IEU ASSIGNMENT BRIEF

Assignment Front Sheet

Qualification Subject Title

Human Resource Management
IEU S2 Master of Management (MM) Subject Code
1029
Lecturer name Assessor name
Prof. Patrick Khor Prof. Patrick Khor
Admission number Intake (Month / Year) Learner Name
Halek Mu’min

Task 1
Discuss the role of strategic human resource management in achieving organizational goals.
How can HRM practices be aligned with business strategies to drive competitive advantage?

Introduction
An organization can run effectively if the management functions such as planning,
organizing, motivation and supervision within it function well, and the supporting elements are
available and meet the requirements. One of the most important elements that can support the
running of a company is human resources. Human resources have an important role in
determining the success of a company. One of the important problems faced by leaders is how to
increase the work productivity of their employees so that they can support the successful
achievement of goals. According to Schermerharn (2003) that a good leader or manager is one who
is able to create conditions so that people individually or in groups can work and achieve high
work productivity.
Human Resources is a central factor in an organization. Whatever the form and purpose,
organizations are created based on various visions for the benefit of humans and in carrying out
their missions are managed and managed by humans. So, humans are a strategic factor in all
institutional/organizational activities. Furthermore, HRM means organizing, managing human
resources based on the company's vision so that organizational goals can be achieved optimally.
Therefore, HRM is also part of Management Science which refers to management functions in
implementing planning, organizing, staffing, leading and controlling processes.

