how to enhance your diversity & inclusion efforts through ......–representation of demographic...

How to Enhance Your Diversity & Inclusion

Efforts Through the Use of Metrics

March 30, 2017

Private and Confidential

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CRA Labor and Employment: What We Do

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1


A little word association….

2

• Peanut Butter and _______

• Milk and _________

• Batman and _______

• Wine and ________

Why do we associate these things together?

- Complements

JELLY

COOKIES

ROBIN

CHEESE


Retirement Planning

3

1. Don’t invest for the future.

2. Follow the “gold standard” and only invest in gold.

3. Maintain a mix of investment instruments.

Why is the third option the most commonly followed

investment approach?

- Reduce risk, increase chance of long-term growth

What do these exercises have to do with your workforce?


Quick Survey

4

If you selected two or more goodies:

Raise your hand if you chose all of the same type?


Quick Survey

5

If you selected two or more goodies:

Raise your hand if you chose at least two different

types?


Quick Survey

6

Why did you select a variety?

• They would all serve the same purpose

• More than one appealed to you

• Hedge your bet

• Variety is the spice of life

• How can you find the best one, if you don’t try them all?!


Hot dogs get old

7

http://www.thepostgame.com/nathans-hot-dog-eating-contest-records-champions


How does this translate for an employer?

8

• Problem solving and innovation

– Not everyone solves problems in the same way

– Different cultural and socioeconomic backgrounds hone different skills

• Customer outreach

– Diverse employees will help diversify your client base

– Employee word of mouth

– People relate to a familiar face

• Employee satisfaction and retention

– A diverse and inclusive environment fosters a heathy workforce

– Healthy work environment and lower turnover maximizes efficiency

• Ethical Reasons

– Fairness and equity

• For the small employer, risk of litigation is low


The Role of Talent Management

9

Return on Investment

(ROI)

Talent Management

• Acquiring innovators

• Improving performance

• Innovation and efficiency enhancements

• Retaining top talent

Company

Brand

•Employee Engagement

•Culture

•Succession Planning

•Learning & Development

•Work-Life Balance

•Diversity & Inclusion


Agenda

✓ How does our preference for Diversity translate as an

employer?

✓ Why should you care about Diversity?

✓ What is Diversity?

✓ How can my organization take action to reinforce and support

our core values that promote diversity and inclusiveness?

– How to measure Diversity

– Use metrics to develop insights and drive change

10


What does Diversity and Inclusion mean in the workplace?

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• Focus on creating policies, practices and culture that values the

differences in individual qualities and characteristics and

recognizes the unique contributions that can be made by

individuals based on their differences.

• Policies and practices that reflect the organizational values

include:

– Anti-discrimination/Anti-harassment/Anti-retaliation policies

– Corporate integration

– HR policies

• Training and learning opportunity

• Succession planning

• Reasonable accommodations

• Flexible work environment

• Leave and PTO

• Job descriptions


Diversify the Applicant Pool of

Wholesale Store Manager

12

5+ years management

experience at wholesale

store

• 20% Female

Proven management

experience in wholesale/retail

environment

• 38% Female

Position offering flexible

work schedule

• 44% Female

Consider Minimum

Qualifications & Job

Requirements


What does Diversity and Inclusion mean for your company?

13

• Self reflect

– What is your company’s mission?

– What are your organization’s values?

– Where are your strengths? Weaknesses? Do you know?

• Diverse groups that are a focus of many organizations

– Women

– People of Color (Race/Ethnicity)

– National Origin

– LGBT

– Veterans

– Individuals with Disabilities

– Age

– Religion


Example: TD Bank Group

• Mission Statement:

– “Our mission is to support and celebrate diversity”

• Core Values:

– Recruit, onboard and retain the very best talent.

– Ensure challenging career opportunities and focused individualized

development for:

• Minorities

• Women

• Individuals with Disabilities

• LGBT

• Veterans

– Ensure an inclusive, barrier-free environment where every Customer and

Employee feels valued, respected and supported.

– Serve diverse communities.

14

https://www.tdbank.com/aboutus/diversity-inclusion.html


Example: TD Bank Group

• Reinforced in statement by President & COO:

– “We believe that TD's commitment to diversity is not

only the right thing, it's critical to achieving our mission

to be a leading North American bank. Our success

depends on reflecting the communities and cultures

where we do business.

– We are determined to be a place where employees,

customers and suppliers all feel comfortable and

supported in all their diversity and where all

employees have the opportunity to leverage their

talents and achieve their full potential.”

15

https://www.tdbank.com/aboutus/diversity-inclusion.html


Recap

✓ How does our preference for Diversity translate as an

employer?

✓ Why should you care about Diversity?

✓ What is Diversity?

✓ How can my organization take action to reinforce and support

our core values that promote diversity and inclusiveness?

– How to measure Diversity

– Use metrics to develop insights and drive change

16


Workforce Representation

• Culmination of historical decisions (stock of current

employees)

– These decisions are in the past and the current workforce is the result of

these past decisions. The employer is unable to influence or change

these past decisions.

• Current decisions (flow of employees)

– These are the on-going decisions that result in marginal changes to the

workforce. These are the opportunities for the employer to influence the

future composition of the workforce.

17


Example of Diversity Metrics

• Track the diversity of your workforce over time

• “Representation”

– While informative, this is the net result of many employee and employer

decisions

18

Perc

ent

of

PO

C E

mplo

yees

Historical Diversity

POC Managers


Example of Diversity Metrics: “The Scorecard” or “Dashboard”

19

Ins

Outs


Diversity Metrics for Smaller Companies

• Historic hiring patterns

– Where do you seek potential job applicants?

• Particular universities

• Focused career fairs

• Local/regional publications

• Employee referrals

• Veterans staffing agencies

– How might each of these affect your diversity?

