Diversity in the Workforce

Diversity in a group is vital when creating effective teams within companies. More and more companies are trying to appreciate diversity and are realizing its benefits. They are communicating more with diverse groups and keeping an open mind about the ideas and contributions they will bring to the company. Studies have shown that assorted groups are likely to build strong problem solving skills and produce faster results.

Creating a diverse workforce, guarantees that these groups are more likely to meet potential diverse customers' needs and desires; which will increase profits. Promoting women and minorities is just as important to businesses. "Books and business magazines rate companies as to how well they treat women and minorities; these companies naturally become preferred employers for talented members of these groups (p368)." Customers and potential employees are likely to involve themselves with companies with an honorable reputation. Studies have shown that 50% of minority executives leave their jobs due to lack of challenges within their daily tasks. Many women and minorities leave the corporate world because of poor management. Minorities often find themselves employed at companies that work directly with minorities such as the Equal Opportunity Oversight. There are seldom opportunities for growth and advancement within such companies.

Profits and losses involving diverse groups are also important to businesses. "Fortune 500 firms study showed that firms with the largest number of women on their senior management teams had 35% higher return on equity (ROE) and 34% higher total returns to shareholders (TRS) (p368,369)." This not only benefits the company and increases profits, but it also shows those inquiring about the company that the possibilities are relentless. A cartoon illustration of Prophet Mohammad appeared in a Danish newspaper, causing millions of dollars in losses because Middle Eastern consumers were deeply offended and stopped doing business with that company. This probably would have been avoided had there been a diverse group of employees on the team that was involved with the cartoon.

As more and more women and minorities join the workforce, companies have to be more careful in how they pay their employees. White men still continue to make more than women and minorities although employers have to be careful not to pay one person more or less than the other due to discrimination laws. What happens is that job titles change and promotions take place and are given to white men, which come with a pay increase. Although it is a slow growing process, more women and minorities are being promoted to CEOs and directors since 1998.

Since feminism movements, women have been gradually working their way to the top. "Over half of U.S. accounting graduates hired by public accounting firms in 2004 were women. According to the U.S. Labor Bureau, women make up 46% of the labor force and hold 50% of managerial, professional, and related positions. However, only 8% of the top corporate jobs are held by women, and there are only a handful of female CEOs (p 369)." Because of stereotypes and gender roles, women find it harder than men to advance. In spite of this, women tend to work harder to prove themselves.