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The Role of Public Administrators in Responding to Changing Workforce Demographics: Global Challenges to Preparing a Diverse Workforce

Barbara Hewins-Maroney, Ph.D. University of Nebraska Omaha Ethel Williams, Ph.D. University of Nebraska Omaha

Abstract

In the next 10 years, employment skills and personnel in the United States are expected to continue to shift. The new workforce will be filled with a large number of new entrants, many of whom will lack the professional savvy to negotiate in the active, intergovernmental arenas. The majority of the new workers will be people of color, immigrants, women, and the disabled. One concern about the changing demographics is “the potential impact of the educational structure of the workforce. For example, Hispanic workers have the lowest educational attainment of any major ethnic group” and they will comprise the largest portion of the new entrants (Rogers, Toder, & Jones, 2000). Additionally, the changing workforce demographics will yield a sharp increase in the number of workers under 25 and over 45 and a decline in the number of workers between these two groups (Rogers, Toder, & Jones, 2000). Many of the demographic challenges faced in the U.S. workforce are also being faced globally. Integrating the new workers into the public sector workforce will challenge the current way public administrators manage the public enterprise. Although the roles and responsibilities of public administrators may not change dramatically, ways of conducting business in the public sector will morph as technology and interdependency - organizational, regional, and global - take on even greater importance. Diversity challenges accompanied by technological changes, new job/skill requirements, intense competition for talent, and mutual dependency among organizations will force public administrators to test and refine their concepts and practices of governance. How to best prepare, integrate, and respond to the diversified workforce will be the major challenge. How public administrators around the globe handle this challenge will result in how responsive and effective government becomes. This paper examines the challenges posed by workforce diversification globally and explores possible approaches to successfully meet the administrative challenges of change. It finds that public administrators worldwide have a pivotal role in making the changes necessary to successfully manage diversity and transition the new workforce entrants into productive employment.

Introduction

For the past 100 years, the U.S. has prided itself on being a country of diversity. It took decades for the

United States to accept the idea that a diverse population was beneficial to the social and economic

fabric of society. Slowly, the realization that diversity facilitates economic, social, and political growth

has permeated social thinking along with the acceptance that diversity is an inevitable part of a changing

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world order. World-wide, population trends point to an aging population and a migratory population.

The migratory nature of the world’s population poses an increasing challenge in the employment sector

as immigrants from all economic sectors have found it necessary or convenient to relocate across the

globe. Dynamics of migration along with the evolving demands of a global economy and the

composition of the world’s population set a framework for twenty-first century employment.

In the next decades, employment skills and personnel in the United States and the world are expected

to dramatically shift. The new workforce will be filled with new entrants, many of whom will lack the

professional savvy to negotiate in the active intergovernmental arenas. The majority of the new

workers will be people of color, immigrants, women, and the disabled. A significant portion will lack the

necessary skills and education to compete in the coming labor arena. Additionally, the changing

workforce demographics will yield a sharp increase in the number of workers under 25 and over 45, and

a decline in the number of workers between these two age groups (Rogers, Toder, & Jones, 2000).

Many of the demographic challenges faced in the U.S. workforce are also being faced globally.

The challenge for governments is how best to transition the new workforce entrants into productive

employment, since projections across the globe indicate that there will not be enough new job creation

to handle the estimated 40 million new persons seeking employment each year for the next decade

(Global Employment Trends 2012: World faces a 600 million jobs challenge, warns ILO, 2012).

Integrating the new workers into the public sector workforce will challenge the current way public

administrators manage the public enterprise. Although the roles and responsibilities of public

administrators may not change dramatically, ways of conducting business in the public sector will morph

as technology and interdependency – organizational, regional, and global – take on even greater

importance. Diversity challenges accompanied by technological changes, new job/skill requirements,

intense competition for talent, and mutual dependency among organizations across the world will force

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public administrators to test and refine their concepts and practices of governance. The best way to

prepare, integrate, and respond to the diversified workforce will be a major challenge. How public

managers around the globe handle this challenge will result in how responsive and effective

governments become. This paper examines the challenges posed by workforce diversity in the United

States and globally, and explores possible approaches to manage diversity in order to successfully meet

the administrative complexities associated with demographic change.

Conceptual Framework

The concept of diversity is most often associated with a discussion of a diverse workforce. The concept

has expanded to go beyond demographic characteristics of race/ethnicity, gender, age, and physical and

mental ability (Mannix & Neale, 2005; Herring & Henderson, 2011). It now incorporates the

perspectives and approaches of observable and unobservable differences that groups bring to the

workplace (Thomas & Ely, 1996; Roberson, 2004). The definition’s expansion allows multiple categories

of individuals and attributes to be a part of diversity discussions and research, however, in the

developed world the focus is primarily centered on demographic characteristics (Shen, Chanda, D'Netto,

