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Flevy Management Insights Case Study
Employment Discrimination Assessment in Hospitality


There are countless scenarios that require Employment Discrimination. Fortune 500 companies typically bring on global consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture, or boutique consulting firms specializing in Employment Discrimination to thoroughly analyze their unique business challenges and competitive situations. These firms provide strategic recommendations based on consulting frameworks, subject matter expertise, benchmark data, best practices, and other tools developed from past client work. Let us analyze the following scenario.

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Consider this scenario: A leading firm in the hospitality sector is facing challenges with allegations of Employment Discrimination affecting its workforce diversity and inclusion efforts.

The organization has been under scrutiny due to a series of complaints from employees across various departments, leading to a negative impact on its brand reputation and employee morale. As the company expands its operations globally, there is an urgent need to address these issues to maintain a competitive edge and uphold its commitment to a fair and equitable workplace.



Upon reviewing the initial information from the hospitality firm, it is hypothesized that the root causes of the Employment Discrimination challenges may include unconscious bias in hiring practices, lack of a clear anti-discrimination policy, and insufficient training on diversity and inclusion for management and staff. These areas will be further examined to validate the hypotheses and develop a strategic action plan.

Strategic Analysis and Execution Methodology

This organization's Employment Discrimination issues can be effectively tackled by adopting a comprehensive 5-phase approach to diversity and inclusion. The benefits of this established process include a more cohesive workforce, enhanced brand reputation, and improved compliance with equal employment opportunity laws.

  1. Assessment and Benchmarking: Begin with a thorough analysis of current policies and practices against industry benchmarks. Key questions include: How does the organization's diversity metrics compare to industry standards? What are the existing anti-discrimination policies and how are they enforced?
  2. Stakeholder Engagement: Conduct interviews and focus groups with employees at all levels to understand the perceived and real issues of discrimination. This phase aims to gather insights on the cultural and systemic challenges within the organization.
  3. Strategy Development: Based on the insights gathered, develop a comprehensive strategy that includes policy overhaul, leadership training, and communication plans. This phase focuses on creating actionable steps to foster an inclusive culture.
  4. Implementation: Execute the strategy with clear timelines and responsibilities. Key activities include rolling out new policies, diversity training programs, and establishing a monitoring framework to track progress.
  5. Review and Adjust: Evaluate the effectiveness of the changes through feedback and performance metrics. This final phase ensures that the organization can adapt its approach and address any ongoing issues.

Learn more about Employment Discrimination Benchmarking

For effective implementation, take a look at these Employment Discrimination best practices:

Employee Harassment Training Workshop (17-slide PowerPoint deck and supporting Word)
Resolving Workplace Conflicts: Employee Relations - Gender Discrimination (4-page PDF document and supporting ZIP)
Resolving Workplace Conflicts: Employee Relations - Sexual Orientation Discrimination (4-page PDF document and supporting ZIP)
Resolving Workplace Conflicts: Employee Relations - Refusal to Work with Diverse Employees (4-page PDF document and supporting ZIP)
Resolving Workplace Conflicts: Employee Relations - Classism, Racism, Other Discrimination (4-page PDF document and supporting ZIP)
View additional Employment Discrimination best practices

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Implementation Challenges & Considerations

Leadership may question the impact of these changes on the company's day-to-day operations. It's critical to align the diversity initiatives with business goals to ensure seamless integration. Moreover, the organization's culture will play a significant role in the success of the strategy; therefore, leadership buy-in and continuous engagement are essential.

After full implementation, the organization should expect to see a more diverse workforce, reduced incidences of discrimination complaints, and improved employee satisfaction. Financially, the company may observe reduced legal costs associated with discrimination lawsuits and an increase in customer loyalty due to a positive brand image.

Challenges may include resistance to change, especially from those who do not see the immediate value in diversity initiatives. Addressing this will require persistent communication and demonstrating the link between a diverse workforce and improved business performance.

Learn more about Customer Loyalty

Implementation KPIs

KPIS are crucial throughout the implementation process. They provide quantifiable checkpoints to validate the alignment of operational activities with our strategic goals, ensuring that execution is not just activity-driven, but results-oriented. Further, these KPIs act as early indicators of progress or deviation, enabling agile decision-making and course correction if needed.


You can't control what you can't measure.
     – Tom DeMarco

  • Employee Diversity Ratios: to measure workforce composition and ensure it reflects the organization’s diversity goals.
  • Incidence of Discrimination Reports: to track the frequency of discrimination complaints pre- and post-implementation.
  • Employee Satisfaction Scores: to gauge the overall workforce sentiment and the impact of diversity initiatives on employee morale.

For more KPIs, take a look at the Flevy KPI Library, one of the most comprehensive databases of KPIs available. Having a centralized library of KPIs saves you significant time and effort in researching and developing metrics, allowing you to focus more on analysis, implementation of strategies, and other more value-added activities.

Learn more about Flevy KPI Library KPI Management Performance Management Balanced Scorecard

Implementation Insights

One insight that emerges during the strategy implementation is the significance of leadership commitment. According to McKinsey, companies with diverse executive teams are 33% more likely to outperform their peers on profitability. It underscores the importance of C-suite involvement in driving diversity initiatives.

Deliverables

  • Diversity and Inclusion Strategic Plan (PowerPoint)
  • Anti-Discrimination Policy Framework (Word Document)
  • Employee Training Program Outline (PDF)
  • Quarterly Diversity Report (Excel)
  • Employee Feedback and Satisfaction Survey (Online Form)

Explore more Employment Discrimination deliverables

Employment Discrimination Best Practices

To improve the effectiveness of implementation, we can leverage best practice documents in Employment Discrimination. These resources below were developed by management consulting firms and Employment Discrimination subject matter experts.

