Business Development Bank of Canada
August 20, 2009

Diversity simply makes good business sense for entrepreneurs, according to Peter Lawler, BDC Senior Vice President, Operations, Ontario.

“If you want to be successful in business, the key is hiring good talent. And today much of that talent comes from diverse communities,” he emphasizes. For Lawler, diversity goes beyond visible minorities and ethnic groups and can encompass groups such as seniors, young people, or persons with disabilities. “Ultimately, your company’s workforce should reflect the community at large. If it doesn’t, you may be missing out on an opportunity to reach these important markets,” he adds.

The war for talent
Diversity is particularly relevant in a highly competitive labour market, says Lawler. “Demographics such as the exit of baby boomers from our labour force have changed the recruitment landscape. Companies are often vying for the same and limited pool of skilled people. It’s natural that business owners now need to be more creative to meet their recruitment needs,” he says. “Immigrants, for example, represent much of the population growth today. If you want to recruit successfully today, you need to make your company attractive to this target group.”

Going global
One of the key benefits of a sound diversity strategy is that it improves your company’s capacity to compete in a global market. “Your clients can be anywhere in the world today. If you have employees who come from specific regions, for example, you’re more likely to be able to get closer to these foreign markets. A good example would be hiring people who speak different languages. There’s no doubt that having a multilingual workforce would sharpen your competitive edge in the global arena,” he says. Hiring from foreign countries is particularly important for entrepreneurs exploring export markets.

Target specific groups
Employees from diverse communities such as New Canadians also bring knowledge of their markets and cultures. A company that hires from an East Asian community, for instance, may get easier access to that audience if there are employees on board who have this background. “These employees will have insight into the needs of this group,” he explains. “If you’re targeting a specific audience with advertising, you need to understand exactly what resonates with this market” he explains. For example, your advertising would have to use an appropriate tone, visuals and messages that speak to this audience.

Focused recruitment delivers
For Lawler, business owners should be sure that their recruitment strategies pinpoint specific communities. Long gone are the days when companies simply ran ads in national newspapers. “Recruiting has become increasingly specialized. There are specific publications and vehicles to reach just about any group today,” he emphasizes. Entrepreneurs can start by targeting diverse communities through business associations and networks. For example, a company that wanted to hire from the Chinese community might approach a Chinese business association. Another example would be creating a presence on web vehicles such as Facebook, which could give your company inroads to a younger audience.
“The internet gives you quick and easy access to targeted groups,” he emphasizes.

Adjust your training
Entrepreneurs who hire from diverse groups should also be sure that their training is customized to meet these needs. You may have skilled New Canadians who join your company but who are less fluent in English or French, for instance. Another example would be adapting your training for young people to ensure that it’s highly visual and motivating.

Whatever your diversity strategy, it’s important to do what works best for your company, says Lawler. “There’s no one recipe of course. In the end, you want to be sure that you’re able to tap into this rich and diverse workforce,” he concludes.

 

Reference: Business Development Bank of Canada