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©2018 Diversity Best Practices

SNAPSHOT

Now in its second year, the Diversity Best Practices Inclusion Index provides information to help organizations understand gaps in demographic representation and provide a strategic roadmap to drive internal change to find and implement Diversity and Inclusion (D&I) solutions. This year, the number of participants more than doubled, with 124 sharing their data.

The most critical findings from this year’s index reveal that the highest-scoring organizations have implemented more best practices around recruitment and talent development but workforce demographics remain fairly stagnant, especially at higher levels. That can be attributed to fewer organizations applying strong measures of accountability for diversity results and some critical workforce development best practices still not being implemented by the majority of organizations.

An index, unlike a list, does not have a set number of organizations to recognize. Instead, a threshold percentage is set at which point any participant with that percentage or better qualifies for the index. The Working Mother Research Institute determined that organizations scoring 65 percent and above should be recognized for their high-quality diversity and inclusion work and named them Diversity Best Practices Inclusion Index organizations. A second threshold was established at 81 percent to recognize 31 organizations that had superior achievement. They are named Diversity Best Practices Leading Inclusion Index organizations.

PAGE 2

The 2018 Diversity Best Practices Inclusion Index

diversitybestpractices.com/2018inclusionindexinsights

A.T. KearneyAbbVieAccentureAdobe Systems AetnaAllstate AnthemAT&TBank of AmericaBarclaysBaxter HealthcareBlue Cross Blue Shield of MichiganBoehringer IngelheimBooz Allen HamiltonBoston Scientific Broadridge Financial SolutionsBrown-Forman CA TechnologiesCapgemini AmericaColgate-Palmolive Co.DechertDiageo North AmericaDigitasLBiDow Jones & Co.DuPont

Ernst & Young LLPFifth Third BancorpFirst Horizon NationalFreddie MacGeneral MillsGeneral Motors Horizon Blue Cross Blue Shield of New JerseyHP Intel IBMJLLJohnson & JohnsonJPMorgan Chase & Co.Katten Muchin RosenmanKellogg CompanyLeo Burnett, USALockheed MartinL’Oreal USAMassMutualMayo ClinicMerck & Co.Monsanto Moss AdamsNew York LifeNorthern Trust

Northwestern Memorial HealthCareOliver WymanOppenheimerFundsPNC Financial Services GroupPrincipal Financial Group Procter & GambleProtivitiPrudential FinancialSchreiber FoodsSodexoSpectrum HealthSynchronyThe Estee Lauder CompaniesThe Hartford Financial Services GroupThomson ReutersTransamericaU.S. BankUnilever VerizonVisa WellStar Health System Whirlpool XL Catlin

A.T. KearneyAbbVieAccentureAetnaBank of AmericaBaxter HealthcareBoston Scientific Brown-Forman Colgate-Palmolive Co.Ernst & Young LLPGeneral Mills

General Motors HP Intel IBMJLLJohnson & JohnsonJPMorgan Chase & Co.Kellogg CompanyL’Oréal USAMonsanto New York Life

Procter & GamblePrudential FinancialSynchronyThe Hartford Financial Services GroupUnilever VerizonVisa WellStar Health System Whirlpool

LEADING INDEX ORGANIZATIONS

INDEX ORGANIZATIONS

PAGE 3diversitybestpractices.com/2018inclusionindexinsights

The programs and policies that help organizations successfully recruit, retain and promote diverse employees are made more effective by inclusive company cultures and real management accountability.

Results reveal opportunities for all organizations to target their D&I effort for greater effectiveness.

