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As organizations become more aware of both the advantages and inevitability of
diversity in the workplace, they are finding that the advantages do not happen
automatically—sensible management of diversity is necessary.

For example, failure to manage the potential difficulties associated with diversity can
lead to the following problems:

-Higher turnover costs: The turnover rate for African Americans in the United States is
40% higher than for whites, and women turn over twice as often as men. The lack of
opportunity for career growth is a primary reason why professionals and managers in
these groups leave their jobs.

-Higher absenteeism costs: Similarly, absenteeism is often higher for women and for
minority-group men. This costly absenteeism is related to many minority individuals
feeling that they are not being valued by the organization.

For women workers who are mothers, the lack of work/family balance also has
significant effects on absenteeism.

-Lawsuits: Employee plaintiffs win two-thirds of the discrimination lawsuits filed. The
average jury award is $600,000. Failure to train and monitor managers’ behaviors in
this area can be quite expensive.

-Failure to compete well for talent: Recruiting and retaining diverse employees is
more difficult. Companies cited as the best places to work for women and minorities
tend to be more successful in attracting and retaining the best employees in these
labor market segments.

-Reduced organizational performance: The often-mentioned potential business
advantages of diversity—better marketplace understanding, creativity and problem
solving, and global effectiveness—simply do not happen unless the diverse workforce
is given the opportunity and means to contribute to these goals.

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Managing diversity

  • 1. As organizations become more aware of both the advantages and inevitability of diversity in the workplace, they are finding that the advantages do not happen automatically—sensible management of diversity is necessary. For example, failure to manage the potential difficulties associated with diversity can lead to the following problems: -Higher turnover costs: The turnover rate for African Americans in the United States is 40% higher than for whites, and women turn over twice as often as men. The lack of opportunity for career growth is a primary reason why professionals and managers in these groups leave their jobs. -Higher absenteeism costs: Similarly, absenteeism is often higher for women and for minority-group men. This costly absenteeism is related to many minority individuals feeling that they are not being valued by the organization. For women workers who are mothers, the lack of work/family balance also has significant effects on absenteeism. -Lawsuits: Employee plaintiffs win two-thirds of the discrimination lawsuits filed. The average jury award is $600,000. Failure to train and monitor managers’ behaviors in this area can be quite expensive. -Failure to compete well for talent: Recruiting and retaining diverse employees is more difficult. Companies cited as the best places to work for women and minorities tend to be more successful in attracting and retaining the best employees in these labor market segments. -Reduced organizational performance: The often-mentioned potential business advantages of diversity—better marketplace understanding, creativity and problem solving, and global effectiveness—simply do not happen unless the diverse workforce is given the opportunity and means to contribute to these goals.