Managing for Diversity - Three Key Takeaways
- 1. September 15, 2014 Managing for Diversity
- 2. Agenda universumglobal.com 2 1. What does diversity look like today 2. The future talent pipeline 3. How to manage for diversity 4. Q&A Hosted by: Paul O’Shea, Head of Consulting Americas Date: Sept 15th 2014
- 3. What does diversity look like today
- 4. If you are struggling with diversity, you are not alone WHAT DOES DIVERSITY MEAN TODAY? http://www.toptechnews.com/article/index.php?story_id=1200087VXWKO 4 “We’re in the business of building products for hundreds of millions of users worldwide and that starts with having the best possible talent -- a Yahoo team that understands and reflects our diverse user base. These statistics are only part of the story -- Yahoo works to ensure that our existing employees feel welcome and supported during their time at the company.” Jackie Reses, Yahoo’s chief development officer
- 5. If you are struggling with diversity, you are not alone WHAT DOES DIVERSITY MEAN TODAY? http://www.toptechnews.com/article/index.php?story_id=1200087VXWKO 5 “Over the past few years, we've experienced tremendous growth and have become a truly global company, but in terms of overall diversity, we have some work to do,” Pat Wadors, LinkedIn’s vice president of global talent.
- 6. Still 1 in 4 executives say workforce issues are often an afterthought in business planning WHAT DOES DIVERSITY MEAN TODAY? Source: 1. Donald D. Dowling Jr: Cross border diversity initiatives for recruitment and retention; 6 2. http://www.forbes.com/sites/sap/2014/09/11/workforce-2020-how-ready-are-you/ “Our research suggests that an alarming number of companies don’t have the structure, strategy, culture, and resources needed to manage a diverse, contingent, and multigenerational workforce.” 2
- 7. So where do we begin our diversity journey? WHAT DOES DIVERSITY MEAN TODAY? Source: 1. Donald D. Dowling Jr: Cross border diversity initiatives for recruitment and retention; 7 2. http://www.forbes.com/sites/sap/2014/09/11/workforce-2020-how-ready-are-you/ Any diversity recruiting/retention initiative will fail if the employer cannot measure its success. And no employer can measure the success of a diversity program without consensus around the meaning of the core term “diversity.” 1
- 8. The evolution of “diversity” as an inclusive concept WHAT DOES DIVERSITY MEAN TODAY? Source: Grutter v Bollinger, 539 U.S. 306,330 (2003) 8 Cultural Secondary Primary • Experiences • Opinions • Backgrounds • Religion • Sexual orientation • Socio-economic • Disability • Veterans • Gender • Race • Ethnicity • Age
- 9. What should the definition of diversity be? WHAT DOES DIVERSITY MEAN TODAY? Source: 1. Goldman Sachs diversity ad, 2000 2 http://www.pharma.us.novartis.com/info/about-us/diversity-and-inclusion.jsp 9 “It is hard to define what diversity is because everyone has an opinion” 1
- 10. What should the definition of diversity be? WHAT DOES DIVERSITY MEAN TODAY? 10 “Diversity is our differences – the variety of perspectives, experiences, opinions and contributions we each bring to the business. Inclusion is about understanding, appreciating and maximizing those differences to create an environment and culture that is welcoming, collaborative and productive for all employees.”2 Source: 1. Goldman Sachs diversity ad, 2000 2 http://www.pharma.us.novartis.com/info/about-us/diversity-and-inclusion.jsp
- 11. The Competitive Advantage of Diversity http://www.cummins.com/cmi/navigationAction.do?nodeId=15&siteId=1&nodeName=The+Business+Case+for+Diversity&menuId=1003 11 "Character, ability and intelligence are not concentrated in one sex over the other, nor in persons with certain accents, or in certain races, or in persons holding degrees from some universities over others. When we indulge ourselves in such irrational prejudices, we damage ourselves most of all and ultimately assure ourselves of failure in competition with those more open and less biased.“ J. Irwin Miller, former Cummins Chairman and CEO who retired in 1977 after leading the company for some 40 years
- 12. What is the most important thing diversity contributes to an organization? WHAT DOES DIVERSITY MEAN TODAY? universumglobal.com 12 • The culture
- 13. What is the most important thing diversity contributes to an organization? WHAT DOES DIVERSITY MEAN TODAY? universumglobal.com 13 • The culture • It contributes to the bottom line
- 14. What is the most important thing diversity contributes to an organization? WHAT DOES DIVERSITY MEAN TODAY? universumglobal.com 14 • The culture • It contributes to the bottom line • Helps you attract and retain great people
