DIVERSITY ROLE MODELS: NEW JERSEY FORTUNE 500 COMPANIES LEAD THE WAY

New Jersey Business, Mar 2008 by Saliba, George N

As part of a University of Chicago study, fictitious resumes were sent to help wanted ads in Boston and Chicago newspapers. While credentials listed on the resumes were similar, those with names such as "Emily O'Brien" and "Greg Baker" were approximately 50 percent more likely to receive calls from employers than names like "Tamika Williams" or "Jamal Jackson." The study demonstrates that racism still rears its ugly head in the United States labor market. Beyond such a study's findings, however, New Jersey business leaders note that employee diversity is indeed a key to business success.

On the following pages, New Jersey Business magazine examines how a handful of Fortune 500 companies headquartered in New Jersey are achieving employee diversity. We also explore the million-dollar question: Why does fostering employee diversity makes good business sense? (Its moral benefits are assumed.)

The Benefits of Employee Diversity

Founded in Newark in 1875, Prudential Financial, Inc. developed a long-standing focus on diversity and has received numerous accolades for it, including recently being ranked among the top 50 companies for diversity by Diversitylnc.com. Essence magazine even named Prudential one of the "25 Great Places to Work for Black Women."

Emilio Egea, Prudential's vice president of diversity, says three key drivers influence his company's approach to the topic: the marketplace; employee talent; and organizational effectiveness. On the first point, to expand market share and improve customer satisfaction and loyalty, Prudential must know how to tap into an increasingly diverse customer base. For talent, the firm needs to attract and retain the top-notch employees it needs to flourish in a competitive business world. Finally, Egea explains that at Prudential, "organizational effectiveness" includes creating an environment where it is both safe for one to be who he or she "truly is," and to say what is on one's mind.

"In order to be successful, we need to have employees engaged in their work," Egea explains. "It is as basic as that. If people feel there are any artificial barriers to success based on characteristics they bring to the workplace, they are not going to feel supportive and they are not going to contribute to their fullest."

He adds, "The goal [at Prudential] is about integrating diversity requirements into business and people processes. Our ultimate goal there is to institutionalize diversity, so it is really part of the fabric of what we do."

NRG Energy, Inc. is another Fortune 500 firm that knows the advantages of employee diversity. In 2004, the firm moved its headquarters from Minneapolis, Minnesota to Princeton. Few employees moved across state lines with the company due to their Minnesota family ties. Therefore, NRG had to hire - on short order - more than 300 people at its Princeton location. Jill Nangeroni, vice president of human resources for NRG Energy, says New Jersey has a quality pool of diverse and talented applicants.

"We want to hire the best people," Nangeroni says. "If other companies are not [hiring diverse candidates], that gives us a competitive advantage. We are going after the best folks, and we are not doing it in a narrow fashion."

Meanwhile, Gwen Houston, vice president of diversity at Camden-based Campbell Soup Company, says, "I'll start by saying that [diversity] is not just a moral imperative. It's a business reality."

Elaborating, she echoes other executives' thoughts by saying that Campbell Soup has to be prepared to respond to the needs of a very diverse marketplace. For instance, the company is focused on growing its business with Hispanics, working mothers and women in general. Also, internationally, the firm is growing its businesses in Latin America, while expanding into Russia and China.

Houston explains, "We must have a workforce that is culturally competent in order to tap into these segments and markets in a superior way, if we are going to be successful over time. [Diversity] is-not an option for us today, as a global company."

Kelly Webber, vice president of human resources at Franklin Lakes-based Medco Health Solutions, Inc. says some of the company's diversity programs were in place before it spun off from Merck & Co. in 2003 (it had been a wholly-owned subsidiary), but that most of Medco's numerous diversity initiatives have been developed and/or enhanced since that time.

From a practical standpoint, Webber notes that the business' clients, via Requests for Proposals (RFPs) and annual reviews, inquire about Medco's diversity initiatives and its commitment to diversity.

"Clients want to work with us and with companies that share their values," she explains. "So in terms of driving diversity to thebottom-line results, it is important for us [partly] because it is important to our clients and people we want to partner with."

How Fortune 500 Companies Foster Employee Diversity

Of course, diversity isn't just about race or gender. Religion, sexual orientation, marital status, transgender status, nationality, disabilities or other factors are often part of the mix.