Discussion
Strategic Human Resource Management (SHRM) plays a pivotal role in the attainment of
organisational objectives. The process entails the synchronisation of human resource practises
with the overarching strategic goals of the organisation. This analysis provides a comprehensive
examination of the significance of Strategic Human Resource Management (SHRM) in the
attainment of organisational objectives. According to Spandita (2023) Strategic Human Resource
Management such follows :
a. The process of talent acquisition and recruitment, as outlined by the Society for Human
Resource Management (SHRM), commences with the identification of the specific talents and
skills necessary to align with an organization's strategic objectives. Human resources
professionals have a responsibility to proactively search for people who have the requisite
skills, expertise, and cultural compatibility required to effectively contribute to the
organization's goals and objectives. The implementation of strategic recruitment practises is
essential in order to ensure that individuals with the appropriate skills and qualifications are
assigned to positions that align with their abilities, thereby significantly contributing to the
achievement of organisational objectives.
b. personnel planning, as defined by the Society for Human Resource Management (SHRM),
entails the process of predicting the future personnel requirements of an organisation in
accordance with its strategic objectives. This encompasses the ability to forecast and prepare
for potential fluctuations in workforce size, necessary skill sets, and desired proficiencies. The
implementation of efficient workforce planning is crucial in ensuring that the organisation
have the requisite human resources to effectively carry out its strategic objectives.
c. The importance of employee development is emphasised by the Society for Human Resource
Management (SHRM), which advocates for a continual process of learning and growth. This
approach is aimed at ensuring that employees possess the necessary skills and information to
effectively contribute to the overall success of the organisation. Training, mentoring, and
professional development initiatives are integral elements of this endeavour.
d. The integration of performance management systems inside HRM practises is vital to ensure
the alignment of individual and team goals with the strategic objectives of the organisation.
The implementation of regular performance assessments, feedback mechanisms, and goal-
setting processes aids in fostering employee comprehension of the extent to which their
individual endeavours contribute to the overarching objectives of the organisation.
e. The Society for Human Resource Management (SHRM) ensures that remuneration and
reward systems are strategically developed to effectively encourage and incentivize
personnel, thereby fostering their commitment and dedication to the attainment of
organisational objectives. Compensation packages have the potential to encompass many
components like as bonuses, profit-sharing arrangements, and other forms of incentives that
are directly linked to individual performance and the achievement of strategic objectives.
f. The correlation between employee engagement and retention suggests that individuals who
are actively involved and content in their work are more inclined to demonstrate dedication
towards achieving the objectives of the organisation. The Society for Human Resource
Management (SHRM) places its emphasis on the establishment of a favourable work
environment, the cultivation of employee involvement, and the adoption of measures aimed
at retaining valuable personnel inside the organisation.
g. Change management is a critical aspect of organisational development, particularly as
companies undergo strategic transformations. Within this context, human resources (HR)
assumes a central role in effectively overseeing and facilitating change processes. The Society
for Human Resource Management (SHRM) encompasses the facilitation of seamless
transitions, the effective communication of changes, and the resolution of employee problems
in order to mitigate interruptions and uphold a steadfast commitment to strategic objectives.
h. Succession planning, as outlined by the Society for Human Resource Management (SHRM), is
the process of recognising and cultivating prospective leaders within the organisational
framework. The implementation of a robust succession planning process is crucial in ensuring
that an organisation possesses a well-prepared pool of capable individuals who can readily
assume critical positions when necessary. This practise serves to mitigate any potential voids
in leadership and facilitates the achievement of long-term strategic objectives.
i. Data and analytics play a crucial role in the evaluation of HR practises and their influence on
 business results within the context of SHRM. Human resource (HR) professionals employ key
performance indicators (KPIs) and metrics to evaluate the efficacy of HR policies and employ
data-driven decision-making in order to bolster organisational objectives.
j. The imperative of legal compliance necessitates that the Human Resources department
diligently ensures that all Human Resource Management practises are in accordance with
pertinent labour laws and regulations. Non-adherence to established regulations and policies
may result in legal ramifications, hence impeding the attainment of organisational objectives.
In essence, the Society for Human Resource Management (SHRM) focuses on the strategic
management of an organization's most precious resource, namely its human capital, in order to
effectively support and enable the achievement of strategic goals. The primary objective is to
guarantee that human resources practises are not only in line with the aims of the organisation,
but also actively contribute to their achievement. Therefore, the Society for Human Resource
Management (SHRM) plays a crucial role in attaining organisational success and sustaining a
competitive advantage within the contemporary and ever-changing corporate landscape.
Waghel ( 2023) says The alignment of Human Resource Management (HRM) practises with
business strategy is of paramount importance in order to foster a competitive advantage. The
integration of HR practises with an organization's overarching strategy can make a substantial
contribution towards the attainment and long-term maintenance of a competitive advantage.
There exist multiple methods via which human resource management (HRM) practises can be
effectively synchronised with company strategy in order to foster a competitive edge.
a. To effectively fulfil their role, human resources professionals must possess a comprehensive
comprehension of the organization's business strategy, encompassing its overarching goals,
specific objectives, and competitive positioning within the market. It is imperative for
individuals to possess a comprehensive understanding of the organization's purpose, vision,
and values in order to align human resources practises with these strategic components.
b. The objective of talent acquisition and recruitment is to ensure that the recruitment process is
aligned with the strategic requirements of the business. This is achieved by specifically
targeting individuals who possess the necessary skills and competences to effectively execute
the company's strategy. It is imperative to engage in recruitment practises that not only
address present demands but also consider future strategic necessities.
c. The process of workforce planning involves the development of plans that are in line with the
strategic objectives of the organisation. One should proactively consider potential alterations
in personnel requirements, talent prerequisites, and geographical placements in light of the
organization's projected development or expansion strategies.
d. Employee Development: Allocate resources towards the implementation of training and
development initiatives aimed at providing employees with the necessary knowledge and
skills to effectively contribute to the organization's strategic objectives. Customise
development activities to effectively target and tackle specific strategic objectives, such as the
enhancement of leadership capabilities to support growth-oriented plans.
e. The integration of performance appraisal systems with strategic objectives is a crucial aspect
of performance management. Establish precise performance measures and objectives that are
in accordance with the strategic direction of the organisation. Consistently evaluate and offer
constructive criticism regarding performance within the framework of strategic objectives.
f. Compensation and Rewards: Develop compensation and reward frameworks that effectively
incentivize personnel to actively participate towards the attainment of strategic objectives.
The inclusion of variable pay, bonuses, and incentives that are linked to performance and
strategic outcomes should be taken into consideration.
g. The promotion of employee engagement and retention entails cultivating a workplace
atmosphere that is congruent with the organization's culture and values, which frequently
play a crucial role in its strategic positioning. Employees that are actively involved and
 content in their work are more inclined to endorse and enhance the competitive advantage of
the organisation.
h. The management of organisational transformation should involve a significant contribution
from the Human Resources (HR) department. During periods characterised by strategy shifts
or transformations, the Human Resources (HR) department can play a crucial role in
facilitating effective communication, providing retraining opportunities, and implementing
support systems. These actions are aimed at mitigating any disruptions and ensuring that
organisational activities remain aligned with the overarching strategic goals.
i. Succession planning involves the identification and cultivation of individuals with the
potential to assume leadership positions within an organisation, with the aim of effectively
advancing the company's strategic vision. An effective succession plan guarantees a
consistent pool of skilled individuals who are prepared to assume critical positions, thereby
minimising gaps in leadership and facilitating the achievement of long-term strategic goals.
j. The field of data and analytics encompasses the collection, analysis, and interpretation of
information for the purpose of making informed decisions and gaining insights. The
implementation of HR analytics is crucial for assessing the influence of human resource
management (HRM) practises on business outcomes. Utilise empirical evidence to discern
patterns, evaluate the efficacy of human resources strategies, and formulate data-informed
judgements that bolster the organization's competitive edge.
k. Legal Compliance: It is imperative to ensure that all human resources practises strictly follow
to labour laws and regulations. Failure to comply with these legal requirements can result in
significant legal complications that have the potential to interrupt corporate operations and
negatively impact the company's reputation.
l. Continuous improvement involves the consistent evaluation and enhancement of human
resource management practises in order to align with dynamic business strategies and
fluctuating market conditions. Continuous improvement is a crucial practise that assures the
perpetual alignment of a firm with its competitive positioning.
In summary, it is imperative to perceive HRM practises as a strategic facilitator rather than
mere administrative responsibilities. When HR practises are effectively integrated with business
strategy, they not only contribute to the attainment of competitive advantage but also facilitate its
long-term sustainability. This alignment fosters a workforce that exhibits high levels of
engagement, proficiency, and motivation, so enabling them to make valuable contributions
towards the achievement of the company's objectives. Consequently, this enhances the
organization's competitive advantage within the marketplace.

