Driving Diversity in the C-Suite: HR Strategies for Tourism and Hospitality Management

Introduction

Diversity is the variety of different characteristics that people have, such as their race, ethnicity, gender, sexual orientation, age, religion, and socioeconomic status. Diversity has become a crucial topic in today's business setting, particularly within the context of the tourism and hospitality industry. Diversity in C-Suite is a widely recognized issue, yet it remains largely untapped at the board level. Despite numerous companies implementing policies to boost diversity in leadership, their impact often does not reach the C-suite. The tourism and hospitality sector can benefit from a diverse leadership team that effectively understands and connects with diverse customer bases. This article emphasizes the need for targeted Human Resources (HR) strategies to drive diversity at the highest levels of management.

                                                                                            Source: YouTube

According to Pratt (2021), C-level executives are influential and powerful members of an organization, responsible for setting the company's strategy, making high-stakes decisions, and ensuring daily operations align with strategic goals. They are typically the highest-paid individuals in a company and require strong leadership, communication, and team-building skills. They set the direction of their function and hire staff to ensure daily management aligns with established plans and policies.

Benefits of Having a Diverse C-Suite

Having diversity in the C-Suite, which comprises the highest-ranking executives in a company, brings several benefits.

1. Improved Financial Performance: People from diverse cultures, backgrounds, and experiences bring a diverse array of skills and perspectives to the table, therefore, diversity improves profitability. According to Dixon-Fyle et al. (2020)’s research the most diverse companies are now more likely than ever to outperform less diverse peers on profitability. The research indicates that a higher level of diversity leads to increased profitability. The performance gap of 48% exists between the most diverse and least diverse organizations.

2. Greater Innovation: Diverse C-Suites can drive innovation by fostering a culture of creativity and out-of-the-box thinking. As per Vantage Consulting (2023) one of the most important reasons that more diverse businesses have better financial performance is thanks to innovation.

3. Better Employee Engagement and Retention: A diverse leadership team promotes an inclusive work environment, enhancing employee morale and engagement, particularly among underrepresented groups, which increases their commitment to the organization. This can result in higher job satisfaction, better retention and a positive workplace culture.

4. Problem Solving and More Varied Perspectives: Diverse teams bring a variety of problem-solving approaches. This can lead to more thorough analysis and consideration of potential solutions, which promotes better decision outcomes. According to Webb (2022), diverse teams make better decisions 87% of the time. Age, gender, and geographic diversity each contribute to decisions that improve business performance.

5. Reputation and Branding: Companies that prioritize diversity in leadership tend to have a stronger reputation for social responsibility and inclusivity. This can result in increased community support and goodwill for the company. In addition, a diverse and inclusive workforce is seen as more progressive and forward-thinking, which can attract customers, investors and potential employees who are looking for companies that share their values.

HR Strategies to Drive Diversity in the C-Suite

As the tourism and hospitality industry endeavours to cater to a global clientele with varied preferences, the presence of diverse leadership not only drives innovation but also ensures a deeper understanding of different cultures and markets. Below we explore some of the specific human resource strategies that are pivotal in nurturing diversity within the executive ranks of the tourism and hospitality sector.

1. Inclusive Recruitment Practices: According to Daryanani (2021) job advertisements often contain excessive "nice to have" requirements, making the company appear demanding. Research shows men apply for jobs with 60% qualifications, while women apply with 100%. Focusing on key requirements improves job accessibility. Implement blind recruitment processes, where candidate information such as names and gender are concealed to reduce unconscious biases. Use diverse panels for interviews to ensure a fair selection process.

2. Mentorship and Sponsorship Programs: Mentorship programs that promote diversity can assist underrepresented employees in securing executive positions. An effective mentorship program should have clear goals, measurable objectives, and evaluation tools (Webb, 2022). McCarthy Mentoring (2017) cites that mentees are five times more likely to get promoted than those without a mentor, while 25% of those who took part in a mentorship programme had a salary increase, compared to 5% of those who did not. Sponsorship programs go a step further by having executives advocate for diverse employees’ career growth.

3. Succession Planning: involves identifying high potential diverse employees by assessing their performance, interpersonal skills and potential for growth. HR can tailor development plans for potential employees by exposing them to cross-functional roles to build skills needed for executive positions. Establish a clear leadership pipeline that outlines the development journey from junior roles to executive positions, which will provide clarity to employees on how to progress in their careers and giving everyone equal access to leadership opportunities.  