& Monga, 2009). The broadening of the diversity concept helps to more clearly assess three theoretical

perspectives that are primary in an examination of organizational diversity. One perspective is the

similarity-attraction theory that states characteristics or attributes such as attitudes, values and beliefs

are conducive to interpersonal attraction and liking (Byrne, 1971). Even surface level congruencies like

skin color will help build relationships, because there is an assumption that similarity brings with it

analogous experiences (Mannix & Neale, 2005). The social categorization theory states that individuals

categorize themselves and others based on factors such as race, gender, and values (Turner, 1987). It is

social categorization that causes individuals to build stereotypes about groups and can lead to self-

segregation and discrimination (Choi & Rainey, 2010). The third perspective is information processing,

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which when applied to employment diversity asserts that the exchange of ideas, the building of

networks, and the coordination of skills is conducive to effective organizational performance (Mannix &

Neale, 2005). When employees have access to colleagues from different backgrounds, their exchanges

augment their skills and in most cases increase their productivity ( (Herring & Henderson, 2011; Soni,

2000). Knowledge of these perspectives helps clarify organizational approaches used in addressing

diversity, and rationalizes individual and group responses to diversity.

The three theories are operationalized by approaches used by organizations in addressing diversity

management: the discrimination and fairness paradigm, which focuses on equal opportunity,

compliance, and fair treatment; the access and legitimacy paradigm, which focuses on matching

workforce demographics with critical consumer or constituent groups to better serve specialized

markets; and the learning and effectiveness paradigm, which focuses on linking diversity with

institutional strategies, markets and culture paradigms identified (Thomas & Ely, 1996). The first

paradigm concentrates on legislation, such as affirmative action and equal opportunity laws, to achieve

a diverse workforce. The second paradigm relies on the notion that services improve if special

populations are served by staff that are culturally similar or sensitive to them. The third paradigm is one

that supports the belief that better public service can be achieved if organizations are inclusive in their

diversity hires through listening, collaborating, and respecting the opinions and ideas of all employees.

Support and information sharing are key attributes of the learning and effectiveness paradigm. It

incorporates and more fully supports diversity management (Canas & Sondak, 2008).

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Figure 1

Figure 1 demonstrates the relationship between the theories and the concomitant diversity

paradigms. Both the discrimination and fairness paradigm and the access and legitimacy paradigm can

result in management activities that allow diversity, but neither usually results in an inclusive work

environment (Choi & Rainey, 2010). The learning and effectiveness paradigm allows and supports both

diversity and inclusion. A distinction between diversity and inclusion is important to recognize. While

diversity focuses on the mix of characteristics, attributes, and individuals within an organization,

inclusion involves the acceptance of people, their viewpoints, and their cultural styles (Roberson, 2004).

Inclusion also incorporates the idea of respecting and incorporating diversity in the decision making

structures of the work environment. Therefore, the goal in public organizations as well as private

organizations should be to be inclusive not just diverse. Attaining inclusion is an organizational

challenge for management.

Discrimination and Fairness

Paradigm

•Theory of Similarity and Attraction and Theory of Social Categorization support this paradigm.

•The paradigm allows for diversity and focuses on laws and sanctions to achieve diversity.

Access and Legitimacy Paradigm

•Theory of Similarity and Attraction and Theory of Social Categorization support this paradigm.

•The paradigm allows for diversity and focuses on serving special populations.

Learning and Effectiveness

Paradigm

•Theory of Information Processing supports this paradigm.

•The paradigm allows for diversity and inclusion through the exchange of ideas, building networks and respecting values.

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The notion of inclusion is a hallmark of diversity management. Diversity management in the public

sector goes beyond an adherence to the laws and sanctions that emanated from the civil rights era. It

goes beyond political correctness. Diversity management recognizes the values and differences of

employees and utilizes these differences in achieving organizational goals (Choi & Rainey, 2010; Herring

& Henderson, 2011; Shen, Chanda, D'Netto, & Monga, 2009).

While the accommodation of a diverse workforce is desired, studies indicate that diversity can have

paradoxical effects on a work environment. A diverse workforce can both enhance and distress work

environments affecting employee and organizational functioning (Kochan, et al., 2003; Shen, Chanda,

D'Netto, & Monga, 2009; Kwak, 2003; Soni, 2000; Byrne, 1971; Kurtulus, 2011). The inconsistency of an

organization’s performance because of diversity is based on a number of factors including organizational

structure and culture, organizational mission and strategies, organizational structures, and employee

attitudes (Hirsh & Kmec, 2009; Kochan, et al., 2003; Ely & Thomas, 2001). Critical to diversification and

inclusion are leadership attitudes and the mindsets and actions of management (Choi & Rainey, 2010).

Research indicates that too frequently there is symbolic compliance to diversity rather than meaningful

commitment ( (Herring & Henderson, 2011; Hirsh & Kmec, 2009).

To be inclusive as well as diverse requires organizational actions that educate and sensitize managers

and employees to value and accept diversity (Soni, 2000). The challenge then is two-fold. Public

managers must not only be sure that organizational practices are accepting of a diverse workforce but

must also meet the challenge that accompanies a diverse workforce whose skills may not be congruent

to organizational effectiveness.

