These days, diversity and inclusion in the workforce are more than just nice-to-haves; they’re must-haves, which means a robust affirmative action plan is necessary. However, the unnecessarily complex and differing approaches to these policies keep companies from reaching their full potential. Some businesses are concerned with righting past wrongs, and some are concerned with actively monitoring policies after they’ve been put into place. If those are your goals, it’s necessary to understand why your organization must have these affirmative action policies in place. You must also be aware of the forms these policies might take and ensure your procedures avoid minefields while achieving your organization’s goals.
Why Is an Affirmative Action Plan Necessary?
The planning and monitoring required to maintain a diverse workforce might seem like a lot of work, but they can pay off richly for both you and your team. There’s a reason 95% of respondents to a Deloitte survey agreed that their boards needed to seek more diverse candidates. Diversity in the workplace can lead to increased creativity and innovative thinking. A workforce that is representative of the population as a whole is more likely to come up with new ideas and out-of-the-box solutions for everyday issues or roadblocks.
Additionally, when employees feel like they have a voice and their perspective is valued, they’re more likely to be engaged in their work and committed to their team. Companies with diversity and inclusion in the workforce also tend to have better experiences when it comes to understanding and connecting with customers. With a range of backgrounds, employees can offer valuable insights into different customer groups. This understanding can lead to better relationships and a stronger bottom line.
Lastly, if you’re a federal contractor with at least $50,000 in contracts and you employ 50 or more workers, do business with a federal contractor, or run a federally insured financial institution, an affirmative action plan is mandatory. You must maintain one for your business to be legal.
Many private companies that aren’t required to uphold their own affirmative action plans have voluntarily adopted them because they’ve found that the benefits of a diverse and inclusive workforce help businesses succeed even in uncertain times.
Challenges of AAP
Despite the numerous rewards that come from implementing an affirmative action plan in your business, challenges remain — the biggest being political interference. Although affirmative action is an issue backed by advocates for human rights, the concept has become political in recent years. Even though the support for equality is almost universal, some people think federal policy will only “fix” discrimination with more discrimination.
The current political landscape is such that any company that practices affirmative action can face significant backlash. For example, there was an uproar when Google disclosed its workforce demographics in 2014, revealing that employees were 70% male and 60% white or Asian. The main concern seemed to be that these numbers were too low for what seemed natural, given the global population distribution of these groups. On the one hand, people want companies to have a more diverse workforce. But on the other hand, when companies try to do this, they are accused of discrimination. It can be a no-win situation for companies that want to do the right thing.
That’s why equally strong messaging is required to counter false narratives. Companies need to ensure their policies are legal and effective. There are several laws and regulations governing affirmative action in business, which can be confusing and difficult to navigate. Additionally, it’s essential to ensure your policy has the desired effect. Regularly evaluating your program and making necessary changes is crucial for maintaining a successful affirmative action plan.
Affirmative action will always be around in one form or another for two very simple reasons. First, most everyone agrees that making employment decisions based on sex or race is wrong and only serves to harm talented individuals. Most people want the world we live in to be unbiased and honest. Second, because it is part of human nature to discriminate, the only solution is constant vigilance through the upkeep of affirmative action programs.
The Future of Affirmative Action
In the coming years, affirmative action will continue to grow and evolve. The following are three possible compliance modifications that employees and business leaders can anticipate moving forward:
1. Distinguishing the different types of affirmative action
When discussing the future of affirmative action, it’s important to distinguish what kind of affirmative action is the most beneficial for each use case.
For example, affirmative action in college admissions is mostly corrective and involves things such as quotas and point systems based on sex, race, or ethnicity.
Preventative affirmative action, on the other hand, is involved in affirmative action plans and is advantageous for business operations. It could look like providing employees with better compliance training opportunities or offering compliance professionals the help they need to ensure diversity in the workplace and eliminate potential discrimination. These types of plans are here to stay.
2. Improving fairness in technology
In April 2022, Jocelyn Samuels, vice chair of the Equal Employment Opportunity Commission, explained at a conference of HR professionals that using artificial intelligence in hiring practices is changing the game. Businesses that are looking to promote algorithmic fairness should be vigilant that the technology that’s used to break down barriers doesn’t accidentally create them. As companies continue to march forward through the digital age, remaining mindful of bias in technology will be more critical than ever, especially in the search for top talent.
3. New terminology
Companies must understand that identifying a diverse pool of applicants is not the same as filling a quota. In the future, we will see changes in terminology to help us better distinguish the kind of affirmative action that we actually practice in the workplace, which benefits everyone. The federal government can further support these measures by cleaning up regulations and dumping outdated, confusing terminology. However, much of the responsibility lies on you as a compliance professional to change the discussion around affirmative action, especially because the fundamental ideas will remain the same.
Next Steps
Affirmative action plans can help companies avoid discrimination charges, connect with diverse customer groups, and improve the bottom line. Despite challenges such as political interference or workplace toxicity, companies should still consider implementing affirmative action in the workplace to stay compliant and competitive while building an inclusive workforce.
At Biddle, our clients are as dedicated to equal opportunity and non-discrimination as we are. We’re concerned with ensuring your organization knows how to navigate these principles and gets the most out of them. We are idealists but also realists and pragmatists. To explore how we can help your business, contact us today.