58%75%

90%

Require diverse interview slates

50%69%

84%

Require internal recruiters to explain absence of

diverse candidates on slate

39%51%

61%

Require hiring managers to explain decision NOT to hire

diverse candidate

30%37%

42%

Require candidates be interviewed by diverse

panel of interviewers

67%85%

100%

Provide training forhiring managers in inclusive

interviewing skills

75%93%

100%

Provide training for internal recruiters in inclusive

interviewing skills

73%92%

100%

Select search/recruitment companies based upon

ability to provide diverse slate of candidates

LeadingIndex All Participants

Recruitment

BEST PRACTICES AT DBP INCLUSION INDEX COMPANIES


Employee Resource Group (ERG) Management

All corporate executives48%48%

51%

All senior managers38%39%

46%

All managers35%36%

40%

All non-managers22%

24%29%

ERG executive sponsors’ effectiveness considered

during annual performance review

36%55%

65%

provide learning and/or talent development programs

specifically for ERG leaders

61%78%

84%

consider holding an ERG leadership position as part of

annual performance review

65%84%

100%

consider ERG leaders a separate talent pipeline in

succession planning process

14%19%

29%

have individual mission statements, charters, or

rules of governance for ERGs

85%96%

100%

ERG participation

Organizations that…


Retention



Advancement Programs

0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35

Leading

Index

All

Other Women

Asian Women

Latinas

Black Women

White Women

0.00000 0.04375 0.08750 0.13125 0.17500 0.21875 0.26250 0.30625 0.35000

Leading

Index

All

Other Women

Asian Women

Latinas

Black Women

White Women

0.00 0.07 0.14 0.21 0.28 0.35

Leading

Index

All

Other Women

Asian Women

Latinas

Black Women

White Women

MENTORING SPONSORSHIPEXECUTIVE SUCCESSION PLANNING

WhiteWomen

18% 5%5%20%

29% 6%

11%12%

17%

BlackWomen

12%14%

22%

4%4%

7%

11%13%

19%

Latinas8%

10%13%

2%2%3%

10%13%

18%

AsianWomen

24%26%

32%

4%5%5%

14%15%

19%

OtherWomen

13%15%

20%

3%3%3%

13%17%

23%


Programs designed to help women advance their careers continue to be recognized as important by Index and Leading Organizations – especially formal mentoring, sponsorship and executive succession planning.

• Note the higher usage rates at Index and Leading organizations.

• Also note the low levels of sponsorship, where senior executives advocate for employees.



Compensation

Holding managers accountable at all levels works! While the number of Index and Leading organizations is higher, there is significant room for improvement.

Leading

Index

All

Attaining/maintaining specific hiring and retention rates for women, black, Latino/Latina, Asian or other under-represented employees

Developing high potential women, black, Latino/Latina, Asian or other under-represented employees

Participation on diverse interview panels

Participation in community initiatives, organized either internally or externally

Participation in internal or external activities, such as ERGs, D&I events and education

Succession planning for and advancement of women, black, Latino/Latina, Asian, or other under-represented employees, such as LGBTQ, people with disabilities, or veterans

Feedback obtained from a 360-degree type process (a.k.a. multi-rater or multi-source feedback)

Employee satisfaction (as measured in employee surveys)

The following (as they relate to D&I) are part of performance review process:

Managers held accountable for management of D&I as part of annual review process

0.0 0.2 0.4 0.6 0.8 1.0

Leading

Index

All











All

Index

Leading

All Index Leading



Feedback obtained from a 360-degree process (multi-rater or multi-source feedback)

Succession planning for and advancement of women, black, Latino/Latina, Asian, or other under-represented employees, such as LGBTQ, people with disabilities or veterans







53% 82% 100%

41% 63% 84%

31% 49% 58%

31% 51% 87%

41% 63% 77%

29% 45% 61%

23% 36% 42%

33% 53% 84%

29% 47% 81%

More frustrating is that only 58% of Leading organizations tie compensation to D&I results, which may be cause for lack of demographic movement.

AllIndex Leading 58%

Organization compensates managers for D&I results

24%37%

CULTURE AT DBP INCLUSION INDEX COMPANIES

Accountability


Leading

Index

All











Organization sets specific supplier diversity goalsOrganization has an individual responsible for supplier diversity

Organization has a formal supplier diversity program 71%

67% 50%

86%

84% 66%

90%

90% 81%

0.0 0.2 0.4 0.6 0.8 1.0

Leading

Index

All

Organization sets specific supplier diversity goals

Organization has an individual responsible for supplier diversity

Organization has a formal supplier diversity program


Leading

Index

All











0.0 0.2 0.4 0.6 0.8 1.0

Leading

Index

All

Manager

Senior Manager

Corporate Executive

CEO

Organization has a designated individual responsible for D&I:

