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Tuesday April 15, 2008

Multicultural Management = Higher Diversity Retention

Anthony Lee

When Celia Young immigrated to the United States in 1971 from Taiwan, she fit into the cultural box that often defines Asian women; she was quiet and didn’t ask questions.

This became a problem during Young’s first job as a marketing analyst, when a supervisor curtly told her that unless her "communication skills" improved within 90 days, her future at the company would be bleak.

Young, who came to the United States on a scholarship and had an MBA under her belt, interpreted the comment as meaning her English could use improvement.

"Many years later I realized it wasn’t just that," Young said. "But that was not explained to me, and I did not think to ask."

Poor communication with her managers led Young to leave the organization before the 90 days was up - but the incident planted a seed in Young’s mind about how human relations impact the bottom line.

That early experience eventually manifested into the formation of Celia Young & Associates, an organizational development firm based in Monarch Beach, Calif. Today, the group Young founded helps Fortune 500 corporations manage diversity, and, ultimately, prevent cultural differences from causing an exodus of minority employees.

Managing Diversity

As the workforce increasingly reflects the diversity of the United States, Young points out that managers must develop multicultural skill sets and new ways of evaluating employees.

"Managers need to get out of auto-pilot, and stop thinking there’s only one way to evaluate an employee," she said. "It shouldn’t be up to the employee alone to bridge that gap, but the managers as well."

One way to narrow the gap is by recognizing different work styles, Young said. For example, a study conducted by the Asian Pacific American Women Leadership Institute (APAWLI) in Denver, CO., found that Asian-American women had distinct definitions of leadership.

Asian American participants believed a manager could be effective by playing the role of the "quiet leader who convenes people to get things done, but stays in the background" and "the person who 'steps up to the plate" because she sees a gap that needs to be filled".

"Asian-American women have same leadership talents as others, but we choose to exercise them a little differently," said Martha Lee, executive director of APAWLI.

Lee said Asian Americans subscribe to principles of leadership that are "very much about inclusiveness, collaboration, and focus on relationships and the ethics of service." This may stem from the fact that many Asian cultures value consensus over the individual.

In contrast, Western culture values self- promotion, and often sees it as an indication of having initiative, Young said. What managers may perceive to be a 'lack of initiative" in their Asian-American employees is a major factor contributing to the glass ceiling for this group, she said.

The APAWLI study found that a significant number of Asian-American women believe their race is a major roadblock to their professional advancement. In addition, Asian American women said they were the most likely to have been passed over for a promotion, and the least likely to have had a mentor.

Data presented in the APAWLI study corroborate these sentiments; less than 0.5 percent of corporate boards and executive positions are filled by Asian Pacific Islander women, although this group makes up over two percent of the total U.S. population.

Lee said that corporate America is slowly gaining awareness of the different work styles Asian Americans bring to the table. However, like Young, Lee stresses that change will only come about through a collaborative effort between managers and employees.

"Asian Americans cannot leave it to others to interpret our work habits," Lee said.

Otherwise, misunderstanding will continue to breed dissatisfaction and eventually cost companies in the single most costly line item: turnover.

The Bottom Line: Retention

The Saratoga Institute in Santa Clara, Calif. estimates that the average turnover cost is one times the employee's salary and benefits (varying by industry). It’s no surprise then that retention has become the centerpiece for many corporate diversity programs.

"Nobody’s perfect when it comes to retaining talent," Young said. "But some companies are more interested in it than others, and they’re putting their money where their mouth is."

Asian Americans are often few and far between in the offices of corporate America, leading to a sense of isolation, Young said.

"Many Asian American employees go work for a large company, and find that they’re part of a very small minority, so it’s tough to keep a group consciousness. My work has to do with helping create that sense of community," she said.

One of her clients, Proctor & Gamble (PG) based in Cincinnati, Ohio, is tuned into how employee networks tie directly into retention, Young said.

At PG, Young helps mobilize Asian American employees. "In order for these employees to move ahead, they need to have someone advocating for them," she said. Employee network groups are an effective way to give minority employees that mouthpiece.

Without such support systems, Lee said that Asian American executives often "get stuck" after about four to five years in the workforce, and end up leaving for positions at other organizations.

"Companies spend a lot of time recruiting Asian Americans," Lee said. "Now they need to focus on keeping them on board."


Celia Young & Associates can be reached by calling (949) 388-7882 or by visiting http://www.celiayoung.com

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