Read The Times Australia

Daily Bulletin

How racism and a lack of diversity can harm productivity in our workplaces

  • Written by: Yin Paradies, Professor of Race Relations, Deakin University
image

Beyond the requirement for diversity management and training in workplaces, Australian businesses also need to grapple with implicit racial bias and discrimination.

A review of multiple studies indicates exposure to racism is detrimental to performance. This is due to its impact on job attitudes, mental and physical health, as well as organisational behaviour. Research also indicates that, by inflicting job stress, racism can reduce productivity.

Even where diversity is unrelated to business performance, too much is at stake for companies to simply ignore their team composition.

Diversity itself is a demographic fact, rather than an intrinsic “good” or “bad” thing. As such, it is the underlying social, economic and political climate in a country that determines diversity’s impacts in society.

Stable and unstable nations

The effect a country’s cultural diversity has on its economic performance is mixed. It depends on the nation’s stability, we have found.

Ethnic diversity can have a detrimental effect in countries with a climate of poverty, economic inequality, political instability, corruption and a weak rule of law. In such countries, ethnic fragmentation has the potential to produce conflict and civil war, arising from competition for resources.

Two studies that synthesised the evidence on the relationship between diversity and productivity found that, at worst, diversity had no overall impact on team performance.

Nonetheless, some studies indicate that diversity can lead to depletion of social capital (by enhancing in-group/out-group distinction and reinforcing in-group solidarity), emotional conflict and team performance.

Conversely, in a stable social environment, diversity has a productivity dividend. This is particularly reflected in the consensus that diverse regions enjoy better productivity and hence higher wages. These benefits are largely due to diversity providing a variety of skills and a wider talent pool.

Research abounds indicating that a diverse workplace delivers increased product and process innovation, creativity and problem solving. This leads to sound business opportunities by ensuring competitive advantage.

What do businesses need to do?

Australian workplaces do not yet reflect the level of cultural and ethnic diversity in the broader community. But they are becoming increasingly diverse.

As a result, Australian businesses have recognised that managers require an understanding of different cultures to effectively lead their diverse employees and teams. Diversity management policies are also seen as key for business success, both domestically and internationally.

In the absence of measures that positively tackle diversity, the potential for cultural misunderstanding in the workplace is high. This can lead to heightened levels of racism, xenophobia and discrimination.

At a personal level, our research, which reviewed more than 300 studies, conclusively showed direct associations between racism and a range of mental illnesses, including depression and anxiety. And if you apply the international evidence to an Australian context, people’s exposure to racism accounts for a 3% loss in average annual gross domestic product, we estimate.

The impact of exposure to racism in the workplace can be substantial: it can affect a person’s health and career outcomes.

For organisations, racism, whether overt or subtle, creates unhealthy workplace conditions. By creating tension in the workplace, it can damage organisational image, reduce synergy and hamper productivity. But despite such negative impacts, there is a concerning evidence that racism and racial bullying are quite prevalent in the workplace.

In a large UK study, which surveyed 24,457 people, 28% of the respondents reported that they “directly experienced or witnessed racial harassment or bullying from their manager” over a period of five years. This stands in contrast to the universal awareness of the damaging impact of workplace bullying and racial harassment.

Workplace cultural diversity and productivity are closely related. But the potential benefits can only be realised if organisations foster a conducive atmosphere for their diverse workforce.

Workplace health and safety, including protection against discrimination, are vital for productive and rewarding performance, given the clear evidence of the detrimental impact racism has at work.

Authors: Yin Paradies, Professor of Race Relations, Deakin University

Read more http://theconversation.com/how-racism-and-a-lack-of-diversity-can-harm-productivity-in-our-workplaces-73119

Business News

How Businesses Can Prepare for Unexpected Power Outages

Power failures can occur quickly. The supply may be interrupted by bad weather, issues with the electricity network, damaged equipment or local construction work. This can be just a hassle for a fam...

Daily Bulletin - avatar Daily Bulletin

How Chatswood Tutoring Can Fit Into a Student’s Weekly Routine

Create a Predictable Weekly Structure A consistent weekly routine can make study easier to manage when students are balancing several subjects. Chatswood tutoring can provide a fixed learning point a...

Daily Bulletin - avatar Daily Bulletin

The Rise of Digital Marketplaces in the Australian Trade Sector

For decades, the Australian trade and construction sector operated almost entirely on word-of-mouth recommendations and local community networks. Small business owners typically relied on local newspa...

Daily Bulletin - avatar Daily Bulletin

How Immigration Lawyers Can Help

Introduction Visa decisions can shape employment, family life, study plans, travel, and future residence. A small omission can lead to delay, added expense, or refusal. Immigration lawyers assess l...

Daily Bulletin - avatar Daily Bulletin

How Industrial Drying Equipment Supports Efficient Processing

Many industrial processes require moisture to be removed from compressed air, products or process materials before they move to the next stage. Excess moisture can affect equipment performance, produc...

Daily Bulletin - avatar Daily Bulletin

Practical Ways a Whiteboard Can Improve Workplace Communication

Effective communication helps teams stay organised, share ideas and keep track of important information. While digital tools are now common in many workplaces, a whiteboard continues to provide a simp...

Daily Bulletin - avatar Daily Bulletin

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

Why Choosing a Professional Florist Melbourne Makes Flower Delivery Impactful

Flowers have a great power to speak when humans cannot express their feelings with right words. Flowers are the best gifts when you are celebrating a birthday or welcoming a newborn child into your fa...

Daily Bulletin - avatar Daily Bulletin

The Business Case for Choosing Australian Fabricators Over Imported Alternatives

For a long time, you might have defaulted to overseas suppliers when sourcing fabricated metal components for a project. The unit price was lower on paper, and the maths seemed straightforward. That...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

How to Vet and Hire the Right Property Expert in the Australian Market

Navigating the Australian real estate market has become a highly strategic exercise. Recent nation...

Moving From Australia to Wellington: The Practical Settling-In Checklist

Wellington has a lot going for it. It's compact, walkable and full of cafes, with a harbour that r...

How to Match Replacement Roof Tiles on an Older Home

Renovating or repairing an existing roof comes with quite a few headaches, and matching the old roof...

Sydney Academy Partnership Targets Talent Development for Travel and Hospitality

VFS Global Academy’s Australian expansion will focus on practical skills and career development thro...

How Strategic Corporate Gifting Boosts Client Retention and Team Morale

As the calendar pushes towards the end of the year, business leaders across Australia begin evalua...

The Importance of Reliable Plumbing Services During Home Renovations

A freshly renovated bathroom can make an ordinary Monday morning feel a little more inviting. The ne...

Backyard Living Options for Campbelltown Homes: What Works Best?

You know that feeling at the end of a long, busy week when all you want is a calm spot outdoors, whe...

Smart Wardrobe Storage Ideas for Small Sydney Apartments and Bedrooms

A well-designed wardrobe is one of the most useful things a home can have. It's meant to keep clothe...

Colorbond Fencing in Australia: Costs, Colours, Rules and What Actually Lasts

Drive through almost any Australian suburb built in the last thirty years and you are looking at the...