- 15. What is the most important thing diversity contributes to an organization? WHAT DOES DIVERSITY MEAN TODAY? universumglobal.com 15 • The culture • It contributes to the bottom line • Helps you attract and retain great people • Increases productivity
- 16. What is the most important thing diversity contributes to an organization? WHAT DOES DIVERSITY MEAN TODAY? universumglobal.com 16 • The culture • It contributes to the bottom line • Helps you attract and retain great people • Increases productivity • Diverse perspectives enables better innovation
- 17. What is the most important thing diversity contributes to an organization? WHAT DOES DIVERSITY MEAN TODAY? universumglobal.com 17 • The culture • It contributes to the bottom line • Helps you attract and retain great people • Increases productivity • Diverse perspectives enables better innovation • Positive PR in the marketplace
- 18. But we have a long way to go WHAT DOES DIVERSITY MEAN TODAY? http://fortune.com/2014/07/08/women-ceos-fortune-500-1000/ 18 • There are currently just 24 women CEOs in the Fortune 500 and 27 in the Fortune 1000. • Only 5% of Fortune 1000 companies have female CEOs, but those giants generate 7% of the Fortune 1000’s total revenue. • Fortune 1000 companies with female chiefs outperformed the S&P 500 index over their respective tenures. • The most common college major among women CEOs in the Fortune 1000 is engineering.
- 19. Diversity at board level is also improving but slowly WHAT DOES DIVERSITY MEAN TODAY? Source: Missing Pieces – Women & minorities on Fortune 500 boards – 2012 ABD census 19 67.8% 15.9% 12.4% 3.9% Diversity % White/Caucasian Men White/Caucasian Women Minority Men Minority Women 0 50 100 Men Women Minority Men Minority Women 2004 2010 2012
- 20. Even Apple is aspiring for better diversity WHAT DOES DIVERSITY MEAN TODAY? Source: apple.com/diversity 20 “As CEO, I’m not satisfied with the numbers on this page,” Apple CEO Tim Cook.
- 21. Any many other companies are also struggling WHAT DOES DIVERSITY MEAN TODAY? http://fortune.com/tag/diversity/ 21 “Put simply, Google is not where we want to be when it comes to diversity,” Laszlo Bock, Google’s senior vice president of people operations.
- 22. The future talent pipeline
- 23. Is diversity based on ratios practical? THE STUDENT PIPELINE SOURCE: U.S. Department of Education, National Center for Education Statistics, Integrated Postsecondary Education Data System 23 (IPEDS), Fall 2012, Completions component. (This table was prepared July 2013.) 43% 57% Male Female % of Degree s Awarded in Fall 2012 by Gender (1.86 million degree graduates)
- 24. Is diversity based on ratios practical? THE STUDENT PIPELINE SOURCE: U.S. Department of Education, National Center for Education Statistics, Integrated Postsecondary Education Data System 24 (IPEDS), Fall 2012, Completions component. (This table was prepared July 2013.) 6% 11% 11% 61% 11% Asian African American Hispanic White Other 7% 8% 10% 63% 12% Asian African American Hispanic White Other 1,025,729 female degree graduates in Fall 2012 by ethnicity 765,317 male degree graduates in Fall 2012 by ethnicity
- 25. And the competition for female STEM students is white hot THE STUDENT PIPELINE 25 SOURCE: 1. U.S. Department of Education, National Center for Education Statistics, Integrated Postsecondary Education Data System (IPEDS), Fall 2012, Completions component. (This table was prepared July 2013.) 2. http://www.cbsnews.com/news/apple-diversity-report-released-cook-not- satisfied-with-the-numbers/ Field of Study1 % Male % Female Social Sciences 39% 61% Business 52% 48% STEM 63% 37% Other 41% 59% Health & Education 17% 83% Comms/languages 35% 65% Total 43% 57% 116,000 female STEM students 46,000 male students “Technology executives generally have traced the scarcity of women, blacks and Hispanics in computer programming and engineering to shortcomings in the U.S. education system, and have launched a number of initiatives to try to bring about change. In June, Google announced its "Made with Code" program, which aims to teach young girls about computer science.”2
