Shrm poll diversity_final

Workplace Diversity Practices: How Has
Diversity and Inclusion Changed Over Time?

A Comparative Examination: 2010 and 2005

October 12, 2010

Introduction

Workplace Diversity Practices: How Has Diversity and Inclusion Changed Over Time?

• In 2005, SHRM released the Workplace Diversity Practices research report, which addressed
diversity practices in organizations from the perspective of HR professionals. Several of the
survey questions from this report were included in a recent 2010 study to determine how
diversity and inclusion in the workplace has changed over the last five years.

• When possible, analyses of the 2010 survey results by organizations’ staff size, sector and
operations locations are presented.

• For the purpose of this research, workplace diversity is broadly defined as an inclusive
corporate culture that strives to respect variations in employee personality, work style, age,
ethnicity, gender, religion, socioeconomics, education and other dimensions in the workplace.

Workplace Diversity Practices: How Has Diversity and Inclusion Changed Over Time? | ©SHRM 2010 2

Summary

This SHRM study provides mostly encouraging news about the state of diversity in
the workplace. The study shows increases in the percentage of companies that
provide training on diversity issues, the number of organizations that have a diverse
board of directors and the percentage of organizations reporting that their diversity
practices were effective in achieving their organization’s desired outcomes.
However, over the last five years, there has been a slight decrease in the percentage
of organizations with practices that address workplace diversity. This slight decline
is not surprising, as it is likely attributable to the unprecedented global
economic downturn that began in late 2007. Other research conducted by SHRM
has revealed that the downturn resulted in across-the-board cuts to many HR
initiatives and practices.[1]

[1] Society for Human Resource Management. (2010, June). SHRM Poll: Financial Challenges to the U.S. and Global Economy and
Their Impact on Organizations. Retrieved from www.shrm.org/surveys.

Society for Human Resource Management. (2010, October). The Post-Recession Workplace Competitive Strategies for Recovery and
Beyond. Alexandria, VA: SHRM.


Key Findings

• The prevalence of diversity practices in the workplace has decreased slightly in some
organization size ranges.
In 2010, 68% of organizations indicated that they have practices in place that address
workplace diversity, compared with 76% of organizations surveyed in 2005. Larger
organizations (those with 2,500 or more employees), government agencies, publicly owned
for-profit companies, nonprofit organizations and those with multinational operations were
more likely to address workplace diversity.

• Are companies still leveraging diversity training opportunities?
Yes; among companies with diversity practices in place, the percentage offering training
opportunities increased slightly from 67% in 2005 to 71% in 2010. The percentage of
companies providing mandatory training for top-level executives and nonmanagerial-level
employees increased over the last five years, while mandatory training for nonexecutive
managerial-level employees was unchanged.

• Most organizations report their diversity practices were effective.
Eighty-four percent of businesses believed their diversity practices were either “very effective”
or “somewhat effective” in achieving their organization’s desired outcomes. This percentage
increased slightly from 83% in 2005.


Key Findings

• What are the most important diversity practice outcomes?
In 2010, the top reported outcomes were: 1) improved public image of the organization, 2)
reduced costs associated with turnover, absenteeism and low productivity, 3) improved
financial bottom line (profits), 4) increased organizational competitiveness, 5) decrease in
complaints and litigation, and 6) retention of a diverse workforce. Improved public image went
from the fourth most important outcome in 2005 to the most important outcome for
companies in 2010.

• Measuring the ROI of diversity practices is still a challenge.
Over the last five years, fewer organizations reported collecting diversity return-on-investment
data. This percentage dropped from 14% in 2005 to 8% in 2010. The top measures
organizations use to gauge their efforts has remained unchanged over the past five years: 1) the
number of diverse employees recruited, 2) the number of diverse employees retained, and 3)
evidence of diversity at all levels of the workforce (e.g., rank-and-file to senior management).

