workforce metrics in the global environment: best practices for employers nita beecher and liz...

WORKFORCE METRICS IN THE GLOBAL ENVIRONMENT:Best Practices for Employers

Nita Beecher and Liz MacGillivrayThursday, August 30, 20122012 ILG National ConferenceWaikoloa, Hawaii

MERCER 2April 10, 2023

Mercer ORC Networks and the Global Equality, Diversity & Inclusion Practice• Mercer

– a leading global provider of consulting, outsourcing and investment services, with more than 25,000 clients worldwide

• Mercer ORC Networks

– meeting the needs of practitioners in a wide range of human capital disciplines, including Talent Management and Development, Diversity and Inclusion, Employee Relations, Compensation and Mobility, Occupational Safety, Health and Environment)

• Mercer’s Global Equality Diversity and Inclusion Practice

– 50 years of experience in Equality, Diversity & Inclusion

– Unwavering commitment to the support and development of practitioners in the field of diversity and inclusion

– 6 professional networks; consulting solutions; data and benchmarking

– Real-time pulse on the global D&I issues of the day


Global Equality, Diversity & Inclusion Practice

• NetworksGlobal

– Global Diversity Forum– Global Workplace Compliance Network

In the UK– Vanguard Network– Breakthrough Network

In the US– Workforce Opportunity Network– Employment Law & Litigation Group

• Consulting SolutionsGlobal strategy design/ workshop facilitation

• Ongoing research and benchmarking


Global compliance and diversity:

understanding the context


A Clear Starting Point: Differentiating Equality, Diversity, and Inclusion


The Global Context of Equality and Diversity

• Industrialized economies focus on civil and political rights

• Transition and developing economies focus on economic and social rights

• Each country has its own unique cultural framework


Global Trends

Long-standing discrimination

Newly recognised discrimination

Emerging discrimination

• Gender

• Race/ ethnic origin

• Migrant workers

• Religious discrimination

• Social origin

• Age

• Sexual orientation

• Disability

• HIV/AIDS

• Genetic

• Lifestyle (which includes weight and smoking)

• “Lookism” (based on physical appearance)


The Baseline:global compliance metrics


US Compliance Perspective

Statutory context for prohibiting employment discrimination enforced by Equal Employment Opportunity Commission

• Equal Pay Act of 1963 as amended prohibits pay discrimination based on sex by employers.

• Title VII of the Civil Rights Act of 1964 as amended prohibits employment discrimination based on race, sex, religion, national origin and color.

• Age Discrimination in Employment Act of 1967 as amended prohibits employment discrimination based on age over 40.

• Americans with Disabilities Act of 1991 as amended prohibits employment discrimination against qualified individuals with disabilities who can perform the essential functions with or without a reasonable accommodation.

• Genetic Information Nondiscrimination Act of 2008 prohibits employment discrimination against employees or applicants because of genetic information.



Affirmative action and nondiscrimination regulations enforced by US Department of Labor, Office of Federal Contracts Compliance Programs

• Executive Order 11246 prohibits employment discrimination based on same factors as Title VII and requires federal contractors with contracts over $100,000 to create affirmative action plans. The affirmative action plans must create goals and timetables based on underutilized job groups.

• Vietnam Era Veterans Readjustment Assistance Act of 1974 as amended by Jobs for Veterans Acts prohibits employment discrimination against certain various groups of US veterans and requires federal contractors with contracts in excess of $25,000 to create affirmative action plans for veterans without goals.

• Section 503 of the Rehabilitation Act of 1973 as amended prohibits employment discrimination against qualified individuals with a disability and requires federal contractors to create affirmative action plans for individuals with disabilities without goals.



Trends in US compliance

• Paycheck Fairness Act proposed to revise Equal Pay Act to allow compensatory and punitive damages and to narrow affirmative defense.

• Employment Nondiscrimination Act proposed to revise Title VII to prohibit discrimination based on sexual orientation and gender identity.

• OFCCP has proposed to substantially revise both VEVRAA and Section 503 for federal contractors– Section 503 would require federal contractors to use 7% goal for each

job group and to do substantially outreach as well as individuals with disabilities

– VEVRAA would be renamed Section 4212 and would require federal contractors to gather data on veteran applicants and employees from which to create goals for each job group. Like Section 503 new Section 4212 would require substantially more outreach by federal contractors.


EU compliance framework

• Gender Directive 2006/54/EC (recast ) Goods; Facilities; Services and Employment

• The Race and Ethnic Origin Directive 2000/43/EC Goods; Facilities; Services and Employment

• The Framework Employment Directive 2000/78/EC Employment only, covering: Age; Disability; Religion & Belief; Sexual Orientation

• Data and metrics in the EU


UK Compliance Perspective

• Sex (1975) – Women are entitled to enjoy contractual terms that are as

favourable as those of a male comparator in the “same employment “ provided the women and the man are employed on equal work. Genuine material factor must not be tainted by sex discrimination unless objectively justified.

