Rewards and Diversity: Recognizing diversity through rewards

India is a multi-cultural society with an amazing diversity of people that live and work together in a common social environment. There is a marked diversity to be seen in a cross-section of most Indian companies. These diversities can be based on region, religion, language, caste, gender, age, or disability.

This, typically Indian situation, makes it imperative for the employers to manage the diversity issues with skill and sensitivity. In fact, the smart organizations are able to leverage the strengths of diversity for the benefit of their business. This can happen because the organization’s business associates, financiers, customers, and suppliers also come from diverse backgrounds. Therefore, the organization can achieve a better understanding and better management of the cultural nuances of its diverse associates if the organization itself has a diverse character.

IBM, a truly global organization is a classic example of a business leveraging the diversity of people to its corporate advantage. The company believes that diversity bridges the gap between the workplace and the marketplace. This enables its employees, customers, and partners globally to come to “come together to build a smarter planet.” Some of the diversity initiatives of IBM include International Women’s Day celebrations, Women’s Leadership Conference, World Disability Day, and Childcare Centers (1).     

However, managing internal diversity of the organization can be a challenging job for the management. There is an innermost need for recognition among the employees from diverse origins. In this scenario, rewards and incentives can play a crucial role in keeping the entire diverse workforce motivated as well as unified in their pursuit of group goals.

The business organizations in India are increasingly realizing the importance of using rewards and benefit schemes to recognize diversity among their workforce. With the opening up of the Indian economy, several multi-national organizations such as IBM, P&G, General Electric, Philips and others have set up their operations in India. The Indian companies have been inspired by the affirmative diversity recognition practices followed by these organizations, and the advantages it brings to the organization.

Indian companies such as the Tata Group of Companies, Infosys Technologies, and Wipro are thought leaders in the area of recognizing the diversity of their employees and the external business environment, including clients, vendors, shareholders and investors.

Considering the vast diversities in the Indian society, the business organizations in India are realizing the need for innovative reward schemes to match individual needs. There is a new trend among companies to offer a basket of incentives to the employees to choose from. For instance, the company may offer a few types of health insurance schemes for the family or the individual. The employee may choose the scheme according to his or her need. This is known as the “cafeteria-style” compensation program (2).

When the organizations display a sensitive approach to the diverse needs of their workforce, and design their benefit plans accordingly, it helps to optimize the value of such schemes for the employees. The organization operates at its peak motivation levels in such a positive and considerate internal environment.

- Vikas Vij (views expressed in the article are that of the author)