Game Theory Shows Why Diversity at Large Companies is so Important
Source: https://medium.com/@jonesrooy/how-game-theory-can-help-us-understand-why-diversity-is-hard-3e501e6841d9
The lack of diversity in large corporations has been a major topic of discussion for some time now. Some companies have taken steps to alter their recruitment process to gain a more fair pool of applicants. However, it is known that once diverse groups enter these corporations, they do not stay for very long. Social scientist and standup comedian, Andrea Jones-Rooy, explains how the root of this issue can be illustrated using game theory. Game Theory allows us to simulate “situations involving two or more people where each person’s best move depends on what the other person does”. Using this model, we can simulate the environment of a generic company to show why this environment is restricting diversity.
The game begins with an employee having an issue with the direction that the company is going. Examples of this could be the company partnering with oil industries in a way that will increase the effects of climate change, or the company sharing users’ data in a way that is unethical, or a new camera feature that is being released but doesn’t work as well on users with a darker complexion. Either way, the employee has three moves: quit, or as the original game says EXIT, speak up about the issue, VOICE, or don’t say anything, LOYALTY. EXIT and LOYALTY have no interference with the company directly, but if the employee uses VOICE, the company has two moves in response: they could IGNORE, or listen to the employee, RESPOND. If the company chooses to IGNORE, the employee is back to the last two options and can choose EXIT or LOYALTY. If the company chooses RESPOND, then they will change their actions.
Rooy explains how we can use backward induction to get an idea of what an employee from a diverse background is thinking. They are trying to choose the best response to the situation and to do so they have to think of the likelihood that the company will accept their opinions. If you are the only employee from a diverse background, you have a minor perspective; very few people will relate to you or understand your reasoning. Representing the minor perspective means that the company is more likely to choose IGNORE. As a minority, your concerns may not be understood and the employee may see you as a “problem” or dramatic”. The employee knows this, so they are less likely to speak up, meaning they are more likely to choose EXIT or LOYALTY. Working at a company you are unsatisfied with will eventually lead to burnout and the employee quitting.
Game Theory allows us to better understand the harsh realities of being a minority at a non-diverse company; it’s why those from diverse backgrounds are more likely to leave such jobs, which ultimately perpetuates the issue. Using this model, we can develop methods to sway the odds, create a new move for the employee, and increase the likelihood that the company will choose to RESPOND over IGNORE. The industry can give employees a safe space to voice their opinions and provide guidance to employees that are likely to choose EXIT. Game Theory can help large companies increase and maintain the diversity of their employees, which will promote employee involvement and produce an overall better product.
Author: Sheba Sow