providing outstanding and memorable customer service, it is vital that investment in diversity is made, not only due to regulatory requirements but also to continue to be a strong financial performer and deliver optimum service to satisfy customer expectations.
To read the full article, Singal, M.Business Case for Diversity with Inclusion There are few who would argue against positive co-worker relationships and respect for the individual dignity as being helpful in developing a positive workplace environment.
Our latest report, Diversity Matters, examined proprietary data sets for public companies across a range of industries in Canada, Latin America, the United Kingdom, and the United States.
In this research, we looked at metrics such as financial results and the composition of . The business case for diversity management in the hospitality industry. Yet the evidence for a business case for diversity is weak (Hansen, , -performance link at unit or work-group levels can be a logical extension and the next step for research in diversity management in the hospitality industry.
The business case for diversity seems intuitive. Teams of mixed gender, ethnicity, physical ability, age and sexual orientation are more representative of customers. They offer a variety of. Apr 30, · The business case for a gender-diversity The business case for gender diversity includes all of this and more: Returns: Gender diversity in leadership is strongly correlated with higher returns, profitability and share price.
The Business Case for Diversity Management First, some key facts about employment and people with disabilities • 65% of people with a learning disability would like a job (1).