diversity analysis: usa
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Diversity Analysis: USA
(Banking, Financial Services and Insurance Industry)
Draup Point of View
November, 2018
2
2
What the leaders
in BFSI industry
have to say about
diversity?
“For us to be successful, our men and women must reflect the diversity of the communities and cultures
in which we operate. That means we must attract, retain and motivate people from many backgrounds
and perspectives. Being diverse is not optional; it is what we must be.”
-Lloyd Blankfein CEO of Goldman Sachs
“We can make a difference one woman at a time, one relationship at a time, one mentor at a
time”
-Marianne Lake CFO JP Morgan Chase
“You can’t categorize diversity based on what a person looks like. It’s what that person
can do for the organisation”
-Charles K Poole Senior VP, internal/external communications at Citi
"When it comes to thinking about women in powerful positions, we are too often blinded by
the daggers of the mind, infected by the malignant mind bugs that mire us in the prejudices of
the past"
-Christine Lagarde IMF Managing Director
“Investing in women is an investment in the future. We work everyday in support of gender equality”
-Anne Finucane VC Bank of America
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3
DRAUP Methodology
1 2 3 4
Profile Identification & Data Collection
Data Analysis & Presentation
Survey & Interview Derivation of Insights
Evaluation of profile information
based on:
• Organization
• Work Experience
• Job Roles
• Gender
• Ethnicity
• Wage
• Identification of target profile
segments based on:
• Industry (analysed industries
include Banking, Financial
Services, Insurance,
Accounting, Investment
Banking)
• Current / Past Organizations
• Tenure across roles and
designations
• Collation of diversity (gender and
ethnicity) information from
Zinnov’s proprietary Talent
Module
• Survey administered to identify
and validate reasons for retention
and attrition of minority
employees
• Telephonic as well as face-to-
face interviews of industry
stakeholders to understand
strategies taken by employers to
create positive workplace
environment for minority
employees.
• Insights on talent attraction:
• Attraction drivers based on
years of experience
• Channels for talent sourcing
• Insights on reasons for attrition:
• Direct and Influencing attrition
factors across: years of
experience, role etc.
Diversity Scores
• Gender : based on female
employee % (min- 0 for <20%,
max-1 for 50% females)
• Ethnicity: based on non-white
workforce (min- 0 for <20% non-
white workforce, max-1 for 50%
non-white workforce)
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4
Women comprise of ~47% of the total US labour workforce, out of which ~20% represent in boards and executive position
~ 153 MnTotal US Workforce
Women
representation
Financial services Boards
Executive Position
46.9 %Women - US Workforce
Note: The represented data has been collected from multiple US government Financial Regulatory Bodies’ websites and Draup Proprietary Database updated as of Aug, 2018.
Source: Bureau of Labour Statistics historical data and labour force projections ; the data is as per December 2016
White
Black, African
Americans
Asian
78 %
12 %
Other Workforce –American Indians and Alaska Natives
Native Hawaiians
Pacific Islanders
4%
6%~ 22 %
~ 16 %
USA - Financial
Services
Ethnicity - US Workforce
~ 6.5 Mn
19.8 %Women – Boards &
Executive Position
USA - INDUSTRY WIDE
UNITED STATES
NEW YORKBOSTON
BAY AREA
CHICAGOWASHINGTON DC
Atlanta
Lincoln
AustinMiami
Los Angeles
California
San Diego
Seattle
Dallas
BFSI - Hotbeds 2018
BFSI – Emerging Hotbeds
CHARLOTTE
States with WIEP* >20%
Connecticut
Florida
Wisconsin
Maryland
MassachusettsMichigan
Minnesota
Missouri
New JerseyOhio
*WIEP – Women in Executive position
Source: Pew Research centre.
