Essay on Lack of Diversity and Inclusion at Yelp: Impacts on Performance and Market Share

Introduction

Lack of diversity and inclusion are the main issues at Yelp. Most of the technology companies do not consider demographic factors of the employees during hiring processes. Lack of diversity and inclusion at Yelp Company have affected their performances and market share both locally and globally. Research to determine the nature of diversity and inclusion have shown that 80% of technical positions at Yelp Company are occupied by men (Luca, Schwartzstein, & Subramani, 2017). Yelp's Chief Executive Officer, Jeremy Stoppelman has been dissatisfied with lack of diversity and inclusion in the company(Luca et al., 2017). The CEO has tried to develop strategies for preventing the issues related to a lack of diversity and inclusion.

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Diversity and inclusion of the workforce contribute to the improvement of Yelp's performances. There is a severe workforce imbalance for race and gender at Yelp Company. More than 85% of the employees are Whites. Collectively, Black and Hispanics employees are less than 15% (Luca et al., 2017). after researching the demographics of big tech firms, it turned out that Yelp has an extreme imbalance for gender and race at its workplace, where female makes up to 10%, and Hispanic and Black only make up to 11% collectively (Luca et al., 2017). To prevent the issue of diversity and inclusion, Yelp has requested Rachel Williams to join them and assist in developing appropriate strategies that can be used to avoid the problem in the company

Answers to Case Questions

Yelp Company is required to set diversity targets to address the issue within their promises. In this case, Rachel Williams has tried to set clear guidelines for promoting workforce diversity and inclusion at Yelp. As the Head of Diversity and Inclusion Department, Rachel Williams identified that employees at Yelp Company had formed informal groups based on their race and gender. The diversity targets ensure that Yelp Company hires employees from different racial groups regardless of their genders. For example, Yelp Company could accentuate the rookie engineer recruitment process to promote diversity and inclusion of their workforce. Explicit hiring quotas or diversity targets helps Yelp Company in ensuring a balanced workforce. For instance, Yelp Company could set diversity targets that aim at employing an equal number of employees from different racial groups. Also, the diversity targets increase the number of women occupying technical positions at Yelp Company.

Diversity of the workforce has a lot of benefits to a business organization. First, diversity promotes the productivity of the workforce in an organization. In this case, the diversity at Yelp Company ensures motivates all staff; therefore, increasing productivity and performances. Diversity promotes the productivity of the workforce because the concerns of all employees at Yelp Company are considered during decision-making processes. The second benefit of diversity is the promotion of teamwork and collaboration among employees.

In most cases, teamwork and collaboration improve corporate responsibility and performances. Lastly, diversity ensures employee attraction and retention at Yelp Company. Consideration of employees' differences in racial and gender groups creates a sense of recognition and appreciation. Qualified and experienced employees are attracted and retained when diversity is promoted at Yelp Company.

The sources of Yelp's diversity problems are internal to the industry. In this case, most of the leading companies in the technology industry are facing issues related to a lack of diversity and inclusion. The sources of diversity problems are associated with the inability of technology companies to establish appropriate systems that guide in hiring processes (Luca et al., 2017). Also, the complexity of tasks assigned to staff working in technical positions leads contribute to lack of diversity. For example, most of the women do not occupy the technical positions to task complexity.

Different types of workforce diversity are identified at Yelp Company. The immediate difference is race and ethnicity. Understanding the variety of staff based on racial and ethnic groups is essential in determining the effective hiring systems that consider the cultural beliefs and practices of all employees (Luca et al., 2017). Considerations of the differences in racial and ethnic groups help Yelp Company to improve workforce productivity. Furthermore, gender and gender identity are experienced at Yelp Company. The staff comprises both men and women. Understanding gender diversity is essential in determining staff orientation based on their capabilities.

Recommendation

Lack of workforce diversity and inclusion at Yelp Company have affected their performances. I recommend on empowering and educating managers at Yelp Company. Education and empowerment of the managers will improve their skills, especially in motivating employees. For example, Rachel Williams will develop an effective system at Yelp to help in diversifying Yelp's workforces and promote inclusion. The strategies established by Rachel Williams will help in creating an environment that includes the diversity of all employees at Yelp Company (Luca et al., 2017). Also, diversity creates a conducive working environment that favors all employees in the company. The strategies developed by the Diversity and Inclusion Department at Yelp Company help in ensuring that the needs of all employees are addressed regardless of their gender and racial groups (Luca et al., 2017).

Future Implication

The behavioral theory provides comprehensive information that can be applied to address the issues of diversity and inclusion at Yelp Company (Avery, 2011). In this case, diversity and inclusion will improve the financial growth of Yelp Company in the technology sector. The Behavioral theory is essential is creating policies that help in solving the problems about lack of diversity and inclusion. The behaviors of different employees should be considered during hiring processes (Avery, 2011). In this case, diversity and inclusion will improve the financial growth of Yelp Company in the technology sector. Offering opportunities that promote employee engagement will ensure a diverse workforce at Yelp Company.

References

Avery, D. R. (2011). Support for diversity in organizations: A theoretical exploration of its origins and offshoots. Organizational Psychology Review, 1(3), 239-256. Retrieved from: https://journals.sagepub.com/doi/abs/10.1177/2041386611402115

Luca, M., Schwartzstein, J., & Subramani, G. (2017). Managing Diversity and Inclusion at Yelp. Retrieved from: https://www.hbs.edu/faculty/Pages/item.aspx?num=53223