A Guide for New Zealand Workplace Leaders and Teams

Diversity in the workplace refers to the range of various personal, physical, and social attributes amongst employees. Inclusion, on the other hand, refers to the strategies and procedures organisations include to integrate everyone, ensuring their differences can coexist. In essence, diversity is the “what” and inclusion is the “how”.

The importance of workplace diversity cannot be overstated. A diverse and inclusive environment establishes a sense of belonging amongst employees, which boosts morale and increases productivity. When employees feel included, they’re more engaged in their work, and are willing to go the extra mile. In turn, higher productivity and better team morale boosts profitability.

Benefits of Diversity and Inclusion in the Workplace

Diversity and inclusion

(D&I) have become critical components of successful organisations worldwide, and New Zealand is no exception. Diversity introduces various backgrounds, experiences, and perspectives into the workplace through differences in:

• Age
• Gender
• Ethnicity
• Religion
• Sexual orientation
• Educational Background

Inclusion is all about how well organisations fare in creating an environment where all employees feel valued, respected, and are able to fully contribute their unique talents. Leveraging the different skill sets amongst a diverse team makes good business sense; research consistently shows that organisations with diverse and inclusive workplace cultures outperform their competitors on a range of different metrics.

Increased Productivity

Studies have found that diverse teams can boost productivity by up to 35%. Better work cultures and environments for employees make them more motivated and engaged in their work, leading to higher output and quality. An inclusive workplace culture brings out the best productivity in the workplace.

Greater Innovation

Diverse teams bring a variety of different perspectives, experiences, and ideas to the table. This cognitive diversity sparks higher creativity and innovation, which enables organisations to identify new opportunities and solve complex problems. In fact, the most diverse enterprises are also the most innovative, as measured by their revenue mix.

Better Decision Making

Homogeneous teams are prone to groupthink and blind spots. In contrast, diverse teams consider a wider range of viewpoints, and challenge each other’s assumptions. This leads to more robust and balanced decisions. Research shows that diverse teams make better decisions 87% of the time compared to individuals. Diversity and innovation go hand in hand, mainly due to the wide range of employee experiences a diverse workforce offers.

Wider Talent Pool

One of the top benefits of workplace diversity is that organisations can tap into a broader pool of talent. This not only helps to attract top candidates, but also enables companies to better understand and serve an increasingly diverse customer base.

Increased Revenue

The business case for diversity is clear: companies with more diverse leadership teams achieve greater profits. McKinsey found that organisations in the top quartile for ethnic and cultural diversity are 33% more likely to create more profitable employees.

Reduced Turnover

When employees feel valued and included, they are more likely to stay with the organisation. This leads to reduced turnover costs, and helps to retain institutional knowledge. Inclusive workplaces also tend to have better employee well-being and overall job satisfaction.

Historical Context for the Importance of Diversity

New Zealand’s journey towards diversity and inclusion in the workplace has been shaped by its unique history and culture. As a bicultural nation founded on the partnership between the Māori people and the British Crown, enshrined in the Treaty of Waitangi, New Zealand has long grappled with issues of cultural diversity and equity.

It wasn’t until the late 20th century that diversity and inclusion began to emerge as explicit priorities in New Zealand workplaces. The 1980s and 1990s saw a growing recognition of the need to address historical inequities faced by Māori people, as well as the increasing cultural diversity of New Zealand society due to immigration.

Legislative Milestones

Several key legislative milestones have helped to embed the principles of diversity and inclusion into New Zealand’s employment landscape:

• The Human Rights Commission Act 1977 prohibited discrimination on the grounds of sex, marital status, or religious or ethical belief.
• The Human Rights Act 1993 expanded these protections to include discrimination based on disability, age, political opinion, employment status, family status, or sexual orientation.
• The Employment Relations Act 2000 promoted collective bargaining, and aimed to address the inherent inequality of power in employment relationships.

These laws have provided a legal foundation for diversity and inclusion, making it clear that discrimination is unacceptable in New Zealand workplaces.

