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Diversity in Today’s Workforce

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No reproduction or further distribution permitted without the prior written consent of McGraw Hill.
 Workforce Trends 2

Sex
• From 1950 to 1970, number of women in the workforce
nearly doubled.
• An increase in number of women holding positions of
authority and responsibility.
• Women still lag in two areas:
• Fewer women at highest levels of organizations.
• Women earn less than men.
• The glass ceiling: invisible barrier that prevents women and
minorities from rising to higher-level jobs and earning equal pay

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 Workforce Trends 3

Age
• Number of older people in the U.S. is increasing.
• Employees may stay in workforce longer.
• More employees may find themselves caring for aging relatives.
• We now have a multi-generational workforce.
• Baby boomers: 1946 to 1964.
• Generation Xers: 1965 to 1980.
• Millennials: 1981 to 1996.
• Generation Zers: 1997 to 2012.

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 Table 1 Selected U.S. Demographic Trends

Census Category 2016 2030 2060 2016 to 2060

Age: 65+ 15% 21% 23% 8%
White 61% 56% 44% −17%
Black or African American 13% 14% 15% 2%
American Indian & Alaska Native 1% 1% 1% 0%
Native Hawaiian & Other Pacific Islander <1% <1% <1% 0%
Asian 6% 7% 9% 3%
Two or More Races 3% 4% 6% 3%
Hispanic 18% 21% 28% 10%
Foreign-born Population 14% 15% 17% 3%

© McGraw Hill Source: J. Vespa, J., D.M. Armstrong, and L. Medina, “Demographic Turning Points for the United States: Population Projections for 2020 to 2060 4
 Workforce Trends 4

Age continued
• Baby Boomers
• Introduction of the television.
• Witnessed civil rights movement, Vietnam War, Watergate,
assassinations of Kennedy and King.
• In 2020, will make up 28.7% of the population.
• This is one of the largest age groups of the labor market and will be
exiting workforce in the near future

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 Workforce Trends 5

Age continued
• Generation X
• Characterized by more single parents and dual working parents.
• Witnessed fall of Soviet Union, AIDS epidemic, rough economic
times in the 1980s.
• More companies downsized.
• Viewed as more individualistic and selfish compared to Baby
Boomers.
• Considered less committed to any single organization.
• Work-life balance very important.

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 Workforce Trends 6

Age continued
• Millennials
• Economic conditions much stronger in the 1980s and 1990s.
• Public ethical collapses of corporate giants such as Enron.
• Rise of computer and Internet as millennials came of age.
• Millennials are used to being connected with instant access to
information and each other.
• Heavy Hispanic and Asian immigration make this group very
racially diverse.

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 Workforce Trends 7

Age continued
• Generation Z
• Major events changed society and affected this generation:
• 9/11 attacks brought airport security screenings.
• Launch of iPhone.
• Technology taken for granted as always on and accessible.

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Putting Management into Practice: Multi-Generational
Challenges

Work-related values:
• Baby Boomers: intrinsic value in work.
• Generation Xers: extrinsic rewards such as status and
money.
• Millennials: leisure rewards such as self-paced work and
work free of supervision, time that allows for other things
in life.
• These differences affect the policies and practices companies put
in place.
• Younger generations want more regular evaluations as well as
feedback and benefits that promote work-life balance.

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 Workforce Trends 8

Race and Ethnicity

• Trends suggest U.S. workforce becoming more pluralistic.
• Significant decrease of the majority white population.
• Increases in Hispanic, African American, Asian, and
multi-racial populations.
• Increase in foreign-born workers.

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 Workplace Diversity 1

Diversity
• Degree to which members of a group differ from one
another in terms of any attribute that may be used as a
basis for categorizing people.
• Characteristics such as race, age, disability but also the values and
beliefs held by members of an organization.

© McGraw Hill Source: Rawpixel.com/Shutterstock 11

 Workplace Diversity 2

Why Do We Care About Diversity?

• Federal and state laws protect people against
discrimination and harassment on the basis of certain
characteristics.
• There are benefits to organizations that have a diverse
workforce: competitive advantage.
• Challenges to diversity that need to be managed or
initiative might fail.

