Research pick: Management that’s not just skin deep - "Does it make sense to manage people ‘diversely’? A scoping review on human resource management practices rooted in diversity"

Managing an increasingly diverse workforce is no longer a mere rubber-stamping exercise for companies, it is an essential and beneficial part of the corporate agenda. Organizations are beginning to recognise that diversity underpins success in the modern world.

A comprehensive review of more than 2500 research papers, shows that unlocking the full potential of a diverse workforce lies at the intersection of human resource management and what we might term diversity management. The review published in the International Journal of Management Practice suggests that many companies in disparate areas are yet to reach this intersection.

Federica Testa, Alessandro Hinna, and Rocco Palumbo of the University of Rome Tor Vergata, and Federico Ceschel of the University of Rome Tre, Italy, explain that diversity management refers to policies and practices that are aimed fundamentally at creating an inclusive work environment. It ensures that all employees feel valued, respected, and empowered to contribute. This inclusiveness has direct and measurable effects on motivation, performance, and innovation, the review suggests. Moreover, companies that successfully manage diversity often outperform their competitors.

Where conventional human resource management is involved in how an organization manages its people, the employment lifecycle, from recruitment and training to compensation and performance evaluation, diversity management adds critical functions. The research highlights how these might best be incorporated into business practice to the benefit of all employees and the company itself.

The review suggests that until recently, much of the practice in the area of diversity management has been rather piecemeal. Organizations might implement diversity initiatives in one area, such as inclusive hiring practices, but then do not necessarily follow through with that in performance evaluations, training, and even compensation structures. This fragmented approach reduces the effectiveness of diversity initiatives and risks making them seem irrelevant to the main objectives of an organization, the review suggests.

There is perhaps a growing need for a holistic strategy that brings together diversity management and human resource practices. Instead of isolated efforts, diversity must be part of all human resources functions. For instance, a company that hires diversely should ensure that its training programs are tailored to support all employees. Similarly, performance reviews should be designed with inclusiveness in mind, ensuring that no group is disadvantaged by unconscious biases or outdated criteria. There is a need for a top-down commitment across corporations that ensures diversity initiatives receive the resources and attention they ought to have, again for the benefit of all employees and the corporations themselves.

Testa, F., Ceschel, F., Hinna, A. and Palumbo, R. (2024) ‘Does it make sense to manage people ‘diversely’? A scoping review on human resource management practices rooted in diversity’, Int. J. Management Practice, Vol. 17, No. 6, pp.635–668.