Evidence clearly shows that today’s workforce is becoming increasingly diverse as a result of demographic trends and changes in immigrant patterns. According to the U.S. Department of Labor, the ethnic minority portion of the workforce is projected to double from 18 percent to 37 percent from 1980 to 2020. What is less clear, however, is how private clubs can effectively manage a diverse workforce. There are financial reasons for private clubs to address diversity. Perceived workplace discrimination is linked to lower employee morale, job commitment, and to intentions to quit, undermining the time and cost of effective recruitment and selection procedures and staff training.
Diversity Training: Satisfaction and Retention
One of the most successful tools in managing a diverse workforce is offering formal diversity training programs. In fact, roughly 70 percent of U.S. companies have some form of diversity training program. A recent study conducted at the University of Houston Conrad N. Hilton College of Hotel and Restaurant Management found that diversity training does indeed affect the attitudes and perceptions of ethnic minorities employed in the hospitality and leisure sector. Focusing on diversity training that centered on issues of ethnicity or race, the study asked respondents to indicate whether their employer offered diversity training. In addition, the survey included measures of job satisfaction, perceived discrimination, and intentions to quit their work. The results showed that ethnic minority employees perceived less discrimination, reported more job satisfaction, and were less likely to quit their jobs in organizations that offered diversity training than organizations that do not offer diversity training. These results are important because ethnic minorities tend to be the subject of diversity training, but little is known on how ethnic minorities are affected by such training. What the survey results suggest is that diversity training was perceived as a positive program, because it is a sign that the employer cares about their employees. Thus, clubs that foster diversity training put themselves in a better position to compete in a competitive market than those that simply ignore this issue.
Employee turnover has long been a concern of the private club industry. In fact, according to the U.S. Department of Labor, turnover in the hospitality and leisure sector increased by 52 percent in 2008, which represents the loss of millions of dollars in recruitment, selection, and training costs. The U.S. Department of Labor estimates that the costs associated with turnover are one-third of employees’ annual salary. For example, using the Fair Labor Standards Act (FLSA) national minimum wage of $7.25 per hour, it can cost a company roughly $4,500 for each departing employee. By offering diversity training, the results further showed that employees were less likely to plan or intend to quit their jobs than those who worked at a company that did not offer diversity training.
In particular, for ethnic minority participants in organizations that did not offer diversity training, 26 percent agreed that they intended to leave their job. In contrast, only 18 percent of ethnic minority participants in organizations that did offer diversity training agreed that they intended to leave their job. This was a statistically significant difference. A reason for this difference in intentions to quit is that diversity training indicates to minority employees that the organization is fair and does not discriminate. When organizations dedicate resources to diversity training, it serves as a signal to minority employees that the organization cares about having a diverse workforce.
The study also found that non-ethnic minority employees benefited from diversity training. In particular, Caucasian respondents were also less likely to perceive discrimination and were less likely to quit their jobs in organizations that offered diversity training than organizations that do not offer diversity training. One reason for this finding is that training, regardless of the type, sends a message to all employees that the organization cares about the development of the employees. Another reason is that diversity training sends a message to all employees that the organization fosters equity and fairness. In addition, organizations that provide resources for diversity training also indicate that the company has resources for other developmental efforts.
The implications are quite clear—formal diversity training does have an impact on employees’ attitudes toward their employer. However, typically many private clubs do not have a budget for formal training programs. So, what measures can private clubs take to recognize the fact that many of them have a diverse workforce?
Diversity-Inclusive Measures
Formal policies also influence perceived workplace discrimination. That is, to the extent that clubs offer written policies that are inclusive of diverse backgrounds and perspectives, diverse employees perceive less discrimination, have more positive attitudes about their jobs, and are less likely to quit their job. Such policies may include explicit statements of the value of diversity in employee handbooks, welcoming same-sex partners to company social events, ensuring that the representation of minority group members in management positions is representative of the staff, or establishing mentoring programs (by partnering managers with first-line employees across departments) to support the success of diverse individuals. Taken together, clubs can help circumvent perceived workplace discrimination by adopting policies that stress the importance of diversity.
A further strategy is for club leaders to develop mission statements about diversity and posting them in employee areas (e.g., lunch rooms). By posting diversity-related mission statements, employers acknowledge the importance of diversity to their employees. As such, employers send signals to their employees about the importance of their wellbeing—mirroring the benefits of the diversity training study results.
Psychologist Gordon Allport, one of the first psychologists to focus on the study of the personality, proposed the “contact hypothesis,” which suggests that increasing contact between different groups of people can lead to decreased prejudicial attitudes and beliefs. One example is using teamwork to accomplish goals at work. Another example is a social function for club employees, such as a monthly “bowling night,” which can be effective in reducing perceived workplace discrimination by allowing employees and managers from different backgrounds to interact socially outside of work. In this situation, employees are mutually interdependent, equal in status, interacting in a friendly, informal setting, and endorsed and supported by management.
Recommended Hiring Practices
In the hiring process, reliable selection procedures can be used to increase diversity and reduce perceived discrimination. For example, structured employment interviews not only improve their reliability, but also reduce bias, because using predetermined questions presented to each applicant in exactly the same order produces an assessment of job candidates that is less open to interviewer bias. Not only can structure protect potential targets of discrimination, but structure can also protect organizations from litigation. In fact, employing a structured interview format can help club managers avoid unlawful or inappropriate inquiries related to religion, medical conditions, disability, gender, race, and age. (Editor’s Note: See sidebar on private club exemptions on page XX.)