Employment skills are expected to dramatically shift. All indicators suggest that the new work

environment will require higher levels of education and training and a broader range of cognitive skills

(Critical Skills for Workforce 2020, 2011). In the next decade alone, about 30 percent of job openings

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will require some postsecondary education (Carnevale, 2005). Sixty percent of new jobs in the United

States will require skills that are possessed by 20 percent of the workers (Chell, 2001). The same

projections can be made for the global workforce.

How can public managers and administrators meld efforts to manage diversity with the rapidly changing

workforce?

Study Approach

This study seeks to answer three questions:

1. What are the challenges posed by workforce diversification globally and how managers and

administrators globally handle these challenges?

2. How are managers globally preparing, integrating, and responding to the diversified workforce?

3. What are possible approaches to successfully meet the administrative challenges of a changing

workforce?

An exploration of existing studies of diversity management and case studies on global employment was

used to answer these questions. This approach is similar to qualitative descriptive studies. Qualitative

research seeks to understand a given research problem or topic from the perspectives of the population

it involves (Atkinson, Coffey, & Delamont, 2001). Specifically, through a review of the literature and an

examination of pre-existing archival or previously documented information describing and explaining

global workforce characteristics, this study seeks to understand how current and projected workforce

characteristics have implications for diversity management in public administration.

The advantage of this approach is that it is effective in identifying intangible factors, such as social

norms, socioeconomic status, gender roles, and ethnicity (Atkinson, Coffey, & Delamont, 2001). The

disadvantages of this approach include the lack of predefined populations (countries) to observe and

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systematic or consistent information on each country observed may not be available. Findings are

limited to what is contained in the articles, archives or other reported data.

Beyond the United States, no countries were initially identified. The countries included in this study

emerged naturally based on available information. The only parameters set were to include both

developed and developing countries; to include workforce challenges posed by workforce

diversification globally; and to present possible approaches to successfully meet the administrative

challenges of change. Diversity is examined using the following attributes:

Race, ethnicity – Efforts to include any of the populations different from the native or majority

population of the country. In the United States it includes those groups identified in Title VII of the Civil

Rights Act as protected classes

Gender- Efforts to include both male and female workers or actions taken to address gender disparities.

Disability - The responsibility of administrators to include the disabled or differently abled including the

physically and mentally challenged.

Age - explores the unique issues associated with managing an aging workforce.

Immigration – the migration and settlement of individuals and groups from one country to another.

General assumptions were made about the approach to managing diversity, especially on inclusiveness

and acceptance, based on the treatment of race, gender, age and other attributes diversity.

Global Challenges and Responses to a Diverse Workforce

Across the world the workforce is beginning to reflect similar demographic patterns. In most developed

countries, the workforce is steadily maturing. This is a result of the aging of the largest population group

– “baby boomers” - and declining birthrates of subsequent population groups. In the United States the

percentage of the workforce between the ages of 55 and 64 is growing faster than any other age group

(Strack, Baier, & Fahlander, 2008). By 2030, 55 countries are expecting that those aged 65 and older will

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be at least 20 percent of their total population (Kocak, 2011). Over the next four decades those 65 and

older will grow the fastest. Their numbers will more than double by 2035. More specifically, during the

same period, U.S. residents in the prime working age group, 25 to 54, will increase by only 14 million or

11 percent (Furchtgott-Roth, 2005). The share of prime working age adults will decline from about 59

percent of the population to about 56 percent. The share of older adults (65 and over) will increase from

just over 12 percent to almost 21 percent of the population (Rogers, Toder, & Jones, 2000).

Other countries such as Australia and China anticipate declining populations of the prime working age

group over the next 30 years (The Rise of Asian Americans, 2012). Data about Japan is disconcerting.

Japan is aging faster than any country in history (The Old and the Older, 2010). The working age

population will shrink so quickly that by 2050, four out of ten Japanese will be over 65 years of age (The

Old and the Older, 2010). What impact will this have on the productivity of the country and the need for

the government to bolster the labor force with younger workers?

Most developing countries will not experience such declines in their aging populations. Countries such

as Brazil, India, Mexico, South Africa, and Turkey expect the opposite because of high fertility rates

(OECD, 2011). Fertility rates, also called the replacement rate or reproduction rate, keep a country’s

population base stable.1 The baseline standard of 2.1 is used by the World Health Organization as the

necessary rate to replace an ongoing population. Table 1 summarizes the replacement rate for selected

developed and developing countries. What can be seen is that throughout the developed world, the

rates are below the standard, while for many developing countries the rates far exceed the baseline.

1 The fertility rate is often used in discussion of population rather than the birthrate, because the fertility rate

refers to the births of a woman rather than the births per 1000 of the population.

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Table 1

Estimated Fertility Rate for Selected Countries

Developed Countries Fertility/Replacement Rate

United States 2.06

United Kingdom 1.91

Australia 1.77

Canada 1.59

China 1.55

Japan 1.39

Developing Countries Fertility/Replacement Rate

Niger 7.16

Mali 6.35

Somalia 6.26

Source: The World Fact Book, 2012

In comparing the fertility rate of the United States with other countries, the U.S. has one of the highest

fertility rates of any developed nation. The fertility rate is high because the rate for Hispanics in the U.S.

is 2.99; for African Americans, it is 2.11; for Asian and Pacific Islanders it is 2.06, and for American

Indians and Whites, it is 1.84 (Khan, 2010). This means that young workers will be largely people of

color in the United States. A major workforce concern regarding some racial/ethnic groups in the

country, specifically Blacks and Hispanics, is that in education and training, they continue to lag behind

Whites in all age cohorts (Winning the Future: Improving Education for the Latino Community, 2011).

