ASU Lodestar Center Blog

Illustration by Yuxin Qin

What is workplace diversity and where did it come from?

Diversity has become a central topic in every environment over the last couple of years. This is due to the injustices coming to light within our society; it is no different in the workplace. Since the 1960s, people of color and women have fought for equality at work, leading to laws being passed prohibiting discrimination (1964), increasing advancement opportunities for the underrepresented (1965), and allowing those who have been discriminated against to prosecute (1972). To have a truly diverse environment, an organization must develop an intentional focus to hire people from groups that have been systematically discriminated against and oppressed at work. This includes, but is not limited to, people of color, women, various religious groups, non-heterosexuals and people with disabilities.

Why is workplace diversity important?

Creating diverse workplaces has played a large role in the rise of African Americans in the U.S. middle class, and has created benefits for women of all races. As high as 80% of people now entering the workforce are non-white, women, or immigrants. Developing a diverse work environment has been shown to decrease turnover rates, increase job performance, help organizations exceed their financial goals, and promote creativity, which leads to greater innovation. Employees often relate their satisfaction and quality of care to how inclusive and diverse the organization is. The more diverse an organization, the more resources will be available and the more ties it will have to influential people and institutions.

Illustration by Yuxin Qin

The COVID-19 pandemic has not been kind to the nonprofit sector and many organizations have had to undergo massive staffing cuts, eliminate programs, and struggle through maintaining minimal viable operations to avoid closing permanently. Many nonprofits are still unsure if they will ever be the same or even operate again. In April of 2020, Charity Navigator surveyed over 4,000 nonprofit representatives and learned that of those surveyed, 83% reported suffering financial hardship due to the pandemic and the economic shut down. About 70% stated that the organizations either suffered cut backs, or was planning on cutting programs all together. For a sector that provides pivotal services to the public, the impact is difficult to comprehend.

Last year also brought with it civil unrest, a rise in the call for social justice, and decentering of white supremacy culture. Many organizations are now finding that a crisis management plan is not the whole story. Organizations also need to consider who is leading the organization, and if their leadership style is effective. The expectations of our employees are shifting, which then impacts the way in which nonprofit leaders need to manage through a crisis. Employees are expecting authenticity, transparency, flexibility and collaboration from their leaders, characteristics of which are not typically written into crisis management plans.

Illustration by Yuxin Qin

Most in the nonprofit sector have heard the question, “How much of my donation will go toward programs?” This may be a triggering question, but with good reason. There are many implications that this question brings, but when it is asked by major funders it causes a ripple effect within the nonprofit sector.

Nonprofits depend on sustainable revenue sources to ensure their mission is fulfilled. Therefore, when a funder requests administrative costs lower than what is needed, or state they will not fund administrative costs, organizations make it work. The Overhead Project speaks to the difficulties that organizations can face when they do this: “Community nonprofits typically have overhead that is much too low. They often underspend on essential, basic costs such as rent and insurance. They can't afford adequate accounting staff, good technology, or human resources management. They often try to compensate for under-funding of programs and systems by having too few staff or paying staff poorly. The consequences of under-investing in overhead are financial weakness and inefficiencies at the nonprofit, and as a result, fewer services or lower quality services.”

Illustration by Yuxin Qin

Ask yourself: Has there ever been a time when you sought the services of a nonprofit organization but something just didn’t feel right? Unfortunately, this is a common dilemma for minority groups and various ethnic populations.

For example, consider you’re a Spanish-speaking customer from a neighborhood that as of recently is facing a housing crisis due to COVID-impacted job losses. You find a local nonprofit in your community that you think might be able to help you find and utilize resources relating to rental assistance. You are hesitant to enter the organization because of the lack of Spanish-translated flyers, information posted outside, and because the individuals pictured do not represent you or those from your community.

Upon entering, you are greeted by an individual who does not speak Spanish. You kindly ask for assistance in Spanish, but are told they do not have anyone who speaks your language; you are worried and in need of assistance, but are just not comfortable speaking in English. With an attempt nonetheless, you begin to explain in English your needs and the struggles that your community is facing with the hopes of receiving useful support. The employee is unaware of the issues you face, and is unsure on how to help. You are disappointed that the nonprofit was unprepared to serve your community, and lacked the resources and information to genuinely help.