Addressing Racism in the Workplace

Reviewing the state of racism and unequal representation in the workplace—and ways organizations can make a meaningful impact

U.S. companies have been well aware of racism and unequal representation in the workplace for decades, with many taking moderate steps to address these issues—but often only when the spotlight demands it. The events of 2020, however, have placed a focus on the deep-seated problems that remain.

Many companies recognize that there is an issue, but their solutions are surface-level, at best. Donations, advertising campaigns, and occasional meetings of a diversity committee are enough to convince them that they’re making a real difference to eradicate racism.

Unfortunately, these efforts alone aren’t going to cut it. There are concrete actions that companies can take to mitigate racism, elevate minority talent, and influence real long-term change. Here are some of the critical areas and how organizations can have a true impact.

The current state of discrimination and black representation in the workplace

Yes, many organizations have made great strides in recent years. But stamping out racism and achieving a truly representative workforce across industries and specializations still require a dedicated effort. 

As of 2020, there are only five black CEOs in the Fortune 500, and there has only ever been one black female CEO (Ursula Burns at Xerox) on this list. And on average, black professionals in America make up under 4% of all executive or senior leadership roles in all companies, despite making up 10% of U.S. college graduates.

58% of black professionals say they experience, see, or hear racism at their jobs. Three in five U.S. employees have experienced or witnessed workplace discrimination based on race, age, gender, or sexual identity. 

Current events are calling more attention to this issue, and this focus is shaping attitudes and increasing calls for change. For example, 57% of employees want to see their company increase diversity, and 69% of executives believe that diversity and inclusion are the most important issues their companies face. So, beyond the obvious step of hiring minority employees, here are some meaningful steps companies can take to combat racism and exclusion at work.

Be anti-racist

Creating an actively “anti-racist” organization is one step that can influence meaningful change. This goes beyond having anti-discrimination policies or hiring quotas for people of color. Being anti-racist means acknowledging the prevalence of racism in the workplace and society at large. It means recognizing the fundamental disadvantages suffered by minorities and the barriers they face to be seen as equal.

Organizational leadership and HR departments can review all company policies and processes to identify experiences that put minorities at a disadvantage, followed by working to open paths of opportunity. This requires an honest and critical lens to analyze everything from hiring and onboarding to promotions and reviews.

Some discrimination areas may not be obvious, especially if leadership and HR are comprised of those unaffected by these policies. This is why many companies have begun hiring outside consultants or groups to help them make these changes.

Making a commitment to being anti-racist, owning up to mistakes, and maintaining an ongoing spirit of transparency are significant steps leadership can take to address racism and exclusion in the workplace.

A variation of the Mansfield Rule

The Mansfield Rule, developed in 2016 for the legal industry, “measures whether law firms have affirmatively considered at least 30 percent women, lawyers of color, LGBTQ+ lawyers, and lawyers with disabilities for leadership and governance roles, equity partner promotions, formal client pitch opportunities, and senior lateral positions.”

It was derived from the NFL’s Rooney Rule, which requires teams with a head coach, general manager, or equivalent front-office job vacancy to interview at least one ‘diverse’ candidate from outside the organization or a list of NFL-suggested candidates.

As a result of implementing the Mansfield Rule, 53% of participating law firms report a higher percentage of minority lawyers elected or appointed to management, and 65% promoted a higher percentage of minority lawyers into equity partnership. The Mansfield Rule, in just a few short years, has had a tremendous impact on equal representation in legal industry leadership.

Although these types of rules are yet to be implemented in other industries, the effect is clear. Putting a dedicated effort towards interviewing a range of candidates, considering them for promotions, and including them in advanced opportunities is a systematic method to combat systematic oppression.

Hiring and evaluations

Hiring is one area where racism and other biases continue to loom large. Subconscious tendencies can narrow the opportunities given to black candidates, regardless of their qualifications.

Revisit your job descriptions. Consider eliminating or reducing certain overly-formal requirements so those who are otherwise qualified can apply, and modify the language to be more inclusive.  

When evaluating resumes and cover letters, consider removing any personal identifiers that may indicate race or other characteristics. This allows the hiring staff to focus on the candidate’s qualifications and experience and eliminates the chance of confirmation bias.

Another way to reduce the odds of bias is to standardize interviews for all candidates in a particular position. This helps level the playing field and reduces the tendency for interviewers to go off-script with each candidate. 

Lastly, diversifying the HR department or hiring committee is the best way to include a range of experiences and perspectives in the process. Individuals of different races—as well as other groups—may bring previously unseen concerns to the table and shed some light on the hiring process’s weaknesses.

The benefits of a racially-representative workplace

A genuinely representative workplace is long overdue in many industries, and it’s a just goal for our society. But it’s also been proven to have significant practical benefits for companies. When it comes to the bottom line, 43% of companies with “diverse” management exhibit higher profits, and highly-inclusive companies are more likely to hit their financial targets by up to 120%.

Representative and diverse teams have also been proven to be better decision-makers and offer a competitive advantage over homogenous ones. For example, consider the benefits when bringing a new product to market. Although individuals certainly don’t speak for everyone in their racial demographic, specific team members can offer crucial perspectives on messaging, visuals, product features, and strategies for taking a product or service public, increasing the chances of success.

Inclusive companies are better poised for the future, plain and simple. They are almost twice as innovative and 70% more likely to capture new markets than organizations that are not inclusive. 

Moving forward to combat workplace racism and increase representation

By the end of this year, minorities are expected to make up 37% of the workforce. Efforts that work to mitigate racism—from instituting training and zero-tolerance policies, to increasing minority representation in leadership—are vital to the future of business and our wellbeing as a society. Besides being the right thing to do, these efforts have practical benefits for companies, including different perspectives, a wider pool of quality job candidates, better customer service, and higher organizational resilience. 

At KARP HR Solutions, our creative approach has mastered the mix of finances and human resources. Call us at 954-684-3284 or complete our contact form to learn more.