Conclusion
In conclusion, both Spandita (2023) and Waghel (2023) highlight the critical role of
Strategic Human Resource Management (SHRM) in aligning HR practices with an
organization's strategic goals to drive competitive advantage. The points presented by
both authors emphasize the importance of HRM in achieving organizational objectives.
SHRM involves a multifaceted approach that encompasses talent acquisition,
personnel planning, employee development, performance management, compensation,
employee engagement, change management, succession planning, data analytics, legal
compliance, and continuous improvement. When these HRM practices are effectively
synchronized with an organization's strategic direction, they create a workforce that is not
only aligned with the company's goals but also actively contributes to their attainment.
Furthermore, both authors emphasize the significance of understanding the
organization's business strategy, fostering a culture that supports strategic objectives, and
continuously adapting HR practices to changing business dynamics. This ongoing
alignment and evolution ensure that the organization can maintain its competitive
advantage in a dynamic and competitive business landscape.
In essence, SHRM is a dynamic and strategic approach that recognizes the pivotal
role of human capital in achieving and sustaining competitive advantage. By integrating
HR practices with the overarching business strategy, organizations can effectively
leverage their workforce to drive success and remain competitive over the long term.

Reference:
Schermenharn, John R. (2003), Manajemen. Edisi Bahasa Indonesia. Penerbit Andi,
Yogyakarta.
Spandita. 2023. Strategic Human Resource Management: Types, Functions & More. (n.d.).
Strategic Human Resource Management: Types, Functions & More.
https://www.knowledgehut.com/blog/others/strategic-human-resource-
management.
Waghela. 2023. How do you align your human resource management and development strategy
with your business goals? (2023, September 1). How to Align Your HRM and HRD
Strategy With Your Business Goals. https://www.linkedin.com/advice/3/how-
do-you-align-your-human-resource-management
Task 2:

Analyze the impact of technology on HRM practices. How have advancements in technology,
such as HR information systems and artificial intelligence, transformed recruitment, training, and
performance management processes?

