Moving from Compliance Goals to Diversity Goals - · PDF file© 2016 PeopleFluent | Confidential Moving from Compliance Goals to Diversity Goals 2 • Why diversity matters • The

©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


WhyDiversityMatters


CenterforTalentInnovationstudyfinds• Employeesatcompaniesthathavediversityare45%likeliertoreportthatfirm’smarketsharegrewoverthepreviousyear

• Theyare70%likeliertoreportthatthefirmcapturedanewmarket

• Ateamwithamemberwhosharesaclient’sethnicityis152%likelierthananotherteamtounderstandthatclient

Source:Tulshyan,R.(2014).Haveaforeign-soundingname?Forbes

BusinessCaseforDiversity


ImpactofDiversity

15% 35%

Genderdiversecompanies Ethnicallydiversecompanies

Morelikelytooutperform

Morelikelytooutperform

What’sthelikelihoodthatcompaniesinthetopquartilefordiversityfinanciallyoutperformthoseinthebottomquartile?

Source:McKinseyanalysis


Book“ManagingDiversityinCorporateAmerica”challengedcompanieswithembracingworkforcediversity

• Improvescompany’sbottomline

• Createsahealthierworkenvironment

• Resultsingreateremployeejobsatisfaction

PurposeoftheSurvey


• May2015(surveydate)• 420respondents• 24%haveanadvanceddiversityfunction

AbouttheSurvey


Compliance-basedgoals

DiversityGoals

EnterpriseGoals

MovingBeyondCompliance


ChallengesofSuccessfulD&IProgram

CompanieswanttobemorestrategicandaddvaluethroughD&Ibutoftenhavetroublegettingstarted• Whatarewegoingtomeasure?• Whyshouldwemeasureanything?


• Whatexactlydoesstrategicdiversitylooklike?

• Whatmetricsdoorganizationstrack?

• Whatshouldorganizationsdowithgatheredinformation?

• Whatdoesaccountabilitylooklikeinthediversityarea?

AfterDefiningMeasurementGoals


Craftastrategicmeasurementplanthataddressestheseorganizationalgoals

StepstoaStrategicMeasurementPlan


Startcomparingthecurrentanddesiredstateasitrelatestodiversityandinclusion

StepstoaStrategicMeasurementPlan


Natureofdiversityisbroad• “allcharacteristicsandexperiencesthatdefineeachofusasindividuals”(2000benchmarkingstudyBestPracticesinAchievingWorkforceDiversity,U.S.DepartmentofCommerce)

• 2014studybyDiversityCollegiumidentified280possiblediversitybenchmarksacross13differentcategorieshttp://diversitycollegium.org/GDIB_2014_Standard_A4_Version.pdf

DifficultyinDefiningBenchmarks


1 2 3 4 5

Beginning Advanced

Undeveloped Intermediate Vanguard

MaturityStagesofaDiversityProgram

OneYear

3years

10+Years


OrganizationalDiversityMaturity

23.0%

23.0%30.0%

24.0%

Undeveloped

Beginning

Intermediate

Advanced


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%)


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


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


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


skill/capabilities2. Difficultyworkingacross

functionstoachievegoals3. Lackofbudget4. Difficultyaligningonstepsto

attaingoals5. Lackofacceptedbenchmarks


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%)


IntermediateCont’d

Top5Goals1. Creatinganinclusive

companyculture2. Increasingemployee

engagement3. Helpingorganization

becomeanemployerofchoice

4. FosteringCollaborationintheworkplace

5. Ensuringcompliance


skill/capabilities2. Difficultyworking

acrossfunctionstoachievegoals

3. Lackofbudget4. Difficultyaligningon

stepstoattaingoals5. Lackofaccepted

benchmarks


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%)


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


Howlonghasdiversityandinclusionbeenafocusforyourorganization?

21%

28%19%

12%

20%

AgeofDiversityProgram

Lessthan1year1-3years4-7years7-10years


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)


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)


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


EffectivelyManageDiversityMetrics


Howdoyoushowbusinessimpact?


Howdoyoushowbusinessimpact?Cont’d


CanIreallycreateculturechangewithD&I?

Undeveloped Beginning


CanIreallycreateculturechangewithD&I?Cont’d

Intermediate Advanced/Vanguard


MeasurementofD&IImpact

39%

48%

13%

Howadvancedisyourorganization'smeasurementoftheimpactofD&I?

Wedon'tknowwhattomeasure/Wemeasurebutdon'tknowwhatactionstotakeWe'remakingprogress,butthere'sstillmoretodo

We'reaheadofthecurve/We'remakingthebusinesscaseforD&Iinvestment


• 24%oforganizationsfeeltheyhavesucceededatbusinesscaseformeasurements• Trackawidevarietyofdiversitymetrics• Setannualimprovementgoals• Useanalyticstoproblem-solverecruitingandsuccessionplanningissues

• Companiesthatrankin25%ofexecutiveboarddiversityhaveROEthatis53%higherthanthoseinbottom25%

MostEffectivePractices

Sources:Barta,M.(2012).Isthereapayofffromtop-teamdiversity?McKinseyQuarterly.ForbesInsights(2011).Globaldiversityandinclusion:Fosteringinnovationthroughadiverseworkforce.


NextSteps

MeasuringDiversityforSuccess

UnderstandthematuritylevelofyourexistingD&Iprogram

Identifythosediversitymetricsthateffectchangewithintalentmanagement

Identifytherightinternalandexternalresourcestoefficientlyproduceresults

SharemeaningfulinsighttofurtherD&Iinitiative

Leveragemetricstoengageworkforce


MEASURESUCCESS


Doesyourorganizationofferincentivesformanagers/executives/departmentheadstomeetdiversityandinclusiongoals?1. Increasedoperationalbudgetsandtalent/meritbonus2. Partofmonetarybonusprogram– whengoalsarereached3. Educationandother4. Recognitionawards5. Itispartoftheirscorecardforannualevaluation.6. Goalattainmentondiversityrecruitment/retentionmetricsistiedtoexecutive

compensationincentivebonuses7. Partofperformanceevaluation8. Creativecontrol


IndustryBenchmarks


DashboardCommunications



• Questionswearelookingtoanswer:• Dowehaveagapbetweenwhereweareandwherewewanttobewith

DiversityRepresentation?• Ifwehaveagap,isitsignificant?• Howdowelookcomparedtoeachmarketsourceweusetofillpositions

(internal,external,andtotal)?

• Whodowelookat:• Lookatallclasses,notjustFemalesandMinorities• Lookatalllevels,notjusttheSr.Executives• Lookdeepintothebusiness,notjustattheoverallCompany

DiversityinLeadership


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


DiversityDashboard


ExecutiveSummary


ExternalParity


QuarterlyProgressReport


• Annualcostsofgrievances,claimsandlawsuits• Employeesurveys/groupmeetings• Customersurveys• Tenurebydepartment• Turnoverrateofvariousgroups/costassociated• Useofsickleave/timeoff• Badorgoodpublicity

MeasuringInclusion


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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Documents

Moving from Compliance Goals to Diversity Goals - · PDF file© 2016 PeopleFluent | Confidential Moving from Compliance Goals to Diversity Goals 2 • Why diversity matters • The