Next Generation Diversity & Inclusion:Profitable, Sustainable, Global
Edward Jones | October 12, 2011
Andrés T. TapiaPresidentDiversity Best Practices
Visit www.inclusionparadox.com www.diversitybestpractices.comFollow diversity trends & insights: http://twitter.com/AndresTTapia
2PERUPERU
To, the wheat fields of Harrington, WashingtonTo, the wheat fields of Harrington, Washington
From the cacophony of Lima, Peru
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It’s Upside Down…
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The World Is Not Flat
An Upside-Down World—Meta Trends
An African American Is U.S. President
To Be Young Is to Be Experienced
To Be a Minority Is to Be a Majority
To Be a Woman Is to Be Rising in Opportunities
To Be Disabled Is to Be Differently Abled
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To Be an Economic Superpower Is to Be a Declining Power
To Be a Developing Nation Is to Be on the Ascent
Americans Are the “Locals”
Newspapers are Becoming Obsolete
Technology Is Not a Tool, but a Way of Life
An Upside-Down World—Meta Trends
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7
Post…BoomerPost…American
Post…
Modern
911
Post…
Economic boom…
Post…
How do we prepare our leaders?
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In a Post…In a Post…
Economy
Politics
Workplace
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In 1950 90% of the US was white; by 2040 only 50%. Already 30% of US
racial/ethnic minority
“Minority” representation today byage bracket:
41 yrs or older – 23% 40 yrs and younger – 35%
10 yrs and younger – 40%
Starting in 2008, 70% of new entrants into the workforce have been women and minorities
United States
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United States
Black: $921 billion. 8.7% of the nation's buying power
Latino: $1 trillion; 9.6% of the nation's buying power, up from 5.2% in 1990
Asian-American: $526 billion in 2008; 5% of the nation's buying power
LGBT: $615 billion, a cumulative increase of more than 34% from 2002 figures
Estimated Buying Power in 2008
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People of color and women crashing through previous barriers
United States
This year more women in labor force than men
More women getting advanced degrees
“18 million cracks in the glass ceiling”
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Source: http://pewhispanic.org/states/population/
Latinopalooza
25% of the US by 2025
1/3 of residents in California
Half of babies born in Texas
9 of 10 newborns in New Orleans
35% of those in the US who are under 18-years-old
Half of the US population growth since 2000
41% of Chicago’s public school students
Copyright © 2010 Hewitt Associates LLC
Latinopalooza
Über-flexible
Iterative
Simultaneously Independent and Communal
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Trends and Characteristics that Shape the Emerging Workforce
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Impact of Diversity on Team Performance
Reference: Adler, N. J. International Dimensions of Organizational Behavior. 4th ed. Cincinnati, OH: South-Western, 2002.
Effectiveness in creative
tasks
Monocultural Teams
MulticulturalTeams
MulticulturalTeams
Less More
++ +++
+ ++
c. Milton J.Bennett, 2008
AveragePerformance
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Leader ignores or suppresses cultural difference
Cultural difference an obstacle to performance
Leader acknowledges & supports cultural difference
Cultural difference an asset to performance
To Sustainable DiversityTo Sustainable Diversity
Who Doesthe Work
Business Business
CaseImpact on products and services
Operations Business CaseImpact on internal
systems and processes
WhatWe Sell
How We Run the Business
Talent Business
CaseImpact on talent
(engagement, retention,
advancement,etc.)
To…Crosscultural Competence
From…Tolerance and Sensitivity
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d ability 2 discern n taK N2 acct one’s own n others’ wrld views 2B abL 2 cz opertntys, mke decisions, n resolV conflicts n wAz dat optimize cultural diffs 4 btr, longA lastin, &mre cr8tive soln’s.
The ability to discern and take into account one’s own and others’ world views to be able to seize opportunities, make decisions, and resolve conflicts in ways that optimize cultural differences for better, longer lasting, and more creative solutions.
