The Challenge of Managing Diverse Teams
Woolworths, a leading Australian supermarket and retail giant, is a brand renowned for its extensive product range and consumer preference. It’s celebrated for its commitment to the society on diversity and inclusion within the workplace as well as the marketplace. Managing diverse teams in a company as large and diverse as Woolworths is no small feat. In this blog, we will further explore the challenges of diversity and how Woolworths Australia embraces it.
The Value of Diversity
Diversity has been buzzing for pretty much the entire millennium century thus far, class actions suits over the course of 40 years has re-affirmed that it is not just a buzzword; but in fact an essential aspect of a forward-thinking organization. Over a period of 15 years, Merril Lynch had paid out over half a billion dollars from diversity related class action lawsuits, (Dobbin, 2023), and that was just the tip of the iceberg. Just under 20 years, two billion dollars has been paid out as settlements on diversity related cases, (Hirsh, 2019), further emphasizing the need for a thorough evaluation of how organizations perceive and value diversity.
What is diversity?
Diversity encompasses individuals from different backgrounds, cultures, ages, genders, and perspectives. Diversity enhances innovation, creativity, and problem-solving, and fosters an inclusive environment that appeals to a broader customer base as well as the public. By embracing diversity, an organization ensures its workforce mirrors the diverse society it serves while also bringing a wealth of benefits along with it. Diversity starts right at the beginning of any organization, which is in recruitment!
Challenges of Diversity during Recruitment
While wallstreet listed companies scramble to protect their interests through the introduction of arbitration contracts to new hires agreeing not to join class action suits, naturally, the value of diversity seems diluted with self-interest of protecting the business instead of embracing it. To manage a diverse team, you must first assemble one. With such policies being introduced, some employees are hesitant to join a new firm perceiving that there could be too many diversity related issues in that firm. Organizations should first start to focus on inclusive recruitment practices to ensure that their workforce reflects the diverse fabric of society they serve.
Recognizing the challenge above, Woolworths has successfully established an inclusion strategy with a focus on five key pillars: gender, LGBTQ+, First Nations, disability, and cultural inclusion. the organization actively recruits from a wide range of sources, promote job opportunities in underrepresented communities, and engage with various networks to access a broad talent pool. Their transparency of practices includes a publicly available report, Inclusivity in recruitment means that Woolworths offers equal opportunities to all, regardless of their background. They take steps to eliminate unconscious biases in hiring processes, such as diverse interview panels and structured interview questions. Woolworths goes the extra mile to accommodate people with disabilities, ensuring they have the same opportunities as other candidates. In addition, they have made substantial progress towards their 40% gender representation goal in senior leadership positions, achieving 39.8% representation in Australia and 38.7% in New Zealand, (“Full Issue PDF,” 2023, p. 20).
Training, Development and Resource Groups
Once a diverse team is in place, training and development will be a crucial area for investment. It is easier to fallback to cultural norms when there is no continuous development in place. Some individuals and organizations may resist diversity initiatives due to fear of the unknown, a desire to maintain the status quo, or concerns about perceived threats to existing power structures. Organizations would need to continuously create awareness among their leaders and employees and this can be achieved with regular training as well as open and active forums on diversity.
Analysing Woolworths believe system and culture, they actively provide their employees with access to various training programs that address diversity and inclusion, cultural competence, and other related topics.
These programs not only equip their team members with the knowledge they need to work effectively with colleagues from diverse backgrounds but also contribute to personal growth and career development. Woolworths believes that an investment in training and development is an investment in the success and satisfaction of their employees. (Inclusive Workplace, n.d.)
To further support diversity and inclusion, Woolworths encourages the formation of Employee Resource Groups (ERGs). These groups allow employees with common backgrounds or interests to connect and support one another. ERGs provide a platform for sharing experiences, discussing challenges, and suggesting improvements in the workplace.
The Leadership Commitment
Leadership plays a pivotal role in managing diverse teams effectively. It’s not just about having a diverse team, it’s about promoting an inclusive environment where everyone feels valued and heard. Senior leaders set the tone by demonstrating their commitment to diversity and inclusion through their words and actions.
Woolworths ensures that leaders are not only accountable for their own behaviours but also for fostering an inclusive culture within their teams. They receive training in diversity and inclusion and are expected to lead by example. By having leadership commitment at all levels, Woolworths creates an environment where diversity is celebrated, and inclusion is the norm.
Conclusion
While societies or organizations may not be able to outlaw “bad behaviour”, there are methods in place to aid organizations in managing these challenges, an example is to hire a Diversity Manager. Organizations that appoint Diversity Managers see an increase of 7% to 18% increase of underrepresented groups. When people know that they would have to explain the decision they made, they are less likely to act bias, (Dobbin, 2023). However, the main point would be is to encourage and increase awareness that people should self-check the decision which they are about to make enabling some level of self-thought on unconscious-bias and being aware whether it is the right thing to do.
Managing diverse teams is not just a corporate responsibility; it’s a strategic advantage that drives innovation and helps a company connect with its customers. Woolworths Group’s efforts to create a truly inclusive workplace are evident in their commitment to diversity, equity, and inclusion across various dimensions. Their ‘Together starts with you’ initiative, gender equity initiatives, and proactive stance on inclusivity demonstrate their dedication to fostering a workplace where everyone feels valued and heard. Woolworths Australia’s approach to managing diverse teams, with a focus on inclusion, sets an example for other organizations looking to embrace diversity and create an inclusive environment in the workplace. In doing so, they contribute not only to the well-being of their employees but also to the broader goals of their customers and society as a whole.
Organizations do not need to re-invent diversity, they just need to learn and apply what is already available to manage diversity challenges and start leading by example.
References
Full Issue PDF. (2023, February). JACC: Case Reports, 7, 20. https://doi.org/10.1016/s2666-0849(23)00012-8
Inclusive workplace. (n.d.). https://www.woolworthsgroup.com.au/au/en/sustainability/People/inclusive-workplace.html
Hirsh, E. (2019, November 14). Do Lawsuits Improve Gender and Racial Equality at Work? Harvard Business Review. https://hbr.org/2019/11/do-lawsuits-improve-gender-and-racial-equality-at-work
Dobbin, F. (2023, August 23). Why Diversity Programs Fail. Harvard Business Review. https://hbr.org/2016/07/why-diversity-programs-fail
Pedulla, D. (2022, August 2). Diversity and Inclusion Efforts That Really Work. Harvard Business Review. https://hbr.org/2020/05/diversity-and-inclusion-efforts-that-really-work