moving from compliance goals to diversity goals - · pdf file© 2016 peoplefluent |...
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©PeopleFluent 2016
MovingfromComplianceGoalstoDiversityGoals
JuliaMéndez,SHRM-CP,PHR,CAAP,CDP,CELSPrincipalBusinessConsultant
2©2016PeopleFluent|Confidential MovingfromComplianceGoalstoDiversityGoals
• Whydiversitymatters• TheIndustryperspectiveonmeasuringdiversity
• Stepstomeasurediversityforsuccess
AgendaAgenda
1.Whydiversitymatters
2.TheIndustryperspectiveonmeasuringdiversity
3.Nextstepstomeasurediversityforsuccess
MeasuringDiversityforSuccess
4©2016PeopleFluent|Confidential MovingfromComplianceGoalstoDiversityGoals
CenterforTalentInnovationstudyfinds• Employeesatcompaniesthathavediversityare45%likeliertoreportthatfirm’smarketsharegrewoverthepreviousyear
• Theyare70%likeliertoreportthatthefirmcapturedanewmarket
• Ateamwithamemberwhosharesaclient’sethnicityis152%likelierthananotherteamtounderstandthatclient
Source:Tulshyan,R.(2014).Haveaforeign-soundingname?Forbes
BusinessCaseforDiversity
5©2016PeopleFluent|Confidential MovingfromComplianceGoalstoDiversityGoals
ImpactofDiversity
15% 35%
Genderdiversecompanies Ethnicallydiversecompanies
Morelikelytooutperform
Morelikelytooutperform
What’sthelikelihoodthatcompaniesinthetopquartilefordiversityfinanciallyoutperformthoseinthebottomquartile?
Source:McKinseyanalysis
6©2016PeopleFluent|Confidential MovingfromComplianceGoalstoDiversityGoals
Book“ManagingDiversityinCorporateAmerica”challengedcompanieswithembracingworkforcediversity
• Improvescompany’sbottomline
• Createsahealthierworkenvironment
• Resultsingreateremployeejobsatisfaction
PurposeoftheSurvey
7©2016PeopleFluent|Confidential MovingfromComplianceGoalstoDiversityGoals
• May2015(surveydate)• 420respondents• 24%haveanadvanceddiversityfunction
AbouttheSurvey
8©2016PeopleFluent|Confidential MovingfromComplianceGoalstoDiversityGoals
Compliance-basedgoals
DiversityGoals
EnterpriseGoals
MovingBeyondCompliance
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ChallengesofSuccessfulD&IProgram
CompanieswanttobemorestrategicandaddvaluethroughD&Ibutoftenhavetroublegettingstarted• Whatarewegoingtomeasure?• Whyshouldwemeasureanything?
10©2016PeopleFluent|Confidential MovingfromComplianceGoalstoDiversityGoals
• Whatexactlydoesstrategicdiversitylooklike?
• Whatmetricsdoorganizationstrack?
• Whatshouldorganizationsdowithgatheredinformation?
• Whatdoesaccountabilitylooklikeinthediversityarea?
AfterDefiningMeasurementGoals
11©2016PeopleFluent|Confidential MovingfromComplianceGoalstoDiversityGoals
Craftastrategicmeasurementplanthataddressestheseorganizationalgoals
StepstoaStrategicMeasurementPlan
12©2016PeopleFluent|Confidential MovingfromComplianceGoalstoDiversityGoals
Startcomparingthecurrentanddesiredstateasitrelatestodiversityandinclusion
StepstoaStrategicMeasurementPlan
13©2016PeopleFluent|Confidential MovingfromComplianceGoalstoDiversityGoals
Natureofdiversityisbroad• “allcharacteristicsandexperiencesthatdefineeachofusasindividuals”(2000benchmarkingstudyBestPracticesinAchievingWorkforceDiversity,U.S.DepartmentofCommerce)
• 2014studybyDiversityCollegiumidentified280possiblediversitybenchmarksacross13differentcategorieshttp://diversitycollegium.org/GDIB_2014_Standard_A4_Version.pdf
DifficultyinDefiningBenchmarks
14©2016PeopleFluent|Confidential MovingfromComplianceGoalstoDiversityGoals
1 2 3 4 5
Beginning Advanced
Undeveloped Intermediate Vanguard
MaturityStagesofaDiversityProgram
OneYear
3years
10+Years
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OrganizationalDiversityMaturity
23.0%
23.0%30.0%
24.0%
Undeveloped
Beginning
Intermediate
Advanced
16©2016PeopleFluent|Confidential MovingfromComplianceGoalstoDiversityGoals
Stage1:Undeveloped
Entirely unfamiliar with progress monitoring and program measurement and not able to connect D&I to overall organizational goals
• Do not know what to measure and do not have measurement expertise available • Has not crafted a strategic measurement plan• Is not tracking basic workforce diversity metrics – gender, ethnicity• Is not tracking ancillary workforce diversity metrics - veterans, disability status, LGBT • May not be analyzing legal and compliance risk or may have been doing it for years
23%77%
D&IMarket
Undeveloped Allothers Lessthan1,000employees(51%)10,000+employees(18%)
Programislessthanayearold(73%)