- 26. Georgia Institute of Technology Overall Universum Recommendation Rank 1st US News Engineering School Rank 6th Number of Engineering Grads 678 Diversity Cultural Fit State Bonus Presence of Competitors Total Women 20% Ethnicity 42% Top 16 Top 4 Score Points Scored 6 9 6 3 6 9 0 3 42 Points Baselines Max 6 9 9 9 9 8 6 3 42 Min 0 0 0 0 0 4 0 0 13 Average 3 3 3 4 4 6 1 2 25 Where do you find these students? THE STUDENT PIPELINE 26 Georgia Tech has great national ranking, a large engineering student body, a diverse student population, excellent cultural alignment, and none of our main competitors are listed in the top 25 recruiters on campus. New Recommendation Top Drivers: Secure employment Friendly work environment Leaders who will support my development Respect for its people Source: Universum Target School Selection Report
- 27. What are the most critical diversity elements today? THE STUDENT PIPELINE Source: Universum Diversity Employer Brand Report 2014 27 Q: When choosing your ideal employer, what aspects of diversity are most important to you? Select up to 3 alternatives. Female % Element Male % 57 Gender 38 45 Ethnicity 37 42 Age 41
- 28. What do students consider to be the most critical diversity elements today? THE STUDENT PIPELINE Source: Universum Diversity Employer Brand Report 2014 28 Element Asian % African American % Latino/ Hispanic % White % Ethnicity 54 65 52 34 Gender 43 52 45 52 Age 40 41 40 43 Q: When choosing your ideal employer, what aspects of diversity are most important to you? Select up to 3 alternatives.
- 29. So how do students preferences for what they look for in an employer vary based on ethnicity and gender? THE STUDENT PIPELINE Source: Universum Diversity Employer Brand Report 2014 29 Q: Select which attributes are most important to you? (Max 3) Professional training and development A friendly work environment A creative and dynamic work environment Asian Students Employer Reputation & Image Job Characteristics People & Culture Remuneration & Advancement Opportunities
- 30. So how do students preferences for what they look for in an employer vary based on ethnicity and gender? THE STUDENT PIPELINE Source: Universum Diversity Employer Brand Report 2014 30 Q: Select which attributes are most important to you? (Max 3) Respect for its people Secure employment A creative and dynamic work environment Caucasian Students Employer Reputation & Image Job Characteristics People & Culture Remuneration & Advancement Opportunities
- 31. So how do students preferences for what they look for in an employer vary based on ethnicity and gender? THE STUDENT PIPELINE Source: Universum Diversity Employer Brand Report 2014 31 Q: Select which attributes are most important to you? (Max 3) African American Students Secure employment Respect for its people Professional training and development Employer Reputation & Image Job Characteristics People & Culture Remuneration & Advancement Opportunities
- 32. So how do students preferences for what they look for in an employer vary based on ethnicity and gender? THE STUDENT PIPELINE Source: Universum Diversity Employer Brand Report 2014 32 Q: Select which attributes are most important to you? (Max 3) Latino/Hispanic Students Respect for its people Professional training and development Secure employment Employer Reputation & Image Job Characteristics People & Culture Remuneration & Advancement Opportunities
- 33. So how do students preferences for what they look for in an employer vary based on ethnicity and gender? THE STUDENT PIPELINE Source: Universum Diversity Employer Brand Report 2014 33 Q: Select which attributes are most important to you? (Max 3) Professional training and development A friendly work environment A creative and dynamic work environment African American Students Secure employment Respect for its people Professional training and development Asian Students Respect for its people Secure employment A creative and dynamic work environment Caucasian Students Latino/Hispanic Students Respect for its people Professional training and development Secure employment Employer Reputation & Image Job Characteristics People & Culture Remuneration & Advancement Opportunities
- 34. What is most attractive to male vs female student groups? THE STUDENT PIPELINE Source: Universum Diversity Employer Brand Report 2014 34 Q: Select which attributes are most important to you? (Max 3) Professional training and development A creative and dynamic work environment Secure employment Employer Reputation & Image Job Characteristics People & Culture Remuneration & Advancement Opportunities Respect for its people Secure employment A friendly work environment
