Presentación diversidad

DIVERSITY´S IMPACT ON BUSINESS
PERFORMANCE.
MANAGING DIVERSITY & CULTURAL
COMPETENCE DEVELOPMENT

Javier Armaolea
VICEPRESIDENT

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 event
7 SOCIAL AGENDA
People with disabilities
7 THE NEW SOCIAL AGENDA (2005-2010): an essential pillar of the Religious diversity.
EMPLOYMENT
new growth and jobs strategy. Two priorities areas
7 FREE MOVEMENT OF WORKERS/COMMUNITY EMPLOYMENT EQUAL OPPORTUNITIES AND INCLUSION
POLICIES. Equal
 CSR - Corporate Social Responsibility

 DIVERSITY
7 Diversity in Europe 7 Diversity Management 7 Cultural Competence 7 Managing multicultural teamwork
7 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

A. Overview of the Social situation in a EU of 25 member states


1a. 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


1b. POPULATION TRENDS IN THE ENLARGED EUROPEAN
UNION


2. MIGRATIONS

 In the EU-15 countries, positive net migration has been the main driver
of population growth over the last decade which was characterised by decreasing
natural growth.

 Immigration now accounts for three quarters of the net growth in the
population of EU- 15 countries.


3. EDUCATION AND ITS OUTCOMES

 Attainment levels of the population have improved significantly over the
last thirty years, particularly among women. In 2002 77% of young people aged 20- 24
in 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 secondary
education 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 reduced
throughout the Union for the population as a whole.


4a. EMPLOYMENT

 Limited employment growth in the EU- 25 in 2002. In 2002, over 199 million
people were in employment in the Union of 25 Member States, a rise of 11.5 million since
1996

Women still at a disadvantage in the labour market. . In 2002 the female
employment 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 men
compared with 54.7% for women)


4b. EMPLOYMENT


4c. EMPLOYMENT


5. UNEMPLOYMENT

 EU- 15 unemployment: a first increase since 1996. In 2002, the total number of
unemployed 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 higher
than 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. While
women formed around 44% of the EU- 25 labour force, they accounted for practically half
of the unemployed


5a. UNEMPLOYMENT


5b. UNEMPLOYMENT


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 between
social partners increase the chance for employees to be trained.


6b. LIFELONG LEARNING


7. WOMEN IN MANAGEMENT


8. STUDENT MOBILITY


9. DIVORCES


10. MARRIAGES


11. BABIES BORN


12. GAY/LESBIANS PRIDE EVENTS


13. PEOPLE WITH DISABILITIES


14. RELIGIOUS DIVERSITY


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 demand
for skilled labour.
Unemployment: Employers must rethink their employment policies and find new ways to employ young people in
order 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 resource
available.
Student mobility: Employers have to offer multi-cultural work environments and international career paths in order to
utilise skills provided and satisfy high potentials` expectations.
Divorces- Changing values - Divorces in the EU: Corporations have to acknowledge individual lifestyles and create a
work atmosphere that values and supports a multitude of private contexts.
Marriages - Changing values - marriages in the EU : Corporations have to acknowledge individual preferences and
resulting 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 which
also 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 workplace
and in the marketplace, and create all-inclusive environments.
People with disabilities: Employers can tap into the potential of employees and customers with disabilities without
assuming 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.

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 European
employment 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”

Social Affairs.

1b. SOCIAL AGENDA

A wide range of actions are outlined in the Agenda
 Some are targeted at realising Europe's full employment potential by
creating more and better jobs, anticipating and managing change and adapting
to 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 reinforcing
fundamental rights and combating discrimination.
discrimination

There are also initiatives devoted to preparing for enlargement and
promoting international co-operation and making the social dialogue contribute
to meeting the various challenges.

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.

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 poverty
Equal 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.

Social Affairs.

3. FREE MOVEMENT OF WORKERS/COMMUNITY EMPLOYMENT
POLICIES
 EU policy instruments underpinning integration, employment and social
cohesion.
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 European
Commission is exploring the best ways of ensuring that the various European labour
markets are more open to all and enabling everyone to benefit from the new mobility
opportunities.
Action plan for skills and mobility. The Commission proposes the following
action priorities:
• expanding occupational mobility and skills development;
• improving information and transparency of job opportunities;
• facilitating geographical mobility.

