Think diversity isn't an expatriate-related issue? Then it's time to revise your thinking. Kirin Kalia talks with speakers from the European Work-Life and Diversity conference for different views on the link between diversity and expatriates

Managing expatriates and managing diversity issues are not separate issues, as some in HR or line management might believe.

Getting people from different cultures to work together effectively is core to managing diversity, and culture differences always play a significant role in international assignments.

For instance, if a British manager is sent from the London headquarters of Company X to a new office in Beijing, she must receive adequate training in Chinese language and culture to be successful there. Also, her Chinese colleagues must have some understanding of her background if they are to learn from her and eventually replace her as managers of that office.

A British manager in Beijing is part of Company X's diversity, as is an Indian engineer working in Company X's London headquarters, a Dutchman working in Company X's Belgian office or a young woman climbing her way up management ranks in the Frankfurt office.

They all need to feel valued and respected if the company is going to profit from their differences. They need to know they have the same chance at advancement as their colleagues with similar education and experience. They need to know they won't be passed over for a promotion or for an expatriate assignment because of their gender, age or ethnicity. Yet some people may, unfortunately, have a difficult time getting a job with Company X in the first place because someone in the hiring process is discriminating against them.

But without those different backgrounds, points of views, lifestyles, or cultures, Company X might miss out on a new market or may not reach a lucrative market. It might create products or services that don't fit the market it is targeting. It might miss hiring the most talented sales person or finance officer.

That, essentially, is the business case for diversity. Male and female employees of various ages, ethnicities, backgrounds, with or without disabilities, heterosexual or gay — are good for a company's bottom line.

During the Conference Board's two-day diversity and work-life management conference in Amsterdam in November, I talked with a number of people about diversity in Europe and how it applies to expatriate management. Here are some highlights from those conversations.

Michael Stuber, President, mi-st [Consulting

Diversity management may still seem new to many companies in Europe, but Michael Stuber has been spreading the faith since the late 1980s. He founded his own diversity management consulting firm in Cologne, Germany, in 1997.

Stuber, perhaps more than anyone else I talked with at the conference, understands the link between diversity and successful expatriate management.

"If more companies were taking diversity management seriously, expatriates would …find it easier to be more productive [which is] for the benefit of the company," he says. "Expatriation is not about the technical questions — relocation, permits, etc — but there is a cultural side."

And when talking about culture, Stuber doesn't mean stereotypes. "It's better to go to more fundamental values — how these values show up in daily life and in business inside and outside of the company."

While a white American male going to the UK might not seem, on the surface, like a problematic culture shift (though the British and Americans have very different approaches to business), Stuber says that "in many other cases, expats will be or will appear to be exotic to the receiving unit."

Clearly, then, this is a diversity issue, says Stuber. "The briefing introduction into the new culture should embrace sensitive issues from the field of diversity," he suggests. "I think there is an opportunity [for expatriate managers] to team up with internal diversity specialists, it doesn't have to be re-invented by expatriate specialists."

"In a way, [HR] is already a strategic partner," says Stuber. "By sending employees abroad you add diversity to the receiving unit, there's value added to the receiving unit."

Stuber's recommendation to HR managers who work with expatriates: study diversity. "Once they realise how powerful unbiased, open-mindedness can be, they will be eager to identify less-than-optimal pieces of processes and content."

Adam Tyson, European Commission -
Employment and Social Affairs

No employer in Europe will be allowed to discriminate, directly or indirectly, against employees or in its hiring processes because of a European directive that goes into effect in 2003. All EU member states will have to have national laws in place that meet the minimum standard of the directive; enforcing those laws is the responsibility of the member states.

The European Union's strategy to combat discrimination Directive to implement equal treatment irrespective of racial or ethnic origin (Dir. 2000/43/EC) Directive establishing a framework for equal treatment in employment and occupation (covers discrimination on grounds of religion and belief, disability, age and sexual orientation - Dir. 2000/78/EC) Community Action Programme 2001-2006 (Decision 2000/750/ec)

Adam Tyson, responsible for EU policies on anti-discrimination at the European Commission, brought that message to conference delegates, one small step in the efforts to raise awareness among Europe's businesses.

Tyson says trade unions and civil society organisations must take an active role and that "government has to provide information to all in a way that's accessible."

He believes that there is a difference in awareness across Europe rather than a difference in how frequently discrimination occurs. For instance, the UK, which already has civil, anti-discrimination legislation in place, has thousands of discrimination cases each year, Tyson points out, and most of those are settled out of court.

France, with various anti-discrimination measures on its books, depends on criminal law to punish discrimination, but there are few cases because it is very difficult to provide the necessary proof.

Also, "some [member states] are more litigious than others," says Tyson, again giving the UK as an example of a country where it's more acceptable to sue an employer. Part of raising awareness also means changing people's perceptions from "there's nothing I can do about it [discrimination]" to making them see they can hold an employer liable for discriminatory actions.

Multinationals already know how to deal with diversity, Tyson says, but "it's harder for SMEs [small- and medium-size enterprises] who have never thought about diversity." He believes these smaller companies, most of which do not have personnel departments, will need outside expertise to ensure they comply with anti-discrimination laws.

