Recent survey shows reduced costs and improved profitability are key results of well-managed workforce diversity

Tánaiste Michael McDowell, Lucy Gaffney of the National Action Plan Against Racism, Niall Crowley, Equality Authority Ireland and Tom McCarthy of the Irish Management Institute

Tánaiste Michael McDowell, TD, on Monday launched the Cultural Diversity BizLab initiated by the Irish Management Institute (IMI), in conjunction with the National Action Plan Against Racism (NPAR) and the Equality Authority of Ireland.  Cultural Diversity is the newest theme for the IMI’s established BizLab programme, which is a think tank and dedicated action research project initiated to develop and implement solutions to address management and organisational issues. 

Cultural diversity has been selected as the focus of this Bizlab initiative due to the growing cultural diversity in the workforce in Ireland.  This change presents both opportunities and challenges for Irish based employers.  International case studies illustrate that companies which manage cultural diversity and draw on the uniqueness of their employees perform better.  The most recent Society for Human Resource Management (SHRM) Survey shows that culturally diverse workforces produce measurable results. 

In the survey, 78% of HR professionals said that cultural diversity practices have helped reduce costs while 74% said it improved the financial bottom line.  Irish research has also reinforced the business case for a planned and systematic approach to equality in a context of growing diversity. This found that the presence of an equality policy in a company was unambiguously associated with lower levels of workplace stress and higher levels of workplace satisfaction and of organisational commitment.

The Cultural Diversity BizLab, which brings together research and corporate learning, will shape the design of models of best-practice for Irish organisations involved in managing cultural diversity workforces.  It will also provide a much-needed solution-driven research resource for managers through the IMI Faculty and its research team.

Currently, the IMI is researching the business case for cultural diversity management and exploring best practice.  Key business partners will then be invited to participate in a variety of BizLab seminars and events.  Finally the BizLab will develop a measure to assess the impact of the various Cultural Diversity models and practices developed and implemented by participant organisations.  The initial project timeline to first round completion of results will be from launch (today) to the end of 2008.

“International staff are fuelling Ireland’s current strong economy, and the Cultural Diversity BizLab is an essential tool in assisting managers and human resource professionals to maximise the productivity of their organisation and to tap into the benefits of a culturally diverse workforce,” said Tánaiste McDowell, at the launch. 

Tom McCarthy, Chief Executive, IMI added: “The purpose behind the project is to determine and define cultural diversity from an informed position, and then, in collaboration with Irish Industry, produce strong quantitative measures which will benefit Irish organisations”.

“NPAR sees this Cultural Diversity BizLab as an essential and over-due resource for Irish managers who need to evolve and develop their practices to be in a position to harness the changes in the Irish workforce for the good of their companies and the communities in which they are based,” said Lucy Gaffney, Chair of the Steering Group of NPAR. 

“Successful management of cultural diversity is built upon the premise of equality, in a context where organisations are planned and systematic in their approach to workplace equality. In this way the management of cultural diversity achieves equality for Black and minority ethnic employees and thus secures their full contribution to business success. The Cultural Diversity BizLab offers a unique opportunity to place Irish companies at the cutting edge of business practice that achieves employee well being, supports business creativity and achieves business success,” said Niall Crowley, Chief Executive, Equality Authority Ireland.