• Most organizations reported having a diverse board of directors.
Sixty-six percent of respondents said that their organization’s board of directors was diverse in
terms of age, ethnicity, gender, religion, socioeconomics, education, etc. This percentage
increased from 53% in 2005.


Does your organization have in place any practices that address
workplace diversity?

2010 (n = 367) 68%
32%

2005 (n = 361) 76%
24%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Yes No

Note: “Not sure” responses were excluded from this analysis.

Does your organization have in place any practices that address
workplace diversity?

Comparison of the 2010 results by Organization Staff Size, Organization Sector and
Operations Location

• Practices that address workplace diversity (by staff size): Larger organizations (those with 500 or more employees) were
more likely than organizations with fewer than 100 employees to report having in place practices that address workplace
diversity.

Smaller Organizations Larger Organizations Differences Based on
Organization Staff Size
•1 to 99 employees (55%) •500 or more employees Larger organizations >
(90%) smaller organizations

• Practices that address workplace diversity (by organization sector): Government agencies (83%) , publicly owned for-profit
companies (78%) and nonprofit organizations (71%) were more likely than privately owned for-profit companies (59%) to
have practices that address workplace diversity.
• Practices that address workplace diversity (by operations location): Organizations with multinational operations (83%) were
more likely than organizations with U.S.-only operations (65%) to address workplace diversity.


Please indicate which of the following diversity practices your
organization participates in
2010 2005
Employ recruiting strategies designed to help increase diversity within the organization 79% 79%
Engage in community outreach related to diversity (e.g., links between organization and
71% 74%
educational institutions, government)
Align diversity with business goals and objectives 68% -
Tailor career development opportunities specifically for diverse employees 59% 28%
Provide career development opportunities designed to increase diversity in higher-level
56% 63%
positions within the organization (e.g., mentoring, coaching)
Collect measurements/metrics on diversity-related practices 52% 56%
Demonstrate diversity awareness in the form of celebrating different cultural events
48% 47%
(e.g., Black History Month, Hispanic Heritage Month)
Employ retention strategies designed to help retain a diverse workforce 47% 52%
Employ strategies to ensure diversity in the organization’s suppliers, contractors, etc. 47% 51%
Hold people managers accountable for diversity-related tasks or outcomes in the
47% -
performance management process
Ensure diversity is a consideration in every business initiative and policy 45% 73%
Support employee affinity groups (employee networks, which are groups formed
30% 29%
around an aspect of diversity)
Offer training in English as a second language 22% 20%
Provide incentive pay for management linked to the achievement of organizational
10% 12%
diversity goals

Note: Percentages do not total 100% due to multiple response options. Excludes respondents who indicated that their organizations did not have diversity practices in
place. A dash (--) indicates that this particular question was not asked in 2005.


How important are the following outcomes of diversity practices to
your organization?

Improved public image of the organization (n = 249) 4% 20% 76%
Reduced costs associated with turnover, absenteeism and low
productivity (n = 249) 6% 21% 73%

Improved financial bottom line (profits) (n = 248) 11% 17% 72%

Increased organizational competitiveness (n = 245) 9% 20% 71%

Decrease in complaints and litigation (n = 250) 12% 20% 69%

Retention of a diverse workforce (n = 249) 6% 25% 69%

Diversity of thought and decision-making in the organization (n = 250) 6% 26% 67%

Recruitment of a diverse workforce (n = 249) 4% 30% 66%

Diversity at all levels of the workforce (n = 250) 9% 32% 60%

A diverse client/customer base (n = 250) 12% 28% 59%
Improved employee opinion survey results/diversity audit results (n =
250) 15% 35% 50%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Not very important Somewhat important Very important

Note: “Not sure” responses were excluded from this analysis. Percentages may not total 100% due to rounding. The figure is sorted by "very important" responses.


How important are the following outcomes of diversity practices to
your organization?