Data from Bureau of Labour Statistics historical data and labour force projections
New York and Washington DC are also among the 13 states with WIEP > 20%
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5
BFSI industry ranks second highest with 36% women representation out of 6.5 Mn total employed BFSI workforce in US
Media and Entertainment
Information and Communication
Technology
Healthcare
Energy
Consumer
Infrastructure
WOMEN REPRESENTATION
Note: The above analysis is based on the DRAUP’s proprietary database and primary interviews of industry stakeholdersWe have included only the top industries with high total talent. Consumer sector includes companies involved with food production, packaged goods, clothing, beverages, automobiles and electronics
Infrastructure includes Construction and Transportation
Women representation across different industries in US
ASSET MANAGEMENT
COMMERCIAL BANKING PRIVATE BANKING REINSURANCE
BFSI
FUNCTIONAL AREAS
Banking, Financial Services & Insurance
RETAIL BANKING LIFE/HEALTH INSURANCE P&C INSURANCE FINANCIAL MARKETS
TOTAL TALENT (Men + Women)
36%
16%
33%
19%
51%
24%
34% 2.5 Mn+
10 Mn+
19 Mn+
1 Mn+
2 Mn+
1 Mn+
6.5 Mn+
6
METHODOLOGY
Any talent pipeline strategy should consider taking full advantage of existing workforce and such an inclusive strategy will help Banks push boundaries in Diversity goals as well
Note: The above analysis is based on the DRAUP’s proprietary database
Top BFSI Firms female employee % and non-white employee %
1. Employed Talent Scanning: Scan US
workforce of all the BFSI companies under
analysis
2. Diversity Estimation: DRAUP’s ML algorithm then predicts gender and ethnic
diversity based on name and location of the
employed talent
3. Company Analysis: DRAUP’s model then tags employee profiles to the companies
under analysis to estimate ethnic and
gender diversity
4. Result: Aggregate tagged profiles
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7
JP Morgan and Wells Fargo primarily employ women in their retail banking segments, hence bringing them to the top in terms of gender diversity
37%
31%
40%
37%
34%
36%
41%
41%
42%
43%
41%
44%
40%
43%
46%
47%
48%
40%
46%
45%American Express
Gender DiversityWomen Employee %
Ethnic DiversityNon-white employee %
Rank Company Score(max 2)
#1
#2
#3
#4
#5
#6
#7
#8
#9
#10
Bank of America
Citi
Jpmorgan chase & co.
Wells Fargo
Suntrust
USAA
New York Life
Insurance Company
Metlife
Capital One
1.49
1.45
1.38
1.37
1.36
1.35
1.33
1.32
1.30
1.27
Note: The score methodology has been described in the methodology slide
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8
Diversity patterns across job progression levels
JOB PROGRESSION
LEVEL
VP & above
Middle
Managers
Professional
Staff
Support
Staff
DIVERSITY
76% 24%
50%
83% 17%
58% 42%
67% 33%
56% 44%
58% 42%
39% 61%
61% 39%
Male Employee % Female Employee % White Employee % Non-white employee %
Note: The above analysis is based on the DRAUP’s proprietary databaseIn professional Staff we have included analysts, and associates; and similar levels across BFSI. For Support staff, we have included IT, Administration, HR etc
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9
Women executives have made exceptional progress in their career to reach the top and played a crucial role in shaping the culture
Joined the UN Women’s Global Innovation
Coalition for Change (GICC), whose mission is to
drive industry-wide action to accelerate the
achievement of gender equality and women’sempowerment. Founded the “Future Women in
IT” program, which aims to inspire middle and
high school girls to pursue careers in technology
and reduce the misconception that "I.T. Is not
for me". Co-led the Citi Operations &
Technology Women’s Council
Personality Inference:
➢ Achievement driven, emphasizes more on
the end results and final outcomes of their
initiatives.
➢ Yolande has achieved multiple awards and
certificates and has worked for an organization
for 7+ Years. Has remained loyal to her
profession.
Yolande Piazza
CEO, Citi Fintech, CITI
Traits:
➢ Technology Leader Humanist
Fidelity established its Women’s Leadership
Group (WLG) Employee Resource Group. The
WLG’s mission is to help women and Fidelity
thrive. The group’s goals are to provide
development opportunities to members with a
focus on “developing the whole you —professional, personal and financial.”
Traits:
➢ Challenge Driven, Adaptable and Humanist
Personality Inference :
➢ Commitment driven, do adequate research
about their clients and potentiality of the
product. They are likely to foster long-term
relationships.
➢ Abigail has worked for an organization for 7+
Years. Has remained loyal to her profession.
Shaped JPMorgan Chase's culture with
programs like ASCEND, a sponsorship
program to retain and promote female and
ethnically diverse talent. Lead JP Morgan
Chase's Women on the Move program.
Hosted events in locations where the
company employed hundreds, and often
thousands, of women. Since it began, the
program has been hosted in 23 cities and
senior women from across the company have
met with more than 6,000 employees.
Traits:
➢ Humanist, Visionary, and Challenge Driven
Personality Inference:
➢ Entrepreneurial mindset are likely to be
demanding and are constantly
challenging the status quo.
Abigail Johnson
Chairman and CEO,
Fidelity Investments
Deeply involved in Women in Tech (WIT)
initiative, lead external partnerships for WIT.