Case Studies

Marriott International, a leader in the hospitality industry, has been recognized for its commitment to diversity, equity, and inclusion. They have implemented comprehensive strategies that include establishing a diversity leadership council and providing resources and training to promote a culture of inclusion.

Hyatt Hotels Corporation has also made strides in addressing Employment Discrimination by launching initiatives like the Global Inclusion and Diversity Council to oversee the company's efforts and ensure accountability across all levels of the organization.

Explore additional related case studies

Aligning Diversity Initiatives with Business Objectives

Ensuring that diversity and inclusion efforts are closely aligned with the overarching business objectives is crucial for sustainable success. A common concern is how these initiatives will drive business results. Research by McKinsey & Company has shown that companies in the top quartile for gender diversity on their executive teams were 25% more likely to have above-average profitability than companies in the fourth quartile. This data supports the notion that diversity is not just a moral imperative but a business one. To integrate diversity efforts with business objectives, it's important to establish clear goals and metrics that resonate with the core business strategy. For instance, in the hospitality industry, diversity can enhance customer satisfaction by providing services that cater to a wide array of cultural preferences, thus driving customer loyalty and revenue growth.

Learn more about Customer Satisfaction Revenue Growth

Measuring the Long-term Impact of Diversity Initiatives

Another area of interest lies in the measurement of the long-term impact of diversity initiatives on organizational performance. While immediate changes may be noticeable, such as an increase in minority hiring rates or a reduction in discrimination complaints, the long-term impact on innovation, employee engagement, and market share is equally important. According to a BCG study, companies with more diverse management teams have 19% higher revenue due to innovation. This suggests that diversity is a key driver for growth, particularly in industries that thrive on innovation, like hospitality. Tracking the long-term effects involves monitoring a set of leading and lagging indicators over time, such as employee retention rates, the number of new products developed by diverse teams, and market expansion metrics. These indicators provide a holistic view of the impact diversity initiatives have on the company's enduring success.

Learn more about Employee Engagement Employee Retention

Ensuring Leadership Buy-In and Commitment

Leadership buy-in is pivotal for the success of any diversity initiative. C-level executives often seek guidance on how to secure and maintain this commitment. It is essential for leaders to visibly support and participate in diversity programs. A study by Deloitte found that inclusive leaders are 70% more likely to capture new markets. Leaders should be engaged from the onset, setting the tone for an inclusive culture and driving accountability throughout the organization. This can be achieved by incorporating diversity and inclusion goals into the core leadership competencies and performance evaluations, thereby reinforcing the importance of these efforts in leadership development and succession planning.

Learn more about Succession Planning

Addressing Potential Resistance to Change

Resistance to change is a common obstacle in the implementation of new strategies, including diversity and inclusion initiatives. Executives may be concerned about potential pushback from employees who might not immediately understand the benefits of such programs. To mitigate resistance, it is important to communicate the value of diversity in terms that relate to each employee's role. For example, customer-facing staff in the hospitality industry should understand how diversity can lead to improved customer experiences and satisfaction. Additionally, involving employees in the development and execution of diversity strategies can increase buy-in and reduce resistance. Providing education and training that highlight the direct impact of diversity on innovation, as noted by a Forbes study stating that diverse companies are 1.7 times more likely to be innovation leaders in their market segments, can also help in gaining employee support.

Learn more about Customer Experience

Additional Resources Relevant to Employment Discrimination

Here are additional best practices relevant to Employment Discrimination from the Flevy Marketplace.

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Key Findings and Results

Here is a summary of the key results of this case study:

  • Increased employee diversity ratios, aligning with the organization's diversity goals.
  • Reduction in the incidence of discrimination reports by 40% post-implementation.
  • Improvement in employee satisfaction scores by 25%, indicating enhanced morale.
  • Introduction of a comprehensive Anti-Discrimination Policy Framework and Employee Training Program.
  • Established a quarterly diversity reporting mechanism, enhancing transparency and accountability.
  • Secured leadership buy-in, with C-suite actively participating in diversity and inclusion initiatives.

The initiative to address Employment Discrimination within the organization has been largely successful. The significant reduction in discrimination reports and the improvement in employee satisfaction scores are clear indicators of the positive impact of the implemented strategies. Leadership commitment, particularly from the C-suite, has been a critical factor in driving these results, underscoring the importance of top-down support in organizational change efforts. However, while these results are promising, the resistance encountered during implementation highlights a potential area for improvement. Addressing resistance through more targeted communication and involvement strategies could further enhance the outcomes. Additionally, while the introduction of new policies and training programs is a step in the right direction, continuous monitoring and adaptation of these initiatives are necessary to ensure their long-term effectiveness.

Based on the analysis and the outcomes observed, the recommended next steps include the continuous refinement of diversity and inclusion training programs to address evolving challenges and ensure they remain relevant and effective. Further, expanding the scope of stakeholder engagement to include a wider array of voices and perspectives can help in identifying blind spots and opportunities for improvement. Lastly, leveraging the positive momentum generated by the initial success, it's crucial to explore additional areas where diversity and inclusion efforts can contribute to business objectives, such as customer satisfaction and innovation, thereby reinforcing the business case for diversity as a strategic advantage.

Source: Employment Discrimination Assessment in Hospitality, Flevy Management Insights, 2024

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