• Race and ethnic origin (1976)

• Disability (1996)

• Religion & Belief ( 2003)

• Sexual Orientation (2003)

• Age (2006)

• No ceiling on compensation payments in discrimination cases


EU Data protection issues

• EU data protection rules cover sensitive personal data such as health, beliefs, race, sex life, trade union membership, criminal offenses

• Employers must when practical obtain consent from employees to have or use protected personal data usually in employment contract or in polices on e-mail or internet use.

• Personal questions not unlawful necessarily but can lead to discrimination in UK but in France no personal information can be requested concerning candidate’s private life unless necessary for position.

• Transfer of personal data such as ethnicity or race can create criminal liability if not properly handled in and out of EU countries especially France.


Comparison of US and EU Legislative Framework


South American Compliance Framework

• All countries prohibit discrimination based on sex, race, nationality, religion, politics, trade union or age. Marital status discrimination prohibited in Brazil and Chile.

• Brazil requires employers to hire and employ certain percentage of individuals with disabilities based on number of employees.

• Basis of employment is employment contract and all countries allow employers to pay severance for no cause termination based on mutual consent

• Contract nature of the employment limits issues of discrimination


Canada and Mexico Compliance Framework

• In Canada must comply with both federal and individual provincial law.

• In both Canada and Mexico the employment relationship is generally governed by statute and by employment contract.

• If employer wishes to terminate an employee generally will have to negotiate some type of severance

• In Canada employers have an obligation to accommodate disability under Quebec law unless can show impossibility to accommodate.

• Generally if discrimination which is prohibited is alleged allegations relate to severance in Mexico.


Asian Compliance Framework

Australia– Race and Religious Tolerance Act– Anti-Discrimination Act 1991 (QLD) – Anti-Discrimination Act 1977 (NSW) – Australian Human Rights Commission Act 1986 – Disability Discrimination Act 1992 – Racial and Religious Tolerance Act 2001 (Victoria) – Racial Discrimination Act 1975 – Sex Discrimination Act 1984

Hong Kong– Disability Discrimination Ordinance – Family Status Discrimination Ordinance – Hong Kong Bill of Rights Ordinance – Race Discrimination Ordinance – Sex Discrimination Ordinance


Focus of Race/Ethnicity Discrimination Globally

• Immigration + poor economy = racism

– Asia: caste, ethnicity, immigration status

– Latin America: culture, caste, color

Indo- and Afro- groups

– Africa: tribe/ethnicity

South Asians

– Europe:

Minorities report discrimination

Roma (education and employment)

– Australia/New Zealand:

Aborigines and indigenous people

Asian immigrants


Global harassment/bullying issues

• Bullying – Equal opportunity harassment– a.k.a. psychosocial harassment, mobbing– Much broader; addresses all abusive behavior

Belgium prohibits workplace pestering France criminalized psychological violence Brazil emerging doctrine imposes damages for moral harassment

• Harassment mandates require going beyond a negative prohibition– Employer duties may include:

Written sexual harassment policies (Chile, Costa Rica, India, Japan) Periodic training (South Korea, California) Reporting

Costa Rica requires employers to report each claim to Ministry of Labor Inspection


Asian disability quota and levy systems

2007 China and Rep of Korea adopted disability legislation prohibiting discrimination

Other countries have adopted specific laws on the rights of persons with disabilities

2007: Thailand; Jordan; Spain 2008 Ethiopia; Malaysia; 2009 Cambodia 2012 Vietnam

Quotas:China: estimate 6.3% of the country’s population is disabled – quota 1.5%

(2007)India: estimate 2.13% of the country’s population is disabled - quota 3% Japan: estimate 5% of the country’s population is disabled – quota 1.6%

privateEU: estimate 22 countries with some kind of quota

Source: UN

Copyright © 2012, ORC Worldwide


Global diversity developments by region


The Starting Point

• Woman’s Rights

• Equal Pay

• Childcare

• Flexible Work

New Developments• Equal Treatment (men & women)

