Retailers tackle diversity problem

diversity in retailResearch shows that companies with diverse teams are more profitable than their competitors, but despite the increased rhetoric and awareness of the importance of diversity in leadership positions in recent years, many organisations, including retail companies, have not made significant progress towards this goal.

Some of the industrys foremost speakers on the subject, including Paul Zahra, former head of David Jones, Dominique Lamb, chief executive of the National Retail Association, Mark Coulter, chief executive of Temple & Webster, and Anne Hurley, founder and CEO of James & Co, discussed the issue at an industry event in Melbourne last week, alongside diversity expert Sandy Caspi Sable of Satellite Consulting.

The event, organised by the National Online Retailers Association (NORA) and Salesforce, touched on the gender imbalance and pay gap in retail at the c-suite and board level, but focused more broadly on the concept of cognitive diversity, or diversity of thinking, experience and approach, which Caspi Sable said is the way organisations should be thinking about diversity today.

When organisations talk about diversity, they often talk about gender, age, skin colour and maybe ethnicity, but that is the tip of the iceberg, she said at the event.

We talk about these things because theyre visible characteristics, but the problem is theyre only telling you a fraction story of what diversity meansall the ways were different from each other.

Caspi Sable cited research that shows people rate their life experience and thinking style as the two most valuable traits they bring to an organisation, well above traits like gender. She went on to say that while it is critical for organisations to think about gender and racial diversity in order to achieve cognitive diversity, alone they are not sufficient.

Caspi Sable also pointed out that leaders have little hope of seeing the benefits of diversity in their organisation, unless they also focus on inclusion, since most people have a deep-rooted affinity bias, or a tendency to prefer those who look and act like them.

We are inherently tribal, and what happens when you bring in new tribes? They want to kill each other, Caspi Sable said.

She said that most people dont consciously exclude, but they need to consciously include.

That means leaders need to be aware of their own affinity bias and understand how it impacts their relationships with others, especially when it comes to recruitment, performance reviews and promotions.

The quota debate

Increasingly, organisations are considering how quotas may be used to overcome peoples innate biases in hiring decisions.

When I joined PwC I was completely against quotas, but Im a total convert now, Zahra said at the event.

I now see why its so important because unless something is hardwired into the organisation, you wont see change. Unless its measured, you wont see change, he said.

Coulter added that leaders may need to make a few uncomfortable decisions along the way if they want to overcome traditional social hierarchies, while Lamb pointed to the success of quotas in Scandinavia to achieving gender equality. However, she cautioned that businesses should consider the broader implications before setting diversity targets.

A lot of the time, different leaders that we havent seen before arent necessarily set up for success. A lot of businesses might put in place a quota, but they have no idea how to manage diversity, she said.


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