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Workforce diversity has become an important issue in Australia. This study examined the extent to which human resource management practices were being used by organisations in Australia to manage workforce diversity. The study also assessed the perceived challenges and benefits of diversity in the workforce. The findings of this study indicated that overall, management of workforce diversity is only “mediocre”. In particular, inadequate diversity management practices were found in the areas of recruitment and selection and training and development. As migrant employees do not create any problems and are very compliant, the challenges that workforce diversity presents does not receive adequate attention by organisations in Australia. However, these organisations seek several benefits from their multicultural workforce. The implications of these findings are discussed.

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