Short-term racial hiring goals are planned and expected to remove deep-rooted and age-old diversity gaps. The Black Lives Matter movement has compelled some of the largest corporations to set concrete diversity hiring quotas. Will this remedy the lack of diversity in organizations?
At least half a dozen companies have shared that they have adopted workforce quotas in recent months, Bloomberg reportsOpens a new window . These companies include Wells Fargo & Co., which said it would increase Black leadership to 12% and has just settled federal allegations of hiring bias, Ralph Lauren Corp., which aims to make 20% of its global leaders people of color, and Delta Air Lines Inc., where currently 7% of the top 100 are Black, but the company plans to double the percentage of Black officers and directors by 2025.
In many situations, it is employee pushback that has driven this response. Earlier this year, a letter by more than 100 employees to the chairman of Estee Lauder led the company to promise that it would enable the population parity of Black employees within the next five years.
But diversity hiring often fails.
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Why Diversity Hiring Fails
Diversity hiring initiatives have mixed results. And it is crucial to assess the reasons why diversity hiring quotas don’t yield the results expected from them.
Lack of clarity
A significant reason for the failure of diversity hiring goals is the lack of clarity with respect to the objectives. Vague objectives make it more difficult for managers and hiring teams to understand and then work toward the targets.
For instance, in an internal letter obtained by CNBCOpens a new window , University Programs employees of Google asked for more clarity around diversity goals and in discrepancies in roles, promotions, and pay.
Further, hiring without objectives may result in low attrition as well. For example, the attrition rate of Google’s Black U.S. employees has remained stagnant at 12% since last year. This is higher than the average Google employee. When this is applied in the context of gender, Black women have shown a spike in attrition from last year, up 18%, according to the company’s 2020 diversity reportOpens a new window .
The lack of clarity can be addressed through clear communication, adequate training, and investment in the right tools. For instance, Crosschq’s automated reference checks are aimed at reducing the unconscious bias that creeps into the standard reference check process.
Lack of empowering culture for underrepresented groups
Hiring based on quota can often result in token appointments. In February 2020, Goldman SachsOpens a new window announced that it would only take startups public if they had at least one diverse board member. While these steps by external stakeholders are essential, it might not lead to real inclusion and diversity across all levels of the organization. The recognition and self-awareness of bias is critical to make meaningful diversity hires. Training hiring teams in courses such as those provided by Affirmity and other solution providers can have some impact on the overall process of diversity hiring and streamline it.
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Quotas Are Great, But Not for the Long Term
Diversity hiring targets are a quick fix. They may result in creating a diverse talent pool at the entry level, but without inclusion, these diversity hiring targets do little for an organization, especially at the leadership rung. Balanced diversity ratios will have a business impact only when they exist from bottom to top, for all roles, and with inclusive workplace culture.