On the advisory board for Women Who
Code, collaborated on Women in Tech Allies
program
Traits:
➢ Technology Leader, Challenge Driven and
Thought Leader
Personality Interference:
➢ Achievement driven, emphasizes more on
the end results and final outcomes of
their initiatives.
➢ Jennifer has achieved multiple awards and
certificates, and has some publications on
her name.
Jennifer Manry
CTO, Workspace
Services, Bank of
America
Note: The above analysis is based on the DRAUP’s proprietary database
Mary Callahan
Erdoes
CEO, Asset and Health
Management Business,
JP Morgan
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10
Various inclusion policies are adopted by banks. The benefits have been classified into 4 categories namely, Development & Advancement, Industry
Benefits, Networking, & Workplace Policies.
Top financial services are enabling women to reach leadership positions and moving towards diversity reporting, noticeably making it the norm for annual reports
Development
&
Advancement
Industry
Benefits
Networking
Workplace
Policies
• Annual Global Women’sConference, Diverse Leaders
Sponsorship Program and 10
Mentorship Program.
• Tuition reimbursement, 16
week paid maternity, and
flexible work hours.
• LEAD programme, which brings
together senior executives to
advise & inspire women.
• Providing fair & equitable pay for
all employees.
• Promoting women in tech,
partnerships with Cornell Tech
& City universities.
• Maternity Programme, 14 weeks
paid leave, Maternity coaching &
a buddy programme both during
& after maternity
• SDG5, Ensuring women’s full & effective participation & equal
opportunities for leadership.
• Winning Women Program, An introductory
program for Under-Graduate women, which
provides an entry in BFSI & an overview of many
opportunities for female leadership at the firm.
• Women’s Interactive Network, provides
access to the tools that enable the successful,
development, advancement and retention of
women at all levels of firm.
• Working Parent Award, Program honours men
& women, who manage this fit with particular
flair. WIPAT/ Women Rising Program, Women
In the Pipeline & At the Top (WIPAT) helps
women to advance to highest positions.
• Tuition Assistance & paid
paternal/maternal leaves for
employees
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11
Diverse roles related to diversity, have evolved in the past decade, indicating considerable progress being made to understand the criticality behind losing out on a wealth of capacity
Size of the bubble indicates
number of executives
representing the roles
Democratisation of decision making - Diversity
SVP
DiversityChief
Diversity
Officer
HRs
HR Director
Chief Human
Resource OfficerDiversity
AdvisorCDO
Global
CDO
VP
Diversity
GM
DiversityDirector-
Diversity &
Inclusion
CDO
Global
CDO
GM
Diversity
VP
Diversity
VP-Customer Exp.
Talent Management & Diversity
Diversity Business Development
HR DiversityDiversity & Public Affairs
Diversity Strategy
Director of Corporate supplier
diversityDiversity Lead
Diversity officer
2010-15 2015-182000- 2010
HRs and Chief Diversity Officer, have been critical
decision makers related to diversity.
Newer roles such as VPs, SVPs and Directors share
responsibilities related to diversity.
New diversity roles emerge as women representation
increases in decision making positions
HR Director
Senior Director Diversity
Sr. Diversity Advisor
Diversity Inclusion officer
Global
Chief
Diversity
Officer
Note: The above analysis is based on the DRAUP’s proprietary database
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Apart from progress in gender diversity, top banks are equally focussing on ethnic diversity; Eastern USA regions such as New York, San Francisco Bay, Charlotte, Boston and Chicago are the most diversified regions
ME
TX
AR
LA
MN
WIMI
SC
VA
PA
DC
MT
MO
IN OH
KY
TN
FL
WV
V
T
NH
NVUT
WY
CO
AZNM
ND
SD
NE
KS
OK
IA
IL
N
J
C
T
R
I
WA
OR
CA
ID
MS
ALGA
NC
NY MA
MD
DE
Most Diversified
Least Diversified
WA – Seattle ; OR – Portland ; CA – Los Angeles ; NV – Las Vegas ; AZ – Phoenix ; ID – Boise ; MT – Billings ; WY – Cheyenne ; UT – Salt Lake city ; CO – Denver ; NM – Albuquerque ; ND
– Fargo ; SD – Sioux Falls ; NE – Omaha City; KS – Wichita ; TX – Houston ; MN – Minneapolis ; IA – Des Moines ; MO – Kansas City ; AR –Little Rock ; LA – New Orleans ; WI – Milwaukee ;
IL – Chicago ; MS – Jackson ; TN – Memphis ; KY – Louisville ; OH – Columbus ; MI – Detroit ; NY – New York ; GA – Atlanta ; SC – Columbia; NC – Charlotte ; PA – Philadelphia ; NY – New
