Survey Says Diversity Contributes to the Bottom Line

Human resources managers say that promoting diversity within the workforce contributes to the company’s bottom line, according to the Society for Human Resource Management’s 2005 Workplace Diversity Practices Report. But only 38 percent of managers surveyed say they measure the impact of their diversity efforts on return on investment. Large companies are more likely to measure diversity’s ROI.

Seventy-eight percent of human resources managers surveyed say their companies’ diversity initiatives reduced costs associated with turnover, absenteeism and low productivity.

Similarly, 74 percent say that their diversity efforts have improved the company’s bottom line by decreasing complaints and litigation and improving the organization’s public image.

Eighty-nine percent of employers look at how many diverse employees have been recruited to determine the effectiveness of their initiatives. Seventy-five percent say they look at the number of diverse employees retained, while 72 percent look at the number of diverse employees at all levels of the company.

The most prevalent diversity practice used by companies is allowing employees to take unpaid leave for religious or cultural holidays.

Only 12 percent of HR professionals say they tie diversity to management compensation, which the report says is the one of the most effective ways to promote diversity goals.

—Jessica Marquez