workforce opportunity network: diversity trends & developments elizabeth macgillivray general...
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Workforce Opportunity Network:Diversity Trends & Developments
Elizabeth MacGillivrayGeneral Dynamics, Falls Church, Virginia
April 17, 2012
2MERCER
Demographic trends: Latinos
• Latino population continues to grow– In almost every US county– States with largest Hispanic populations: CA, TX, FL, NY, IL, AZ, NJ, CO,
NM and GA– Latinos more dispersed in 2010 than in 2000
• Labor force: 75% of growth 2000 – 2010 from Hispanics
• In 2010, comprised 16.3% of US population– 63% are Mexican, 9% Puerto Rican, 3.5% Cuban, 3.3% Salvadoran– Race
53% white, 37% some other race, 6% two or more races
• Education– 80% increase in Latinos earning bachelor’s degree between 2001 and
2011– Med school applications up 23%
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Race/Ethnicity
• Latino identity?– Stronger identity with country of origin– Less than one quarter prefer term pan-ethnic labels Latino or Hispanic
• US not yet post-racial– Greenlining Institute analysis finds evidence of persistent race gap in
Health disparities, employment, economic status– Perception that there is a lot of discrimination in the US
Whites 16% Blacks 56% Latinos 26%
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Socioeconomic disparity
Pew Research (Jan 2012): Public perception of growing conflict – 66% of Americans see “strong” or “very strong conflicts” between rich
and poor ( up 19% since 2009)
More concerns about socioeconomic division in American society than over conflicts between:– Immigrants/native born – Blacks/whites– Young/old
Social mobility declining in US
World Economic Forum 2012– “Severe income inequality is the biggest global risk” – http://www.weforum.org/issues/global-risks
Q: How should we factor socioeconomic differences into D&I work?
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Discrimination trends• Unemployment and discrimination
– Black and Latino families more like to have unemployed family member than white or Asian families
– Discrimination against jobless Especially the long-term unemployed
• Criminal records– Post-incarceration, employment and earnings prospects reduced by
40%– In some urban areas 1/3 of adults have been in jail
By age 23, over 30% of young people have been arrested– “Ban the box” policies encouraged, remove criminal history question
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Higher Education
• Race and the applications dilemma– Growing numbers of college applicants self-identifying as multi-racial– Tension between accuracy/flexibility, and schools’ diversity efforts
• LGBT– University of California system may ask students about sexual
orientation on application and enrollment forms– Elmhurst College in Illinois became first school, fall 2011
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Business case for diversity
• Harvard Business Review article on global diversity – diverse teams and leadership needed to recognize needs of people in the developing world
• Employee behavior embarrassing companies– Starbucks, Papa Johns incidents
• McKinsey Quarterly: top team diversity linked to better return on equity (ROE) and earnings before interest and taxes (EBIT)– Top quartile had 53% higher ROE and 14% higher EBIT than sample
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Trends
• Transparency of diversity data– Goldman Sachs, MetLife pledge to release workforce demographics on
gender and race Under pressure from NYC pension funds
– Resistance from advertising: Omnicom says no
• Unpaid internships– Perpetuating privilege?
Give advantage to those who can work for free– Wage-hour violations
• Bullying at work: disabled, LGBT, young employees
• Diverse needs of older Americans recognized– Retirement more difficult for Blacks and Latinos– Centers for LGBT seniors
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Gender
• Mixed news for women– Wage gap at record-low: 82.8% in Q2 2010 (compared to 76.1% in Q2
2000) Women outperform men in every race/ethnic/age group for wage
growth– Continuing recession impacts women
Larger proportion of public sector, austerity cuts (health/retirement benefits, social services), living longer
• Confidence gap– 70% of men have high confidence levels
vs. 50% of women– 20% of men would apply for stretch assignments
vs. 14% of women
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Board diversity• Filling the pipeline, but slow progress
Alliance for Board Diversity report: white men continue to dominate, women and minorities losing ground in Fortune 500
• Gender diversity– US boards lag behind European counterparts
Only 16% in Standard & Poor’s 500 companies– European companies face pressure from quotas, mandates– Emerging pressure in US (women’s groups, shareholders, CALPERS)
• Asian Americans– Missing: 80% of Fortune 500 boards lack API representation– Board seats held by APIs in Fortune 500: 2.08%
• GAO report: Fed Banks lack diversity
• Global quotas
Managing Diversity Councils: Preliminary Survey Findings
Jessica KirbyMercer WON Meeting
General Dynamics
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Diversity Council
• For purposes of the survey “Diversity council” refers to a standing body of employees of the organization, at whatever level, who play a role in establishing, reviewing, and/or monitoring diversity and inclusion efforts. The term does not refer here to a council or advisory board made up of non-employees.
• This survey looks at corporate wide diversity councils, non-corporate diversity councils, and other bodies (aside from councils and ERGs) that have a role in implementing D&I strategy
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Corporate wide diversity councils
47% of responding companies have a corporate wide diversity council
Members are typically at the management level and above Majority of companies (83%) reported council members are at the
senior executive level A little more than half (56%) said council members are direct reports
to the CEO Slightly less than half (44%) are mid-level managers Other includes staff level representatives and external experts
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Corporate wide diversity councils
Majority of companies (72%) said the head of diversity was responsible for starting the diversity council 44% reported CEO was responsible 33% reported Head of HR One company reported it was started by various business VPs
Companies reported a range between 7 and 26 members Average is 15 council members
Majority of companies (53%) said their council reports to the CEO 20% report to senior management 13% report to the Board of Directors
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Corporate wide diversity councils
Majority select council members with combination of the CEO, Head of HR and someone in the D&I function (typically CDO).
Some companies stated business unit leaders are responsible for selecting or nominating someone which (in some cases) is then approved by the CEO
Majority of companies reported council members serve for 2 years Range is between 1 and 4 years One company does not have a set timeframe, members serve as
long as they are direct reports to the CEO
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Council responsibilities
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Role of D&I leader with council
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Challenges
The number one challenge in managing diversity councils according to respondents is time People in different time zones Very busy schedules Amount of time commitment
Other challenges: Getting council to “own” initiatives, keeping council engaged and focused, sustainability
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Best practices for success
Strong council leadership and support/sponsorship from the CEO and/or senior leadership are the two most important drivers of success for respondents
One company noted: It is important to have goals for the Council that support D&I goals
but that are specific to outcomes the council can drive
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Measuring success
The two most common ways to measure success for companies is through employee engagement surveys and retention/promotion rates
Most companies reported they have no formal process to measure success
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Non corporate wide diversity councils
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Non corporate wide diversity councils
Can consist of business unit leaders, regional heads, ERG leaders, middle managers, diversity leaders, and in some cases employee volunteers
Responsible for: Leveraging knowledge of their demographic to better support those
groups in the organization, and with customers Help develop and implement D&I strategy for their business unit,
region, etc. Raise profile of D&I within organization Translate corporate initiatives at the local, national, regional levels
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Other bodies that have a role in D&I strategy and implementation
Most common are taskforces for a specific group: Disability, LGBT, Senior Women, Flexibility (Work/Life Balance)
One company has “Diversity Change Agents” employees who have gone through a 2-day intensive training on how
to work at the grass roots level to engage their team in the company's diversity journey
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Questions, Comments, Observations
Thank you for responding to the survey!
Report will be distributed to members by end of this week
25MERCER
Roundtable Topics
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Roundtable
