Business Decisions and Workforce Diversity: A Case Study of Discrimination Challenges in South Africa’s SME Hotel Sector

The hotel industry is a significant contributor to the global service economy, providing employment opportunities for individuals worldwide. However, the implementation of workforce diversity and inclusion policies remains a controversial topic that requires the attention of policymakers. In this regard, this article explores the implementation of workforce diversity in small and medium-sized (SME) organizations, particularly in hotels, to mitigate discrimination in South Africa.

This quantitative study explores the implementation of workforce diversity in (SMEs) hotels, to mitigate discrimination in South Africa. The data was collected using a 5-point Likert Scale. A systematic literature survey was conducted to gather current articles on the topic. Voluntary participants from seven SME hotels responded to questionnaires, with an initial 136 responses. After screening, 120 participants (88.24%) met all criteria for inclusion in the analysis.

This study reveals 61.8% of respondents said management is not committed to diversity. Many (98.3%) disagreed that there is a fair and equal treatment to everyone, 95% disagreed that everyone had the same access to opportunities. A high number (97.5%) reported experiencing discrimination and harassment, and there was disagreement (94.2%) about fair promotion decisions. People of color are disproportionately affected.

Given the gravity of the situation, it is incumbent on the government to intervene and help SMEs enforce workforce diversity policies. The government must enforce implementation of diversity, provide free diversity and discrimination training to employees and managers, and conduct regular inspections to ensure compliance. This research serves as a call to action, shedding light on the need for positive social change.