1. DIVERSITY´S IMPACT ON BUSINESS PERFORMANCE.MANAGING DIVERSITY & CULTURAL COMPETENCE DEVELOPMENT Javier Armaolea VICEPRESIDENT
2. PRELIMINARY REMARKS Population trends Migrations Education  Overview of the Social situation in a EU of 25 member states. Employment states Unemployment Lifelong learning The following slides present selected data and trends in European Women in management societies, and their impact on the business world. Student mobility Divorces  Overview of the European Union Activities. Employment and Marriages Social Affairs. Babies born Gay pride event7 SOCIAL AGENDA People with disabilities7 THE NEW SOCIAL AGENDA (2005-2010): an essential pillar of the Religious diversity. EMPLOYMENTnew growth and jobs strategy. Two priorities areas 7 FREE MOVEMENT OF WORKERS/COMMUNITY EMPLOYMENT EQUAL OPPORTUNITIES AND INCLUSION POLICIES. Equal  CSR - Corporate Social Responsibility  DIVERSITY7 Diversity in Europe 7 Diversity Management 7 Cultural Competence 7 Managing multicultural teamwork7 Legislation in Europe Diversity initiatives 7 Diversity Training 7 Gender diversity in the workforce 7 Goals for HRD 7 Strategies to recruit and retain talent  Proposal of ETDF tasks about Diversity
3. A. Overview of the Social situation in a EU of 25 member states
4. A. Overview of the Social situation in a EU of 25 member states
5. A. Overview of the Social situation in a EU of 25 member states1a. POPULATION TRENDS IN THE ENLARGED EUROPEAN UNION Country codes AT Austria BE Belgium PL Poland CY Cyprus CZ Czech Republic DE Germany MT Malta DK Denmark EE Estonia EL Greece ES Spain FI Finland FR France NL Netherlands HU Hungary IE Ireland IT Italy LU Luxembourg SE Sweden LV Latvia LT Lithuania SI Slovenia SK Slovakia PT Portugal UK United Kingdom
6. A. Overview of the Social situation in a EU of 25 member states1b. POPULATION TRENDS IN THE ENLARGED EUROPEAN UNION
7. A. Overview of the Social situation in a EU of 25 member states 2. MIGRATIONS  In the EU-15 countries, positive net migration has been the main driverof population growth over the last decade which was characterised by decreasingnatural growth.  Immigration now accounts for three quarters of the net growth in thepopulation of EU- 15 countries.
8. A. Overview of the Social situation in a EU of 25 member states 3. EDUCATION AND ITS OUTCOMES  Attainment levels of the population have improved significantly over thelast thirty years, particularly among women. In 2002 77% of young people aged 20- 24in the current Union ( EU- 25) had an upper secondary qualification. At the same time,however, 17% of people aged 18- 24 left the education system with only lower secondaryeducation at best.  Younger generation is better qualified: In 2002, 77% of young people aged 20-24 completed USE, and 55% of people aged 50-64 completed USE Disparities in attainment levels between the sexes have been reducedthroughout the Union for the population as a whole.
9. A. Overview of the Social situation in a EU of 25 member states 4a. EMPLOYMENT  Limited employment growth in the EU- 25 in 2002. In 2002, over 199 millionpeople were in employment in the Union of 25 Member States, a rise of 11.5 million since1996 Women still at a disadvantage in the labour market. . In 2002 the femaleemployment rate in the Union stood at 54.7% Gap between the sexes is narrowing but remaining substantial. . In 2002,the gender gap in employment rates in the Union was 16.3 points ( 71.0 % for mencompared with 54.7% for women)
10. A. Overview of the Social situation in a EU of 25 member states 4b. EMPLOYMENT
11. A. Overview of the Social situation in a EU of 25 member states 4c. EMPLOYMENT
12. A. Overview of the Social situation in a EU of 25 member states 5. UNEMPLOYMENT  EU- 15 unemployment: a first increase since 1996. In 2002, the total number ofunemployed people in the EU- 25 stood at 18.6 million or 8.8% of the labour force.  Females more likely than males to be unemployed in most Member States.The female unemployment rate ( 9.8%) in the EU- 25 was almost 2 percentage points higherthan the male unemployment rate ( 8.0% ) in 2002, although this gap is on a declining trend. Females more affected than males by long- term unemployment. Whilewomen formed around 44% of the EU- 25 labour force, they accounted for practically halfof the unemployed
13. A. Overview of the Social situation in a EU of 25 member states 5a. UNEMPLOYMENT
14. A. Overview of the Social situation in a EU of 25 member states 5b. UNEMPLOYMENT
15. A. Overview of the Social situation in a EU of 25 member states 6a. LIFELONG LEARNING  Participation of women varies considerably from country to country.  The young and the qualified participate more in education and training. Continuing vocational training by enterprises: joint agreements betweensocial partners increase the chance for employees to be trained.
