Due to various factors such as the globalization of society, diversification of management, and a decrease in the working population, the need for "diversity management" continues to be called for. Many companies are aware of the need for diversity management and are promoting the active participation of women.

However, a major challenge for the future will be whether diversity management can go beyond simply promoting women's participation in the workforce, and whether it can generate innovation through a diverse range of human resources.

In this article, we will explain the basics of diversity to help you gain a fresh understanding of diversity management.

Please use this as a reference to understand the essence of diversity management and to get a concrete idea of ​​how to introduce and develop diversity in your own business.

What is diversity?

Diversity is a Japanese word."Diversity"It is a word that expresses "diversity." It is made by adding "ity," which expresses a state, to the end of the word "diverse," which means "diverse" or "different."

In other words, it is the "differences that each individual has." When used in business, diversity includes the following kinds of "differences."

*Created by our company based on the following:
Source:The basic concept, historical transition and significance of diversity and inclusion | Yutaka Nakamura

For example, even if we are all Japanese, there is a wide variety in gender, age, lifestyle, working style, education received as a child, etc. Therefore, it is no exaggeration to say that we are always "living in a world of diversity."

In recent years, society has become more and more diverse with the globalization of society.

Knowing the diversity around us, accepting and acknowledging the differences between ourselves and others, and growing together - this is one of the essential qualities for modern people living in a diverse society.

What is diversity management?

What is diversity management?A management method to utilize diverse human resources, provide opportunities for them to maximize their capabilities, and generate innovation..

"Diverse talent" is not limited to gender or race. In diversity management, "diverse talent" includes all kinds of "differences," such as age, disability, sexual orientation, and religion.

According to a survey by Japan's Human Resources Department, a human resources information media with over 27 members, approximately half of companies are already working on diversity management, and about a quarter are considering future initiatives.

*Created by our company based on the following:
Source:Nearly half of companies are promoting diversity, but the effects are low within the first five years of the initiative | Japanese HR departments

The misconception that "= women's empowerment"

When people hear the term "diversity management," many think it means "women's empowerment." Expanding the scope of opportunities for women to play an active role leads to diversification of management and is an important element for creating innovation. However, diversity management does not mean "women's empowerment."

As mentioned above, diversity does not only refer to differences in gender, but also includes all kinds of "differences," such as race, ability, etc. Therefore, rather than thinking of diversity management as "equal to women's participation in the workforce," it is important to view diversity from a broader perspective and provide a place where a wide variety of human resources can play an active role, which will serve as a catalyst for creating greater innovation.

Difference from inclusion

A word similar to diversity is "inclusion." This is also a word that has been heard frequently in recent years, and in Japanese it means "inclusion."

While diversity is used in the context of "an environment where a wide variety of human resources can be utilized," inclusion is"Diverse human resources come together as an organization"It is used in this context.

For this reason, the terms "diversity and inclusion" are now often discussed as a single concept.

Why diversity management is gaining attention in Japan

The reasons why diversity management is attracting attention vary from country to country. In Japan, diversity management is attracting attention for the following reasons.

Accelerating decline in birthrate and aging population

According to materials released by the Cabinet Office, Japan's aging rate (the proportion of the population aged 65 and over) is predicted to reach 2025% in 30.

Source:4 White Paper on Aging Society | Cabinet Office

As the productive population (total of those aged 15 to 64) declines due to the accelerating aging of the population, the labor shortage in Japanese companies will become even more serious. In order to solve this problem, it is essential to take on diversity management, accepting a wide variety of human resources and providing them with opportunities to thrive.

If we could create an environment where each employee could maximize their capabilities, regardless of gender, race, age, or background, it would not only solve the labor shortage problem, but it would also lead to innovation.

Improving global competitiveness

As society becomes more globalized, business opportunities overseas have increased, but at the same time, competition in the domestic market has intensified. In order to compete on an equal footing with foreign companies that excel at marketing activities, Japanese companies must adopt a global perspective.

Diversity management has the potential to provide an environment in which people of different races can thrive, transcending national boundaries, and quickly improve global competitiveness.

It is important to embrace the unique cultures of other countries that are not found in Japan and to actively invite talented people from overseas.

Benefits of diversity management

So, what are the benefits of adopting diversity management? Among the many possible benefits, we will introduce four that we would like you to pay particular attention to.