According to Harry Holzer, “while Blacks have achieved parity with Whites in high school graduation

rates, they lag behind Whites in the attainment of college (as well as postgraduate) degrees.” Holzer

goes on to state that “Hispanics lag well behind Whites and Blacks in graduation from high school as well

as college.” However, the lower rates of educational attainment among Hispanics only partly reflect the

concentration of less educated immigrants in that population group. The lower educational attainment

of Blacks and Hispanics contribute to their “labor market difficulties but does not fully account for those

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problems” (Holzer, 2000). Other possible causes for low labor participation rates from these groups

include lower accumulation of work experience, low scores on cognitive achievement tests, higher racial

segregation resulting in lower physical access to jobs, and persistent racism and ethnocentrism (Holzer,

2000). Regardless of these assessments, people of color will fuel the future workforce in the U.S. What

will be their preparation for employment challenges that will keep the country competitive?

Because the population of people of color worldwide is younger, they create additional stress in the

employment sector. A menacing concern regarding the employment prospects of young workers is their

unemployment rate. In 2011, some 75 million youth aged 15 – 24 were unemployed globally (Global

Employment Trends , 2012). In the United States, 17.1 percent or 4 million in this age group were

unemployed during the first half of 2012 (Employment and Unemployment Among Youth Summary,

2012). While this number is high it varies by racial/ethnic group. As illustrated in Table 2, when these

numbers are juxtaposed with the fertility rate what can be seen is that those racial/ethnic groups with a

higher fertility rate are more likely to be unemployed.

Table 2

Unemployment Rate for American Youth by Racial/Ethnic Group

Country Participation Rate

African American 28.6%

Hispanic 18.5%

White 14.9%

Asian 14.4%

Source: Employment and Unemployment Among Youth Summary, 2012.

Globally, this age cohort is three times as likely to be unemployed than adults, which forces youth into

poverty and subsistence living. Their status in the workforce has caused many of them to withdraw

from seeking employment, impacting their acquisition of skills and knowledge. If youth are not being

trained during their early years, they will not be prepared, when they move into the prime age for

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employment. They will be relegated to low skilled jobs, exacerbating the problem of sub-employment

and unemployment. The challenge for the world’s economy is creating enough job opportunities for this

population. In South East Asia, for example, from 1 million to 1.2 million new workers will be added to

the labor market every month for the next few decades (More and Better Jobs in South Asia, 2011).

Since the majority of these new workers are youth, higher unemployment rates for this age cohort are

expected (Marie, 2012). The same will occur in Africa and the Middle East which have youth

unemployment rates ranging from 21 percent to 25.6 percent (Zuehlke, 2009).

Youth are in need of employment, but using youth as replacements for baby boomers as they begin to

reach retirement may not be possible. The prospects for replacing exiting workers do not look

promising. How can the knowledge skills of these workers be replaced, if younger workers are dropping

out and not being trained to take their place? Difficulties in replacing retiring workers are likely because

beyond making up for the knowledge skills possessed by these employees, future workers will need to

be able to perform in a global and highly technological marketplace (Nguyen, 2008). Strack, Baier, and

Fahlander (2008) identified two categories of demographic risks facing the workplace as a result of these

retirements. The first is “capacity risk due to the loss of accumulated knowledge and expertise. The

second is productivity risk, which is described as the risk of the overall effect of having older workers still

on the payroll.”

While age often brings valuable expertise and wisdom, age can also mean a lack of fully up-to-date skills,

health problems, and lowered motivation due to job and career satisfaction or inertia. Some of these

concerns may be unwarranted. In the current economy, countries are discovering that many of

retirement age are not fully retiring (Sticking Around, 2012). In Great Britain, for example, 63 percent of

workers over the retirement age have been with their employers over ten years. Two-thirds of them

work part time. Perhaps due to the recession, the number of employed older workers in Great Britain

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has increased by 240,000, while younger workers between the ages of 16 – 24 have decreased by almost

600,000 (Sticking Around, 2012). The U.S. noticed this trend several years ago, as labor force

participation has risen in every category of older U.S. residents since 1995 (Farrell, 2012; Furchtgott-

Roth, 2005). Studies on the productivity of older workers are both positive and negative. Farrell (2012)

suggests that productivity may not be an alarming issue with older workers. A BMW plant modified an

assembly line for its older workers at a cost of $70,000. The output of the older workers met or at times

exceeded that of the younger workers, helping the plant to maintain, if not raise, its productivity.

Preparing only for the retirement of older workers, then, is an insufficient response to the aging of the

workforce (Strack, Baier, & Fahlander, 2008). Another factor regarding older workers is that workers 55

and older are joining the immigration ranks to find work (Terrazas, 2011).