Introduction
The utilisation of technology has brought about significant transformations in the methods
employed by HR departments to communicate with employees, manage information storage, and
evaluate employee performance. When utilised effectively, technology enhances the efficiency of
human resources practises. When utilised ineffectively, it might impede the management of an
organization's human resources. Effective human resource management practises aim to optimise
the advantages while mitigating the challenges.

Discussion
Technological progress, specifically the integration of HR information systems (HRIS) and
artificial intelligence (AI), has brought about substantial changes in recruitment, training, and
performance management procedures across various domains. According to Sherman (2023) there
are fews the benefit of HR information systems (HRIS) and artificial intelligence (AI), such as :
a. The process of recruiting individuals for employment purposes.
The utilisation of HRIS and AI-driven applicant tracking systems (ATS) has significantly
enhanced the efficiency of recruiting processes through the automation of many operations,
including job listing publication, resume screening, and interview scheduling. This practise
mitigates the burden of administrative tasks and enables human resources experts to allocate
their attention towards more strategic facets of the recruitment process.
The utilisation of AI-powered algorithms enables the analysis of resumes and applications,
facilitating the identification of individuals whose qualifications closely align with the specific
job criteria. As a result, there is an increase in the efficiency and precision of candidate
selection, resulting in a decrease in the time it takes to fill a position and an enhancement in
the calibre of individuals hired.
The utilisation of data-driven decision-making in the field of Human Resource Information
Systems (HRIS) allows recruiters to evaluate the efficiency of their sourcing tactics and make
necessary adjustments based on the insights provided by data analytics tools. Data insights
play a crucial role in enabling HR professionals to make well-informed decisions regarding
the optimal strategies and approaches for identifying and attracting high-caliber individuals.
AI-powered chatbots and virtual assistants have the capability to interact with individuals,
address commonly requested inquiries, and aid in the preliminary phases of the application
procedure, so enhancing the efficiency and responsiveness of the candidate's overall
experience.
b. The process of acquiring knowledge, skills, and competencies through systematic
instruction and practise.
E-learning platforms are frequently integrated with HRIS systems, providing employees with
the ability to remotely access training materials and courses using online training platforms.
The aforementioned adaptability facilitates ongoing education and advancement, particularly
for teams operating remotely or in dispersed locations.
Personalised Learning Paths: Artificial intelligence algorithms provide the capability to
evaluate the specific skill deficiencies and career aspirations of individual employees, hence
 providing tailored recommendations for training modules or courses. The implementation of
a customised strategy significantly improves the efficacy of training programmes.
Virtual reality (VR) and augmented reality (AR) have emerged as promising technologies for
facilitating immersive learning experiences. In sectors where practical training is of
paramount importance, such as healthcare or manufacturing, virtual reality (VR) and
augmented reality (AR) technologies offer immersive teaching opportunities that mitigate the
necessity for tangible resources and enhance safety measures.
c. Performance management is a systematic approach used by organisations to monitor,
evaluate, and improve the performance of their employees. It involves setting clear
HRIS technologies facilitate the provision of real-time feedback and performance coaching via
digital channels. The frequency of feedback provision and reception between managers and
employees can be increased, thereby cultivating an environment that promotes ongoing
enhancement.
The utilisation of HRIS and AI-driven analytics can provide valuable insights into patterns of
employee performance, enabling HR professionals and managers to pinpoint areas that
require enhancement, acknowledge exceptional workers, and make choices based on facts.
360-Degree Feedback Tools: The utilisation of technology facilitates the gathering and
examination of feedback from many individuals, so enabling a more thorough assessment of
an employee's performance and areas for growth.
Goal management is a common component of Human Resource Information Systems (HRIS),
which encompasses aspects related to defining and monitoring goals. These features aid
employees and managers in aligning individual and team objectives with the overall
goals of the organisation. This practise fosters the principles of goal transparency and
accountability.
The utilisation of technology enables the installation of digital platforms for
recognition and incentives, facilitating the process of acknowledging and
incentivizing employees who demonstrate exceptional performance.
In general, the implementation of technology-driven improvements has resulted in
increased efficiency, data-driven decision-making, and enhanced user-friendliness in the
domains of recruitment, training, and performance management. The aforementioned
modifications have yielded enhancements in the comprehensive employee experience,
bolstered the efficiency and precision of human resources (HR) procedures, and
empowered HR practitioners to assume more strategic responsibilities inside corporate
entities. With the ongoing evolution of technology, it is reasonable to anticipate additional
advancements in human resources (HR) practises.