4. Flexible Work Policies: Building a flexible schedule in a company culture promotes a healthy balance between work and home life, allowing employees equal opportunity to reach leadership levels without sacrificing personal gains. According to Cautela (2019), women are 22% more likely to prioritize flexible work arrangements when choosing a job, with women aged 36-45 most likely to do so. This preference also benefits business, as it boosts productivity and employee retention.

5. Diversity Metrics and Accountability: Set diversity targets and measure progress regularly. According to Forbes (2021), diversity enhances business outcomes. Without metrics, it's difficult to understand how a company is making a difference and moving forward. Regular review and measurement of progress is crucial for success.

The integration of diverse leadership into the C-suite of the tourism and hospitality industry is a complex strategic approach. However, to compete and sustain in today’s business world it is necessary for industry organisations to implement targeted HR strategies like inclusive recruitment, mentorships programs and accountability measures to unlock the potential of diverse talent pool.

Challenges that may arise when Implementing these Strategies and Potential Solutions

1. Resistance from Current Leadership: Existing leaders might resist diversity initiatives if they perceive them as a threat to their positions or if they have concerns about the qualifications of diverse candidates. Communicate the business case for diversity and the benefits to innovation, decision making and customer relations. Engage current leaders in discussion about the value of diverse perspective.

2. Unconscious Bias in Selection: Even with diversity initiatives, unconscious bias can influence selection decisions. Wilkie (2022) highlights that leadership pipelines are filled by individuals with various advantages, including college education, internships, connections, mentors, and access to career development programs, often influenced by factors like background, income, and racial privilege.

3. Glass Ceiling Effect: Diverse candidates might perceive barriers that prevent them from advancing to top leadership roles. According to Khowala (2021) the travel and tourism industry is notably diverse, with women accounting for 50% of employees. However, female representation is low at mid-level management and senior executive level, indicating a significant gap between senior management and the C-Suite. Therefore, its essential to create clear paths for career progression and leadership development for all employees. Set diversity targets for leadership positions to ensure representation at all levels. 

Addressing these challenges requires a combined effort from all levels of the organisation. It is crucial to approach diversity as a long-term strategic goal and continuously evaluate and adapt the strategies to ensure their effectiveness.

Organisations that are Striving Diversity in C-Suite

1. Airbnb: As Kramer (2021) highlights in Airbnb women in leadership have increased by almost 4% to 41.6% since 2019, and the population of women in technical roles increased by 2% to 27.5%. The company has set goals to increase diversity in its workforce and leadership positions and it has implemented programs and initiatives to promote equity and inclusion.

2. InterContinental Hotels Group (IHG): has made diversity and inclusion a priority. To help increase the diversity in their leadership and talent they are rolling-out programmes such as mentoring initiatives which aims to increase the number of females in senior leadership positions in hotels. In addition, through Future Leaders Programme, developing rising stars which provides graduate-level talent with the opportunity to work across a range of departments and geographies, thus strengthening the leadership pipeline (IHG Diversity & Inclusion Story, 2019).

3. TUI Group: a leading travel and tourism company has launched a reverse mentoring scheme which is initially being trialled with their Senior Leadership Team. This is a two-way, mutually beneficial partnership that connects senior leaders with younger, more junior employees. The idea is that the junior employees share insights into current trends, their social media habits, technology, brand preferences and in exchange, the senior leaders provide career guidance, networking opportunities and ongoing support (TTG Media Limited, n.d.).

By drawing insights from these examples and acknowledging the significance of diversity, tourism and hospitality companies can pave the way for greater diversity at their leadership roles.

Conclusion

The tourism and hospitality industry is increasingly recognizing the importance of diversity in its C-suite leadership. A diverse C-suite can lead to improved financial performance, innovation, employee engagement, diverse problem-solving approaches, and brand reputation. However, implementing effective diversity strategies faces challenges such as resistance from current leadership, unconscious bias in selection, and the glass ceiling effect. To overcome these, organizations like Airbnb, InterContinental Hotels Group, and TUI Group have implemented successful diversity initiatives, such as increasing women in leadership roles and mentoring programs. The integration of diverse leadership at the C-suite level is a complex task, but the rewards of promoting inclusivity, leveraging diverse insights, and driving progressive change make it crucial.

It's time to elevate tourism and hospitality industry's potential by championing diversity in the C-suite. Embrace inclusive HR strategies and amplify voices that reflect the world we serve. Let's reshape leadership and unlock innovation for a thriving future in tourism and hospitality.

List of References:

Bloomenthal, A. (2019). Seeing the C-Suite. [online] Investopedia. Available at: https://www.investopedia.com/terms/c/c-suite.asp. [Accessed 22 August 2023].