Generally, however, immigrants worldwide are younger workers. Immigration will change the size and

composition of the population in various ways. Each year, fewer than one million legal immigrants come

to the United States – less than one-half of one percent of the U.S. total population in a given year

(Preston, 2012). Illegal immigrants, on the other hand, continue to be an issue with 81 percent of

unauthorized immigrants being from Latin America (24 percent) or Mexico (58 percent) (Preston, 2012).

While the absolute numbers may be declining, the overall impact of Latin American and Mexican

immigrants on the workforce is the same because of their general lack of education and skills. According

to the White House report Winning the Future: Improving Education for the Latino Community (2011),

Latin American and Mexican residents both legal and unauthorized have the lowest educational

attainment of any group in the United States. Other immigrants come from a broader spectrum of

educational levels. The tendency, however, is for immigrant education to be concentrated at either the

low or the high ends of the educational spectrum (Terrazas, 2011). Regardless of educational levels,

immigration is expected to increase the growth rate of diverse groups with governments showing more

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interest in attracting those who have stronger skills and greater educational attainment, such as some

groups of Asians.

Immigration affects the age composition of the population. Immigrants to the United States are

predominantly younger than the native-born population, so their entry into the country adds to the

population of the younger age groups. This appears to be the same in most developed nations.

Immigrants offset the slow population growth of the native born population and lower the average age

of the working age population. As a young, unskilled population, their entry into developed nations

support productivity that is based on low skills with moderate contributions to high skilled productivity

and innovative ventures (Venturini, 2012; Peri, 2009). In the U.S. the immigrant Hispanic population is

of great concern. Labor force participation of males in this group is higher than males in any other racial

or ethnic group in the U.S. (Terrazas, 2011). In the past, the rate of population growth of the Hispanic

population was expected to be greater than that of all other racial and ethnic groups in the United

States, however, more recent forecasts indicate that Asians have surpassed Hispanics as the largest

group of new immigrants (The Rise of Asian Americans, 2012). In 2010, 31 percent of all new arrivals to

the United States were of Asian descent, many of whom are entering the country highly skilled and

educated. They are also somewhat older than some other groups of immigrants. The U.S. Asian

population is the highest earning and best educated of all racial/ethnic groups in the United States

(Semple, 2012). However, even among this group there is a mix of low and high skilled workers.

Immigration affects every country across the globe. China, for example, is experiencing an influx of

immigrants from Vietnam and other Southeast Asian countries, many of whom are low skilled (China

Goes After Illegal Immigrants, 2012). Australia has been actively seeking skilled immigrants, while

incarcerating the unskilled. Each year Australia allots 152,000 immigrant visas with 102,000 of them

going only to skilled applicants (workpermit.com, 2012). To stem the tide of unskilled immigrants,

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Australia recently announced the reopening of its detainment centers to house the thousands of illegal

African, Malaysian, Afghani, and Iraqi immigrants flooding the country (Siegel, 2012). The President of

France has called for a limit on the number of “foreigners” saying there are too many in the country

(Goodman, 2012). France, like Germany and the Netherlands, finds that recent immigrants are less

educated and have lower skills than the residents of the host countries (Zimmerman, 2011). In general,

Europe is concerned about immigration and its impact on work and the economy. The flood of North

African immigrants with limited education and skills into Italy and Spain (as gateways to Europe) has

caused all of Europe to look at ways to control immigration onto the continent (Donadio, 2011). The

European Union has no effective immigration policy, but all countries that participate in the union seek

skilled laborers (Zimmermann, 2011).

Diversity of employment is particularly disheartening among the disabled who suffer from negative

employer attitudes in both the public and private environments. With the number of the disabled

expanding because of wars, civil strife, birth defects, and mental assessments, more attention is being

given this group of individuals. According to the World Health Organization, 20 percent of the world’s

population or 1 billion people are disabled (World Report on Disabilities, 2012). When a person has a

physical or a cognitive disability, and lives or works in an inaccessible environment, the individual has

barriers to participation and inclusion. In 2005 the United Kingdom refined its 1995 law requiring all

public institutions to provide equality to the disabled. The law, which also covers Northern Ireland,

addresses physical accessibility, a strategy of inclusion, and an assessment to measure disability

inclusion (World Report on Disabilities, 2012).

The United Kingdom’s approach to disabilities is based on a results-centered model with employment

quotas and measurement being important in assisting the disabled population (Heyer, 1999). Japan has

a similar philosophy in its disability legislation with special attention and assistance given the disabled.

