managing for diversity - three key takeaways

September 15, 2014

Managing for Diversity

Agenda

2 universumglobal.com

1. What does diversity look like today

2. The future talent pipeline

3. How to manage for diversity

4. Q&A Hosted by: Paul O’Shea, Head of Consulting Americas Date: Sept 15th 2014

What does diversity

look like today

If you are struggling with diversity, you are not alone

WHAT DOES DIVERSITY MEAN TODAY?

4 http://www.toptechnews.com/article/index.php?story_id=1200087VXWKO

“We’re in the business of building products for hundreds of

millions of users worldwide and that starts with having the

best possible talent -- a Yahoo team that understands and

reflects our diverse user base. These statistics are only part

of the story -- Yahoo works to ensure that our existing

employees feel welcome and supported during their time at

the company.”

Jackie Reses, Yahoo’s chief development officer

If you are struggling with diversity, you are not alone


5 http://www.toptechnews.com/article/index.php?story_id=1200087VXWKO

“Over the past few years, we've experienced tremendous

growth and have become a truly global company, but in

terms of overall diversity, we have some work to do,”

Pat Wadors, LinkedIn’s vice president of global talent.

Still 1 in 4 executives say workforce issues are often an

afterthought in business planning


6 Source: 1. Donald D. Dowling Jr: Cross border diversity initiatives for recruitment and retention;

2. http://www.forbes.com/sites/sap/2014/09/11/workforce-2020-how-ready-are-you/

“Our research suggests that an alarming number of

companies don’t have the structure, strategy, culture,

and resources needed to manage a diverse, contingent,

and multigenerational workforce.” 2

So where do we begin our diversity journey?


7 Source: 1. Donald D. Dowling Jr: Cross border diversity initiatives for recruitment and retention;

2. http://www.forbes.com/sites/sap/2014/09/11/workforce-2020-how-ready-are-you/

Any diversity recruiting/retention initiative will fail if the

employer cannot measure its success. And no employer

can measure the success of a diversity program without

consensus around the meaning of the core term

“diversity.” 1

The evolution of “diversity” as an inclusive concept


8 Source: Grutter v Bollinger, 539 U.S. 306,330 (2003)

Cultural

Secondary

Primary

• Experiences

• Opinions

• Backgrounds

• Religion

• Sexual orientation

• Socio-economic

• Disability

• Veterans

• Gender

• Race

• Ethnicity

• Age

What should the definition of diversity be?


9 Source: 1. Goldman Sachs diversity ad, 2000 2 http://www.pharma.us.novartis.com/info/about-us/diversity-and-inclusion.jsp

“It is hard to define what diversity is because everyone

has an opinion” 1

http://www.pharma.us.novartis.com/info/about-us/diversity-and-inclusion.jsp








What should the definition of diversity be?


10

“Diversity is our differences – the variety of perspectives,

experiences, opinions and contributions we each bring to

the business. Inclusion is about understanding,

appreciating and maximizing those differences to create

an environment and culture that is welcoming,

collaborative and productive for all employees.”2

Source: 1. Goldman Sachs diversity ad, 2000 2 http://www.pharma.us.novartis.com/info/about-us/diversity-and-inclusion.jsp









The Competitive Advantage of Diversity

11 http://www.cummins.com/cmi/navigationAction.do?nodeId=15&siteId=1&nodeName=The+Business+Case+for+Diversity&menuId=1003

"Character, ability and intelligence are not concentrated in one sex over the other, nor in persons with certain accents, or in certain races, or in persons holding degrees from some universities over others. When we indulge ourselves in such irrational prejudices, we damage ourselves most of all and ultimately assure ourselves of failure in competition with those more open and less biased.“

J. Irwin Miller, former Cummins Chairman and CEO who retired in 1977 after leading the company for some 40 years

What is the most important thing diversity

contributes to an organization?



• The culture





• The culture

• It contributes to the bottom line





• The culture


• Helps you attract and retain great people





• The culture



• Increases productivity





• The culture




• Diverse perspectives enables better innovation





• The culture




• Diverse perspectives enables better innovation

• Positive PR in the marketplace

But we have a long way to go


18 http://fortune.com/2014/07/08/women-ceos-fortune-500-1000/

• There are currently just 24 women CEOs in the Fortune 500 and 27 in

the Fortune 1000.

• Only 5% of Fortune 1000 companies have female CEOs, but those giants

generate 7% of the Fortune 1000’s total revenue.

• Fortune 1000 companies with female chiefs outperformed the S&P 500

index over their respective tenures.