Structured interviews are perceived by applicants to be more fair and just. Some elements of structure in employment interviewing include:
- Basing questions on the job description and requirements
- Asking the same questions in the same order
- Asking specific types of questions about past job behavior or hypothetical job-related situations
- Limiting the use of follow-up questions
- Training managers for effective interviewing
Resources for Diversity Training
Often, business managers believe that diversity management is expensive and difficult to develop. Are they right? Formal diversity training programs can be expensive—diversity trainers can cost up to $2,000 per day—however, there are a variety of resources clubs can use to develop an in-house diversity training workshop (see sidebar on page XX). Additionally, clubs can tap into Web-based training programs and videos produced by human resource organizations and associations.
Employees in organizations with a culture that is supportive of diversity realize that the valuing of all employees will provide opportunity for advancement. These organizations will benefit from the retention of talented women and ethnic minorities. Additionally, the use of formal diversity training and diversity-inclusive policies allow the organization to proactively enhance the participation of minorities. The private club industry relies heavily on face-to-face interactions between members and employees. Thus, club leaders have a business necessity to examine their workplace and their attitudes toward employees who are diverse.
Juan M. Madera is an assistant professor at the University of Houston’s Conrad N. Hilton College of Hotel and Restaurant Management. Judy Waight is a graduate student in the Master of Science in Hospitality Management program at the University of Houston’s Conrad N. Hilton College of Hotel and Restaurant Management.
Private Club Exemptions
Private clubs should ensure they are taking measures to maintain distinctly private characteristics, so as to protect their limited immunity from certain federal laws, such as public accommodation provisions of the Americans With Disabilities Act (ADA) and the Civil Rights Act of 1964. If the club is both distinctly private and tax-exempt, it is eligible for valuable exemptions under the employment provisions of both of these acts. The exemption from classification as an employer under Title VII of the 1964 Civil Rights Act, and to a lesser extent under ADA, can save the club significant litigation expense and legal exposure.
From NCA’s publication, Private & Tax-Exempt Status, © 2003.
Study Statistics
Participants were 132 full-time employees from the hospitality and leisure sector.
- 43% identified as Caucasian
- 57% identified as Ethnic Minority including African-American or Black, Latino(a), Asian, Native American, and interracial individuals.
- 55% of companies offered some type of diversity training
- 20% of the diversity training was mandatory
- 27% covered issues related to race, ethnicity, and/or multiculturalism
- 40% covered sexual harassment
- 30% covered gender/women’s issues in the workplace
- 14% covered sexual-orientation diversity
Of those whose company did not offer diversity training:
- 40% “Agreed” that they were satisfied with their job
- 16% indicated that they faced some form of discrimination at their job
- 21% “Agreed” that they intended to leave their job soon
Of those whose company that did offer diversity training:
- 54% “Agreed” that they were satisfied with their job
- 4% indicated that they faced some form of discrimination at their job
- 14% “Agreed” that they intended to leave their job soon
Resources for Diversity Training
Although diversity training can be costly, there are organizations that provide diversity training materials, such as videos, hand-outs, power-point lectures, articles, and statistics. Below is a list of website resources:
- Hospitality Industry Diversity Institute (HIDI): http://www.hospitalitydiversity.org
- “Created in 1989, HIDI is a non-profit participant in research, education and advocacy affecting the entire hospitality industry. HIDI seeks to create bridges between diversity research and industry needs and, through diversity-related initiatives, foster more inclusive, more productive and more successful work environments within the hospitality industry.”
- Free access to materials
- The Multicultural Foodservice & Hospitality Alliance (MFHA): http://www.mfha.net/
- “Is a membership based organization comprised of leaders in the food and hospitality industries who believe that sound diversity management practices will help individuals and companies grow.”
- Free access to some materials; some materials require a small fee
- DiversityInc: http://www.diversityinc.com/
- “Founded in 1998 as a web-based publication, DiversityInc is the leading publication on diversity and business. DiversityInc’s mission is to bring education and clarity to the business benefits of diversity.”
- Requires a small membership fee to access materials
- Society for Human Resources Management (SHRM): http://www.shrm.org
- “SHRM is the world’s largest association devoted to human resource management. The SHRM Diversity Discipline deals with the qualities, experiences and work styles that make individuals unique—age, race, religion, disabilities, ethnicity, etc.—as well as how organizations can leverage those qualities in support of business objectives.”
- Requires a small membership fee to access materials
- Diversity In Hospitality: http://www.diversityinhospitality.com
- “DiversityInHospitality.com and WomenInHospitality.com are innovative internet communities where hospitality job seekers and progressive companies come together to learn about job opportunities and promote initiatives based on diversity hiring and retention for the modern workforce.”
- Provides free access to diversity-related articles; membership is required for other services and materials
Defining Diversity Training
While there is no single definition of diversity, most definitions include any difference in race, gender, age, language, physical characteristics, disability, sexual orientation, economic status, parental status, education, geographic origin, profession, lifestyle, religion, or position in the hierarchy of an organization. This definition focuses on a wide array of individual differences. The U.S. Department of Labor often focuses on ethnic minorities—including Hispanics or Latinos, Blacks or African Americans, and Asians—in their Bureau of Labor Statistics data.
Diversity training is a type of instruction designed to change employee attitudes and/or behaviors toward diversity issues by assisting employees in developing skills needed to work with a diverse work force. It aims to foster more harmonious working relationships among employees.
The Department of Labor uses the Survey of Employer-Provided Training to monitor and determine the major types of training that American workers receive from their employers. Diversity training is included in the Department of Labor’s “Awareness Training,” which includes information on:
- Equal Employment Opportunity practices
- Affirmative action
- Workplace diversity
- Sexual harassment
- AIDS awareness