2010 2005

Improved public image of the organization 76% 73%

Reduced costs associated with turnover, absenteeism and low productivity 73% 78%

Improved financial bottom line (profits) 72% 74%
Increased organizational competitiveness 71% 70%

Decrease in complaints and litigation 69% 74%

Retention of a diverse workforce 69% 66%

Diversity of thought and decision-making in the organization 67% 66%
Recruitment of a diverse workforce 66% 66%
Diversity at all levels of the workforce 60% 71%
A diverse client/customer base 59% 58%
Improved employee opinion survey results/diversity audit results 50% 51%

Note: Table represents "very important" responses.


Does your organization provide any training on diversity issues?

2010 (n = 250) 71%
29%

2005 (n = 301) 67%
33%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Yes No


Does your organization provide any training on diversity issues?

Comparison of the 2010 results by Organization Staff Size and Organization Sector

• Training on diversity issues (by staff size): Larger organizations (those with 500 or more employees) were more likely than
organizations with fewer than 100 employees to report having training on diversity issues.

•1 to 99 employees (52%) •500 or more employees Larger organizations >
(88%) smaller organizations

• Training on diversity issues (by organization sector): Government agencies (90%) and nonprofit organizations (85%) were
more likely than privately owned for-profit companies (58%) to provide training on diversity issues.


Please indicate whether top-level executives (e.g., CEO, president, CFO)
have the opportunity to receive diversity training and whether the
training is voluntary or mandatory

2010 (n = 177) 68%
27% 6%

2005 (n = 198) 60%
36% 4%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Mandatory training Voluntary training No training available

Note: Excludes respondents who indicated that that their organizations did not provide diversity training. Percentages may not total 100% due
to rounding.

Please indicate whether top-level executives (e.g., CEO, president, CFO)
Comparison of the 2010 results by Organization Sector and Operations Location

• Mandatory training for top-level executives (by organization sector): Publicly owned for-profit companies (86%) were more
likely than government agencies (44%) to have mandatory training on diversity for their top -level executives.
• Mandatory training for top-level executives (by operations location): Organizations with multinational operations (80%)
were more likely than organizations with U.S.-only operations (61%) to have mandatory training for their top -level executives.


Please indicate whether nonexecutive managerial-level employees
(e.g., director, manager) have the opportunity to receive diversity
training and whether the training is voluntary or mandatory

2010 (n = 176) 70%
27% 2%

2005 (n = 200) 70%
30% 1%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


to rounding.

Please indicate whether nonexecutive managerial-level employees
(e.g., director, manager) have the opportunity to receive diversity
training and whether the training is voluntary or mandatory
Comparison of the 2010 results by Organization Sector

• Mandatory training for nonexecutive managerial-level employees (by organization sector): Publicly owned for-profits (77%)
and privately owned for-profit companies (76%) were more likely than government agencies (44%) to have mandatory
training on diversity for their nonexecutive managerial-level employees .


Please indicate whether nonmanagerial-level employees

2010 (n = 175) 58%
35% 7%

2005 (n = 200) 53%
41% 7%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


to rounding.

Does your organization have a method for measuring the impact of its
diversity practices?

36%
2010 (n = 200) 64%

38%
2005 (n = 227) 62%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Yes No



Does your organization have a method for measuring the impact of its
diversity practices?

Comparison of the 2010 results by Organization Staff Size, Organization Sector and
Operations Location

• Method for measuring the impact of diversity practices (by staff size): Larger organizations (those with 500 or more
employees) were more likely than organizations with fewer than 100 employees to report having a method for measuring the
impact of their diversity practices.

•1 to 99 employees (19%) •500 or more employees Larger organizations > smaller
(55%) organizations

• Method for measuring the impact of diversity practices (by organization sector): Publicly owned for-profit companies (56%)
were more likely than privately owned for-profit companies (26%) to have a method for measuring the impact of their
diversity practices.
• Method for measuring the impact of diversity practices (by operations location): Organizations with multinational operations
(47%) were more likely than organizations with U.S.-only operations (28%) to have a method for measuring the impact of
diversity practices.