Although there was a "brief discussion" on whether companies with fewer than 20 employees should be exempt from the directive, Tyson says this idea was quickly dismissed because equal treatment is considered a fundamental right, not just a right for workers in larger companies.

Surinder Sharma, Director of Diversity, Ford Motor Company

In the last two years, Surinder Sharma has transformed Ford's UK and European operations from a diversity embarrassment into a diversity superstar. Sharma, a fully qualified lawyer, has worked in the diversity field for over 20 years, helping companies such as Littlewoods Retail and BBC Television manage diversity.

Ford's global diversity policy became Ford Europe's policy with the unwavering support of Ford Europe's Chief Operating Officer Martin Leach. Leach chairs Ford Europe's diversity council, which meets every six weeks. The work council in Ford's German operations also discusses diversity, and the unions in Spain, France and Belgium are actively involved in diversity issues.

Ford approached diversity from a business perspective, but also considered community involvement, corporate citizenship and external customer relations, Sharma says.

In a systematic way, Ford of Britain — with 18,000 employees across 16 locations — investigated employee views and perceptions (using internal and external auditors), created a diversity policy and communicated it across its offices and plants. Similar audits and follow-ups are taking place across Ford Europe's operations.

After reviewing the internal and external audits in Britain, "all of that [information] went into action plans," says Sharma.

To communicate the policy, Ford posted it on notice boards, published it on their website and in their internal magazine, @Ford. Everything from the way vacancies were advertised to the training of company recruiters was put into company policy because they were relevant to diversity.

A year after the action plans were implemented, all the plants in Britain received feedback; each one could evaluate information specific to their site.

Today Ford has three guides that clearly outline diversity: an employee guide, a supervisor's guide, and an investigator's guide. The latter explains how to investigate a discrimination complaint.

The whole approach is about inclusiveness, respect and dignity, explains Sharma.

He says the approach in Britain was "totally different" than in Ford's US operations. "We follow UK law, UK best practices," he says.

"Everyone can recognise what respect and dignity are," says Sharma. "We adapt things in a European context but make them relevant at a local level, and we monitor all informal complaints."

Henk Dijkgraaf, President, Shell Nederland

In November 2001, Shell endorsed a "Group global standard on diversity and inclusiveness" that applies to every company and every employee within the multinational giant.

Nearly a year later, Henk Dijkgraaf, president of Shell Nederland, boldly told a European diversity management conference that Shell wants women to hold 20 percent of its senior executive jobs by 2008. While his prepared comments on the difference between men and women made some wonder if Dijkgraaf — who has spent his 30-year career at Shell — was as progressive as his company's statements on diversity, he is clearly committed to diversity's ideals.

The Finance Director of Shell Nederland, Karin Ruigrok, "was younger than other possible candidates," Dijkgraaf told me, adding that he looks for diversity when hiring at the senior level. Within Shell Nederland, "language is an issue", he says, meaning non-Dutch speaking candidates may not be as competitive. But he looks at "gender as crucial next to other" qualities.

Management teams across Shell's locations have local managers mixed in with non-locals. Dijkgraaf offers a Malaysian working in the Netherlands and a Nigerian in the Middle East as evidence of cross-cultural pollination. He points out, though, that "strictly local [management] is not desirable because it doesn't promote diversity at all."

As for women having the necessary international experience to advance within Shell, Dijkgraaf says sending more women abroad is "something we want to remedy."

He agrees that they "have to give women a chance at the experience" though he says "not everyone [for their career goals] needs the same degree of international experience."

Dijkgraaf understands that hiring and promoting talented women is only one of his challenges. "Will they stay?" he asks. "I'm determined to make them [stay]."

Dr. John Wrench, Associate Professor,
Danish Centre for Migration and Ethnic Studies

Dr John Wrench is quick to admit that as an academic, he doesn't know the realities of working for a multinational company. But his experience in studying immigrants and their employment integration has lead to questions relevant to all international HR professionals.

For instance, some companies may ask, what is there to gain from diversity? Dr Wrench says new markets, for one. He gives the example of a bakery that hired an immigrant who then taught the baker how to make bread from his homeland. "He helped with product development," says Dr Wrench, and the bakery profited from the immigrant's contribution.

A diverse workforce can also improve a company's public image. In the case of US auto manufacturer Ford, which had faced ugly discrimination lawsuits, "a diversity programme was able to change that corporate image," says Dr Wrench.

He points out that a company needs to appeal to its different types of employees with different advantages when selling them the concept of diversity. For example, sales managers may have access to new markets. And everyone will likely see the benefits in terms of recruitment and retention: fewer people calling off sick, less disillusionment, etc.

What if a company's office has diversity programmes in place but another office does not? Dr Wrench says such a situation could pose problems. If the UK office has diversity training but the German one does not, then "do you send a black man [from the UK office] to the German office where there is no diversity policy?" Meaning, this qualified manager might have problems successfully completing the assignment if the receiving office hasn't been trained to accept diversity.

From there the company could face discrimination because the employee could not get international experience. All the more reason Dr Wrench believes a company should roll out its diversity policy across its European offices, not just the head office.

December 2002