Business benefits and EU legislation – coupled with the complexity of the analysis required - are driving demand for diversity software. Larry Cucchi explains
Software Source, 01 Dec 2003
Until recently, UK organisations have tended to view diversity as a particularly American concern because of its higher profile across the Atlantic. In the US strict, punitive legislation has been in place for a number of years and employers have developed plans to ensure equal opportunity for workers’ movements into, through and out of an organisation. Active pursuit of diversity is not preferential treatment, nor does it mean that unqualified people are hired or promoted over more-able candidates. But it does ensure that positive steps are taken to provide equal employment opportunities for all, regardless of sex, race, religion or age.
Although European businesses do not operate under the same legislation as US organisations, increasing numbers of UK employers are keen to monitor their performance in this area. In particular, international companies that work closely with organisations in the US which are conducting analyses to uncover barriers to equal employment opportunity (EEO). Such analysis examines if factors such as age, sex, disability and religion have been a factor in recruitment, promotion or redundancy. It may also highlights areas where a company has not giving equal employment opportunity to all.
Time-saving technology
Identifying any problem areas is an essential first step. Yet subsequently creating and maintaining EEO is both challenging and immensely time-consuming as it requires the acquisition and management of an enormous amount of detailed information.
So time-consuming, in fact, that HR professionals who make the effort to achieve an understanding of diversity within their company risk losing focus on their core strategic HR role. The solution? Diversity software, which can track - and present an accurate picture of - diversity performance within an organisation.
Technology is well suited to the job of diversity tracking, which consists of collecting, processing, analysing and reporting on EEO information from areas as diverse as recruitment and retirement. This can highlight otherwise unnoticed problem areas such as the difference between current representation and the availability of prospective employees in the community, and adverse impacts on hires and promotions. For example, if the analysis shows that a company is not offering opportunities to workers aged over 50, it can compare the age profile of its current workforce with that of its ideal workforce - and monitor progress towards this goal.
Legal changes
EU legislation is one of the driving forces behind the increasing demand for diversity software - which is set to increase dramatically over the next three years. The anti-discrimination framework directive (2000/78/EC) prohibits discrimination on the grounds of disability, sexual orientation, age, religion and belief. HR departments have planned (or should have planned) for this law, ensuring that all its sexual orientation and religious discrimination provisions are implemented by December 2003. The age discrimination provisions come into force in December 2006.
Broader benefits
But it is not only legislation that is driving change: there is a growing recognition of the varied business benefits of improved diversity. These include increased motivation, lower staff turnover and access to wider labour markets. Instead of setting minimum standards that comply with the EU directives, more and more companies are choosing to make diversity a key business driver. These organisations recognise that a diverse workforce will help them meet the varied demands of customers, and so give them a competitive edge. Conversely, they understand that a failure to take advantage of the skills and creativity that a diverse employment base delivers puts their competitiveness at risk. As the skilled labour market shrinks and talent pools become more defined, diversity deepens the pool of potential employees.
A strong record on diversity may also attract prospective employees. Prejudice can place corporate reputation at risk; a strong diversity strategy can defend against this. The move towards diversity corresponds with a greater awareness of the business benefits of a reputation for corporate responsibility. Not only do companies have to declare themselves equal opportunities employees; now they have to prove it.
All are factors that have increased demand for diversity software, and are likely to continue to do so over the next few years.
Measured response By dramatically reducing the time and money spent on managing human capital, the latest HR software systems are freeing up more time for strategic thinking
