Fundamentals of Human Resource Management 6th Edition by Raymond Noe, John Hollenbeck, Barry Gerhart,Patrick Wright

Exercise 11

Lack of Rewards May Explain "Leaky Pipeline"
At the biggest U.S. companies, evidence shows increasing levels of diversity among nonmanagement employees. But when researchers measure the percentage of women and minorities at each level of the organization, they find less and less diversity as they move up the hierarchy. In other words, the talent pipeline is leaking women and minorities.
One reason may be that although companies say they want to promote diversity and inclusion, they do not actually reward managers for their performance in this area. According to a poll of executives by Korn Ferry, a recruiting agency, 96% agree that "having a diverse and inclusive workforce can improve employee
engagement and business performance." Almost three-quarters said their company has a strategy for promoting diversity and inclusion. However, only about half said their performance appraisals measure how well they promote diversity. Less than one-fourth said any part of their bonus pay is tied to performance on diversity.
Learning to work with people who are different from oneself can take extra energy and insight. Executives are under daily pressure to deliver results. If they are not rewarded for helping diverse employees navigate their career paths-or punished for failing to do so-they might well consider that promoting employees like themselves is the path of least resistance.
How might a bonus related to diversity affect the ways executives promote, train, and develop their employees