Changing Demographics

New Zealand’s rapidly changing demographics have also been a key driver of the focus towards diversity and inclusion. The 2018 Census revealed that 27.4% of New Zealand’s population was born overseas, with the five largest ethnic groups being European, Māori, Chinese, Indian, and Samoan. This increasing cultural diversity has highlighted the need for workplaces to adapt and become more inclusive.

New Zealand’s aging population has also brought issues of age diversity to the forefront. By 2038, it’s projected that nearly one in four New Zealanders will be aged 65 or over. This has prompted many organisations to consider how they can better support and engage older workers.

Business Benefits

As the business case for diversity and inclusion has become clearer, more New Zealand businesses have begun to embrace these principles as a competitive advantage. Research has consistently shown that diverse and inclusive teams are more innovative, make better decisions, and achieve better financial results.

The 2020 New Zealand Workplace Diversity Survey found that 80% of organisations viewed diversity and inclusion as beneficial for their business, with the most commonly cited benefits including:

• Access to a wider talent pool
• Improved creativity and innovation
• Better decision making

Ongoing Challenges in Creating Inclusive Workplace Settings

Despite the progress made, significant challenges remain in making New Zealand workplaces truly diverse and inclusive. The 2022 Diversity Survey found that, while 80% of organisations had some form of diversity policy or initiative in place, less than half of these organisations were measuring the effectiveness of these efforts.

There are also ongoing disparities in representation and outcomes for diverse groups. The gender pay gap persists, with women earning 9.5% less than men on average. Māori and Pasifika people remain underrepresented in leadership roles, and people with disabilities continue to face employment barriers.

New Zealand workforces can implement six proven strategies to overcome these issues:

1. Leadership Commitment

D&I initiatives must start at the top. Leaders need to visibly champion diversity. They must set clear goals and expectations, and hold themselves and others accountable for progress.

2. Inclusive Recruitment

Organisations should review their hiring practices to eliminate bias, and ensure they are reaching diverse candidate pools. This may include using blind resumes, diverse interview panels, and targeted outreach to underrepresented groups.

3. Employee Training

Providing regular D&I training helps to build awareness, challenge stereotypes, and equip employees with the skills to work effectively across their differences. Training programs should cover topics such as unconscious bias, cultural competence, and inclusive leadership.

4. Employee Resource Groups in the Workforce

ERGs

are voluntary, employee-led groups that encourage a diverse and inclusive workplace. They provide support, networking opportunities, and a voice for underrepresented employees. Organisations should encourage and resource ERGs as part of their D&I strategy.

5. Metrics and Accountability

What gets measured gets done. Organisations should track diversity metrics (e.g. representation, hiring, promotion rates) and inclusion indicators (e.g. engagement scores and turnover) to identify any gaps and monitor progress. Leaders should be held accountable for meeting D&I targets as part of their performance reviews.

6. Flexible Work Arrangements

Offering flexible work options, such as remote work, part-time roles, and job sharing, can help to attract and retain diverse talent, particularly women, parents, and people with disabilities. The COVID-19 pandemic has accelerated the shift towards flexible work options, presenting an opportunity for organisations to encourage more inclusivity.

Principles of a Diverse and Inclusive Organisation

To fully realise the potential of diversity and inclusion, New Zealand organisations must take proactive steps to embed these principles into their workplace culture and practices. This requires a holistic approach, which goes beyond surface-level initiatives, and addresses the systemic barriers that have historically excluded certain groups from full participation in the workplace. To truly leverage the benefits of diversity and inclusion, New Zealand organisations should:

• Integrate minorities and vulnerable groups in the workforce. This makes it possible to design and deliver strategies that address historical inequalities.
• Bring traditionally excluded groups to the decision-making table, which contributes to social harmony.
• Invest in training and awareness programs to educate employees about disability rights, appropriate communication methods, and ways to create an inclusive environment.
• Continuously monitor and update policies and practices to reflect technological advancements and changing social cultures.