 

Dixon-Fyle, S., Dolan, K., Hunt, V. and Prince, S. (2020). Diversity wins: How inclusion matters. [online] McKinsey & Company. Available at: https://www.mckinsey.com/featured-insights/diversity-and-inclusion/diversity-wins-how-inclusion-matters. [Accessed 23 August 2023].

 

Cautela, D (2019). 3 Ways to Promote Gender Diversity in the C-Suite. [online] LinkedIn. Available at: https://www.linkedin.com/business/talent/blog/talent-strategy/ways-to-promote-gender-diversity-in-c-suite. [Accessed 22 August 2023].

‌Graham, J.T. (2020). 5 Ways to Incorporate HR Strategy in the C-Suite. [online] Sage HR Blog | Easy to implement HR tips! Available at: https://blog.sage.hr/5-ways-to-incorporate-hr-strategy-in-the-c-suite/ [Accessed 22 August 2023].

 

IHG Diversity & Inclusion story. (2019). Our Diversity & Inclusion story. [Online] IHG Diversity & Inclusion story. Available at: https://www.ihgplc.com/en/-/media/di-at-ihg--november-2019.pdf?la=en&hash=838962AAFC6072524A1AD3B546F301E6. [Accessed 24 August 2023].

Jorge (2021). The Importance of a Diverse C-Suite. [online] Innovation, New Ideas and How The World is Changing. Available at: https://www.game-changer.net/2021/09/27/the-importance-of-a-diverse-c-suite/. [Accessed 24 August 2023].

 

Khowala, A. (2021). Worrying Lack Of Diversity At The Top Of Hospitality, Travel And Tourism Companies [online] Hospitality Net. Available at: https://www.hospitalitynet.org/opinion/4104401.html. [Accessed 22 August 2023].

 

Kramer, A. (n.d.). New Airbnb diversity data shows modest increases in hiring - Protocol. [online] www.protocol.com. Available at: https://www.protocol.com/bulletins/airbnb-diversity-data. [Accessed 23 August 2023].

 

Larson, E (2017). New Research: Inclusive Decision Making Increases Performance Of Diverse Global Companies. [online] Cloverpop. Available at: https://www.cloverpop.com/blog/new-research-inclusive-decision-making-increases-performance-of-diverse-global-companies. [Accessed 23 August 2023].

 

McCarthy Mentoring. (2017). Why mentoring: what the stats say. [online] Available at: https://mccarthymentoring.com/why-mentoring-what-the-stats-say/. [Accessed 23 August 2023].

 

Panel®, E. (2021). Council Post: 15 HR-Recommended Strategies For Achieving True Diversity And Inclusion. [online] Forbes. Available at: https://www.forbes.com/sites/forbeshumanresourcescouncil/2021/01/12/15-hr-recommended-strategies-for-achieving-true-diversity-and-inclusion/?sh=48f4077c1a0f. [Accessed 23 August 2023].

 

Pratt, M. (2023). C-level (C-suite). [online] TechTarget. Available at: https://www.techtarget.com/searchcio/definition/C-level#:~:text=C%2Dlevel%2C%20also%20called%20the. [Accessed 22 August 2023].

 

Slayton,R. (2017). Exploring the State of Diversity in the C-Suite. [online] Slayton Search. Available at: https://www.slaytonsearch.com/2017/07/exploring-state-diversity-c-suite/ [Accessed 24 August 2023].

 

‌TTG. (n.d.). DIVERSITY & INCLUSION PARTNER: TUI [online] TTG Media Limited. Available at: https://www.ttgmedia.com/diversity--inclusion-partner-tui/tui-dei. [Accessed 24 August 2023].

 

T200. (2023). Addressing Diversity in the C-Suite. [online] LinkedIn. Available at: https://www.linkedin.com/pulse/addressing-diversity-c-suite-t200/ [Accessed 23 August 2023].

‌

Vickers, A. (n.d.). The Importance of Diversity in the C-Suite. [online] Vantage Consulting. Available at: https://www.vantageconsulting.co.uk/article/the-importance-of-diversity-in-the-c-suite#:~:text=Diverse%20leadership%20allows%20for%20greater [Accessed 22 August 2023].

‌

Webb, H. (2022). How to Improve Diversity in Executive Leadership [online] Accounting.com. Available at: https://www.accounting.com/resources/executive-leadership-diversity/#:~:text=People%20of%20color%20hold%20about [Accessed 22 August 2023].

‌Wilkie, D. (2022). How DE&I Evolved in the C-Suite. [online] SHRM. Available at: https://www.shrm.org/executive/resources/articles/pages/evolving-executive-dei-diversity-c-suite.aspx. [Accessed 24 August 2023].