York ; ME – Portland ; FL – Jacksonville ; NH – Manchester ; MA – Boston ; RI – Providence ; IN – Indianapolis ; WV – Charleston ; CT – Bridgeport ; NJ – Newark ; MD – Baltimore ; DC –Washington ; VA – Virginia Beach ; CE – Wilmington ; VA - Virginia Beach ; CE – Wilmington ; AL – Birmingham ; OK - Oklahoma City
900k+
NEW YORK
40%
29% 250k+BOSTON
340k+CHICAGO
32%
210k+
WASHINGTON DC
33%
120k+
CHARLOTTE
30%
360k+SAN FRANCISCO
46%
BFSI TalentNon White
%
Note: BFSI talent includes all the functions across all BFSI companies in the location
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13
52.3%41.2%
New York and San Francisco emerge as the top locations in terms of gender and ethnic diversity
Female % in
cityFemale Employee
in BFSI %
Non- White
% in city
Non-white employee
% in BFSI
Location
New York
Charlotte
Boston
Gender & Ethnic Diversity
Chicago
Gender Diversity Ethnic Diversity
San Francisco
Bay Area
Washington D.C
55.4%40.0%
49.1%42.3%
59.0%45.9%
52.1%44.8%
50.0%30.0%
52.0%41.8%
53.0%29.3%
51.5%42.7%
55.0%32.3%
52.6%43.7%
52.4%32.8%
Note: The above analysis is based on the DRAUP’s proprietary database
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Analysing other factors contributing to a better diversity in New York and San Francisco
HIGH
LOW
LOCATION
ANALYSIS
NEW YORK
BOSTON
CHICAGO
WASHINGTON DC
CHARLOTTE
SAN FRANCISCO BAY AREA
26
26
20
19
19
16
LOC
AT
ION
AN
ALY
SIS
DIVERSITY
San Francisco ranks on top when it comes to gender and ethnic
diversity in banking/finance institutions.
EDUCATIONAL HUB
New York, Boston and Chicago are the top finance educational hubs from where ~54% of the top banks recruit.NYU, Columbia University, Boston University, Harvard, University of Illinois, University of Chicago are the amongst the top fresh talent supply universities
PAY POTENTIAL
Analysed industry median pay across top finance job roles and
levels such as Financial Analysts, insurance underwriters, credit
analysts, actuarial analysts, accountants, bankers, IB associates,
auditors, tax managers etc.
Boston and San Francisco emerge as top locations with highest
median salary
FINANCE JOB OPPORTUNITY
San Francisco has more than 26 banking institutions, totalling
$2.28 Tn in assets, with maximum open jobs and talent.
New York is the hub of ~15 biggest commercial banks such as JP
Morgan, Bank of America, Citibank, Wells Fargo etc.
Charlotte is the third largest banking hub behind San Francisco
and New York
DIVERSITY POLICIES AND PROGRAMS
Top banks in New York and San Francisco have started initiatives
to promote gender diversity across functions. Initiatives range
from creating diversity roles to mandating diversity and inclusion
section in their annual reports.
LIVING INDEXIncludes office rental cost, restaurant prices, markets,
transportation and utilities
Note: The above analysis is based on the DRAUP’s proprietary database and primary interviews of industry stakeholders
Sum of rank in each
parameter (6 being
highest, 1 being lowest)
Index
15
15
Case study: Ethnic diversity is being treated like a business priority by top banks such as JP Morgan, American Express
Advancing Black Leaders, an
expanded diversity strategy focused on
increased hiring, retention and
development of talent from within the
black community.
At JP Morgan by 2018 , 20% of its US workforce are
Asians, 8.7% are Hispanic/Latino and 40.5% are women,
but African Americans comprise only 9.4% of employees
and just 3% of senior executive levels.
CA
SE
ST
UD
Y
2 Years, into the initiative JP Morgan
is seeing results. A total of 97 black
managing directors emerged globally.
At American Express, various policies have
been adopted to promote ethnicity.
Asian Employee Network, develops Asian talent through professional
development activities, networking events and business innovation
seminars. It also works to build cultural awareness among all company
employees, and helps American Express become an employer of
choice for professionals of Asian backgrounds.
Black and Asian Employee Network (BAAN), is
the lead resource for promoting diversity, cultural
awareness and inclusion of Black, Asian and
ethnic minority employees at American Express
in the UK.
JP Morgan & American Express have adopted few inclusion policies, there by attracting and creating opportunities for people from
various ethnicities.
Note: The above analysis is based on the DRAUP’s proprietary database and primary interviews of industry stakeholders
top related