16. A. Overview of the Social situation in a EU of 25 member states 6b. LIFELONG LEARNING
17. A. Overview of the Social situation in a EU of 25 member states 7. WOMEN IN MANAGEMENT
18. A. Overview of the Social situation in a EU of 25 member states 8. STUDENT MOBILITY
19. A. Overview of the Social situation in a EU of 25 member states 9. DIVORCES
20. A. Overview of the Social situation in a EU of 25 member states 10. MARRIAGES
21. A. Overview of the Social situation in a EU of 25 member states 11. BABIES BORN
22. A. Overview of the Social situation in a EU of 25 member states 12. GAY/LESBIANS PRIDE EVENTS
23. A. Overview of the Social situation in a EU of 25 member states 13. PEOPLE WITH DISABILITIES
24. A. Overview of the Social situation in a EU of 25 member states 14. RELIGIOUS DIVERSITY
25. A. Overview of the Social situation in a EU of 25 member states 0. COMPANIES TASKS Population trends: Employers have to ensure employability of their whole workforce and combat ageism. Employment: Corporations have to seek for ways to bring more women to workforce in order to satisfy their demandfor skilled labour. Unemployment: Employers must rethink their employment policies and find new ways to employ young people inorder to develop new talent which is becoming scarce. Women in management: An open culture and a true meritocracy is needed to ensure the full ultilisation of all resourceavailable. Student mobility: Employers have to offer multi-cultural work environments and international career paths in order toutilise skills provided and satisfy high potentials` expectations. Divorces- Changing values - Divorces in the EU: Corporations have to acknowledge individual lifestyles and create awork atmosphere that values and supports a multitude of private contexts. Marriages - Changing values - marriages in the EU : Corporations have to acknowledge individual preferences andresulting needs for work options and compensation & benefits in order to remain employers of choice. Babies born in non married Partnerships - EU: Corporations have to provide work options and work-life balance whichalso support un-married parents and create work cultures in which un-married parents are fully accepted and valued. Gay/lesbian pride events in Europe: Corporations have to acknowledge different sexual orientations in the workplaceand in the marketplace, and create all-inclusive environments. People with disabilities: Employers can tap into the potential of employees and customers with disabilities withoutassuming resistance Religious diversity: Employers must be aware that they might have a more diverse workforce than they have thought,and acknowledge and accomodate different beliefs as well as related practices and needs.
26. B. Overview of the European Union Activities. Employment and Social Affairs. 1a.SOCIAL AGENDA  More an better jobs and equal opportunities are the watchwords of Europeanemployment and social policy. A new economic and a 5 year programme of action for 2000-2005 with the employment AGENDA is a The Commission objetive of “SHAPING A NEW EUROPE” key part of it, based on the announced before the notions of full employment, European Parliament economic dynamism and greater social cohesion and fairness "become the most Concretely, competitive and dynamic European governments knowledge-based committed themselves economy capable of to work towards sustainable economic a new strategic goal growth with more and better for the next decade jobs and greater social cohesión”
27. B. Overview of the European Union Activities. Employment and Social Affairs. 1b. SOCIAL AGENDA A wide range of actions are outlined in the Agenda  Some are targeted at realising Europes full employment potential bycreating more and better jobs, anticipating and managing change and adaptingto the new working environment, exploiting the potential of the knowledge-based economy and promoting mobility. mobility  Others will centre on modernising and improving social protection,promoting social inclusion, strengthening gender equality and reinforcingfundamental rights and combating discrimination. discrimination There are also initiatives devoted to preparing for enlargement andpromoting international co-operation and making the social dialogue contributeto meeting the various challenges.