• Historic retention patterns

– Are there common traits among those who leave your firm?

– Where are those who are leaving your firm going?

– What are the reasons expressed for leaving your firm? (Do you ask?)

20


Are you getting a diverse set of candidates?

• Factors to consider in developing an external benchmark

– Type/Level of Work

• Industry (Industry specific skill-sets)

• Level/Type (Job specific benchmarks; EEO-1 or specific occupation codes)

– Labor Market/Recruiting Geography

• Local

• Regional

• National

21


Example External Benchmarks for POC

22


U.S. Benchmarks, cont’d

23

EEO-1 Job Category

US Availability

(Across All

Industries)

Possible

ADP

Industry 1

Possible

ADP

Industry 2

Possible

ADP

Industry 3

Officials and Managers 38% 51% 37% 37%

Professionals 54% 61% 34% 56%

Technicians 61% 50% 39% 61%

Sales Workers 49% 52% 42% 55%

Administrative Support Workers 75% 78% 81% 74%

Craft Workers 5% 23% 10% 5%

Operatives 24% 37% 26% 21%

Laborers and Helpers 13% 23% 49% 6%

Service Workers 60% 37% 60% 44%

Possible ADP Industry 1: Data Processing, Libraries, and Other Information Services

Data Processing, Hosting, and Related Services (518210)

Possible ADP Industry 2: Professional, Scientif ic, and Technical Services

Data processing and preparation (7374)

Tax Preparation Services (541213)

Custom Computer Programming Services (541511)

Computer Systems Design Services (541512)

Computer Facilities Management Services (541513)

Possible ADP Industry 3: Administrative and Support and Waste Management Services

Office Administrative Services (56111)

External Availability of Women by Industry


Diversity Metrics for Smaller Companies

• Larger companies will use these benchmarks to compare to

their hiring decisions over a designated period (i.e., annual

hires).

• Smaller companies may not have enough hires in a given year

to make a meaningful comparison (i.e., if only 2 hires the

percentage will be 0%, 50% or 100%).

• Compare to your pool of applicants.

– Do you have a diverse slate of candidates?

– Where do your candidates fall out in the process?

– Should you expand your search efforts?

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Internal Benchmark

• Why?

– Internal benchmark is used to measure actual internal selection

rates of diverse employees relative to the diverse selection rate we

would expect given the eligible group of employees

• What?

– Percentage of diverse employees in the “pool” (i.e., group) of

employees considered in the selection process

• Often it is a “proxy” (i.e., best approximation) as to the actual pool of

employees considered

– Timing

25


Example Internal Talent Pipeline

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Feeder Jobs in the “Pool”

Technical Service Support Specialist

Field Service Engineer

Computer Operator

Sr Technical Support Assistant

Destination Job

Technical Training Specialist


Internal Benchmark

• Factors to consider in developing an internal benchmark

– Organizational Structure

• Business lines

• Geographic location

– Level and Type of Work

• Pattern of movement between levels of responsibility (i.e., grade, band)

• Pattern of movement across different types of work within the company

• Scope of work (e.g., Job Function, Job Family, Job Codes)

– Timeframe

• Scope of time used to define feeder positions

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Attrition

• Benchmark

– Representation of demographic groups at year beginning and among

terminations

• Female representation at year beginning is 15%

• Among all terminations, 10% were women

• Women departing at lower rate as compared to their incumbency in the group

– Relative termination rates of demographic groups

• Relative to all men at year beginning, 15% male termination rate

• Relative to all women at year beginning, 10% female termination rate

• Women departing at a lower rate as compared to men

• Metric considerations

– Organizational Structure, Level, Type of Work

• Not all attrition is created equal

– High performers

• Succession planning

– Poor performers

– Other involuntary28


Employee Satisfaction/Engagement Surveys

• Quantitative measure of qualitative issues

• Specific D&I issues can be included in surveys

– Anonymity

• Structure of qualitative analyses

– Organizational structure

– Job types (e.g., call center, support, professional jobs, etc.)

– Job level (e.g., entry level, non-exempt, exempt, etc.)

• Trends in satisfaction/engagement over time

• Demographic group metrics

– Proactively manage litigation risks

– Assessment of D&I progress

29


Example of Employee Engagement Survey

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Private and Confidential31


Think Total Rewards

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• Base pay is not the only form of compensation

• When assessing yourself to market consider your other offerings

– Incentive pay

– Work load

• Maximum hours per week and consistency

– Flexible work schedule

– Work environment

• Remote work

• Reasonable accommodations

• Safety of work environment

– Other benefits

• Leave benefits, healthcare, on-site childcare

– Potential for long term growth

– Stability of company


Employee Satisfaction Surveys at Smaller Firms

• More difficult because you lose the anonymity

• Open dialog with employees

– Stay interviews

• Leverage the exit interview process

• Look for trends over time

33


Final Comments

• Committing to diversity can be an effective way to improve

your operations

• Tracking diversity creates accountability

– Reduces litigation risk if managed properly

• Development of metrics

– Measurable

– Meaningful

– Tied to organization structure

• For smaller organizations look at trends over time and among

applicants

34

Matthew Thompson, Ph. D

Vice President

Labor and Employment Practice Leader

1545 Raymond Diehl Road, Suite 210

Tallahassee, FL 32308

[email protected]

850-402-4208

Quenton Wright, M.S.

Principal

1545 Raymond Diehl Road, Suite 210

Tallahassee, FL 32308

[email protected]

850-402-4215

Thank you


About CRA

Charles River Associates is a leading global consulting firm that offers economic,

financial, and strategic expertise to major law firms, corporations, accounting

firms, and governments around the world.

The firm has over 500 professional staff in offices throughout the world. We

believe in using a combination of industry experience and rigorous, fact-based

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