Locatedinonecountry(40%)orlocatedinonecountrywithmultiplelocations(26%)
17©2016PeopleFluent|Confidential MovingfromComplianceGoalstoDiversityGoals
UndevelopedCont’d• Not connected to business outcomes (Note: as D&I programs mature, this remains a
key challenge)• Does not define desired results• Does not analyze the impact of D&I investments• Does not identify areas for improvement/opportunity• Does not create strategic D&I programs/campaigns
Top5Goals1. Reducinglegalrisk2. Ensuringcompliance3. Increasingemployee
engagement4. Creating aninclusivecompany
culture5. Helpingorganizationbecomean
employerofchoice
Top5Challenges1. Lackofresources–
skill/capabilities2. Leadershipbuy-in3. Lackofbudget4. Lackofacceptedbenchmarks5. Difficultycommunicatinggoals
18©2016PeopleFluent|Confidential MovingfromComplianceGoalstoDiversityGoals
Stage2:Beginning
23%77%
D&IMarket
Beginning Allothers Lessthan1,000employees(43%)10,000+employees(21%)
Locatedinonecountry(30%)orlocatedinonecountrywithmultiplelocations(38%)
Programisonetothreeyearsold
(48%)
Slightly more involved in how and what they measure for D&I compared to the “Undeveloped” group
• Making some progress toward measuring impact of D&I, though some don’t know why/what to measure
• Typically do not have measurement expertise available, some have in-house measurement expertise
• Has not crafted a strategic measurement plan, though some may have begun the process
• Has been tracking basic workforce diversity metrics for years – gender, ethnicity• Is not tracking ancillary workforce diversity metrics - veterans, disability status, LGBT,
though some have begun this process
19©2016PeopleFluent|Confidential MovingfromComplianceGoalstoDiversityGoals
BeginningCont’d• Tracking of legal and compliance risk varies with the majority having done it for years, some not
doing it at all, and others just beginning• Not connected to business outcomes (Note: as D&I programs mature, this remains a key challenge)• Does not define desired results, though a notable portion may have begun this process• Does not analyze the impact of D&I investments, though a notable portion may have begun this
process• Has started to identify areas for improvement/opportunity• Has started to create strategic D&I programs/campaigns, though a large portion still do not do this
Top5Goals1. Creatinganinclusivecompany
culture2. Increasingemployee
engagement3. Helpingorganizationbecomean
employerofchoice4. FosteringCollaborationinthe
workplace5. Ensuringcompliance
Top5Challenges1. Lackofresources–
skill/capabilities2. Difficultyworkingacross
functionstoachievegoals3. Lackofbudget4. Difficultyaligningonstepsto
attaingoals5. Lackofacceptedbenchmarks
20©2016PeopleFluent|Confidential MovingfromComplianceGoalstoDiversityGoals
Stage3:Intermediate
30%70%
D&IMarket
Intermediate Allothers 10,000+employees(38%)Lessthan1,000employees(27%)
Programisonetothreeyearsold
(36%)*
Have developed a “medium” confident level with measurement and clearly see the importance of data.
• Making some progress toward measuring impact of D&I, and only a small group is still having trouble with this issue
• Equally likely to not have measurement expertise available or to have in-house measurement expertise
• Have begun to craft a strategic measurement plan, though a notable portion still does not do this
• Has been tracking basic workforce diversity metrics for years – gender, ethnicity
Locatedinonecountrywithmultiplelocations(38%)orLocatedinonecountry(30%)
21©2016PeopleFluent|Confidential MovingfromComplianceGoalstoDiversityGoals
IntermediateCont’d
Top5Goals1. Creatinganinclusive
companyculture2. Increasingemployee
engagement3. Helpingorganization
becomeanemployerofchoice
4. FosteringCollaborationintheworkplace
5. Ensuringcompliance
Top5Challenges1. Lackofresources–
skill/capabilities2. Difficultyworking
acrossfunctionstoachievegoals
3. Lackofbudget4. Difficultyaligningon
stepstoattaingoals5. Lackofaccepted
benchmarks
22©2016PeopleFluent|Confidential MovingfromComplianceGoalstoDiversityGoals
Stage4&5:Advanced/Vanguard
24%76%
D&IMarket
Advanced/Vanguard Allothers 10,000+employees(37%)Lessthan1,000employees(33%)
Locatedinonecountrywithmultiplelocations(36%)orLocatedinonecountry(31%)
Programismorethan10yearsold
(48%)
Slightly ahead of the curve in D&I measurement, though they still have work to do.