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 Workplace Diversity 6

Diversity Challenges
• People have deep-rooted beliefs that may unintentionally
hinder them in the workplace.
• Stereotypes: beliefs about a group of people that are generalized
to individual members of that group.

• People have a general tendency to be drawn to those who

are perceived to be similar and avoid interacting with those
perceived to be dissimilar.
• People are hesitant to interact with those who have
different viewpoints and seek to avoid situations where
there is a potential for misunderstanding.

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 Work-Life Issues 5

Sandwich Families
• Families with middle-age parents who are responsible for
the care of their older parents as well as their children.
• Current data: 47% of adults in their 40s and 50s have a parent
aged 65 or older, while at the same time raising a young child or
supporting a grown child.
• These individuals feel more pressed for time and have greater
concerns about their financial future.
• Gen Xers in particular facing this situation.

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 Evolving Employment Relationships 3

Outsourcing and Offshoring

• Subcontracting with outside vendors to provide specific
services that were previously done in house.
• Outsourcing: sourcing work domestically.
• Offshoring: sourcing work to organizations in other
countries.
• Great cost savings.
• Companies focus on what they are good at.
• Greater access to talent.
• “Follow the sun strategy” has workers across the globe working
around the clock for a company.

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 Evolving Employment Relationships 5

Independent Contractors
• Workers who perform specific duties for a client and have
independent oversight over their own work.
• Employee-contractor distinction necessary with regards to tax and
liability implications.
• Independent contractors often able to work on a short-term basis or
recurring temporary basis.

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 Evolving Employment Relationships 6

The Gig Economy

• Labor market characterized by temporary or freelance
contract work rather than permanent jobs.
• There has been an increase in contractors for short-term
tasks: Uber, Etsy.
• These tasks called gigs or side-hustles make up a large
part of the economy.
• About 43% of U.S. workforce involved in gig economy.

• Differs from moonlighting which is used to supplement

income.
• Income from gigs can be primary source of income.

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 Managing Today’s Workforce 2

From Managing Diversity to Promoting Inclusion

• Historically, companies handled workforce diversity in two
ways:
1. Diversity management: actions taken by organizations to
promote greater cooperation among employees from different
backgrounds to make them feel comfortable within the
organization’s structure and workplace environment.
• Hiring practices to attract employees from underrepresented
groups.
• Formalized mentoring programs to help those groups acquire
knowledge to thrive in an organization.
• Training intended to increase employees’ appreciation of
diversity.
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 Managing Today’s Workforce 3

From Managing Diversity to Promoting Inclusion continued

• Historically, companies handled workforce diversity in two
ways: continued
2. Inclusion: building true appreciation of the value of differences
among people and the creation of an environment that makes all
people feel they are valued and essential to the organization.
• Make employees from underrepresented groups feel
welcomed, valued, respected, and heard.
• Top company inclusion strategies:
• Develop strong business relationships with diverse suppliers.
• Measure performance of organizational objectives against
company’s diversity goals.
• Create employee resource groups that address issues of inclusion.

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 Managing Today’s Workforce 5

Telecommuting
• Performing all or part of an employee’s work tasks at
home or off site at a location different than the office.
• Rose 79% between 2005 and 2012.
• Some work at home, others at satellite offices.
• Some employees feel it reflects poorly on their commitment to
organization.
• May make it more difficult to collaborate which stifles innovation.

• Some major companies have ended this option.

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 Managing Today’s Workforce 6

Flextime
• System of working a set number of hours with the starting
and finishing times chosen within agreed-upon limits by
each employee.
• Permutations of schedules are limitless and provide employees
with control over how they use their time.
• Policy has been known to reduce absenteeism, increase job
satisfaction, improve employee productivity.

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 Managing Today’s Workforce 7

Compressed Work Weeks

• Opportunity for employees to work the same number of
hours over fewer days.
• Makes it easier to spend time with customers and clients.
• Positively related to morale and job satisfaction.
• While it varies who is present on what day, all employees work the
same hours.

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 End of Main Content

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© 2021 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom.
No reproduction or further distribution permitted without the prior written consent of McGraw Hill.