• The most common college major among women CEOs in the Fortune

1000 is engineering.

Diversity at board level is also improving but slowly


19 Source: Missing Pieces – Women & minorities on Fortune 500 boards – 2012 ABD census

67.8%

15.9%

12.4%

3.9% Diversity %

White/Caucasian Men

White/Caucasian Women

Minority Men

Minority Women

0 50 100

Men

Women

Minority Men

Minority Women

2004

2010

2012

Even Apple is aspiring for better diversity


20 Source: apple.com/diversity

“As CEO, I’m not satisfied

with the numbers on this

page,” Apple CEO Tim

Cook.

Any many other companies are also struggling


21 http://fortune.com/tag/diversity/

“Put simply, Google

is not where we

want to be when it

comes to diversity,”

Laszlo Bock,

Google’s senior vice

president of people

operations.

The future talent pipeline

Is diversity based on ratios practical?

THE STUDENT PIPELINE

23 SOURCE: U.S. Department of Education, National Center for Education Statistics, Integrated Postsecondary Education Data System

(IPEDS), Fall 2012, Completions component. (This table was prepared July 2013.)

43%

57%

Male Female

% of Degree s Awarded in Fall 2012 by Gender (1.86 million degree graduates)

Is diversity based on ratios practical?


24 SOURCE: U.S. Department of Education, National Center for Education Statistics, Integrated Postsecondary Education Data System

(IPEDS), Fall 2012, Completions component. (This table was prepared July 2013.)

6% 11%

11%

61%

11%

Asian African American

Hispanic White

Other

7% 8%

10%

63%

12%

Asian African American

Hispanic White

Other

1,025,729 female degree graduates in Fall 2012 by ethnicity

765,317 male degree graduates in Fall 2012 by ethnicity

And the competition for female STEM students is white hot


25 SOURCE: 1. U.S. Department of Education, National Center for Education Statistics, Integrated Postsecondary Education Data System (IPEDS),

Fall 2012, Completions component. (This table was prepared July 2013.) 2. http://www.cbsnews.com/news/apple-diversity-report-released-cook-

not-satisfied-with-the-numbers/

Field of Study1 % Male % Female

Social Sciences 39% 61%

Business 52% 48%

STEM 63% 37%

Other 41% 59%

Health & Education 17% 83%

Comms/languages 35% 65%

Total 43% 57%

116,000 female STEM

students 46,000

male students

“Technology executives generally have traced the scarcity of women, blacks and Hispanics in computer programming and engineering to shortcomings in the U.S. education system, and have launched a number of initiatives to try to bring about change. In June, Google announced its "Made with Code" program, which aims to teach young girls about computer science.”2

Georgia Institute of Technology Overall Universum Recommendation Rank 1st

US News Engineering

School Rank

6th Number of Engineering

Grads 678

Diversity Cultural Fit State Bonus

Presence of Competitors

Total Score Women 20% Ethnicity 42% Top 16 Top 4

Points Scored

6 9 6 3 6 9 0 3 42

Points Baselines

Max 6 9 9 9 9 8 6 3 42

Min 0 0 0 0 0 4 0 0 13

Average 3 3 3 4 4 6 1 2 25

Where do you find these students?


26

Georgia Tech has great national ranking, a large engineering student body, a diverse student population, excellent cultural alignment, and none of our main competitors are listed in the top 25 recruiters on campus.

New Recommendation

Top Drivers: Secure employment Friendly work environment Leaders who will support my

development Respect for its people

Source: Universum Target School Selection Report

What are the most critical diversity elements today?


27 Source: Universum Diversity Employer Brand Report 2014

Q: When choosing your ideal employer, what aspects of diversity are most important to

you? Select up to 3 alternatives.

Female % Element Male %

57 Gender 38

45 Ethnicity 37

42 Age 41

What do students consider to be the most critical diversity

elements today?



Element Asian

%

African

American

%

Latino/

Hispanic

%

White

%

Ethnicity 54 65 52 34

Gender 43 52 45 52

Age 40 41 40 43

Q: When choosing your ideal employer, what aspects of diversity are most important to

you? Select up to 3 alternatives.

So how do students preferences for what they look for in an

employer vary based on ethnicity and gender?