Strategizing recruitment activities

Promoting diversity management also means proposing diverse work styles. In order to provide a workplace where a wide variety of human resources can thrive, it is necessary to propose work styles that suit each individual.

The benefits that this brings are""Strategizing recruitment activities".Taking advantage of our diverse work style environment, we will be able to carry out strategic recruitment activities to attract more talented people.

If we can realize flexible working styles, we can appeal to talented people from all over Japan and even the world as a company.

Recently, an increasing number of companies are promoting diversity management through diverse work styles, such as setting up satellite offices in regional areas and supporting employees in relocating to those areas.

Establishing a foundation for human resource utilization

In recent years, many Japanese companies have been placing importance on"Recruiting Gen Z talent"Generation Z refers to the generation born between the mid-1990s and the 2010s, and is the young talent that will lead Japan in the future.

Gen Z talent has been exposed to a wide variety of information on smartphones and social media since childhood, and as such has very flexible values. Flexible values ​​are the source of innovation.

However, many managers are struggling with the generation gap (differences in values ​​between generations) with Gen Z talent, and how they go about "recruiting Gen Z talent" is seen as a factor that will determine future business growth.

Promoting diversity management will lay the foundation for utilizing a wide variety of human resources. Therefore, when it comes to "recruiting Gen Z talent,"This will help lay the foundation for the next generation of managers to embrace the values ​​of Gen Z talent., which has the advantage.

Ensure psychological safety for your workforce

Psychological safety is"A state in which you can be confident that your voice will not be rejected or punished by other members of your organization."The relationship between psychological safety and corporate profits has been clarified in various studies.

According to a survey conducted by Culture, Inc., a company that provides employee survey services, 99.1% of managers believe that psychological safety is important for healthy organizational management.

Source:84.7% of managers responded that measures to increase "psychological safety" have led to "increased sales"
| PR TIMES

Accepting a wide variety of human resources can lead to problems that Japanese people tend to fall into.By eliminating "group bias," you can create an environment where psychological safety is maintained regardless of gender, age, race, position, etc.

If we can ensure psychological safety for our employees, we can create an environment where everyone can express their opinions openly, regardless of gender, age, etc. This can lead to increased sales and increased motivation at work.

For information on bias to be aware of in business situations, please see "What is bias? Meaning and types [including points to be careful of when analyzing data] (internal link)."

Increased stock market valuation

"Stock prices will rise if diversity management is promoted"There is a reason for this advantage.

A research study of listed companies in the United States has shown that having women on the board of directors can improve governance and corporate value, and have a positive impact on stock prices.

reference:Women in the boardroom and their impact on governance and performance | ScienceDirect

Not only women,There are many cases where having people of different races on a company's board of directors can have a positive impact on a company's decision-making process.Recently, a number of listed companies have been welcoming foreign talent to their boards of directors.

Diversity management also entails risks

There are many benefits to promoting diversity management. However, it is important to note that there are also risks associated with promoting diversity management.

Increased communication costs

Diversity management carries the risk of increasing communication costs, which are the time and effort required to transmit information and communicate.

Japan is behind the rest of the world in English education, so even if we actively recruit foreign talent, the language barrier could increase communication costs. In addition, if we accept a wide variety of talent from other industries, it may take time for them to get used to industry-specific communication, which could increase communication costs.

Therefore, when promoting diversity management, it is extremely important to take measures to determine how to maintain communication costs.

Risk of reduced work performance and productivity

Increased communication costs not only make it more difficult to transmit information and communicate, but are also likely to affect work performance and productivity.

If information and communication are not smooth, employees will feel stressed and their work performance will decline. If employees become chronically stressed, it may lead to a significant drop in performance. This may result in lower productivity and even a loss of market competitiveness.

As expected, "measures to maintain communication costs" will be the key to successfully promoting diversity management.

Risk of harassment

Depending on the organization, it may be difficult to accept diverse values. In particular, organizations with a strong tendency to follow precedents are likely to reject the new values ​​that diverse human resources bring to the table.

This increases the risk of harassment, including power harassment, sexual harassment, and gender-based harassment, which have a negative impact on organizations.

In promoting diversity management, it is important to remember that in addition to maintaining communication costs, measures against harassment are also important.

Specific initiatives for diversity management

Case 1. Panasonic Group

The Panasonic Group, with Panasonic Holdings Co., Ltd. at its core, has adopted "DEI (Diversity, Enthusiasm, Inclusion and Inclusion)" as part of its diversity management.

