Diversity and inclusion benefit the employee, the member and the community
Our recent Credit Union Leadership Forum Edu-Leader® learning program examined the importance of diversity and inclusion to increase organizational effectiveness. The rapidly occurring demographic changes affecting the credit union industry make leadership’s attention to these dynamics all the more important. Angela Vallot and Mitchell Karp of VallotKarp Consulting provided insights to the attendees. The effective leader builds and maintains a culture that acknowledges, values and respects people from different backgrounds, experiences and perspectives, thereby supporting diversity within the organization. Our realities, however, are shaped by our expectations. We are inclined to see what we expect to see and may overlook what is actually there. As human beings, we naturally make assumptions about people based on gender, language, accents and education. Becoming aware of pre-conceptions is a first step in building a culture of inclusion.
Like an iceberg, only about 10% of the data related to an individual’s uniqueness or diversity is readily apparent. Obvious factors include race, gender, physical appearance, age and physical ability. The other 90% remains either less observable or hidden, including education, ethnicity, socio-economic status, religious beliefs, sexual orientation, work style, professional values, political affiliation and so forth. Factors related to inclinations often form the basis of judgments and decisions, for such important areas such as recruiting and promotion. Being aware of these inclinations allows leaders to form better judgments. They can replace “tip of the iceberg” pre-conceptions with better, fact driven information.
Inclusion differs from diversity. Diversity involves elements that differentiate groups and people from one another. Inclusion is creating an environment that acknowledges and respects those differences. Inclusion affects the community, members, the work environment and bottom line. Inclusion allows everyone to feel valued and empowered to make the best contribution. Employees that feel valued become engaged and experience more job satisfaction. Employee satisfaction results in member satisfaction and loyalty, which builds profits. Furthermore, reputation is fragile. Tales of bad experiences can spread quickly and harm the organization’s reputation. Credit unions commit to serve the underserved; an inadvertent blow to reputation through lack of inclusion, for example, can undermine that goal.
The dynamics of being an insider versus an outsider is one of the main challenges to diversity and inclusion. Insiders typically have a shared culture of norms, values, assumptions, shared history and a numerical majority. Outsiders are a numerical minority and often are women, people of different races, ethnicity or sexual preferences. Outsiders can be self-conscious, live in fear of making a mistake, be reluctant to offer suggestions or ideas and additionally have a sense that they must work harder to prove themselves. These behaviors diminish creativity, innovation and productivity.
Leaders should develop a personal action plan to support diversity and promote inclusion. In becoming aware of their natural inclinations, they can ask themselves probing self-examining questions reflecting on how diversity and inclusion have personal value and helps the organization to serve its members. Leaders can examine who is similar or dissimilar to them. They become aware of who is being included and excluded and they manage situations to maximize inclusion. A culture of inclusion leads to productivity, retention and loyalty. Furthermore, the wisdom of a diverse workforce serves the organization’s members, who are increasingly diverse.
