How to Enhance Your Diversity & Inclusion
Efforts Through the Use of Metrics
March 30, 2017
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A little word association….
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• Peanut Butter and _______
• Milk and _________
• Batman and _______
• Wine and ________
Why do we associate these things together?
- Complements
JELLY
COOKIES
ROBIN
CHEESE
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Retirement Planning
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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?
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Quick Survey
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If you selected two or more goodies:
Raise your hand if you chose all of the same type?
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Quick Survey
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If you selected two or more goodies:
Raise your hand if you chose at least two different
types?
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Quick Survey
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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?!
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Hot dogs get old
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http://www.thepostgame.com/nathans-hot-dog-eating-contest-records-champions
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How does this translate for an employer?
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• 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
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The Role of Talent Management
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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
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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
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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
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Diversify the Applicant Pool of
Wholesale Store Manager
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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
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What does Diversity and Inclusion mean for your company?
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• 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
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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.
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https://www.tdbank.com/aboutus/diversity-inclusion.html
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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.”
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https://www.tdbank.com/aboutus/diversity-inclusion.html
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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
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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.
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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
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Perc
ent
of
PO
C E
mplo
yees
Historical Diversity
POC Managers
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Example of Diversity Metrics: “The Scorecard” or “Dashboard”
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Ins
Outs
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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?)
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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
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Example External Benchmarks for POC
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U.S. Benchmarks, cont’d
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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
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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
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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
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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
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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
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Example of Employee Engagement Survey
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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
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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
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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
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Matthew Thompson, Ph. D
Vice President
Labor and Employment Practice Leader
1545 Raymond Diehl Road, Suite 210
Tallahassee, FL 32308
850-402-4208
Quenton Wright, M.S.
Principal
1545 Raymond Diehl Road, Suite 210
Tallahassee, FL 32308
850-402-4215
Thank you
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