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 whereby
companies integrate social and environmental concerns in their business operations and
in their interaction with their stakeholders on a voluntary basis.

The European Union is concerned with corporate social responsibility as it
can be a positive contribution to the strategic goal decided in Lisbon: ‘to become
the most competitive and dynamic knowledge-based economy in the world, capable of
sustainable economic growth with more and better jobs and greater social cohesion’.

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, diversity
encompasses an infinite range of individuals' unique characteristics and
experiences, including communication styles, physical characteristics such as
height and weight, and speed of learning and comprehension.

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-discrimination
directives which have to be implemented in National legislation in all 25 EU member
states. These directives cover all six core dimensions of diversity and ban direct
and indirect discrimination, as well as harassment.

D. Diversity

4. DIVERSITY MANAGEMENT
Changing demographics, shifting employee attitudes, and the emergence of a global economy make it
increasingly 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.

D. Diversity

4a. DIVERSITY INITIATIVES

developed to meet an organization’s to increase the organization’s
inclusion goals. A typical goal is to A DIVERSITY INITIATIVE
capacity to take full advantage of
develop 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

D. Diversity

5. GOALS FOR HRD
Having all leaders within Inspiring diversity in
There are two
an organization become the work force. Workers
visibly involved in programs main
want to belong to an
affecting organizational goals for HRD
organization that believes
culture change and to achieve in them.
evaluating and articulating
policies 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 in
an organization that does not have d Understand that promoting diversity will lead to tension in the organization, but
the leadership'sfull 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.

D. Diversity

6. 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)

D. Diversity

7. CULTURAL COMPETENCY
(a) awarenes,
CULTURAL COMPETENCY (CC) is a form
CC has four components. (b) attitude,
of social intelligence. Culturally competent
people 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,

D. Diversity

7a. DIVERSITY TRAINING
 INCREASE AWARENESS and
The purpose of understanding of
DIVERSITY TRAINING is a fundamental workplace diversity
component of a diversity initiative and DIVERSTY TRAINING  DEVELOP concrete SKILLS
represents the opportunity for the among the staff
organization to inform and educate senior that will facilitate
management 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

D. Diversity

7b. TRAINING PROGRAMS (Examples)

 Recruiting and Retaining Diverse Employees. workshop provides attendees with
strategies and skills to recruit and retain women, people of color, and people with disabilities.
Diversity Council Training. Workshop provides participants with the knowledge and skills
to plan, organize, and operate effective diversity councils or committees.
Diversity Awareness Workshop. workshop that creates awareness of demographic
changes in the workforce, identifies cultural barriers, and outlines strategies to address diversity-
related issues.
Diversity Management Training. workshop for company leaders, managers, and
supervisors that focuses on creating organizational structures, communication mechanisms, and
decision-making processes that enhance organizational productivity and provide opportunities for
all employees to perform to their full potential.
Leading change: Diversity leadership skills for organizational change facilitates
diversity skill development and leadership capacity to fulfill the goals of your diversitive intitiative.
……...

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 function
to attract talent at all levels.

 and must develop strategies to retain talent.

 Many RESEARCHES validate the reality that the manager plays a significant role in
influencing the employee`s commitment level and retention. There are a number of MANAGER
RETENTION PRACTICES.

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-ruling
enormous 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.

D. Diversity

10. WOMEN IN MANAGEMENT POSITIONS

 The last priority is to promote gender diversity. The number of female employees, in
particular in management ranks, is still lower than the proportion of women attending the schools
and the universities. This can be partly attributed to the industrial nature of the operations. Women
are still a long way from achieving equal representation in European companies and remain hard
to 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.

E. Proposal of ETDF tasks about Diversity

COMMUNITY FINANCIAL INSTRUMENTS

There are already a number of existing Community finacial instruments and initiatives (such as
EQUAL, URBAN II, SOCRATES, LEONARDO DA VINCI, YOUTH and CULTURE 2000) that directly
or indirectly support issues related to diversity.

Coherence and synergy between all EU initiatives is necessary to avoid overlaps to draw
maximum benefit from results obtained.

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 invest
their resources in taking advantage of the opportunities that diversity offers should outperform
those that fail to make such investments.

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