Q: Select which attributes are most important to you? (Max 3)

Professional training and development

A friendly work environment

A creative and dynamic work environment

Asian Students

Employer

Reputation

& Image

Job

Characteristics

People

& Culture

Remuneration

& Advancement

Opportunities






Respect for its people

Secure employment


Caucasian Students

Employer

Reputation

& Image

Job

Characteristics

People

& Culture

Remuneration

& Advancement

Opportunities






African American Students

Secure employment



Employer

Reputation

& Image

Job

Characteristics

People

& Culture

Remuneration

& Advancement

Opportunities






Latino/Hispanic Students



Secure employment

Employer

Reputation

& Image

Job

Characteristics

People

& Culture

Remuneration

& Advancement

Opportunities









African American Students

Secure employment



Asian Students


Secure employment


Caucasian Students Latino/Hispanic Students



Secure employment

Employer

Reputation

& Image

Job

Characteristics

People

& Culture

Remuneration

& Advancement

Opportunities

What is most attractive to male vs female student groups?






Secure employment

Employer

Reputation

& Image

Job

Characteristics

People

& Culture

Remuneration

& Advancement

Opportunities


Secure employment


What are the career aspirations for different ethnic groups

by gender at undergraduate level?


35 Source: Universum Diversity Employer Brand Report 2014; n=4038

Q: Select industry would you prefer to work in? (Max 3)

1. Management and Strategy Consulting

2. Engineering and Manufacturing

3. Public Sector and Governmental Agencies

1. Health Care Services

2. Media and Advertising

3. Non-Governmental Organizations

(NGOs)/Non-Profit Organizations

(NPOs)

African

American

Females

African

American

Males

How to manage for

diversity

Many companies are currently doing it well

THE FUTURE OF DIVERSITY

37 Source: DiversityInc. Diversity Top 50 2014(top 10 companies shown)

Rank Company Name

1 Novartis

2 Sodexo

3 EY

4 Kaiser Permanente

5 Pricewaterhouse Coopers

6 MasterCard Worldwide

7 Procter & Gamble

8 Prudential Financial

9 Johnson & Johnson

10 AT&T

How have they achieved success?


38 Source: 1. http://www.ilr.cornell.edu/wdn/upload/netter_principles.pdf; 2. http://www.ere.net/2014/06/23/diversity-recruiting-whats-wrong-with-it-

pretty-much-everything-part-2-of-2/?utm_source=ERE.net&utm_campaign=720133a55c-What-s-Wrong-With-Diversity-

Recruiting&utm_medium=email&utm_term=0_a7905d0a21-720133a55c-287000773#more-38352

A diversity & inclusion toolkit:

1. The Netter principles1 – a framework for building

organizational inclusion

2. Do an internal D&I (diversity & inclusion) health

check/audit

3. Arm yourself with knowledge and data2

http://www.ilr.cornell.edu/wdn/upload/netter_principles.pdf



What best practices can assist you in your journey



1. Structures - create a diversity and inclusion council





2. Accountability – set KPI’s and measure them diligently



41 Source: 1. http://www.diversitybestpractices.com/news-articles/critical-intersections-how-diversity-best-practices-members-integrate-

compliance-di-st



3. Involve legal1 – the area is complex so do it right






3. Involve legal – the area is complex so do it right

4. ERG’s (employee resource groups) – don’t

underestimate the power for these groups and how they

can be critical instruments for the success of your D&I

program





2. Accountability – set KPI’s and measure them

diligently

3. Involve legal – the area is complex so do it right

4. ERG’s (employee resource groups) – don’t

underestimate the power for these groups and how

they can be critical instruments for the success of

your D&I program

5. Transparency – be completely up front, genuine and

open in dialogue with your organization

How can we move beyond diversity?


44 Source: 1. Trevor Wilson, author of Diversity at Work, The Business Case for Equity and president of TWI Inc

“It really requires stepping beyond conversations about

women, minorities, LGBT and into a conversation about

talent differentiation and human equity.”1

Three key takeaways


45 Source: Mark Gordon CEO Bon Secours St. Francis Medical Center

1. CEO leadership and engagement is paramount

“Culture eats strategy for lunch on a regular basis”1

Three key takeaways




2. Don’t rest on your laurels

1. Historical success will not guarantee future success

2. Diversity & inclusion must be a strategic pillar in

organizational strategy

Three key takeaways




2. Don’t rest on your laurels

3. “the truth of the principle that the greatest amount of

life can be supported by the great diversification of

life, is seen under many natural circumstances." Charles

Darwin, The Origin of the Species (1859)

What sources current clients use



Universum Diversity Employer Brand Reports

What does diverse talent associate with your company?

What does diverse talent find attractive in an employer?

What does diverse talent think about your competitors?

What are the best ways to communicate with diverse talent?

Target School Selection Reports