• Women on Board’s

• Male & Female child and parent care

• Work Life Reconciliation

•Transgender Rights

The Starting Point

• Equality of opportunity for BME groups

• Stop and search

The Starting Point

• Equal Rights

• Medical Model

New Developments

• Multiculturalism

• Racism in sport

•PREVENT Strategy

• Extremism

New Developments

•Social Model

•Biopsychosocial model

•Hate Crime

DISABILITYGENDER RACE / ETHNICITYUK


The Starting Point

• Religion in N Ireland

• Religious dress

• Prayer rooms

New Developments

• Secularism

• Interface with Gay Rights

• Accommodations

• Islam phobia

• Christian phobia

The Starting Point

• Homophobia

• Gay rights

• Section 28

The Starting Point

• Older People

• Retirement issues

New Developments

• GLBT

• Bullying (Sport; Schools)

• Gay marriage

• Transgender Rights

New Developments

• Older workers

• Youth unemployment

• Generational diversity

• Human rights of older people

AGERELIGION SEXUAL ORIENTATION


European context – macro trends

• Rise of Far Right: Country defense leagues, and creation of a new Europe wide alliance, negative impact on minorities: immigrants, Roma; gay; and religious minorities

• Aging demographic: Low fertility rates; aging populations; serious long-term impact on social policy (pensions; welfare; health and wellbeing); generational diversity

• High youth unemployment: Spain 50.5%; Greece 50.4%, EU average 21.6%. Split between northern states and southern states

• Empowerment of women: economic, political, social sphere; at European wide level and between Europe and its partners – but discriminatory practices have increased: Gender wage gap has slowed; job losses in public sector; women in male dominated sectors first to be dismissed

• Social mobility/inclusion: growing gap between ‘haves and have not’s’ adversely impacting social mobility


Diversity and inclusion in Asia

• Asia as a unit is a ‘Western’ concept not appreciated locally as there is extensive social, cultural, linguistic, and religious diversity across the region

• Diversity is a relatively new concept, not always culturally understood

Key challenges:

• Variable demographics – huge population growth in India and China, population stagnation in Japan

• Differing stages of economic development, ranging from highly developed economies such as Australia and Japan, to rapidly developing India and China

• Key diversity challenges include: – Women’s social and economic empowerment is a key driver of growth– Age related issues and intergenerational diversity in the workplace– Growing recognition of the impact of race and religion in the workplace– Disability and workplace quotas and levies – GLBT remains taboo in most countries


OECD – Global youth unemployment

Impact of youth unemployment

Wage scarring (a wage decline of 6-7% for each percentage-point increase in the overall unemployment rate, source OECD)

Youth left behind (Japan’s experience)

Increase in stress/mental health issues

Increased emigration

Brain drain

Employer responses

Employer based apprenticeships

Review and rebalance workforce = generational diversity

Well-being programmes


A summary status of women in the world regions

©2010 ORC NetworksCopyright © 2012, ORC Worldwide

Gender discrimination varies by country; Supportive family

networks; Eldercare challenges

Women are culturally disadvantaged in education and employment; Supportive family

networks;

Increasing education attainment but strong cultural, social and economic

gender divisions

High LFP rates; Culturally advantaged but progress slowing

Increasing LFP rates; female empowerment; violence towards

women;

Variable LFP rates; Variable childcare support; Growing

eldercare challenges

Middle East Asia

N. America

EuropeLatin America

Africa


Disability in the global context

Disability – Aging – Refugees – Migrant workers

– 10% (650m) of the world’s population live with a disability– Over 470m people with disability are of working age – The figure is increasing through population growth, medical

advances and the aging process– More disabled people in the developing world than in the

developed world, due to war, famine, poor health support – UN estimates that in some countries the number of disabled people

is 20% and if families and relatives are included could be as high as 50%

– Legal protection is growing: 2008 UN Convention on the Rights of People with disability, but substantial discrimination and disadvantage exists

Copyright © 2012, ORC Worldwide


Americas - Gender

Research– Catalyst study of women on boards in Canada: 14% of FP 500– McKinsey: Unlocking the full potential of women at work (US)

Barriers to advancement: structural, lifestyle choices, mindsets

Latin America: Women’s labour force participation– 70m women joined Latin American workforce since 1980– 53% of labour force

Up from 35% Mostly in services industry

Latin America’s nascent feminist movement– Lagging behind LGBT movement– Across all social stratas– Programmes to empower women

Brazil’s Bolsa Família and Minha Casa, Minha Vida


Americas – macro trends

Employment of people with disabilities Brazil quotas Colombia hiring preference in government contracts US proposed affirmative-action style regulations Q: disclosure of disability?