Conclusion
In conclusion, the integration of HR information systems (HRIS) and artificial
intelligence (AI) has brought about significant advancements in recruitment, training, and
performance management. These technological innovations have led to increased
efficiency, data-driven decision-making, and improved user experiences in these HR
processes. As technology continues to evolve, we can anticipate further enhancements in
HR practices, ultimately benefiting both organizations and employees.

Reference:
Sherman. 2020. How Does Technology Impact HR Practices? (n.d.). Small Business -
Chron.com. https://smallbusiness.chron.com/technology-impact-hr-practices-
37912.html

Task 3:
Evaluate the importance of employee engagement in organizational success. Discuss
strategies that HRM professionals can implement to enhance employee engagement and
create a positive work culture.

Introduction
The significance of employee engagement in all organisations lies in its ability to
foster a more favourable work culture, diminish staff turnover rates, enhance productivity
levels, cultivate stronger work and customer relationships, and ultimately influence
corporate revenues. However, this practise has been found to increase employee
satisfaction and subsequently transform them into strong advocates for the organisation.
In the context of organisational dynamics, employee engagement is widely
recognised as a critical factor that significantly influences corporate operations and overall
profitability. Moreover, it aids leaders in comprehending the demands of their employees
and facilitates the identification of strategies to enhance morale and establish more
favourable work conditions.

Discussion
As human resources professionals, it is incumbent upon us to establish a conducive
workplace environment that fosters employee productivity and engagement. A workplace
culture that fosters positivity not only yields advantages for people, but also contributes
to enhanced business performance. This article aims to explore various tactics that human
resources professionals might employ in order to establish a conducive and favourable
organisational culture inside the workplace.
According to Sidhart ( 2023) positive workplace culture such follows :
1) The ability to communicate clearly and effectively is of utmost importance.
The establishment of a positive workplace culture relies heavily on the
implementation of effective communication strategies. It is imperative for human
resources professionals to effectively and openly engage in communication with
employees regarding organisational rules, procedures, and performance standards.
This fosters the development of trust and respect within the relationship between
employees and the organisation. Human resource experts should also promote and
facilitate transparent communication channels between employees and supervisors in
order to effectively resolve any complaints or issues that may develop.
2) Cultivating Employee Engagement
Employees that are actively involved in their work have higher levels of
productivity and commitment. Human resources experts have the ability to cultivate
employee engagement through the establishment of a work environment that is
characterised by support, where employees perceive themselves as being esteemed
and treated with respect. This can be accomplished by the acknowledgment of
employee accomplishments, the provision of avenues for professional advancement
 and personal development, and the cultivation of a harmonious equilibrium between
work and personal life.
3) Advocate for the Advancement of Diversity and Inclusion
Diversity and inclusion are integral elements of fostering a favourable
organisational culture inside the workplace. Human resources experts should
endeavour to establish a workplace environment that is characterised by diversity and
inclusivity through the recruitment of workers from all origins and cultures.
Furthermore, it is imperative for human resources professionals to actively advocate
for diversity and inclusion within the workplace. This may be achieved through the
implementation of comprehensive training initiatives and the establishment of
policies that foster equal opportunities for all members of the organisation.
4) The provision of employee benefits and wellness programmes is essential in the
corporate setting.
The implementation of employee perks and wellness programmes is crucial in
fostering a favourable organisational culture inside the workplace. Human resources
experts have the capacity to offer several forms of employee benefits, including health
insurance, retirement programmes, and paid time off, as a means of demonstrating
the significance placed on the overall welfare of employees. Moreover, the
implementation of wellness programmes, such as providing gym memberships,
mental health services, and healthy food options, can effectively contribute to
fostering a workforce that is both physically and mentally fit, hence enhancing overall
employee satisfaction and well-being.
5) The concept of leading by example is a widely recognised and valued principle in
various fields, including leadership and management. This principle emphasises the
need of setting a positive and influential example for others to follow.
Human resources professionals have a pivotal role as leaders within an
organisation, and it is imperative that they exemplify the desired behaviours and
values in order to foster a positive workplace culture. Human resources professionals
should exemplify the desired conduct they expect from workers, including the
demonstration of respect, transparency, and effective communication. This can
facilitate the development of a corporate culture that fosters a sense of comfort and
support among employees.
In conclusion, HRM professionals can significantly impact employee engagement
and create a positive work culture by implementing these strategies. By fostering clear
communication, recognizing and developing employees, promoting work-life balance and
wellness, and cultivating an inclusive and empowering environment, organizations can
build a workforce that is motivated, satisfied, and committed to achieving both individual
and company goals. Regular feedback, flexible benefits, and a strong commitment to
social responsibility further contribute to a thriving work culture. Through these
initiatives, HRM professionals play a vital role in enhancing employee well-being,
productivity, and overall organizational success.

