The majority of Canadians embody diversity—handicapped people, visible or ethnic minorities, Aboriginals and women—a reality which is not really reflected in the ranks of both the public and private sectors. Overview of the situation on differences at work, between HR policies and business strategies.
Canada is a pluralist society whose history to date has been marked by multiple waves of immigration; through its policies, the country strives to be a model of diversity. It is made up of more than 200 different ethnic groups, making it one of the most culturally diversified countries in the world. According to the 2006 census, some five million people were part of a visible minority, or 16.2% of the total population.
Despite this reality, the workplace does not accurately reflect the diversity of Canadian nationals and residents. Visible minorities today only represent 5.2% of senior executives in large Canadian firms, and 1.6% of executives in the public sector. More generally, they only occupy 11.2% of management positions. Joint studies by Statistics Canada and Catalyst (a non-profit organization for the occupational integration of women) have found that many immigrants with advanced degrees hold jobs for which they are largely overqualified.
Gender equality
In an analogous situation, women too are underrepresented in Canadian firms in terms of their numbers and skills. According to the 2010 Catalyst Census: Financial Post 500 Women Senior Officers and Top Earners, only 17.7% of women held senior management positions for large firms—a proportion in sharp contrast to women’s qualifications; in 2005, they obtained 61.8% of bachelor’s degrees, 51.8% of master’s degrees and 44% of doctorates.
Government, prescriber of best practices
The Canadian Charter of Rights and Freedoms, and the Employment Equity Act, implementation of the Canadian Council for Diversity, quantitative objectives fixed by the provinces and corporate discrimination punished by strong sanctions. . . Provincial and federal legislation sets the tone with respect to the major societal issue of diversity. Since 1986, public authorities have recognized target groups (women, Aboriginals, persons with disabilities and members of visible minorities) that benefit from particular attention and special measures for employment, in order to systematize an inclusive and representative hiring policy. Regional disparities continue to exist, however, with different results between the public and private sectors, and different size companies.
Different realities
While the public sector has the obligation to respect the legal framework of the provinces, via hiring processes that directly and quantitatively favour the integration of members of the four target groups, the situation is different for companies in the private sector. “There is a strong distinction between large companies, with their deep pockets, and SMBs,” says Robert Vyncke, President of Groupe Conseil Continuum, a human resources management company that been involved in the cause of diversity for decades. “Multinationals and large companies are driven by a business rationale to incorporate diversity into their HR policies, mainly because of their conducting business abroad and their desire to affect the market embodied by the target populations. Things are different for small and medium-size businesses, on the other hand, who have a harder time including this essential notion in their less frequent hiring sessions.”
New issues could change things, and accelerate the integration of minorities in SMBs. Topping the list of change factors: the shortage of qualified labour and new demographic trends. “Difficulties hiring new qualified employees to fill job openings created by retirements leads recruiters to be interested in profiles that they would have previously rejected, and to only look at skills, which creates greater opportunities for persons with disabilities, women, ethnic minorities and Aboriginals,” explains Robert Vyncke. As proof, the mining sector, which has been experiencing strong demand for labour for several years now, is following MiHR (Mining Industry Human Resources Council) recommendations and making new and substantial use of the various target groups.
A strategic argument
In this context of shortage, a company policy that actively favours diversity is also a significant strategic and competitive argument. In an essay published in Diversity Journal, Mandy Shapansky, President and CEO of Zerox Canada, wrote: “Employees with different ways of thinking–and different ways of perceiving our world–are employees who create innovative solutions. . . this variety of perspectives is a priceless resource and a key to achieving critical business results.” This vision is shard by Zabeen Hirji, Chief Human Resources Officer for RBC, a financial institution that has won several awards for the excellence of its diversity management: “Diversity that targets innovation and growth is one of our company’s core values. It alone allows us to create a work environment where everyone feels appreciated, and has the opportunity to realize his or her full potential.”
In a case study published by the Harvard Business Review, Stanley F. Slater, Robert Weigand and Thomas J. Zwirlein found evidence that firms with a strong commitment to diversity outperform their peers on average. The net profit margin of the 50 US organizations with the greatest focus on diversity was higher than their competitors, with an annual median difference of 2.7%.
Marketing adjustments, better knowledge of needs, requirements and consumption patterns of target populations—“ If you want to serve the market, you have to hire the market,” Zabeen Hirji observes. An obvious fact that, supported by sales, should result in ever-increasing diversity in the ranks of Canadian businesses.