Background
Employment discrimination laws prohibit any form of discrimination in the workplace. Employers should not discriminate by race, religion, gender, disability, country of origin, age, financial status, citizenship and genetic information. Potential, current and former employees should be treated equally irrespective of their differences. The government regulates the activities of the private sector by controlling business between states. The declaration by the Supreme Court that all anti-discrimination laws in the workplace are unconstitutional renders all acts null and void (Hunt, 2012; U.S Equal Employment Opportunity Commission, 2017).
Employers are at their discretion to formulate policies and procedures that prohibit discrimination in the workplace. According to the Supreme Court, employers can adopt hiring practices aimed at diversifying their workforce as long as the method does not involve definite preference that is based on rigid characteristics (Hunt, 2012; U.S Equal Employment Opportunity Commission, 2017).
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Benefits and costs of voluntarily prohibiting federal forms of discrimination
Following the new developments, the company can voluntarily prohibit against pregnancy, equal pay, and age. Since there will be no ramifications in discriminating women employees against pregnancy as provided for by the pregnancy discrimination Act, it will be beneficial for the company to voluntarily prohibit against pregnancy, childbirth and medical conditions related to pregnancy (Vallance, 2012).
The company will benefit from reduced compensation claims and increase the time spent at work. However, such actions can lead to reduced employee morale and high employee turnover. The company can pay different salaries to the male and female in similar positions. The salary payable to women can be less than that payable to their male counterparts. A different salary structure will enable the company to have lower wage bill while making sure that employees are paid for the actual time they spend at work (Vallance, 2012).
One disadvantage of voluntary discrimination by pay is that women move to companies that offer equal opportunities to all its employees. The company can focus on employing younger employees who have the desired knowledge and skills to manage the business. Such a move will promote innovation and creativity. Likewise, the company will be in a position to save on its labor cost because the allowances are small and the annual increment results to reduced salaries. Leading to cost saving from reduced salaries as opposed to the previous regime where older employees receive higher wages than the younger generation (Vallance, 2012).
Voluntary discrimination on the three forms can help the company reduce its cost while increasing its profits. It will benefit from a workforce of its choice with little or no legal battles. It will also eliminate the unnecessary cost associated with some of the prohibitions. The company can focus on other core business activities like increasing the volume of sales or growing its market share. Similarly, it can concentrate on empowering its workforce with essential skills to be more productive (Vallance, 2012).
Benefits and costs of voluntarily prohibiting other forms of discrimination
The decision by the Supreme Court on the validity of anti discrimination laws has contributed to new opportunities for the company in the manner it treats employees with genetic information, physical and mental disabilities and those who are in relationships with individuals who can be discriminated against. The company has the freedom to restructure its workforce to reduce the number of people in the above categories. A successfully structured initiative will help in reducing the number of employees who are performing below the minimum acceptable standards due to the above factors (Vallance, 2012).
The company can opt to eliminate such employees from its workforce or to stop any future hiring for individuals who demonstrate the potential for the above categories. Reducing the number of employees in the labor force with the above characteristics will help the company maximise its output while minimizing its cost. However, care should be taken to ensure that potential employees with exemplary skills and knowledge are not excluded from hiring or are not fired by the company (Vallance, 2012).
Benefits and costs of voluntarily adopting hiring and promotion practices
The company should voluntarily adopt hiring and promotion practices designed to diversify the workforce. A diversified consumer base calls for approaches that appreciate the value of employees from different backgrounds to serve the customers with the similar needs and experiences. Organizations should have a workforce that includes the physical attributes like gender, age, race, and mobility. Additionally non-visible characteristics including; religion, marital status, sexual orientation, language and social class are necessary. The workforce should be selected by merit and fairness if it is to achieve its strategic goal (DesJardins, 2014; Vallance, 2012).
Hiring a diverse workforce not only promotes progressive human resource practices but also offers improved bottom line results. Diversity motivates the employees and brings in different viewpoints that when incorporated into the operations of the company will lead to productivity, creativity and foster the culture of an organization. Any new hire by the company should aim at introducing new perspectives that will improve overall performance (DesJardins, 2014; Vallance, 2012).
A diversified organization creates an environment where individuals are comfortable voicing their point of view and listening to their colleagues. People in an organization will strive to push their ideas forward benefiting the entire company. For businesses engaged in sales activities, racial diversity correlates with an increase in sales revenues. Similarly, service oriented companies take advantage of a culturally diverse workforce as the customers would like to relate with the brand and feel comfortable knowing that their needs will be addressed appropriately (DesJardins, 2014; Vallance, 2012).
It would be unethical for the company to discriminate by pregnancy, equal pay, and age. The company should not discriminate against the above factors even if no laws are restricting their discrimination. The human resource department is responsible for adding value to the business and contributing to the ethical success of the organization. It should be responsible for making informed decisions and taking actions that ensure high ethical standards are maintained. Any activity irrespective of the existing regulations should the credibility and value of a company (DesJardins, 2014; Vallance, 2012).
The company should strive to meet the highest standards of competence in the above issues. It should commit to strengthening its competencies continuously. The HR department should exhibit leadership and foster high standards of ethical conduct. It is the duty of the organization to promote fairness and justice for the employees. Additionally, a high level of trust between the organization and its stakeholders should be maintained while protecting their interest and that of the organization. The retailer should ensure that they protect individuals' rights to acquire and disseminate information while providing adequate communication to facilitate informed decision making (DesJardins, 2014; Vallance, 2012).
Recommendations
The company should ensure that it observes all employees protection despite the Supreme Court ruling. Doing so not only enhances its images but also leads to employee satisfaction and improved performance of the entire organization. It should formulate policies that ensure that all employees are protected from discrimination of all kinds. Having spelt out guidelines will enable the company to address any violations promptly. All employees will also be aware of the existing policies that they must adhere to in their daily operations. Additionally, the company should formulate high ethical codes of conduct to ensure that it engages in ethical dealings in its operations. The retailer should participate in hiring and promotion practices that are designed to promote diversity in the workplace. Doing so will guarantee a diversified workforce that is focused on improving the overall performance of the company. The human resource function should ensure that its workforce incorporates diversified individuals who contribute to varied ideas and synergy to the firm (DesJardins, 2014; Vallance, 2012).
References
DesJardins, J. R. (2014). An introduction to business ethics . New York: McGraw Hill.
Hunt, J. (2012). A State-by-State Examination of Nondiscrimination Laws and Policies State Nondiscrimination Policies Fill the Void but Federal Protections Are Still Needed .
U.S Equal Employment Opportunity Commission, (2017). Laws Enforced by EEOC Retrieved September 07, 2017, from https://www.eeoc.gov/laws/statutes/index.cfm
Vallance, E. (2012). Human resources. Business Ethics at Work, Cambridge University Press
