The Reality of Companies Adhering to Mandatory Diversity Hiring Policies

The discussion about mandatory diversity hiring rules has become much more common, especially to boost the number of women and minorities in jobs. 

About 6 out of 10 women (61%) think it’s a good idea to focus on improving diversity, equity, and inclusion (DEI) at work, while only half of men feel the same. More women than men say it’s very important to work at a place that is diverse in terms of gender, race, age, and sexual orientation.¹

Even though many companies say they are dedicated to diversity, how well these policies work and are put into practice can be very different from one company to another.

What is Diversity Hiring? 

Diversity hiring means actively seeking to bring a variety of people into a company. This includes hiring individuals from different backgrounds, races, genders, ages, and other groups.

The goal is to make the workplace more inclusive and to benefit from the different perspectives and skills that people from various backgrounds bring.

Benefits of Diversity Hiring

Having diversity at work isn’t just the right thing to do; it’s also smart for business. Here’s the data about having a diverse workplace, according to research:

• A McKinsey’s research shows that companies with more women are 15% more likely to do better than others, and companies with a mix of different ethnicities are 35% more likely to do better.(ref) 
• A Glassdoor report says that 76% of people looking for jobs and current employees think a diverse workforce is a key factor when choosing between companies and job offers.(ref)
• A Catalyst’s research finds that companies with more women on their boards tend to do better over time.(ref)
• The Boston Consulting Group found that companies with diverse management teams make 19% more revenue.(ref)

But even with these benefits, many organizations find it hard to put good diversity hiring practices into place.

Barriers to Effective Diversity Hiring

Several obstacles can hinder the success of these initiatives:

• Hidden Biases: Companies might unknowingly favor certain types of candidates, like those with unpaid internships, which can unintentionally put women and minorities at a disadvantage.
• Post-Hiring Challenges: Even if diverse candidates are hired, they might face unfair treatment and have fewer chances to move up in the company. This can lead to higher turnover rates among minority employees, making the initial hiring efforts less effective.
• Ineffective Diversity Statements: Many organizations use diversity statements that don’t lead to real changes. Research shows that these statements can backfire if there’s no real evidence of diversity in the company.(ref) Candidates often want to see real commitment to diversity, not just words.

Effectiveness of Mandatory Diversity Policies

Some companies have started using mandatory diversity hiring policies, but it’s not clear how well these measures work. Studies show that just having diversity quotas or rules doesn’t always lead to more minority applicants or better workplace diversity.

For example, some research found that companies with visible diversity didn’t necessarily attract more diverse applicants, and in some cases, people preferred companies with a more uniform workforce.(ref)

Also, how people view diversity initiatives can differ. Some might find companies with a diverse team more attractive, while others might feel excluded if they think the policies favor one group over another.

This shows that while mandatory diversity hiring policies can show a company’s commitment to inclusion, they need to be supported by real efforts to create a fair workplace.

Creating Lasting Impact with Diversity Hiring Policies

Mandatory diversity hiring policies can help make workplaces more inclusive, but their success depends on the overall company culture and practices. 

Companies need to do more than just hire diverse candidates; they also need to support and value them once they’re on board. This means regularly reviewing and updating hiring practices and working hard to create an inclusive environment where everyone can succeed, no matter their background.

Source:

1. Pew Research Center