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Some observers view the Japanese version as a welfare model and question why there needs to be a

quota. Assessment is easier when quotas are instituted, but quotas may not be equitable in every

population. Turkey has a 3 percent quota for companies hiring 50 employees or more and Germany has

a 2 percent quota for companies with 20 or more employees (World Report on Disabilities, 2012). If

companies do not meet their quotas they are fined, if caught. The U.S.’s American with Disabilities Act

(ADA) (1990), which has been an international example for disability inclusion, is based on a different

model (Facts About the Americans with Disabilities Act, 2012). The philosophy of the ADA is that equal

access will be achieved by outlawing discrimination based on disabilities. Managers must realize that

like many issues of diversity, disability laws reflect the norms and assumptions of societies. Therefore,

each country will tailor its legislation to its public. Canada, for example, does not have a separate

disabilities law. Instead there is a 1985 Human Rights law that incorporates disabilities. Disability

supporters feel the inclusion of disabilities in the current law is weak and does not provide sufficient

guarantees to employ the disabled or educate and train them for the upcoming workforce (McColl,

Schaub, Lauren, & Hong, 2010). Many less developed countries don’t have policies for the disabled.

The World Health Organization (WHO) has the least information regarding disabilities from sub-Saharan

African countries which struggle to provide employment and services to their overall populations. The

WHO fears that the circular link between disabilities and poverty for many of these countries will

stagnate their economies. However, in examining employment ratios for countries world-wide, Malawi

has one of the highest ratios of employed disabled persons (.92) followed by Switzerland (.81) (World

Report on Disabilities, 2012).2 Another sub-Saharan country, South Africa had one of the lowest (.12)

2 The employment ratio is defined as the employment rate of people with disabilities to the employment rate of

the overall population. The employment rate is the proportion of the working age population (with or without disabilities) in employment. Definitions of working age differ across countries (World Report on Disabilities, 2012, p. 238).

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ratios of disabled who were employed. For personnel managers, the knowledge that policies in both

private and public enterprises must not reflect the assumptions that disabled workers are less

productive and less adaptable than other employees is critical (Fraser, Ajzen, Johnson, Hebert, & Chan,

2011).

In the work environment, diversity cannot be discussed without an underlying assumption that the term

refers to racial and ethnic minorities. The inclusion of racial and ethnic groups in the work environment

has created contention and conflict in almost every country across the globe. Caused by racism and

ethnocentrism, groups are socially and structurally isolated from the general population. Much

attention is usually given to the racial strife in the United States, but with the movement of people

around the globe, the U.S. is now one of hundreds of locales where racial and ethnic tensions abound.

Norway, for example, remains in a quandary about what to do with the refugees it has accepted. The

country felt so overwhelmed by racial tension, that in 1975 an immigration stop was ordered to control

both the legal and illegal immigrants entering (Hagelund, 2005). When the stop was lifted, the

government looked for ways to more effectively assimilate the newcomers into the fabric of the

country. The result was to place the responsibility of assimilating into the culture on the newcomers

and provide them social assistance until they integrated. This may sound humane, but in actuality it

made many refugees dependent on the state and not employable. Without a need to be financially

responsible, many did not understand the importance of education and training or learning the

Norwegian language. The result was the development of an ethnic underclass that is unemployed and

poorly educated. In other words, many refugees and ethnic persons living in the country are illiterate

to the language and culture of their host country. Their potential to participate in the knowledge-based

workforce that emphasizes creativity and problem-solving within their society is negligible. As twenty-

first century employees, their skills are below par of others in the country and their future employment

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prospects are dismal except in low-skilled, low-wage jobs. Norway is just one example of how countries

have responded to the immigration of racial/ethnic groups.

In 2009 Japan announced that all non-Japanese residents especially from Latin American countries

would be subject to deportation (Tabuchi, 2009). The news came as a surprise to many who had lived

in the country for decades. To soften the blow, the Japanese government offered to pay the expenses

of workers to return to their resident countries with the stipulation that they or their children could

never return as residents or workers. Many of those affected are Brazilian citizens of Japanese descent.

Their grandparents and parents left Japan decades earlier because of a slumping economy. Now that

the economy in Japan is slumping again, many in Japan believe that unskilled workers should never be

allowed to enter the country. Other countries are following suit and withholding visas to immigrants

except the highly skilled in special areas (workpermit.com, 2012).

When Australia announced the reopening of its detention centers in 2012, it may have been in reaction

to the growing unrest in the country regarding the benefits being provided to the refugee population.

Often they enter illegally and then seek asylum. Most are eventually granted asylum, but resident

Australians are upset with the government benefits the refugees receive (Sheehan, 2012). According to

a government report Settlement Outcomes for New Arrivals (2011), those coming into the country and

who are granted refugee status receive educational assistance to attend secondary or postsecondary

schools; funds to set-up their households on arrival; immediate welfare payments; a parenting

allowance; interpreters; Medicare; and mobile phones if they are an unaccompanied minor. Similar to

the Norwegian scenario, the refugees tend not to seek employment. After living in the country for five

years, less than 25 percent of the refugees were employed full time. Of the refugee groups, Africans

were most likely to be employed, and Afghanis and Iraqis were the least likely. The study reported that

although the government paid for skill training and education, those arriving in the country with low

19

skills were the least likely to take advantage of opportunities to learn additional skills. Those arriving in

the country with skills and education were more likely to seek additional skill development and

education. The uproar in the country is that retired pensioners believe the government gives greater

support to refugees than it does its citizens (Sheehan, 2012). In a move to slow down the migration of

low-skilled immigrants into the country, the detention centers are seen as a mechanism to protect

Australian workers and pensioners, and limit the outflow of funds to prospective refugees who will not

work.