Conclusion
In conclusion, HRM professionals play a crucial role in shaping a positive
workplace culture that enhances employee productivity and engagement. Effective
communication, employee engagement initiatives, diversity and inclusion advocacy,
employee benefits, and leading by example are key strategies they can employ to create a
conducive and favorable organizational culture. By focusing on these elements, HRM
professionals contribute to not only employee well-being but also improved business
performance and success.

References

Sidhart. 2023. Creating a Positive Workplace Culture: Strategies for HR Professionals. (n.d.).
Creating a Positive Workplace Culture: Strategies for HR Professionals.
https://www.linkedin.com/pulse/creating-positive-workplace-culture-strategies-hr-
bhattacharya-ph-d
Task 4:

Examine the challenges and opportunities of managing a diverse workforce. Discuss the benefits
of diversity and inclusion in the workplace and outline HRM strategies for promoting diversity,
managing intercultural communication, and mitigating potential conflicts.

Introduction

Workplace diversity enables firms to enhance their talent pool by gaining access to a wide
range of individuals with diverse backgrounds, skills, and competences, encompassing many
ethnicities and geographic regions. This tool offers a heightened understanding of clients'
requirements and underlying motives, enabling the development and execution of more impactful
and prosperous company strategies. In order to ensure client satisfaction, it is important to
recognise that marketing and selling activities differ in their approach to products and services.
Designing diversity policies and aligning diversity practises with organisational goals are crucial
components in ensuring the effectiveness and success of an organisation. The growth and
evolution of business firms are accompanied by a growing influence of diverse cultures and
viewpoints on the formulation of business strategies and implementation of action plans.

