The Oxford English Dictionary defines “diversity” as “the practice or quality of including or involving people from a range of different social and ethnic backgrounds …”.

What is diversity and why does it matter? 

The Oxford English Dictionary defines “diversity” as “the practice or quality of including or involving people from a range of different social and ethnic backgrounds …”. By embracing differences, we celebrate the diversity of the human experience and enrich our lives by hearing different points of view.  

When it comes to business organisations, there are clear benefits from diverse workforces where a multitude of voices and opinions combine to produce empathetic policies and procedures. 

Study after study has shown that diversity leads to more creative teams and increases in a company’s bottom line. Forbes has reported that companies with a diverse workforce are 35% more likely to experience greater financial returns than their respective non-diverse counterparts. 

Consider two fictitious Malaysian companies  

Company ABC does not have a diverse workforce. All of the employees come from the same ethnic background and speak the same language. All are men in their 40’s and 50’s. While ABC is successful in appealing to customers with the same background as their employees, they do not appeal to customers from other backgrounds.  

Occasionally, walk-in customers with different ethnic backgrounds visit their store but often leave without making a purchase. They do not feel that this company represents them in terms of language, gender or culture and they prefer to take their purchasing power elsewhere! 

For Company ABC, the marketing strategies of the last century served them well. By appealing to a homogeneous demographic, they secured a loyal customer base. However, this strategy is no longer a winning approach and sales are suffering. 

Company XYZ, a new player in the market, with similar products and services to ABC, has a diverse workforce. In all, four language groups are represented by the employees in this company. Customers can be attended to in their own native language as they navigate the store making purchasing decisions.  Furthermore, Company XYZ has some senior sales staff in their 50s and 60s as well as several tech-savvy junior salespeople in their 20s. About half of the staff are female, many holding senior positions. 

Company XYZ has quickly developed a loyal customer base comprising people from a heterogeneous background. Their customers value being seen, acknowledged and spoken to in their own language. XYZ’s focus on developing diversity in its workforce has translated into a vibrant and successful company with a growing customer base. 

How representative is Company XYZ in Malaysia? 

Overall, company XYZ is quite typical of many Malaysian workplaces. In fact, Malaysia rates well in workplace diversity in two main ways. Firstly, many organisations comprise diverse racial, religious and language groups.  

Secondly, most workplaces are diverse in terms of age, although there is a trend towards increasingly ageing workplaces as the life expectancy of the nation trends upwards. A similar trend has been observed in other countries as well, such as Japan and Australia. Malaysia fares less well than other countries when it comes to the employment of the disabled as well as gender diversity. There is a notable “glass ceiling” for women, especially in large organisations. In the top 100 listed companies in the nation, women comprise less than 30% of the boards of directors. 

Further, Abdul Wahid Omar, the Chairman of Bursa Malaysia, was recently quoted as saying that only one out of 97 listed companies on Bursa Malaysia in the last three years is Bumiputera owned. 

Does Malaysian Law Require Diversity? 

The Employment Act 1955 of Malaysia contains many robust rights for employees; however, it does not promote diversity nor sanction companies that do not have diversity initiatives.  Some countries, like Australia, have a series of dedicated laws that prevent discrimination based on sex, age, race and disability. These laws drive workplace diversity. 

However, it is not just positive laws that drive diversity in Australian workplaces. According to recent research, 76% of Australians say they are more likely to spend money with businesses that prioritise diversity, Diversity positively impacts the bottom line! 

One local company has been blazing a trail towards including disabled workers in its business model. Marketing Magazine Asia reported that Grab has hired over 500 people with disabilities. Grab is commended for providing dignity and autonomy to an often marginalised group. 

How can a workplace achieve diversity? 

Malaysian law does not require diversity in workplaces. However, many companies do see the benefits. For example, diverse workplaces attract more Gen Z applicants, build goodwill with customers and benefit from a plurality of thought in internal decision-making. Moving towards diversity starts with acknowledging the lack of diversity in the first place. Some companies in the U.S. and Australia tackle this issue by hiring diversity managers.  However, the solution can be easier (and cheaper!) than this.

One effective strategy that could be adopted by Malaysian employers is adjusting how they search for candidates. Language or gender requirements stated in job advertisements may sometimes act as a barrier to creating workplace diversity. 

Another option is to specifically state in a job advertisement that the company is seeking applicants from diverse backgrounds. Not only does this show a commitment to diversity, it also encourages applicants who otherwise may not send in their job applications. Further, if it has been a while since an organisation drafted its vision and mission statements, it may be a good idea to revisit these.   

Estée Lauder champions diversity with its bold vision statement: “The Estée Lauder Companies’ collective vision is to be the most inclusive and diverse beauty company in the world …” 

Is it time to embrace more diverse workplaces in Malaysia? 

The answer is a resounding “YES” – the benefits of diversity are clear. Diversity translates into customer satisfaction and loyalty, helping to strengthen a company’s brand in these competitive times.