What is DEI at the Panasonic Group?

At the Panasonic Group, "each individual" in DEI refers to "each and every employee with their own diverse individuality, regardless of any attribute, including gender or gender identity."

This definition of the word shows that diversity management goes beyond simply promoting women's participation in the workforce, and indicates an attitude of accepting a wide variety of human resources.

As a result of this DEI promotion, the rate of men taking parental leave increased from just 2018% in 13.9 to 2020% in 96.65 (Panasonic System Solutions Japan Co., Ltd. Achievements).

Yasuyuki Higuchi, CEO of Panasonic Connect Co., Ltd., who played a central role in promoting DEI, conveyed the message that "Diversity will not progress if we leave it up to others. Even if there are people who are opposed to it in their hearts, the top management must never give up." (PRESIDENT OnlineThan).

reference:https://holdings.panasonic/jp/corporate/sustainability/diversity-equity-inclusion.html

Case 2. Kokuyo Group

The Kokuyo Group, whose core business is the planning and manufacturing of stationery and office furniture, is also known as a pioneer in employing people with disabilities in Japan.

The KOKUYO Group began employing people with disabilities in 1940, before the war, and established KOKUYO K Heart Co., Ltd. as a special subsidiary in September 2003. Furthermore, Heartland Co., Ltd. was established in December 9 with the aim of employing people with intellectual and mental disabilities.

*A special subsidiary is a company established to promote and stabilize the employment of people with disabilities.

At the KOKUYO Group, we see diversity as "creating an environment in which various circumstances and values ​​are recognized and diverse working styles are realized so that each employee can demonstrate their inherent capabilities."KOKUYOThan).

Additionally, the KOKUYO Group believes that having a disability is "not a harm," and is committed to continuing to promote the employment of people with disabilities.

Within the group, we choose to use the term "shogaisha" (disabled person) instead of "shogaisha" (disabled person), because we believe that the character "gai" has a positive meaning. Our approach to diversity management, even in our single word expression, can serve as a reference for many companies.

*The term "disabled persons" is the policy of the KOKUYO Group, and this blog uses the national term "disabled persons."

Reference 1: https://www.kokuyo.co.jp/sustainability/esg/society/reform/
Reference 2: https://www.kokuyo-k-heart.com/company/greeting.html

Case 3. IBM Group

The IBM Group (IBM), which operates in over 170 countries and regions around the world with IT consulting at its core, is also a company that is committed to cutting-edge diversity management.

IBM's diversity management focuses on creating an environment in which each individual can maximize their capabilities, regardless of disability, race, gender, beliefs, culture, place of origin, etc.

One thing to pay particular attention to is the "LGBTQ+ Support Initiative." IBM is continually running campaigns to deepen understanding of minorities, such as LGBTQ+, under the slogan "Be Equal Ally."

In 2016, IBM implemented the IBM Partner Registration System, which recognizes same-sex partners as spouses.Work with PrideThe company has won Gold awards seven times in a row and received Rainbow certification in the PRIDE Index, established by the Japan PRIDE Association.

*Work with Pride is an organization that promotes diversity management among sexual minorities, including LGBTQ+, and supports their establishment.
reference:https://www.ibm.com/ibm/responsibility/jp-ja/inclusion/

Data utilization is the key to successful diversity management

The reasons and goals for pursuing diversity management vary from company to company. However, one thing that can be said in common for diversity management in any company is that "utilizing data is the key to success."

Diversity management involves the use of data such as "employee surveys." Employee surveys use various data related to human resources as indicators to understand engagement (attachment) with the organization and the needs and issues of each employee.

By utilizing data,You will be able to grasp the progress and achievement rate of diversity management, and develop a data-based strategy for successful diversity management.In addition, we analyze various numerical data such as sales and operating profits and their trends,ダIt is also possible to visualize the impact of diversity management on corporate profits..

This use of data can be considered a kind of "health check" for diversity management. It allows companies to grasp the health of their companies in real time and promote diversity management while monitoring the connection to corporate profits.

In conclusion

Diversity management is not just about "hiring diverse human resources." The key is to provide a place where diverse human resources can thrive and create an environment where diverse human resources can work together as an organization with a sense of unity in the business.

The essence of diversity management is to promote it while having a concrete image of what will happen "beyond just recruiting talent."