For the past 20 years, Metropolitan Hospital celebrated the fact that 30 percent of its new hires in management positions had been women and/or minorities. The hospital assumed that with such a practice, women and minorities would eventually represent 30 percent of their top executives (director level and above), but something unexpected happened. Five years ago, the hospital became concerned that its diversity retention efforts were not producing results. Instead of seeing an increase in the number of women and minorities in executive positions, the organization was observing a decline. Talented employees were leaving, draining the pool of capable people.

To address this problem, the hospital founded the Task Force on Retention and Advancement of Women and Minorities in Executive Positions. This task force aimed to pinpoint the reasons that these employees were leaving by conducting a massive information-gathering initiative. The plan included interviewing employees at all levels, conducting exit interviews when an employee left and reaching out to former employees. The team uncovered three main areas of concern through the initiatives: (1) limited opportunity for advancement, (2) lack of mentoring and training programs and (3) balancing work and family.

In response to these findings, Metropolitan Hospital retooled the workplace, renewing its commitment to flexible work arrangements, reduced workloads, flex time, and offering tuition reimbursement. The hospital also developed plans for onsite training programs, company-sponsored networking and formal career planning for employees. Since these initiatives were implemented, the results have been positive. Retention of women and minorities at all levels has risen and turnover rates of those in management positions (just below the director level) declined. In addition, the hospital promoted the highest percentage (21 percent) of women and minorities into director level and above positions in its history.

Metropolitan Hospital is now basking in its new reputation as a diverse employer. This gives the organization external recognition in the marketplace, which helps with recruiting efforts and enhances its reputation in the community.

1. How and why did the problems at Metropolitan Hospital occur in the first place?

2. How did the changes address the underlying problems?

3. What managerial actions are required to successfully implement a diversity program?