• Making some progress toward measuring impact of D&I (49%), with a small group ahead of the strategic measurement curve (24%)
• Most have measurement expertise in-house (64%)• Have been crafting a strategic measurement plan for years (47%)• Has been tracking basic workforce diversity metrics for years – gender, ethnicity (75%)• Has been tracking ancillary workforce diversity metrics - veterans, disability status,
LGBT for years (52%)
23©2016PeopleFluent|Confidential MovingfromComplianceGoalstoDiversityGoals
Top5Challenges1. Difficultyworkingacross
functionstoachievegoals2. Difficultydemonstratingimpact
ofpreviousefforts3. Lackofacceptedbenchmarks4. Difficultycollectingdatafrom
employees5. Lackofbudget6. Difficultyaligningonstepsto
attaingoals
Top5Goals1. Creatinganinclusivecompany
culture2. Increasingemployee
engagement3. Helpingorganizationbecomean
employerofchoice4. Ensuringcompliance5. FosteringCollaborationinthe
workplace6. FosteringInnovation
Advanced/VanguardCont’d
24©2016PeopleFluent|Confidential MovingfromComplianceGoalstoDiversityGoals
Howlonghasdiversityandinclusionbeenafocusforyourorganization?
21%
28%19%
12%
20%
AgeofDiversityProgram
Lessthan1year1-3years4-7years7-10years
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73.58%
64.20%
60.51%
51.42%
51.14%
CREATINGANINCLUSIVECOMPANYCULTURE
INCREASINGEMPLOYEEENGAGEMENT
BECOMINGANEMPLOYEROFCHOICE
FOSTERINGCOLLABORATIONINTHEWORKPLACE
ENSURINGCOMPLIANCEWITHLABORPOLICIES/REGULATIONS
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00%
StrategicGoalsofD&I- Top5(AllMaturityStages)
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41.79%
40.92%
39.19%
38.90%
35.73%
LACKOFACCEPTEDBENCHMARKSFORD&I
LACKOFBUDGET
DIFFICULTYDEMONSTRATINGIMPACTOFPREVIOUSEFFORTS
LACKOFRESOURCES(SKILLS/CAPABILITIES)
DIFFICULTYALIGNINGONSTEPSTOATTAINGOALS
32.00% 34.00% 36.00% 38.00% 40.00% 42.00% 44.00%
ChallengesinAccomplishingGoalsTop5(AllMaturityStages)
27©2016PeopleFluent|Confidential MovingfromComplianceGoalstoDiversityGoals
TypesofMeasurements
Basicworkforcedemographics
(gender,ethnicity)
Advancedworkforce
demographics(veteranstatus,disability,LGBT)
Recruitingoutcomes
Workenvironment(employee
engagement)
Employeeretention
Undeveloped 70% 22% 22% 13% 21%Average 84% 47% 50% 47% 48%Advanced 83% 63% 58% 63% 58%
70%
22% 22%13%
21%
84%
47% 50% 47% 48%
83%
63%58%
63%58%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Weusethesemetricstomeasuretheimpactofdiversityandinclusion
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EffectivelyManageDiversityMetrics
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Howdoyoushowbusinessimpact?
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Howdoyoushowbusinessimpact?Cont’d
31©2016PeopleFluent|Confidential MovingfromComplianceGoalstoDiversityGoals
CanIreallycreateculturechangewithD&I?
Undeveloped Beginning
32©2016PeopleFluent|Confidential MovingfromComplianceGoalstoDiversityGoals
CanIreallycreateculturechangewithD&I?Cont’d
Intermediate Advanced/Vanguard
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MeasurementofD&IImpact
39%
48%
13%
Howadvancedisyourorganization'smeasurementoftheimpactofD&I?
