When consultants and reporters bemoan the impact the recession is having on corporate-diversity programs, they miss the point: National diversity leaders are actually ramping up their diversity efforts in these tough times to take advantage of the buyer's market for talent and ensure their pipelines are strong. And if they do cut back on diversity initiatives, the reductions are commensurate with other organizational cuts.

We surveyed The 2008 DiversityInc Top 50 Companies for Diversity^®, and more than 80 percent of those that were experiencing significant corporate cutbacks said their diversity budgets were either increasing or remaining stable. That's a strong testament to their company's beliefs that diversity is critical to their lines of business and is vital to both their long- and short-term success.

Yet articles keep appearing saying diversity programs are getting a disproportionate share of the corporate cuts. A January 2009 article on the web site of SHRM (Society for Human Resource Management) exemplifies this type of story and exactly what's wrong with it: an over-reliance on the opinions of consultants, asking questions that will generate a "gloom-and-doom" response, and, most importantly, using data from companies that weren't really committed to diversity in the first place.

The SHRM article "Should Diversity Pay the Price in an Unstable Economy?" quotes Howard Ross, founder of Cook Ross Inc. and one of the best-known diversity consultants in the United States. Ross in the article says people question how they can justify fees for consultants when they have to lay people off and notes that "in times of stress our tendency is to cut back on people-oriented services in favor of revenue-generating activities."

We disagree not with his statement but with the emphasis SHRM put on it. The importance here is not in "hiring consultants" but in a focus on revenue-generating activities which, at DiversityInc Top 50 companies, are increasingly diversity-based.

Linda Jimenez, staff vice president, work-force diversity at WellPoint, No. 42 on the DiversityInc Top 50, explains it this way: "There is not a part of our business that does not include some aspect of managing diversity. Without question, diverse perspectives and experiences are conducive to driving innovation and meeting the needs of customers who come from all walks of life. For example, having associates who understand dynamics of family hierarchies in some cultures like the Hispanic community greatly enhances our ability to develop products that are relevant."

Angela Avant, partner in charge of diversity at KPMG, No. 49 on the DiversityInc Top 50, says this: "We expect to maintain our commitment to all of our diversity programs at the same participant levels as in the past year ... Having a diverse work force makes our organization stronger and better able to serve the diverse needs of our client base."

Debunking SHRM

Let's examine the data in the SHRM article and see what's valid. SHRM based its data on an October survey of 452 HR professionals on discretionary spending. What we've learned in nine years of running The DiversityInc Top 50 Companies for Diversity survey is that how you ask a question--and who answers the question--determines the results.

Of those respondents, three quarters of them have less than 500 employees, which SHRM admits in the article means they "are less likely to have well-developed diversity initiatives." By contrast, the 352 companies that participated in The 2008 DiversityInc Top 50 Companies for Diversity survey last year (with more anticipated in 2009) had a minimum of 1,000 employees, and most were Fortune 500 companies.

Here's a rebuttal of key findings of this study:

      The SHRM study found that 39 percent said they had cut spending on training not directly related to their core business, such as anti-harassment and diversity training. The key wording here is "not related to their core business." For DiversityInc Top 50 companies, diversity is essential to their core business.

For example, Deborah Dagit, chief diversity officer at Merck & Co., No. 21 in the DiversityInc Top 50, said this: "Diversity is essential because we MUST reflect our marketplace to have a competitive strategy and successfully execute against that strategy."

Allen Thomas, chief diversity officer at Deloitte LLP, No. 16 in the DiversityInc Top 50, says: "Our CEO [Barry Salzberg] talks about diversity in every speech he makes, internally or externally, even in a downturn."

Lisa Gutierrez, executive director of global diversity at Cummins, No. 20 in the DiversityInc Top 50, adds: "My CEO [Tim Solso] said two things are sacred in our company--leadership culture and diversity."

      Ten percent of the SHRM respondents said they had decreased spending on "recruitment initiatives aimed at increasing the diversity of their work force."

If the question is asked without the respondent understanding the long-term ramifications of a diverse work force, they would perceive this as an ancillary recruitment initiative. For the DiversityInc Top 50 companies, the exact opposite is true.

"Short-term decisions can yield short-term mistakes or shortages. We never want to stop recruiting for diversity," says Thomas, noting the dramatically changing demographics of the United States. "We want to have access to the talent pool as it's changing. The country will come out of this economic downturn and those companies that took a longer view of recruiting will be in a better position."

Adds Charlotte Neal, corporate compliance officer at Toyota Motor Engineering & Manufacturing North America(Toyota is No. 48 in the DiversityInc Top 50): "The ability to build and offer a challenging, inclusive, flexible and rewarding work environment to our future work force is key to our continued success, and diversity and inclusion is at the core of our effort."

And comments Avant: "We are committed to developing consistent and sustainable strategies for hiring top talent from all backgrounds and conduct branding and outreach efforts as early as the high-school years ... Having a diverse work force makes our organization stronger and better able to serve the diverse needs of our client base."

      Twelve percent of the SHRM respondents predicted that "diversity-related recruitment efforts would be cut." Again, the question did not reflect whether this is higher or lower than other cuts in the business. For almost all DiversityInc Top 50 questions, recruitment efforts either are being increased, remaining stable or being cut commensurate with every other business strategy.

WellPoint's Jimenez summed it up for DiversityInc Top 50 companies: "The value of being able to leverage diversity well shows up at the top and bottom lines of the company in the way of new markets and market share, a strong supplier/partner base, and if you're a public company, a diverse set of investors who can all see their interests being addressed in the company's business plan and results."

It's also critical to recognize that the election of President Obama reinforces the importance of diversity, which all companies should keep in mind. He was elected by a very diverse constituency and his appointments so far reflect his commitment to inclusivity and his understanding of how critical it is to long-term success. Since he will be making considerably more judicial and regulatory appointments that directly impact all businesses, long-term diversity will be even more vital to corporate America.

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