28. B. Overview of the European Union Activities. Employment and Social Affairs. 2a. THE NEW SOCIAL AGENDA (2005-2010): an essential pillar of the new growth and jobs strategy. “A social Europe the second phase this is the motto of in the global of the Social Agenda covering the economy: period up to 2010. jobs and oportunities for all” (1) employment (under the prosperity objective)THE NEW SOCIAL which are covered by the AGENDA Commission’s strategic objectives 2005-2009 has two key priorities (2) equal opportunities and inclusion (under the Combines the solidarity objective)consolidation of a common In this way it supports European framework with the motto the implementation United in of diversified measures to DIVERSITY respond to specific needs.
29. B. Overview of the European Union Activities. Employment and Social Affairs. 2b. The two priorities areas  A wide making work a real option for all, increasing the quality and productivity of work, and anticipating and managing change. Moving towards  A dinamic for industrial relations:full employment: An evolving legal framework Key role of the Social Dialogue  Promotion of corporate social responsiblity: The Commission will continue to promote corporate social responsibility  Combating poverty and promoting social inclusion.  A Community initiative on minimum income schemes and the integration of people excluded from the labour market.A more cohesive society: 2010, European Year of combating exclusion and povertyEqual Opportunities to all  Promoting diversity and non-discrimination.  A strategic approach to combating discrimination (2005)  2007, European year of equal opportunities.  A new phase in promoting equality between men and women: a European gender institute.
30. B. Overview of the European Union Activities. Employment and Social Affairs. 3. FREE MOVEMENT OF WORKERS/COMMUNITY EMPLOYMENT POLICIES  EU policy instruments underpinning integration, employment and socialcohesion. EQUAL (Objective: To promote new ways of combating all forms of discrimination and inequalities in the labour market on the basis of transnational cooperation and to facilitate the social and occupational integration of asylum seekers.) URBAN New European labour markets open to all, with access for all. The EuropeanCommission is exploring the best ways of ensuring that the various European labourmarkets are more open to all and enabling everyone to benefit from the new mobilityopportunities. Action plan for skills and mobility. The Commission proposes the followingaction priorities: • expanding occupational mobility and skills development; • improving information and transparency of job opportunities; • facilitating geographical mobility.
31. C. CORPORATE SOCIAL RESPONSIBILITY  Commission urges greater Corporate Social Responsibility in Europe.  Presented a green paper on promoting a European framework for CSR WHAT IS CORPORATE SOCIAL RESPONSIBILITY? a concept wherebycompanies integrate social and environmental concerns in their business operations andin their interaction with their stakeholders on a voluntary basis. The European Union is concerned with corporate social responsibility as itcan be a positive contribution to the strategic goal decided in Lisbon: ‘to becomethe most competitive and dynamic knowledge-based economy in the world, capable ofsustainable economic growth with more and better jobs and greater social cohesion’.
32. D. Diversity 1. WHAT IS DIVERSITY? The term is often used to refer to differences based on ethnicity, gender,age, religion, disability, national origin and sexual orientation, diversityencompasses an infinite range of individuals unique characteristics andexperiences, including communication styles, physical characteristics such asheight and weight, and speed of learning and comprehension.
33. D. Diversity 2. DIVERSITY IN EUROPE There are six so-called core dimensions of diversity: 1- gender, 2 - ethnicity/race, diversity 3 -age, 4 - disability, 5 - religion/belief and 6 - sexual orientation. Additional issues specific to a country or region are based on the respective history and culture. 3. LEGISLATION IN EUROPE In 2002 and 2003, the European Union adopted three anti-discriminationdirectives which have to be implemented in National legislation in all 25 EU memberstates. These directives cover all six core dimensions of diversity and ban directand indirect discrimination, as well as harassment.