Wedon'tknowwhattomeasure/Wemeasurebutdon'tknowwhatactionstotakeWe'remakingprogress,butthere'sstillmoretodo
We'reaheadofthecurve/We'remakingthebusinesscaseforD&Iinvestment
34©2016PeopleFluent|Confidential MovingfromComplianceGoalstoDiversityGoals
• 24%oforganizationsfeeltheyhavesucceededatbusinesscaseformeasurements• Trackawidevarietyofdiversitymetrics• Setannualimprovementgoals• Useanalyticstoproblem-solverecruitingandsuccessionplanningissues
• Companiesthatrankin25%ofexecutiveboarddiversityhaveROEthatis53%higherthanthoseinbottom25%
MostEffectivePractices
Sources:Barta,M.(2012).Isthereapayofffromtop-teamdiversity?McKinseyQuarterly.ForbesInsights(2011).Globaldiversityandinclusion:Fosteringinnovationthroughadiverseworkforce.
35©2016PeopleFluent|Confidential MovingfromComplianceGoalstoDiversityGoals
NextSteps
MeasuringDiversityforSuccess
UnderstandthematuritylevelofyourexistingD&Iprogram
Identifythosediversitymetricsthateffectchangewithintalentmanagement
Identifytherightinternalandexternalresourcestoefficientlyproduceresults
SharemeaningfulinsighttofurtherD&Iinitiative
Leveragemetricstoengageworkforce
37©2016PeopleFluent|Confidential MovingfromComplianceGoalstoDiversityGoals
Doesyourorganizationofferincentivesformanagers/executives/departmentheadstomeetdiversityandinclusiongoals?1. Increasedoperationalbudgetsandtalent/meritbonus2. Partofmonetarybonusprogram– whengoalsarereached3. Educationandother4. Recognitionawards5. Itispartoftheirscorecardforannualevaluation.6. Goalattainmentondiversityrecruitment/retentionmetricsistiedtoexecutive
compensationincentivebonuses7. Partofperformanceevaluation8. Creativecontrol
41©2016PeopleFluent|Confidential MovingfromComplianceGoalstoDiversityGoals
• Questionswearelookingtoanswer:• Dowehaveagapbetweenwhereweareandwherewewanttobewith
DiversityRepresentation?• Ifwehaveagap,isitsignificant?• Howdowelookcomparedtoeachmarketsourceweusetofillpositions
(internal,external,andtotal)?
• Whodowelookat:• Lookatallclasses,notjustFemalesandMinorities• Lookatalllevels,notjusttheSr.Executives• Lookdeepintothebusiness,notjustattheoverallCompany
DiversityinLeadership
42©2016PeopleFluent|Confidential MovingfromComplianceGoalstoDiversityGoals
Views by Divisions, Industries, Business, etc.
Greater visibility within a specific location, department or more granular levels of the organization
TotalView®
Capability to use typical job group or an alternative job group (i.e., job band, pay grade, department,
EEO category, SSEG, etc.)
TotalandImmediateVisibilityAcrossCompany
DivisionA DivisionB
Location2
BusUnitC BusUnitD
Location1
BusUnitA BusUnitB
DepartmentA DepartmentB
ABCCompany
47©2016PeopleFluent|Confidential MovingfromComplianceGoalstoDiversityGoals
• Annualcostsofgrievances,claimsandlawsuits• Employeesurveys/groupmeetings• Customersurveys• Tenurebydepartment• Turnoverrateofvariousgroups/costassociated• Useofsickleave/timeoff• Badorgoodpublicity
MeasuringInclusion
48©2016PeopleFluent|Confidential MovingfromComplianceGoalstoDiversityGoals
StronglyDisagree
SomewhatDisagree
Neutral SomewhatAgree
StronglyAgree
XXXXXXXXiscommittedtodiversity 0 30.00% 10.00% 30.00% 30.00%
Thereisdiversityamongthepeopleajobcandidatewillmeet/seeonhis/herfirstvisittoXXXXXXXX
10.00% 36.67% 10.00% 36.67% 6.67%
Inmybusinessunitwerespectindividualsandvaluetheirdifferences.
10.00% 20.00% 3.33% 20.00% 46.67%
Thereisdiversity inthecommunitywhereIwork.
0 20.00% 3.33% 46.67% 30.00%
Gettingtoknowpeoplewithracial/ethnicbackgroundsdifferentfrommyownhasbeeneasyatXXXX
6.67% 23.33% 26.67% 26.67% 16.67%
EmployeesofdifferentbackgroundsinteractwellatXXXXXX
10.00% 16.67% 13.33% 40.00% 20.00%
EmployeesofdifferentgenerationsarevaluedequallyatXXXXXX
6.67% 26.67% 13.33% 33.33% 20.00%
XXXXXXprovidesanenvironmentforthefreeandopenexpressionofideas,opinionsandbeliefs.
16.67% 26.67% 6.67% 33.33% 16.67%
TM
©2015PeopleFluent|Confidential TalentInsights.BusinessOutcomes.TM
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