LGBT equality Chile: legislation following hate crime Mexico City: same-sex marriage US corporate progress, but stalled legislation Corporate equality initiatives and ERGs

Indigenous populations Latin America: “flashpoints” for highway construction, oil & gas exploration,

mining Canada

Migration: US Hispanic population growing faster than projected (16.4%)


D&I in Asia

• Mercer research: Diversity and Inclusion in Asia Pacific– Nascent concept, especially diversity in senior leadership– Most companies have global strategies, but only 20% have market-level

strategy Fewest in China

– Diversity associated primarily with gender 2012 priorities: Women in leadership (26%), attracting more diverse talent

(22%), giving local leaders global capabilities (10%), adapting Gen Y to workplace (6%)

• Australia:– Age: engaging mature workers – Indigenous rights– Flexible working – mainstreaming flexibility– Bamboo ceiling in Australian business– Gender:

Equal pay: Fair Work decision (community services sector), private sector auditing


Gender trends in Asia

China: highest percentages of women in the workforce

Followed by Malaysia, Hong Kong and Singapore

India: lowest percentages of females employed, followed by Japan

Malaysia has best representation of women at senior levels (27%);

Japan is the worst

Leaking pipeline

In all countries except India, the greatest decrease in women takes place between middle and senior level positions (as mobility demands )

India loses most women between junior and midlevel positions

Challenges for women:– Work-life balance (child and elder care)– Developing and expanding professional networks– Increasing visibility


Global metrics: what to measure


Metrics

• “What gets measured, gets done.”

• Why measure?– To assess current state of the organization– Track progress against it– ID barriers to progress– Hold managers accountable– Maintain focus of the organization


Metrics: What to Measure?

• Representation/Demographics– How many?

• Program Effectiveness – How fast? How well? How much?

• Employee Perceptions – How fair, inclusive, respectful of different views?

• Business Impact – How much more (revenue, productivity, market share,

cost savings)?


Measurement Tips

• Decide when you’ll measure behavior and when outcomes

• Consider measures from each of the four families

• Measure as little as possible; distinguish between backroom and reported metrics

• Design reports to tell a vivid story

• Caution: Measures can reveal sore spots

– Is the organization committed to taking action on problem areas?

– What to do with the data?


Demographic Measurement Tips

• Beyond representation, hires, and turnover: use other measures that will help you pinpoint challenges (e.g., performance ratings, high potential pool)

• Globally, work with local management to understand the “differences that make a difference” (and cultural or legal limits on data collection)

• Communicate about why you are collecting data

• Be conservative about drawing conclusions from the data; dig further


Identity groups and sample global metrics


US

I consider myself to be:

• A foreign national

• Hispanic or Latino

• White American

• Black or African American

• Native Hawaiian or Other Pacific Islanders

• Asian American

• American Indian or Alaskan Native

• Two or More Races

• I decline to respond


Identity Groups: UK



• Asian British

• Black British

• White British

• Of other racial group



Identity Groups: South Africa



• African (S/Africans only)

• Indian

• Coloured South African

• White South African

• Other race



Identity Groups: India



• Of a minority religion

• Of an underrepresented social class/caste

• Other Minority

• None of the above (Indian but not of a minority group)



Identity Groups: Mexico

Brief discussion:

• What about Mexico?

• From your experience, what form does potential discrimination take in Mexico?




• From the country with public education

• From the country with private education

• From the capital with public education

• From the capital with private education

• Of other background


Identity Groups: Mexico


Other countries (Nigeria, Pakistan, Malaysia, Thailand, China etc)



• Hausa

• Igbo

• Yoruba

• Of a minority ethnic group in Northern Nigeria

• Of a minority ethnic group in Southern Nigeria




• Of a minority religion

• Of minority ethnic/language Group

• Other Minority

• None of the above (Not of a minority group)



Other countries (Australia, New Zealand, Canada)



• Australian/New Zealander of European decent

• Indigenous Australian/Maori

• Pacific Islander

• Other




• White Canadian

• A Visible minority

• An Aboriginal

• Other



Other countries (Argentina, France, Germany, Spain)



• Of foreign origin (born in this country of foreign parents)

• Of a minority culture/religion

• Of a visible minority

• Other

• None of the above (non-minority)



Identity Groups: Regional Roles


• An EU Citizen

• Non-EU European

• Other



• A US Citizen

• Canadian

• Latin American

• Other



Identity Groups: Regional Roles


• British

• Irish

• African

• Middle Eastern

• Other



• Australian or N Zealander

• Singaporean

• Other Asian

• Other



Identity Groups: Global Roles


• North American

• Latin American

• British

• Other European

• African or Middle Eastern

• Australian or New Zealander

• Asian

• Other


For more information:

Nita [email protected]

+1 314 726 1740

QUESTIONS?

workforce metrics in the global environment: best practices for employers nita beecher and liz...

Documents

employment act

inclusion slide

age discrimination

global environment

global compliance metrics

global context of equality

context slide

disabilities act