Women cannot be ignored as contributors to employment diversity. In the United States women have

made significant gains in joining the workforce. Almost 47 percent of the total workforce is female.

They are expected to account for 51.2 percent of the increase in labor force growth by the year 2018.

Most recent data indicate that 41 percent of U.S. women workers are in management or professional

occupations (Quick Stats on Women Workers, 2010, 2012). Despite the near parity in numbers, there

continue to be issues. The Women’s Bureau of the U.S. Department of Labor lists its priority issues as

equal pay, workplace flexibility, higher paying jobs, and homeless women veterans (Priority Issues,

2012). Women in racial/ethnic groups in the U.S. have special concerns. Table 3 indicates the disparity

in participation and unemployment rates among racial/ethnic groups.

Table 3

American Female Labor Force Participation Rate by Racial/Ethnic Group

Racial/Ethnic Group Labor Force Participation Rate Unemployment Rate

African American 54.3% 16%

Asian 46.5% 7.5%

White 46.3% 8.7%

Hispanic 40.7% 12.5%

Source: The Asian American Labor Force in Recovery, 2012

20

The overall numbers of American women in the workforce appear strong, when disaggregated however,

they paint a different picture for managing diversity. African American women have the highest labor

force participation rate and the highest unemployment rate while Hispanic women have the lowest

participation rate but the second highest unemployment rate. In a survey conducted by the Kaiser

Foundation and The Washington Post, black women cited on-going issues of racism and discrimination

as obstacles to employment and promotion in the U.S. job market (Thompson, 2012). Education,

training and racism are projected as probable factors affecting Hispanic women.

Outside of the U.S., especially in developing countries, women’s participation in the labor force is much

less, but is expected to increase. In Southeast Asia, for example, there will be a 10 percent increase in

labor force participation by 2020 (More and Better Jobs in South Asia, 2011). Challenges to employing

this group of workers is overcoming cultural traditions and ensuring educational preparation. Table 4

illustrates the rate of participation for women in selected developed and developing counties. As a

region, women in South East Asia have the world’s second lowest female participation rate in the labor

force (Marie, 2012). Their low rate of labor force participation is expected to continue until 2040. The

region with the lowest female participation rate in the workforce is in the Middle East.

Table 4

Labor Force Participation Rates of Women in Selected Countries

Country Participation Rate

Canada 59%

United States 58%

United Kingdom 56%

France 51%

Japan 50%

Saudi Arabia 17%

Iraq 14%

Syria 13%

21

Source: Labor Participation Rate, Female (% of female population age 15+), 2012.

Women in Latin American countries are underutilized in the labor market. Although from 1980 to 2011,

there was an 18.5 percent increase in labor force participation by women in Latin American countries,

they still are underrepresented in highly skilled job categories (Latin America: 70 Million Additional

Women Have Jobs Following Gender Reforms, 2011). The issue in many of the Latin American countries

is how to enter the labor force on an equal footing with men. Women still experience job segregation

finding themselves in low paying, low productivity sectors of the job market.

Additional workforce patterns are disheartening. According to Mona Mourshed from the Global

Education Practice in the United States:

• 70 percent of students leaving school at all levels lack practical experience.

• 56 percent of students leaving school lack any specific career training.

• 58 percent lack a sense of work ethic and professional conduct.

• 62 percent lack the ability to adequately communicate in both oral and written form.

• Students entering the workplace (including those leaving university and graduate schools) are generally unable to produce immediate results (Cornelius, 2011).

“The Workforce Readiness Report Card” found the nation’s new workforce entrants “woefully ill-

prepared for the demands of today’s—and tomorrow’s—workplace” (McLester, 2006). Making up the

skills and education gap will be a big challenge for American workers and employers.

The challenge of having a prepared workforce is remarkably similar around the world. Wagner suggests

three areas of global concern: global equity; knowledge; and worker motivation. Global equity must be

achieved in the areas of basic literacy, access to education and availability of Web-based tools, access,

and infrastructure. The methodology of teaching and assessing knowledge and skills must be drastically

overhauled to accommodate the demands of a knowledge-based economy. The understanding of what

22

motivates the “net generation” to excellence must be accurately understood and addressed (Cornelius,

2011).

An examination of the critical skills and global concerns suggest that education and training will be key

components of the new global economy. This is not dissimilar to what the public already perceives. The

difference, however, is that education and training will need to be in key skilled and semi-skilled areas

(McClenaghen, 1999). Countries that maintain their economic position or dominate in the global

environment will be those that are built on a knowledge-based economy (McClenahen, 1999). Building

a creative class of educated and skilled workers is paramount to being competitive in all social, political,

and economic arenas (Marrocu & Paci, 2012). In Marrocu and Paci’s study (2012), they determined that

highly educated members of the creative class are the most relevant for production efficiency. This is

the class of workers that many governments are aggressively seeking (Moretti, 2012). There is further

evidence to support the importance of training and education to prepare for new employment

demands. Studies indicate that by increasing the education level of workers by just one year,

productivity can increase from 8.5 percent to 12.7 percent (Black & Lynch, 1996).