34. D. Diversity 4. DIVERSITY MANAGEMENT Changing demographics, shifting employee attitudes, and the emergence of a global economy make itincreasingly necessary for companies and other organizations to develop effective strategies (strategic plan) for managing diversity in the workplace. Every organization must develop a training plan that supports its diversity intervention goals. DIVERSITY IS BECOMING A NECCESITY The data presented before showed some of the areas, where diversity has or will become a necessity for employers.
35. D. Diversity 4a. DIVERSITY INITIATIVESdeveloped to meet an organization’s to increase the organization’sinclusion goals. A typical goal is to A DIVERSITY INITIATIVE capacity to take full advantage ofdevelop cultural competency among is a strategic plan its present and future diversity.employees to increase productivity. 1. Better return on investment in human capital 2. Attracting the best and the brightest 3. Increased creativity ORGANIZATIONS that meet the 4. Capitalizing on a diverse market CHALLENGES and CAPITALIZE on the opportunities presented by 5. Increased productivity a diverse workforce will show 6. Increased ability to compete in the world market bottom-line results and gain a 7. Capitalize on available human resources significant edge over the 8. Learn to improve diversity and inclusion capabilities competition. 9. Receive recognition from competitors 10. Balance social, moral, and economic concerns in a single effort
36. D. Diversity 5. GOALS FOR HRD Having all leaders within Inspiring diversity in There are twoan organization become the work force. Workersvisibly involved in programs main want to belong to anaffecting organizational goals for HRD organization that believesculture change and to achieve in them.evaluating and articulatingpolicies that govern diversity c Must experience the changes their organization will need to go through to seriously commit to diversity and inclusion. i Must be trained or coached themselves in order to become fully aware of their own diversity-related shortcomings, work through them, and model cultural competency for others.It is difficult to promote diversity inan organization that does not have d Understand that promoting diversity will lead to tension in the organization, but the leadershipsfull support. are willing to manage the organization through it as it obtains its goal. Therefore the LEADERS a Are placed on the diversity team or committee, and would ideally lead the team (given that they have the expertise). Seek to consider the diversity goals in all major decisions about the organizations.
37. D. Diversity6. FOCUSING IN SPECIFIC DIVERSE INITIATIVES. CULTURAL COMPETENCES DEVELOPMENT (DIVERSITY TRAINING) STRATEGIES TO RECRUIT AND RETAIN TALENT (DIVERSE EMPLOYEES) MANAGING MULTICULTURAL TEAMWORK or Managing Culturally Diverse Work teams. GENDER DIVERSITY IN THE WORKFORCE (women in management positions)
38. D. Diversity 7. CULTURAL COMPETENCY (a) awarenes, CULTURAL COMPETENCY (CC) is a form CC has four components. (b) attitude, of social intelligence. Culturally competentpeople have the knowledge and skills needed (c) knowledge, to engage in meaningful and productive encounters across cultures. (d) skills. An ability to empathize with the unique perspective of different members of the organization An ability to listen to others An ability to lead people An ability to tolerate the ambiguity that results from not knowing what SKILL COMPONENTS that are the rules are or what is expected of ones in unfamiliar situations. characteristic of An ability to know when ones personal limitations interfere with ones intercultural ability to interact with someone who is different. competency. competency An ability to take risks An ability to see value in each and every culture to the point that learning about cultural differences becomes a way of life. An ability to address the challenges of intercultural interactions,
39. D. Diversity 7a. DIVERSITY TRAINING  INCREASE AWARENESS and The purpose of understanding of DIVERSITY TRAINING is a fundamental workplace diversitycomponent of a diversity initiative and DIVERSTY TRAINING  DEVELOP concrete SKILLSrepresents the opportunity for the among the stafforganization to inform and educate senior that will facilitatemanagement and staff about diversity. enhanced productivity of and communications among all employees An ORGANIZATION and INDIVIDUALS What it can do is  CREATE/RAISE awareness DIVERSITY TRAINING  IMPART knowledge cannot change  TEACH skills SYSTEMS or remove ORGANIZATIONAL BARRIERS
40. D. Diversity 7b. TRAINING PROGRAMS (Examples)  Recruiting and Retaining Diverse Employees. workshop provides attendees withstrategies and skills to recruit and retain women, people of color, and people with disabilities. Diversity Council Training. Workshop provides participants with the knowledge and skillsto plan, organize, and operate effective diversity councils or committees. Diversity Awareness Workshop. workshop that creates awareness of demographicchanges in the workforce, identifies cultural barriers, and outlines strategies to address diversity-related issues. Diversity Management Training. workshop for company leaders, managers, andsupervisors that focuses on creating organizational structures, communication mechanisms, anddecision-making processes that enhance organizational productivity and provide opportunities forall employees to perform to their full potential. Leading change: Diversity leadership skills for organizational change facilitatesdiversity skill development and leadership capacity to fulfill the goals of your diversitive intitiative. ……...
