When companies cull diversity efforts in a downturn, they are, in effect, acknowledging that their diversity efforts are non- essential and of less than central significance to the mission of the organization. Let’s face it: economic downturn or not, companies do not abandon the most important aspects of their business, because they generate revenue and ensure the company can continue its operations. Yet somehow, this perspective is lost when it comes to human capital, especially when viewed through the lens of diversity.

Cutting diversity can have serious implications for how diversity is perceived in the organization long-term. Employees from marginalized groups may feel as though the company is showing its true colors, and that it was only paying lip service to the notion of diversity. Other employees may feel just the opposite, believing that diversity is less necessary, and may be wondering whether diversity continues to be necessary. It is.

For employees, and also for employers, diversity remains an important facet of human capital strategy. Savvy organizations are cognizant of the impact of their current actions regarding diversity on the future of such programs. One helpful approach is for companies to undergird their commitment to diversity during times of economic instability by using it as a tool for problem solving and innovation.

Companies can leverage diversity to help solve organizational problems, like cost cutting. In difficult economic times, companies are generally looking for ways to cut costs, and the diversity department can help administer the cost-cutting initiative in a way that ensures responses from different demographics, some of whom may not feel especially invested in the organization. By getting different employees involved, companies may increase employee loyalty and may also gain useful information to keep its costs to a minimum.

Using diversity as an innovation strategy is another valuable way for companies to leverage their employee base. While conceptualizing new products and services, companies can seek the input of a wide variety of employees to help alleviate blind spots concerning the product or service, or the marketing of it. Along the same lines, diverse employees may be able to help the company identify new markets for its products and services. Setting up a focus group to harness this information is an excellent way for companies to innovate using diversity.

Of course, in the midst of challenging economic times, companies are rightly concerned with their continued existence and longevity. It is essential that the organization remain a going concern; there can be no need for diversity initiatives in a defunct organization. But companies retain options for how best to manage diversity in an economic downturn, and there are creative ways to do so.