Discussion

Diversity and inclusion refer to the comprehensive measures, policies, and strategies
implemented by an organisation to foster cultural and social acceptance and integration of
individuals or groups with diverse origins inside the workplace. An organisation that prioritises
diversity and inclusion will strive to maintain a workforce that encompasses a broad range of
individuals, mirroring the composition of the surrounding society.
Diversity encompasses variations in political ideologies, racial backgrounds, cultural
practises, sexual orientations, religious affiliations, socioeconomic statuses, and/or gender
identities. In the context of professional environments, diversity refers to the composition of a
workforce comprising individuals who possess distinct viewpoints and backgrounds, hence
contributing to a broader range of insights and experiences.
Inclusion refers to the state in which all individuals within a heterogeneous group
experience a sense of involvement, worth, respect, equitable treatment, and integration within a
given cultural context. Fostering a culture of inclusivity within an organisation involves the
empowerment of all employees and the acknowledgement of their unique skills.
Both components of diversity and inclusion (D&I) hold significant importance. The
absence of inclusion alongside diversity can potentially foster a toxic culture, while the absence of
diversity together inclusion can lead to stagnation and a lack of creativity inside a corporation.
Organisations are increasingly directing their attention towards diversity, although a significant
number fail to adequately address the aspect of inclusion within this framework. In the absence of
a deliberate endeavour to foster both inclusivity and diversity, the workforce may experience a
sense of displacement and lack of support, EwGroup (2023).
 According to the findings of PwC's Global Diversity and Inclusion Survey in 2017, a
significant majority of business and human resource leaders, namely 87% of respondents,
expressed that diversity was a focal point of importance for their respective organisations. There
exist numerous compelling justifications for businesses prioritising the subject matter and
imparting inclusive practises and skills to their employees and management. Among these
rationales, the advantages stemming from workplace diversity and inclusion hold considerable
prominence, encompassing a wide array of benefits.
a) Benefit from a broader range of perspectives
By implementing a strategy that prioritises the inclusion of employees and executives
with varied backgrounds, businesses can leverage a wider array of perspectives,
experiences, and opinions, resulting in various benefits. The ability to effectively
negotiate complex business difficulties that have wide-ranging effects on diverse
stakeholders is of utmost importance. Additionally, ensuring that corporate actions
are subjected to thorough scrutiny from individuals with diverse perspectives is
essential in order to mitigate the risks associated with groupthink.

b) Recruit from a larger pool of talent

The presence of diversity and inclusion in the workplace has a significant impact on the
recruitment process. By implementing measures to mitigate prejudice and bias within hiring
teams and at higher organisational echelons, the likelihood of highly qualified individuals
being rejected based on factors like as gender, skin colour, or other personal traits will be
significantly reduced. This implies a greater pool of highly qualified candidates available for
selection by your organisation during the employment process.

c) Understand your customers better

Contemporary society has a remarkable degree of diversity, with a multitude of individuals
actively participating in economic activities. Nevertheless, the absence of diversity and
inclusion in the workplace can result in significant underrepresentation of some
demographics, primarily stemming from a deficiency in comprehension and awareness.

d) Stimulate business innovation

Organisations that own diverse workforces are discovering that their ability to foster
innovation is being enhanced. According to a survey conducted in 2019 by the HR Research
Institute, a majority of organisations, specifically 66%, hold the belief that diversity has a
positive impact on innovation. Similarly, a report published by Deloitte in 2013 revealed that
a significant proportion, 83%, of surveyed employees perceived an increase in their capacity
to innovate when they felt their opinions were valued and when their organisation
demonstrated a strong commitment to and support for diversity. According to the 2017
Diversity and Innovation Survey conducted by BCG, organisations that obtained diversity
scores above the average demonstrated a positive correlation with increased innovation
revenues, which refers to the sales generated by goods launched within the preceding three
years.

e) Improve overall business performance

The presence of diversity and inclusion inside a firm has been found to positively impact
overall performance. According to a study conducted by McKinsey in 2012, it was observed
 that American corporations with diverse executive boards had a 95% greater return on equity
compared to organisations that lacked diversity. According to a study conducted by
McKinsey in 2015, organisations that exhibited strong gender diversity in their management
teams were found to have a 15% higher likelihood of achieving financial outperformance
compared to the average. Additionally, companies that demonstrated ethnic and racial
diversity in their managerial positions were shown to have a 35% higher likelihood of
achieving financial outperformance.

Conclusion
In conclusion, diversity and inclusion (D&I) are integral components of a
forward-thinking and successful organization. Diversity encompasses a wide range of
backgrounds, experiences, and perspectives within the workforce, while inclusion ensures
that every individual feels valued, respected, and empowered. Both elements are essential
for a thriving workplace culture.

Reference:

EwGroup (2023). https://theewgroup.com/blog/benefits-diversity-inclusion-workplace/.

Diaksess tanggal 8 september 2023.