0.0 0.1 0.2 0.3 0.4 0.5

Leading

Index

All

Other

Direct report of a direct report of the CEO (2 levels below CEO)

Direct report of the CEO (1 level below CEO)

CEO

ManagerSenior ManagerCorporate ExecutiveCEO


That individual is the:

The organization’s most senior D&I executive reports to:

95%

1%0%0%

99%100%

59%71%

81%27%29%

19%0%0%

6%

Other8%

5%3%

CEO22%21%

26%


35%43%

39%


29%30%32%

CEO chairs executive diversity councilOrganization has an executive diversity council81%

95%94%

24%30%

34%


Leading

Index

All











0.0 0.2 0.4 0.6 0.8 1.0

Leading

Index

All

Manager

Senior Manager

Corporate Executive

CEO


0.0 0.1 0.2 0.3 0.4 0.5

Leading

Index

All

Other



CEO

ManagerSenior ManagerCorporate ExecutiveCEO


That individual is the:

The organization’s most senior D&I executive reports to:

95%

1%0%0%

99%100%

59%71%

81%27%29%

19%0%0%

6%

Other8%

5%3%

CEO22%21%

26%


35%43%

39%


29%30%32%

CEO chairs executive diversity councilOrganization has an executive diversity council81%

95%94%

24%30%

34%


Is D&I represented by an individual of recognized power and influence at the highest levels?

CULTURE AT DBP INCLUSION INDEX COMPANIES

Supplier Diversity

Structure


Male vs. Female Employee Pipeline

White vs. Non-white Employee Pipeline

20

35

50

65

80%All participant data

FemaleMale

CorporateExecutives

SeniorManagers

ManagersNon-Managers

CorporateExecutives

SeniorManagers

ManagersNon-Managers0

10

20

30

40

50

60

70

80%

49

Other

AsianLatino/aBlack

White

0.20

0.35

0.50

0.65

0.80Female

Male

Corporate ExecutivesSenior ManagersManagersNon-Managers

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8Other

Asian

Latino/a

Black

White


49%

41%35%

30%

51%

59%

65%70%

20

35

50

65

80%All participant data

FemaleMale

CorporateExecutives

SeniorManagers

ManagersNon-Managers

CorporateExecutives

SeniorManagers

ManagersNon-Managers0

10

20

30

40

50

60

70

80%

49

Other

AsianLatino/aBlack

White

0.20

0.35

0.50

0.65

0.80Female

Male


0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8Other

Asian

Latino/a

Black

White


49%

41%35%

30%

51%

59%

65%70%

PAGE 9

TRANSPARENCYAT DBP INCLUSION INDEX COMPANIES

Representation


HOW DO YOU RATE in key areas like diversity and inclusion, women’s advancement and work-life programs?

With data from the Working Mother Media Annual Application we can benchmark your company’s workforce demographics, policies, and program offerings against other companies. This data can be further segmented by industry, company size or other more customized specifications.

ANNUAL APPLICATION PERIOD OPEN:

December 17, 2018 – March 15, 2019Register now at workingmother.com/surveys

Advisory services are available to help with progress and solutions.

ABOUT DBP & THE TEAMDiversity Best Practices, a division of Working Mother Media, is the preeminent organization for mid to large size organizational diversity thought leaders to share best practices and develop innovative solutions for culture change. Through research, resources, benchmarking, publications and events, Diversity Best Practices offers organizational members information and strategies on how to implement, grow, measure and create first-in-class diversity programs.

For more information contact [email protected], 212-219-7438

SUBHA V. BARRYPresident,

Working Mother Media, Diversity Best Practices

JENNIFER LONDONContent Director

KAREN DAHMSResearch Director

CAROL WATSONSenior Director,

Global Advisory Services

DONNICE PETERSONMember Services & Research Analyst

WILLIAM ROLACKSenior Director, Global Member

Relationship Services

DEBORAH MUNSTERExecutive Director


mailto:[email protected]

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