Ethnic Diversity Management in Companies : Research on Diversity in Finland’s Startup Environment

This paper represents an empirical research on ethnic diversity, its importance and benefits and also what is the situation of diversity in Finnish startup environment. Due to globalization, migration, aging population and shrinking labor market organizations and managers in Europe are facing new challenges while recruiting the staff. Historically being predominantly homogenous countries, EU state members started to revise their rather protectionist attitude and accept workers from different countries. To be successful in diversity implementation, managers and especially HR office, have to perform certain activities like, trainings and special recruitment policies. In 2010 EU Commission started a Diversity Charter to encourage companies around EU to voluntarily engage in diversity implementation and to harvest its benefits. Finland in its turn joined in 2012, however according to EU report Finland was not focusing on ethnical diversity, having only 8% of the respondents prioritizing ethnic diversity. Helsinki being an important startup hub, represents a bit of different dynamics. In the second part of the paper a survey was performed and analysed to understand the diversity culture within Finnish startup. As diversity drives creativity and innovation, startup companies accept much easier people with different background. The results showed that respondents were aware of diversity benefits and somehow agreed to diversity being treated fair within the organization. The management on the other hand was not encouraging diversity promotion in organization, and there was no diversity training. Thus, the paper concludes that introducing proper diversity training to management and company’s employees will improve diversity culture in Finnish startup and will help companies use its emerging benefits as a competitive advantage