41. D. Diversity 8. STRATEGIES TO RECRUIT AND RETAIN TALENT (DIVERSE EMPLOYEES)  Keeping and recruiting good employees is vital to company`s success.  Therefore companies must incorporate strategic plan into their recruiting functionto attract talent at all levels.  and must develop strategies to retain talent.  Many RESEARCHES validate the reality that the manager plays a significant role ininfluencing the employee`s commitment level and retention. There are a number of MANAGERRETENTION PRACTICES.
42. D. Diversity 9. MANAGING MULTICULTURAL TEAMWORK For managers everywhere, • Miscommunication and misunderstandings managing culturally diverse work CULTURE may Differences in •Adversity and hostility •Exclusion and ostracism teams often presents conflict and cause •Team is divided into cliques that work misunderstandings and with •separately outside of ‘team meetings’ •Continuous interrupting, ignoring or over-rulingenormous negative impact on morale comments made by one member of the team and productivity. •Comments/jokes about an individual’s different habits, beliefs, manner of speaking, etc. MANAGERS and TEAM LEADERS will need to learn how to interpret signs of troubled or stressed employees, as well as find ways to effectively address any issues that arise and support these employees. There will be a need to develop AWARENESS, COMMUNICATION SKILLS and EDUCATION.
43. D. Diversity 10. WOMEN IN MANAGEMENT POSITIONS  The last priority is to promote gender diversity. The number of female employees, inparticular in management ranks, is still lower than the proportion of women attending the schoolsand the universities. This can be partly attributed to the industrial nature of the operations. Womenare still a long way from achieving equal representation in European companies and remain hardto find in management positions. The companies •Promote the professional progress of women must: RECRUITING through all their career phases. •Promote sustainable and innovative IS A KEY DRIVER professional career paths. in this process •Recognise the necessity of diverse management approaches.
44. E. Proposal of ETDF tasks about Diversity COMMUNITY FINANCIAL INSTRUMENTS There are already a number of existing Community finacial instruments and initiatives (such asEQUAL, URBAN II, SOCRATES, LEONARDO DA VINCI, YOUTH and CULTURE 2000) that directlyor indirectly support issues related to diversity. Coherence and synergy between all EU initiatives is necessary to avoid overlaps to drawmaximum benefit from results obtained.
45. E. Proposal of ETDF tasks about Diversity ON CONCLUSION DIVERSITY is a reality in labor markets and customer markets today. To be successful in working with and gaining value from this diversity requires a SUSTAINED, SYSTEMIC APPROACH and LONG-TERM COMMITMENT. Success is facilitated by a perspective that considers diversity to be an opportunity for everyone in an organization to learn from each other how better to accomplish their work and an occasion that requires a supportive and COOPERATIVE ORGANIZATIONAL CULTURE as well as GROUP LEADERSHIP and PROCESS SKILLS that can facilitate effective group functioning. Organizations that investtheir resources in taking advantage of the opportunities that diversity offers should outperform those that fail to make such investments.