- 35. What are the career aspirations for different ethnic groups by gender at undergraduate level? THE STUDENT PIPELINE Source: Universum Diversity Employer Brand Report 2014; n=4038 35 Q: Select industry would you prefer to work in? (Max 3) 1. Management and Strategy Consulting 2. Engineering and Manufacturing 3. Public Sector and Governmental Agencies 1. Health Care Services 2. Media and Advertising 3. Non-Governmental Organizations (NGOs)/Non-Profit Organizations (NPOs) African American Females African American Males
- 36. How to manage for diversity
- 37. Many companies are currently doing it well THE FUTURE OF DIVERSITY Source: DiversityInc. Diversity Top 50 2014(top 10 companies shown) 37 Rank Company Name 1 Novartis 2 Sodexo 3 EY 4 Kaiser Permanente 5 Pricewaterhouse Coopers 6 MasterCard Worldwide 7 Procter & Gamble 8 Prudential Financial 9 Johnson & Johnson 10 AT&T
- 38. How have they achieved success? THE FUTURE OF DIVERSITY 38 Source: 1. http://www.ilr.cornell.edu/wdn/upload/netter_principles.pdf; 2. http://www.ere.net/2014/06/23/diversity-recruiting-whats-wrong-with-it-pretty- much-everything-part-2-of-2/?utm_source=ERE.net&utm_campaign=720133a55c-What-s-Wrong-With-Diversity- Recruiting&utm_medium=email&utm_term=0_a7905d0a21-720133a55c-287000773#more-38352 A diversity & inclusion toolkit: 1. The Netter principles1 – a framework for building organizational inclusion 2. Do an internal D&I (diversity & inclusion) health check/audit 3. Arm yourself with knowledge and data2
- 39. What best practices can assist you in your journey THE FUTURE OF DIVERSITY universumglobal.com 39 1. Structures - create a diversity and inclusion council
- 40. What best practices can assist you in your journey THE FUTURE OF DIVERSITY universumglobal.com 40 1. Structures - create a diversity and inclusion council 2. Accountability – set KPI’s and measure them diligently
- 41. What best practices can assist you in your journey THE FUTURE OF DIVERSITY Source: 1. http://www.diversitybestpractices.com/news-articles/critical-intersections-how-diversity-best-practices-members-integrate- 41 compliance-di-st 1. Structures - create a diversity and inclusion council 2. Accountability – set KPI’s and measure them diligently 3. Involve legal1 – the area is complex so do it right
- 42. What best practices can assist you in your journey THE FUTURE OF DIVERSITY universumglobal.com 42 1. Structures - create a diversity and inclusion council 2. Accountability – set KPI’s and measure them diligently 3. Involve legal – the area is complex so do it right 4. ERG’s (employee resource groups) – don’t underestimate the power for these groups and how they can be critical instruments for the success of your D&I program
- 43. What best practices can assist you in your journey THE FUTURE OF DIVERSITY universumglobal.com 43 1. Structures - create a diversity and inclusion council 2. Accountability – set KPI’s and measure them diligently 3. Involve legal – the area is complex so do it right 4. ERG’s (employee resource groups) – don’t underestimate the power for these groups and how they can be critical instruments for the success of your D&I program 5. Transparency – be completely up front, genuine and open in dialogue with your organization
- 44. How can we move beyond diversity? THE FUTURE OF DIVERSITY Source: 1. Trevor Wilson, author of Diversity at Work, The Business Case for Equity and president of TWI Inc 44 “It really requires stepping beyond conversations about women, minorities, LGBT and into a conversation about talent differentiation and human equity.”1
- 45. Three key takeaways THE FUTURE OF DIVERSITY Source: Mark Gordon CEO Bon Secours St. Francis Medical Center 45 1. CEO leadership and engagement is paramount “Culture eats strategy for lunch on a regular basis”1
- 46. Three key takeaways THE FUTURE OF DIVERSITY universumglobal.com 46 1. CEO leadership and engagement is paramount 2. Don’t rest on your laurels 1. Historical success will not guarantee future success 2. Diversity & inclusion must be a strategic pillar in organizational strategy
- 47. Three key takeaways THE FUTURE OF DIVERSITY universumglobal.com 47 1. CEO leadership and engagement is paramount 2. Don’t rest on your laurels 3. “the truth of the principle that the greatest amount of life can be supported by the great diversification of life, is seen under many natural circumstances." Charles Darwin, The Origin of the Species (1859)
- 48. What sources current clients use THE FUTURE OF DIVERSITY universumglobal.com 48 Universum Diversity Employer Brand Reports What does diverse talent associate with your company? What does diverse talent find attractive in an employer? What does diverse talent think about your competitors? What are the best ways to communicate with diverse talent? Target School Selection Reports
- 49. Q&A