Just a week after the Supreme Court ruling to ban affirmative action in college admissions, Republican Senator Tom Cotton of Arkansas urged Target Corp. to end its efforts to racially diversify its workforce and vendor network. He called the Minneapolis-based company’s programs “discriminatory” and threatened “significant and likely costly litigation” should Target fail to change its ways. The step from college admissions to corporate employment is not a big one. As my Bloomberg Opinion colleague Noah Feldman wrote, the high court’s conservative justices have made it pretty clear that using race as a factor in hiring decisions isn’t a practice they’ll condone.
In response to Cotton's demands, it is crucial to recognize the impact that retail relies on workers of color. Attempts by lawmakers to end practices aimed at attracting a diverse workforce would leave stores even more desperate to find employees, while further limiting one of the few career paths available to people of color. People of color make up a disproportionate number of retail workers compared to their overall size in the US population. This industry employs a significant percentage of Black and Latino workers. Cutting back on diversity programs will only make retail work more challenging by further squeezing representation of people of color in management positions.
Like many companies, Target had announced ambitious goals to increase diversity within its corporate and management teams following the murder of George Floyd. The company committed to increasing its representation of Black team members by 20% over the following three years through improved hiring, mentorship, and retention programs. However, its latest figures indicate slow progress, with diversity increasing only from 15% to 16% in 2021. Diversity at all corporate levels is crucial for worker retention and career advancement, especially among people of color. Numerous studies have shown that having managers of the same race reduces the likelihood of quitting or being fired. It is critical for employees of color to have managers who can understand their specific challenges and support their advancement within the organization.
Furthermore, efforts to retain workers in the retail industry could pay off given the risks associated with this line of work, such as enforcing public health precautions during the pandemic or dealing with customer aggression. The physical demands of the job, such as standing for long hours or lifting heavy items, also pose risks of injury. Despite these challenges, the average pay in the retail industry is not always sufficient to outweigh the physical costs. If workers of color do not see opportunities for career advancement, they are likely to leave the industry.
This poses a significant problem for retailers, especially as the industry increasingly relies on technology. With workers leaving the industry, tasks are being replaced by robots and automation. While automation can save on labor costs, corporate executives acknowledge that it cannot fully replace the importance of people-focused customer service. Therefore, it is crucial for retailers like Target to retain a diverse workforce, as they require employees who can effectively navigate the intersection of technology and customer service.
It is important to note that it is not the responsibility of any single company to address systematic discrimination. However, conservatives have criticized Target for its progressive policies, even though numerous other companies have made similar diversity commitments. Target's response to recent backlash against its Pride collection fell short, but the company now has an opportunity to defend its diversity programs and correct any mistakes. It is hoped that other retailers will also step up and support their industry counterpart in promoting diversity and inclusion.