Crosscultural CompetenceCrosscultural Competence
Different Money Worldviews
Copyright © 2010 Hewitt Associates LLC
Implications for Benefits
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Race Salary Gender Tenure Age Balance
PARTICIPATION
AVERAGE CONTRIBUTION RATEAVERAGE CONTRIBUTION RATE
AVERAGE % IN EQUITIESAVERAGE % IN EQUITIES
INTERNET USAGEINTERNET USAGE
% W/LOANS &WITHDRAWALS OUTSTANDING
1 2 3 4 5 N/A
1 2 3 5 4 N/A
1 N/A 3 4 5 2
1 2 N/A 3 N/A N/A
1 3 3 6 5 2
Hewitt Analysis of How Culture Affects Long-Term Savings Behaviors
28Copyright © 2010 Hewitt Associates LLC
2%
21%
81%
72%
8%
77%
White
2%
16%
67%
73%
9%
76%
Asian
8%
39%
51%
66%
6%
66%
African America
n
3%
29%
67%
70%
6%
65%
Hispanic
Percent with Loans OutstandingPercent Taking a Withdrawal
Average Percent in Equities
Average Contribution Rate
Internet Usage
Participation
More financial security
Less financial security
Ethnicity Drives Plan Behaviors
29Copyright © 2010 Hewitt Associates LLC
2%
21%
81%
72%
8%
77%
White
2%
16%
67%
73%
9%
76%
Asian
8%
39%
51%
66%
6%
66%
African America
n
3%
29%
67%
70%
6%
65%
Hispanic
Percent with Loans OutstandingPercent Taking a Withdrawal
Average Percent in Equities
Average Contribution Rate
Internet Usage
Participation
More financial security
Less financial security30Copyright © 2010 Hewitt Associates LLC
Ethnicity Drives Plan Behaviors
Participation Contribution Rates
% in Equities Internet Usage
Loans Withdrawals
African AmericanHispanic
Asian
13%
-7%
36%
-20%
11%
-2% -7%-9%-15%
56%47%
-9% -7%
-24%-32%
89%
171%Regression-adjusted comparison of 401(k) behavior (relative to Whites)
Copyright © 2010 Hewitt Associates LLC31
What does “long term”
mean?
I
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la familia
nosotros
el equipo
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Tame the Wild West
Pull yourself up byyour bootstraps
God helps those whohelp themselves
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que sera, sera
Dios quiereGod willing
¡El avión nos dejó!
What will be, will be
The plane left us!
I am a member of Second Baptist, Hycel B. Taylor, Pastor
I am an Alpha Phi Alpha
I am an Alpha Kappa
Alpha
Picture this…
Copyright © 2010 Hewitt Associates LLC
Copyright © 2010 Hewitt Associates LLC
Copyright © 2010 Hewitt Associates LLC
Copyright © 2010 Hewitt Associates LLC
Copyright © 2010 Hewitt Associates LLC
Copyright © 2010 Hewitt Associates LLC
Copyright © 2010 Hewitt Associates LLC
Copyright © 2010 Hewitt Associates LLC
Crosscultural CompetenceCrosscultural Competence
Is It Really An Option for Edward Jones Not to Make Diversity and
Inclusion One of your Highest Priorities?
It’s in Edward Jones’ DNA:
A Culture of Caring and leaving individuals
better since we met them
It’s time to re-listen to the Genius of Ted
Jones:The
Overlooked Communities
Overheard at Jim Weddle Townhall
Embracing differences makes us collectively stronger
It makes our work better
Right thing to do but also a business imperative
Hispanics as investors: Average age 46 – middle of he peak of asset accumulation years
Nearly ½ Hispanics are homeowners; 3 out of 4 working; average net worth just under $200,000
Various groups of color value personal approach
Purchasing power among African Americans increased 86% over past 10 years
African Americas tend to save more forcollege and home than for retirement
86% purchasing decisions made by women.They are no longer only the wives of the men who manage the family finances.
WINGS: more than half Financial Advisor net growth in 2010 was women
And does anyone really know what
young people want?
Copyright © 2010 Hewitt Associates LLCCopyright © 2010 Hewitt Associates LLC
¡Gracias!
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