The Role of Public Administrators in Responding to 21st Century Workforce Demographics

The challenge of responding to the changing demographics of the workforce at first glance appears to be

daunting. However, the problems around the world are similar and thus solutions can be crafted and

tailored when administrators use both a nation-specific and a global perspective. The ability to produce

highly skilled workers is critical for each nation’s economy as well as for global competition (Carnevale,

2005).

The theoretical model for diversity management suggests that the most effective paradigm is one that

does not exclude groups based on physical and other attributes while concomitantly involving, accepting

23

and respecting the viewpoints of all workers (learning and effectiveness paradigm). To effectively

prepare and use the skills of twenty-first century workers public administrators should consider:

Assessing the specific challenges faced by their respective organizations and nation relative to

diversity. Organizational practices, laws, rules, etc. averse to diversity management need to be

challenged and changed by public administrators.

Their position and the position of their country on diversity – which paradigm defines their

national approach. In order to be inclusive of the multiple populations both being sought, and

those that immigrate, administrators need to move toward the learning and effectiveness

paradigm that allows inclusion along with diversity. For both developed and developing

countries this may necessitate policy changes. For example, countries that underutilize women

must understand their increasing numbers in the workforce are critical for global

competitiveness.

The positive and negative nature of diversity. Administrators must become educated on best

practices in developing a diverse workforce. Organizations cannot simply be diverse for the sake

of diversity, but must recognize the advantages that diversity brings to the labor force and make

every effort to capitalize on it by being willing to devise strategic ways of preparing and then

incorporating new workforce entrants.

How to strategically develop skills within and link to skills external to the organization and across

national boundaries. There are best practices around the world that can be adopted and

adapted to create nationally and globally effective organizations.

Embracing those populations previously excluded. Primarily, an emphasis on raising the human

capital of a country will need to occur with both the public and private sectors participating.

Since studies indicate that public managers in an enterprise drive up productivity, it may be the

role of public managers, working with administrators, to extoll the social and economic impact

24

of education and training and encourage initiatives in the public and private sectors (Karamally,

2004).

Convincing elected officials of the economic and social benefits of a highly literate public and its

relationship to local and regional economies. It therefore, behooves governments to train

public managers to work in the knowledge-based culture and be able to translate the needs of

government and the society to help ensure literacy and diversity in the work place (Karamally,

2004).

Becoming cognizant of twenty-first century workforce demands before crafting diversity

management solutions. Administrators need to be attuned to the changing environment of

work that focuses on problem solving, adaptability, and literacy. Developing countries will need

to focus on basic literacy and access to education and training for its citizens and those

immigrating to their country.

The development of a work ethic is necessary in areas where living on the dole has been either

directly or indirectly promoted. This is true in both developed and developing counties. Beyond

the work ethic, some systematic way of motivating this population to increase their skills and

build their human capital must be developed.

For workers who already possess basic literacy skills, administrators should shift the focus to

nurturing and improving cognitive, creative, technical and professional skills. Critical thinking,

the use of technology and media and the ability to collaborate must all be a part of the

education/training plan if there is to be any modicum of success and productivity in the

workplace.

The two-edged sword of the aging workforce. Administrators must find ways to take advantage

of the knowledge these workers possess as well as ways to motivate those who are less

25

productive and choose not to retire so they can continue to be productive. This is a paradox

that requires different resources and administrative commitment.

Developing policies that embrace immigrants as potential workers. Countries often focus too

much on unskilled immigrants forgetting or ignoring the fact that some highly skilled immigrants

are necessary for productivity. Those countries that find themselves implementing policies that

detain, deport and otherwise exclude these workers may be hard pressed to obtain and develop

a sizeable and/or requisite labor force.

The role of women in the workforce. While social and cultural norms are not easily navigated,

those countries that accept women in the workforce must make efforts to remove barriers to

their advancement and contributions to productivity.

The skills possessed by differently-abled workers. This population is increasing dramatically and

in order to have a sufficient number of workers this population cannot be excluded.

How to judiciously and expediently handle the issues of racism and ethnocentrism in the

workplace as more immigrants and racial/ethnic minorities enter the ranks of employment.

Administrators will need on-going training in diversity and inclusion issues and management to

address all forms of discrimination in the workplace.

A self-assessment of prejudices to diversity and inclusion. All persons have preconceived

notions about others. Since administrators play a key role in shaping organizational culture,

they must understand how their prejudices can affect inclusion and set a tone of fairness and

learning in the organizational culture.

What, then, is the role of public administrators in responding to changing workforce demographics?

Moretti (2012) best captures what administrators globally should consider in determining how to

respond to changing workforce demographics:

26

If human capital was the key to economic prosperity in the twentieth century, it is

even more important in the twenty-first. In the coming decades, successful

societies will be the ones that can attract and nurture the most creative workers

and entrepreneurs. The United States [and countries across the globe] needs to

choose how it wants to increase its human capital to stay competitive in this new

economy (246).

27

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