10.4 Diversity in the Workplace

The makeup of the US workforce has changed dramatically over the past 50 years. In the 1950s, more than 60 percent was composed of white males.^[1]Today’s workforce reflects the broad range of differences in the population—differences in gender, race, ethnicity, age, physical ability, religion, education, and lifestyle. Around  62.7 percent of the Asian community was employed in 2022 while the lowest employment rate was found among Puerto Ricans, at 55.3 percent, and the highest employment rate was found among Mexican-Americans, at 63.6 percent. Combined,  60 percent of the average U.S. citizens were employed in 2022. ^[2]

Most companies today strive for diverse workforces. HR managers work hard to recruit, hire, develop, and retain a diverse workforce. In part, these efforts are motivated by legal concerns: discrimination in recruiting, hiring, advancement, and firing is illegal under federal law and is prosecuted by the EEOC.^[3] Companies that violate anti-discrimination laws are subject to severe financial penalties and also risk reputation damage. In November 2004, for example, the EEOC charged that recruiting policies at Abercrombie & Fitch, a national chain of retail clothing stores, had discriminated against minority and female job applicants between 1999 and 2004. The EEOC alleged that A&F had hired a disproportionate number of white salespeople, placed minorities and women in less visible positions, and promoted a virtually all-white image in its marketing efforts. Six days after the EEOC filed a lawsuit, the company settled the case at a cost of $50 million, but the negative publicity may hamper both recruitment and sales for some time.^[4]

Reasons for building a diverse workforce go well beyond mere compliance with legal standards. It even goes beyond commitment to ethical standards. It’s good business. People with diverse backgrounds bring fresh points of view that can be invaluable in generating ideas and solving problems. In addition, they can be the key to connecting with an ethnically diverse customer base. If a large percentage of your customers are Hispanic, it might make sense to have a Hispanic marketing manager. In short, capitalizing on the benefits of a diverse workforce means that employers should view differences as assets rather than liabilities.

Statista and Forbes Magazine published ‘America’s Best Employers for Diversity 2022’ and included the following:

Diversity, Equity, Inclusion and Belonging (DEIB) in Action

One leader in embracing diversity as an important part of their consumer business and corporate life is Capital One, an American bank holding company specializing in credit cards, auto loans, banking, and savings accounts, headquartered in McLean, Virginia with operations primarily in the United States. Based on the Capital One website, their commitment to diversity is specifically defined as:
“At Capital One, diversity, inclusion and belonging are valued at our core. We empower our associates to do great work by creating an inclusive culture—that values diverse perspectives, fosters collaboration and encourages innovative ideas—and a place where associates of all backgrounds can thrive by bringing their most authentic selves to work. We call this our Culture of Belonging, and it rests at the heart of our Diversity, and Inclusion & Belonging (DIB) efforts.”[29]

Capital One encourages belonging by executing Business Resource Groups (BRGs). Capital One employees (aka associates) find places of connection through BRGs — voluntary, associate-led groups of individuals who join together based on common interests, backgrounds, demographics, identity or a passion for allyship. BRGs enrich the Capital One culture of belonging and deepen the understanding of diverse cultures, people and experiences. BRGs provide opportunities for leadership development, learning and connection as well as avenues to support Capital One’s commitment to attract, develop and retain a diverse workforce. Over 60% of Capital One’s global workforce belongs to one or more BRGs. In 2020, Capital One’s seven BRGs launched virtual chapters and increased membership by 11%. BRGs hosted approximately 100 national events that year, engaging close to 40,000 associate attendees.[30]

As of March 2022, here is a list of the Capital One BRGs:

• CapAbilities : CapAbilities provides a community for associates who identify with having a disability, as well as caregivers and allies, and sustains active Advocacy Circles, including Autism Spectrum Connections and Gray Matter (with an emphasis on mental health and wellness). CapAbilities builds connections and removes barriers for people with disabilities within the workplace, marketplace and home.
• empowHER: empowHER elevates women and allies, and plays an important role attracting, engaging and developing tomorrow’s leaders.
• ¡HOLA!: The mission of ¡HOLA! is to empower Hispanic and Latinx associates and allies to thrive both in and out of Capital One.
• Origins: Origins is our BRG for Asian and Pacific Islander associates and allies.
• Out Front: Out Front fosters open channels of communication and engagement among LGBTQ+ associates, leaders and allies across Capital One and focuses on raising awareness within and outside of Capital One as well as in our communities.
• Salute: Salute enables military, military spouse and veteran associates to thrive through associate engagement, active duty transition, recruiting, community engagement and reserve support.
• VOICES: VOICES helps build an environment where Black associates and allies are empowered to drive change, break barriers and make an impact across Capital One.
  Tech-specific BRGs: Tech-specific BRGs enhance and complement the work of our Enterprise BRGs. Blacks in Tech, Hispanics in Tech, Women in Tech and Equality Allies are designed to meet the unique recruitment, development and community-building needs of our Tech associates, while also helping to develop a pipeline of future talent by instilling a love of technology in young girls and children of diverse backgrounds.[31]