Which of the following does your organization use to measure the
impact of its diversity practices?
2010 2005
(n = 70) (n = 87)
Number of diverse employees recruited 77% 89%
Number of diverse employees retained 63% 75%
Evidence of diversity at all levels of the workforce (e.g. rank-and-file to
57% 72%
senior management)
Employee opinion surveys/diversity audits 51% 68%
Improved corporate culture 44% 53%
Improved public image 43% 52%
Information gleaned from exit interviews 43% -
Number of complaints and litigation 41% 52%
Client/customer base diversity 39% 46%
Analysis of employee performance assessments 36% 36%
Reduced costs associated with turnover, absenteeism and low productivity 33% 45%
Recognition/awards through published lists or diversity organizations 31% 31%
Improved financial bottom line (profits) 30% 37%
Increased organizational competitiveness 26% 33%
Evaluation of employees’ sensitivity/knowledge of diversity 24% 35%
Increased levels of innovation and creativity 23% -
Note: Percentages do not total 100% due to multiple response options. Excludes respondents who indicated that their organizations did not measure
the impact of their diversity practices. A dash (--) indicates that this particular question was not asked in 2005.

Does your organization conduct analysis to determine the return on
investment (ROI) for its diversity practices?

8%
2010 (n = 177) 92%

14%
2005 (n = 210) 86%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Yes No


Does your organization conduct analysis to determine its return on
investment (ROI) for diversity practices?

Comparison of the 2010 results by Organization Staff Size and Operations Location

• ROI measured by organizations (by staff size): Larger organizations (those with 500 or more employees) were more likely
than organizations with fewer than 100 employees to report measuring the ROI of their diversity practices.

•1 to 99 employees (1%) • 500 or more employees Larger organizations > smaller
(10%) organizations

.
• ROI measured by organizations (by operations location): Organizations with multinational operations (24%) were more likely
than organizations with U.S.-only operations (3%) to measure the ROI of their diversity practices.


Overall, how effective do you believe your organization’s diversity
practices are in achieving your organization’s desired outcomes?

100%
90%
80%
70%
60%
50%
40%
66% 68%
30%
20%
10% 17% 18% 16% 16%
0%
2005 (n = 296) 2010 (n = 220)
Very effective Somewhat effective Not at all effective

Note: “Not sure” responses were excluded from this analysis. Percentages do not total 100% due to rounding.

Please indicate how well you believe the following statements describe
your organization

My organization is inclusive of diverse cultures and values (n = 240)
4% 43% 53%

Senior management at my organization believes that diversity is
important (n = 240) 8% 40% 53%

Diversity practices are primarily developed by the HR department (n =
240) 10% 40% 49%

My organization promotes and advances diverse talent (n = 238)
12% 39% 49%

Employees at my organization believe that diversity is important (n =
240) 7% 51% 42%

My organization’s workforce is diverse at all levels (e.g., rank-and-file
and senior management) (n = 239) 21% 47% 31%

Employees at my organization believe that senior management is
committed to workplace diversity (n = 238) 16% 55% 29%

Diversity practices give my organization a competitive advantage (n =
238) 26% 46% 28%

Diversity practices have positively affected my organization’s financial
bottom line (n = 239) 36% 47% 16%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Does not describe at all Describes somewhat Describes very well

Note: Percentages may not total 100% due to rounding. The figure is sorted by “describes very well” responses.


Please indicate how well you believe the following statements describe
your organization

2010 2005

My organization is inclusive of diverse cultures and values 53% 54%
Senior management at my organization believes that diversity is
53% 53%
important
Diversity practices are primarily developed by the HR
49% 45%
department
My organization promotes and advances diverse talent 49% 48%
Employees at my organization believe that diversity is important 42% 40%
My organization’s workforce is diverse at all levels (e.g., rank-
31% 30%
and-file and senior management)
Employees at my organization believe that senior management is
29% 34%
committed to workplace diversity
Diversity practices give my organization a competitive advantage 28% 32%
Diversity practices have positively affected my organization’s
16% 17%
financial bottom line

Note: Note: Table represents " describes very well” responses.


