Background

Where does the need for inclusivity come from?

There has been research that firms believe it’s better to employ people who consume most of their income themselves because consumption means better utility and health, which means they will be better able to work. Evidence shows women share income more generously than men so firms will prefer to employ men over women. 1

Men are also more likely to have formal, more regulated jobs than women. Women are more likely to have temporary jobs, lower pay, overtime, denial of benefits, higher unemployment and health risk. They also tend to engage in social reproductive labor that is unmeasured and unpaid. Employers prefer to hire younger women with fewer household responsibilities, so older women with children are at a greater risk of being let go. Women don’t receive enough maternity benefits. Specifically, their pay in a day is docked when they need to tend to their children with doctor appointments, sickness, etc. Women are reluctant to complain because they fear they will lose their jobs. They also face harassment and violence in and out of the workplace.2

Blacks historically have faced discrimination in the U.S. labor market. An empirical study focused on callbacks for jobs comparing resumes using conventionally white first names with conventionally black first names. White-named candidates were more likely to get a callback. Black-named candidates needed eight more years of experience than white-named candidates. Similar results were found in India (Siddique 2008). Firms use affirmative action when hiring blacks, and although there’s no disadvantage for blacks for entry-level jobs, they often won’t reach seniority or receive promotions (Sander 2006). 1

Discrimination can be on the basis of race, gender, sexual orientation, religion, age, etc., but also on the basis of appearance. There is a stigma surrounding tattoos and piercings that may prevent employers from hiring people. Another example is African-Americans not being able to do cornrows in their hair even though it shows racial pride and supports cultural identity. “Sexualized grooming standards also penalize gays and lesbians who reject conventional gender norms.”3

“Exclusion carries significant risks to operational efficiency, social license to operate, supply chain continuity, social and political stability, and the overall health of the economy. By contrast, inclusion drives innovation and expands market opportunity, mitigates risks, improves operating environments, and promotes long-term growth and a strong middle class.”

Employees want and expect transparency, inclusion and an accepting work culture. They also often don’t speak up or share ideas if they don’t feel included or comfortable.

What can be done?

Don’t enforce your own attitudes on people who discriminate, but persuade them that they should change because people’s conjectures or beliefs define biases and make them true, especially if acted on by several people.1

There could be government action, as in more laws or stricter laws, or employers could utilize different forms of affirmative action. Change will take time, so efforts must be sustained over long periods of time.1

MEC (Maria Elena Cuadgra) Working and Unemployed Women’s Movement is a Nicaraguan women’s organization that works with women in export-processing zones (EPZs). The organization campaigns for better wages and working conditions, offers workshops and programs, provides training and promotes through political lobbying. However, it should also challenge men and include them in the conversation in order to avoid reinforcing gender-biased notions of women. This would ensure true inclusivity.2

HERfinance helped women in garment factories access financial products and services because the garment factory is a significant employment for the poor. From this program and assistance, 97% of the workers said their perception of the employer improved. This improvement consequently contributed to job satisfaction.

Deloitte stated, “Organizations are experimenting with eliminating names on resumes because candidates with ethnic-sounding names may experience lower hiring rates. Australia has been a leader in this area; the state of Victoria is experimenting with removing all personal details from job applications.”

BMO Financial Group initiated a new approach to reduce bias in the hiring process:

1. Identify major steps & methods that could result in bias (i.e. end of the day decisions meant managers were tired & rushed, leading them to “similarity attraction bias”)

2. Move toward decisions based on merit

3. Measures of success (i.e. impact on how employees viewed inclusion)

4. Teach managers to communicate with staff to develop solutions together

 


 

1Beyond the Invisible Hand: Groundwork for a New Economics by Kaushik Basu 

2Gendered Commodity Chains: Seeing Women’s Work and Households in Global Production edited by Wilma A. Dunaway

3The Beauty Bias by Deborah L. Rhode