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Workplace Diversity in a Down Economy

What is the status of diversity initiatives in an unstable economy?
“This is where the rubber meets the road” said Frank McClosky, vice president of diversity for Georgia Power in a recently published article for SHRM Online.* “It’s amazing how diversity initiatives are so important during good economic times, but drop off during bad times. During the next 18 months we’re all going to have to take an honest look at our diversity initiatives; are they built to last, or are they just nice, but not really required?” In fact, economically challenging times may be the worst possible time to scale back on diversity and inclusion efforts.

In harder times the tendency is to cut back on people oriented services in favor of direct revenue generating activities, but that can be shortsighted. Properly managed, diversity and inclusion initiatives are key to helping companies reach their business objectives, and importantly, make talented employees feel more valued and important.

The SHRM article points out that a shaky economy can actually have a positive impact on diversity, forcing companies to get really succinct and focused on how diversity and inclusion enable them to reach their goals. In tougher times, organizations are most likely to apply funds to services and tools that address specific problem areas and help them meet specific diversity related objectives, for example, targeting groups that are directly responsible for getting more business, driving down costs and minimizing the risk of employee relations problems, (like marketing, customer service, sales and HR.)

SHRM data gathered in October of last year does seem to indicate general reductions in diversity initiatives. 39% of the 450 HR professionals polled said they have cut spending on training not directly related to the core business such as anti-harassment and diversity training, while one in 10 respondents said they had decreased their spending on recruitment initiatives targeted at increasing the diversity of their workforce.

“All organizations have to keep their eyes on the ball and recruit, retain and address the increasingly global world,” according to Elizabeth Moore of the law firm Nixon Peabody, LLP. “It’s not the amount that is spent on diversity that is the real issue, it’s whether the diversity activities support the organization’s ability to compete.”

Throughout 2009, companies will invariably tighten their diversity budgets and be very strategic about their efforts. “It’s a true sign of the commitment of the organization to diversity and inclusion when the economy starts to take a dip,” said Doug Harris, owner of The Kaleidoscope Group. “Companies will scrutinize the qualifications of their diversity consultants to be sure they have the skills the company needs,” he said.

I watch the trends in diversity recruitment rather closely. From the beginning, CPGjobs has been dedicated to workplace diversity, not only through our support and association with premier organizations like the Network of Executive Women and the California Diversity Council to name a few, but also as a core part of our mission as an employment services organization.

Our recently announced partnership with Lee McDuffey and his company Diversity Search, Inc. further cements our commitment to workplace diversity and allows CPGjobs to provide exceptional diversity recruitment, consulting and training services to our clients through an experienced industry leader. I specifically chose Diversity Search as our partner because they are not only very successful in placing candidates; they also have an exceptional 91% three-year retention rate and nearly 20 years experience developing effective diversity training initiatives for their CPG clients. You can learn more about Diversity Search in our recent media release.

By 2050, the Bureau of Labor Statistics says that white, non-Hispanic workers will decrease their presence in the U.S. workforce by nearly 20%, while women will increase their share by 48% and Latinos and African Americans will occupy 24.3% and 14% respectively. These are statistics that world-class organization cannot afford to ignore…especially during these times.

If you are interested in rethinking your existing diversity strategies or creating diversity initiatives custom-built to the specific needs of your organization, I encourage you to give us a call. During good times and not so good times, acquisition and retention of top talent is crucial for success in a global economy - as is building the foundation for an increasingly complex culture and workforce.

As always, I welcome your comments and feedback and can be reached at michael.carrillo@cpgjobs.com, or by phone at 626-802-5787.



*Should Diversity Pay the Price in an Unstable Economy? Rebecca Hastings, SPHR. SHRM Online. 1/2/2009.

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YOU’RE HIRED! Congratulations to the following CPGjobs clients and their new executives: Joanne Zetah hired by Chicken of the Sea; Elaine Bronte joined Cadbury; Rick Janke hired by Tyson Fresh Meats; Sheku Alieu hired by Miller Brewing; Glenn Donnelly hired by Sara Lee and Ann Marie Houlihan hired by Philips Electronics. If you’re looking for a candidate -- or a job -- contact CPGjobs at 626-535-0143.

RETAIL TRENDS: The U.S. recession has shifted the food industry's focus from premium products to value, a trend that will continue throughout 2009, according to analysts interviewed by Forbes magazine. “For the past two years, grocers have been promoting organic and gourmet food offerings, which changed from the industry's prior focus on low-carb and other special diet products,” according to the magazine. Grocery marketing efforts will concentrate on value and affordability, which means there will be “an increase in coupons, special discounts and value displays.” Inflation in commodities and other costs remain relatively high, though lower than this summer. One analyst predicted that the food industry would use consumer incentives, such as "buy one, get one free," over across-the-board price cuts in 2009....Rising costs and declining spending is are not stopping Procter & Gamble from planning long-range expansion plans, Chief Operating Officer Bob McDonald told the Cincinnati Business Journal. “Rather than reacting to change, we need to create change -- we need to lead change,” said McDonald. “What we’re busy doing is training P&G managers to identify the opportunities.”

ALL A TWITTER: Businesses are turning to Twitter, the free social networking and micro-blogging service that allows its users to send and read other users' updates, ClickZ reports. Companies using the social messaging tool, including Whole Foods, Dunkin' Donuts, Home Depot and Ford Motor Co.

MARK YOUR CALENDARS: For the International Home and Housewares Show, March 22-24 in Chicago. For more events see CPGjobs online Calendar.

ON THE MOVE: Coca-Cola Co. CEO Muhtar Kent will assume the additional role of chairman, replacing Neville Isdell, who will not run for re-election.... Pilgrim's Pride Corp., president and CEO Clint Rivers and chief operating officer Robert Wright have resigned as the company reorganizes under Chapter 11. Don Jackson, previously president of Foster Farms' poultry division, will take over as president and chief executive, subject to bankruptcy-court approval....Schwan Food Chairman Alfred Schwan has announced that he will retire Dec. 31 after serving the company for 45 years...Former Hershey executive Sylvia Emberger will become corporate nutritionist for Giant Food Stores. Send your company news to editor@CPGjoblist.com

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