Please indicate which of the following areas of diversity your
organization’s diversity practices cover

2010 2005
Areas of Diversity Covered by Organizations
(n = 236) (n = 305)
Ethnicity 92% 88%
Race 89% 86%
Gender 88% 89%
Age 83% 84%
National origin 73% -
Religion 70% 68%
Disability 69% 73%
Veteran status 64% -
Sexual orientation 61% 60%
Languages spoken 44% 49%
Gender identity and/or expression 42% -
Parental status 38% -
Personality type (e.g., MBTI, FIRO-B, etc.) 23% -

Note: Percentages do not total 100% due to multiple response options. A dash (--) indicates that this particular area was not asked in 2005.


Do you agree that your organization’s board of directors is diverse (e.g.,
in terms of age, ethnicity, gender, religion, socioeconomics, education)?

32%
2010 (n = 158) 34% 19% 16%

32% 21%
2005 (n = 210) 16% 30%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 110%

Agree Somewhat agree Somewhat disagree Disagree

Note: “Not sure” and “not applicable” responses were excluded from this analysis. Percentages do not total 100% due to rounding.

2010 Organizational Demographics


Demographics: Organization Industry

Industry
Health care, social assistance (e.g., nursing homes, EAP providers) 17%
Services—professional, scientific, technical, legal, engineering 13%
Manufacturing—other 13%
Educational services/education 8%
Financial services (e.g., banking) 5%
Other services (e.g., nonprofit, church/religious organizations) 5%
Government/public administration—federal, state/local, tribal 4%
Insurance 4%
Retail/wholesale trade 4%
Consulting 3%
High-Tech 3%
Arts, entertainment, recreation 2%

Association—professional/trade 2%

Construction, mining, oil and gas 2%

Note: n = 389. Percentages do not total 100% due to rounding.


Demographics: Organization Industry (continued)

Industry
Manufacturing—auto/auto-related 2%
Publishing, broadcasting, other media 2%
Services—accommodation, food and drinking places 2%
Telecommunications 2%
Transportation, warehousing (e.g., distribution) 2%
Utilities 2%
Biotech 1%
Pharmaceutical 1%
Real estate, rental, leasing 1%
Other 1%



Demographics: Organization Sector

Privately owned for-profit organization 47%

Nonprofit organization 27%

Publicly owned for-profit organization 18%

Government sector 7%

0% 10% 20% 30% 40% 50%


Demographics: Organization Staff Size

40% 38% 38%

30%
23%
20%

10%

0%
1 to 99 employees 100 to 499 employees 500 or more employees



Demographics: Region

40%
35%

30% 27%
23%
20%
15%

10%

0%
Northeast South Midwest West

Note: n = 373


Demographics: Other

Does the organization have U.S.-based Is the organization a single-unit company or a multi-unit
operations (business units) only or company?
does it operate multinationally?
Single-unit company: a company in 36%
U.S.-based operations 75% which the location and the company
are one and the same
Multinational operations 25%
Multi-unit company: a company that 64%
has more than one location
Note: n = 363
Note: n = 391

• 25% of organizations indicated that employees Are HR policies and practices determined by the multi-
at their work location were unionized. unit corporate headquarters, by each work location or
both?
Note: n = 387
Multi-unit headquarters determines 48%
HR policies and practices
Each work location determines HR 3%
policies and practices
A combination of both the work 49%
location and the multi-unit
headquarters determine HR policies
and practices

Note: n = 254


SHRM Poll: Workplace Diversity Practices

Methodology

• Response rate = 15%
• Sample comprised of 402 randomly selected HR
professionals from SHRM’s membership
• Margin of error is +/- 4%
• Survey fielded August 9–27, 2010

For more poll findings, visit: www.shrm.org/surveys

Follow us on Twitter: http://twitter.com/SHRM_Research


Shrm poll diversity_final

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