DiversityInc - December 2006

“It’s just not profitable to have all retailers chasing after the 18-to-34-year-old white demographic that has dominated marketers’ interest for years.”

60 percent for full-time employees and 110 percent for part-timers, report industry experts. As a result, the focus for managers often shifts to re-hir-ing and re-training, instead of concentrating on increasing profits. And with the upcoming labor shortage, businesses that can retain employees will have an advantage.

To reduce turnover, one solution is to recruit and cater to the needs of employees age 55 and older, which will make up 41 percent of the work force by 2014. Another strategy is to create a career path for entry-level workers through mentorship and education programs. Alex Ulanov, senior manager at Boston Consulting Group, says: “One of our clients increased its black and Latino employees in diverse neighborhoods by sharing success stories of people in the organization who had moved up through the management ranks. They also invested in education for employees as they moved from hourly to salaried positions.”

Diverse Shoppers, Deeper Pockets

Today, the buying power of diverse groups is growing faster than the general population. According to a recently issued report by the Selig Center for Economic Growth, 2007 will mark the first year that Latinos control more disposable income than any other U.S. group.

“It’s just not productive, or profitable, to have all retailers chasing after the 18-to-34-year-old white demographic that has dominated marketers’ interest for years,” says Mary Brown, a partner at JWT Mature Market Group. “There are a lot of people who don’t fit in that traditional demographic and who also have a lot of money to spend.”

By 2011, the combined buying power of Latinos, blacks, Asian Americans and Native Americans will account for $3 trillion of the nation’s estimated $12.4 trillion in buying power, according to the Selig Center.

Where Diversity Is on Target

Diversity at Target is founded on the principle that by building a high-performing, diverse team, Target harnesses the power of a rich variety of strengths, perspectives and lifestyles.

“We are deeply committed to cultivating an inclusive environment, where the makeup of our company and our stores increasingly reflects that of the communities we serve,” says Tamika Curry, director of diversity. “We believe that Target’s success as a company is Tamika Curry partially due to the skills and perspectives of our diverse team members.”

From the headquarters to the stores and distribution centers, the faces of Target’s team members reflect the faces of the nation: 59 percent are women (compared to 48 percent nationwide) and 40 percent are ethnic minorities (compared to 30 percent nationwide).

Responsibility for creating a diverse and inclusive organization begins at the top. Senior management, including the CEO, is required to report annually to the Board of Directors on its progress in achieving greater diversity in the work force. Management is also encouraged to participate in a range of diversity activities, including: recruiting, mentoring and leadership development.

Team members create and actively manage Diversity

Business Councils that reinforce Target’s commitment to diversity and inclusion. The Councils are open to all team members and provide a forum to communicate and exchange ideas, build a network of relationships across the company, access volunteer opportunities and support career development and retention.

Diversity also extends beyond the corporate walls. Target founded the Minority and Women Business Development (MWBD) program to foster meaningful business relationships with minority- and women-owned enterprises and has developed a mentoring program for minority general contractors. Target also embraces diversity through many community partnerships with arts, education, social services and other vital organizations.

Further, Target’s marketing and advertising strives to create an emotional connection with various market segments by offering them respectful, relevant and differentiated content across multiple platforms. Merchandise assortments also are tailored across the country to reflect the unique wants and needs of all guests.