Challenges of Diversity in the Workplace

While the benefits are clear, implementing diversity and inclusion practices does come with challenges:

• Leadership Involvement: D&I initiatives must align with organisational goals and values. Upper management needs to allocate resources, skills, and experience, even in the face of uncertainty.
• Measurement: Continuously give employees the opportunity to voice D&I concerns. Use this feedback to incorporate people-centric initiatives.
• Communication Barriers: In a diverse workforce, people from different walks of life can have communication barriers or differences in opinion.
• Conflicting Beliefs: Employees from diverse backgrounds and different groups can sometimes have polarising beliefs or opinions, which can be a challenge for managers.

Fostering a Safe and Inclusive Workplace

For inclusion and diversity to truly thrive, the workplace must be a safe place where all employees feel secure, respected, and free to be themselves. This means creating an environment that is physically, psychologically, and emotionally safe for everyone regardless of their background or identity. One key aspect of workplace safety is protection from discrimination, harassment, and bullying. Organisations have a legal and ethical obligation to prevent and address any such behaviour in the workplace. This requires clear policies, reporting mechanisms, and consequences for violations, as well as ongoing training and education for all employees.

However, safety goes beyond the absence of overt harm in a work environment. It also means creating a culture of psychological safety. Employees should feel comfortable speaking up, asking questions, and taking risks without fear of judgment or retribution. Feeling a sense of belonging in the workplace is a crucial part of a psychologically safe workplace. Diversity efforts are valued, and mistakes are seen as opportunities for learning and growth.

Building this kind of safety requires trust, openness, and vulnerability from all levels of the organisation. Leaders must model inclusive behaviour. They should encourage authentic dialogue and feedback, especially when it comes to the experiences and perspectives of their diverse team. To create an inclusive company, all employees, including diverse recruiters, must be willing to challenge their own assumptions and biases.

Another important part of workplace safety is ensuring that the physical workspace is accessible and welcoming to all. This includes considerations such as wheelchair ramps, gender-neutral bathrooms, and quiet spaces for prayer or meditation. It also means providing accommodations for employees with diverse needs, such as flexible work arrangements, assistive technology, or language interpretation services.

Creating a truly safe and inclusive workplace is an ongoing process that requires commitment, and a willingness to learn and grow. It means constantly examining and challenging the systems, practices, and behaviours that may be excluding or marginalising certain groups. A safe and inclusive workplace creates a working culture where everyone can thrive.

Legal Compliance in New Zealand

New Zealand has several laws governing diversity and inclusion in the workplace:

• The Employment Relations Act 2000 and Human Rights Act 1993 prohibit discrimination based on gender, marital status, religious belief, ethical belief, colour, race, ethnic or national origins, disability, age, political opinion, employment status, family status or sexual orientation.
• The Treaty of Waitangi affirms the rights of tangata whenua and gives rights and responsibilities to all people in Aotearoa New Zealand, assuring a standing place to belong for all.

Organisations must ensure compliance with these laws and embed the concepts of equity and merit throughout the employment cycle.

The Role of Diversity and Inclusion Training

Diversity and inclusion training is an important part of creating change. Diversity & Inclusion NZ offers a range of training programs and resources, including workshops on unconscious bias, cultural intelligence, inclusive leadership, and managing diverse teams. They also provide tailored consulting services to help organisations assess their current state and develop customised D&I strategies to overcome challenges in the workplace.

However, it’s important to recognise that training alone is not a silver bullet. To be effective, it must be part of a holistic, long-term strategy that is championed by leaders, embedded into systems and processes, and reinforced through accountability and metrics.

Diversity and Inclusion as a Strategic Imperative for New Zealand Organisations

Embracing diversity and inclusion is a business necessity. As New Zealand becomes more diverse, organisations that proactively build inclusive cultures will reap the benefits of increased innovation, productivity, and performance.

Leveraging the full spectrum of talent and perspectives can help New Zealand workforces build stronger, more adaptable teams that are well-equipped to navigate the challenges and opportunities of the 21st century. This requires a sustained commitment to embedding D&I into every aspect of the organisation, from leadership and strategy to systems and processes.

The journey toward inclusivity is not always easy. However, with commitment, strategy, and action, it is a path that will pay dividends for individuals, organisations, and society as a whole.