metrics matter: measuring the success of your company's diversity efforts
TRANSCRIPT
METRICS MATTER: MEASURING THE SUCCESS OF YOUR COMPANY’S DIVERSITY EFFORTS
Beth Ronnenburg, SPHR
George Johnston, Esq.
Objectives
The purpose of this session is to help HR and compliance professionals
understand how to measure the success of their diversity initiatives.
We will explore the relationship between affirmative action plans
(AAPs) and diversity initiatives, and how these traditional AAP metrics
can be used to create diversity scorecards and self-audit HR practices
to ensure inclusion.
Inclusion & Fairness
DiversityAwareness
The Diversity Continuum
EEO Compliance/Affirmative Action
• Develop business case for diversity
• Create diversity mission statement
• Broader definition of diversity
• Implement policies and systems to manage EEO, inclusion, and fairness
• Hiring/promotion of women and minorities
• Training
• Workforce & HR assessments
• Ensure compliance with
EEO laws and regulations
• Fair employment practices
• Establish and implement
AAPs
• Compensation equity
• Value and appreciate diversity
• Employee engagement
• High performing individuals and teams
• Leveraging diversity for business success
• Enhance capacity to manage inclusion and fairness
1 2 3
Affirmative Action is…
• Organizations having and abiding by an equal opportunity policy
• Organizations analyzing its workforce to assess representation of
women and minorities
• Organizations developing and implementing action plans to ensure
appropriate representation of women and minorities, and also
Protected Veterans (PV) and Individuals with Disabilities (IWDs)
The goal of AA is a diverse workforce.
SELECT A PRACTICAL AND STRATEGIC APPROACH TO MEASUREMENT
STEP ONE
Unit of Analysis
Grouping of Employees
Affirmative
Action Plans
Diversity
Initiatives
Based on similar
content, wage
rates, and
opportunities
Based on
establishment
Employees can
be grouped in a
variety of ways
such as by
region, business
unit, manager,
etc.
Unit of AnalysisApproach Content Driven Opportunity Driven
Description Jobs are grouped together
based on similar content
Jobs are grouped together by
level, wage rate, or opportunity
Example 2A: All administrative
professionals
2B: All technical professionals
2A: All senior level
professionals
2B: All entry level professionals
Advantage Easily defined recruitment
areas
Reflects promotional movement
in goal attainment
Disadvantage Limits movement in goal
attainment
Diversity in job titles may result
in broad recruitment areas
Data Requirements
Roster
snapshot
Applicants
New hires
Transfers
Promotions
Terminations
Implementation
Monitoring
Analysis Date
1/1/2015
Personnel Actions
1/1/14–12/31/13
Diversity Planning
1/1/15–12/31/15
CREATE DEPARTMENT
PROFILE
STEP TWO
Organizational Profile
Provides an overview of the workforce by department/organizational unit and may assist
in identifying areas where underrepresentation or concentration exist
Executive ManagementCEO: 1WM
Total Employees: 94WM/2WF/1HF/1AM
Sales and MarketingVP Marketing: 1WMTotal Employees: 6
3WM/1BM/1WF
AdministrationVP of Operations: 1BM
Total Employees: 103WM/2WF/2BF/1HF/1HM
ProductionProduction Manager: 1WM
Total Employees: 155WM/6WF/2BF/1AF
PREPARE INCUMBENCY
METRICS
STEP THREE
CALCULATE AVAILABILITY
METRICS
STEP FOUR
Availability Estimates
• Statistical analysis of the percent of minorities and women available
to work within an organization
• At least two factors that should be considered in determining
availability
External Availability: based on reasonable recruitment areas and
census codes
Internal Availability: based on promotion pools
Regional Minority Population
27%
19%
34%
42%
31%
22%
40%
47%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Northeast Midwest South West
2000
2010
EEO-1 Job Patterns—Minorities
14%
19%
24%
27%
19%
25%
30%32%
0%
5%
10%
15%
20%
25%
30%
35%
O&M Prof Tech Sales
2000
2010
EEO-1 Job Patterns—Minorities
30%
23%
35%
48% 46%
34%
29%
40%
54%50%
0%
10%
20%
30%
40%
50%
60%
Admin Craft Operative Laborer Service
2000
2010
EEO-1 Job Patterns—Women
34%
51%
45%
56%
37%
54%50%
54%
0%
10%
20%
30%
40%
50%
60%
O&M Prof Tech Sales
2000
2010
EEO-1 Job Patterns—Women
80%
13%
29%35%
57%
76%
8%
25%
32%
59%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Admin Craft Operative Laborer Service
2000
2010
Reasonable Recruitment Areas
1.1 USA
1.2 50% USA; 50% State
2 State
3 85% State, 15% MSA
4 USA
5 County
6 MSA
7 MSA
8 MSA
Estimating External Availability
Group 2A: Professionals Census Data Weighted Data
Job Code Job Title Census
Code
Total
Emp’s
Weight Min Fem Min Fem
PTATPatent
Attorney 2100 1
DBA IIDatabase Admin II 1060 5
TCHWRTechnical
Writer 2840 2
DBADatabase
Admin 1060 7
HRSPECHR
Specialist 0630 3
ACCTAccounting Specialist 0800 6
SYSA System Analyst 1006 8
32
0.03
0.16
0.06
0.22
0.09
0.19
0.25
1.00
15.86
44.48
40.09
38.65
34.64
21.13
44.48
35.13
46.29
62.93
46.29
69.70
54.57
33.75
0.48
7.34
8.66
3.61
7.12
1.27
9.79
1.05
7.41
3.78
10.18
6.27
10.37
8.44
38.27 47.50
Estimating Internal Availability
Group 2A: Professionals Number of Employees
Job Code Job Title Job Group Total Min Fem
Totals:
Percent:
CSSPECII
ADMINII
HRASSTII
ACCTCLRKII
Computer Support Specialist II
Administrative Assistant II
HR Assistant II
Accounting Clerk II
3A
5A
5A
5A
77
4
5
4
2
1
2
1
3
9
2
25 9 13
36.00% 52.00%
Estimating Total Availability
Group 2A:
Professionals
Factor 1 &
2 Data
Weighted
Data
Factor Description Min Fem Weight Min Fem Source of
Statistics
1 % of minorities or
women with the requisite
skills in the reasonable
recruitment area
38.27 47.50 .60 Washington
DC-MD-VA-
WV
PMSA
2 % of minorities or
women among those
promotable, transferable,
and trainable within the
contractor’s organization
36.00 52.00 .40 Promotion
pool from
3A & 5A
Availability 1.00
22.96
14.40
28.50
20.80
37.36 49.30
CREATE A DIVERSITY
SCORECARD
STEP FIVE
Compare Employment to Availability
Compares the percent of employment by race and gender within each
job group to the percent available
When the percentage of minorities and women employed in a particular
job group is less than would reasonably be expected given their
availability, the organization could establish a placement goal
Utilization Rules
Rule Definition
Any Difference Using the any difference utilization rule sets a placement
goal when availability exceeds employment by any amount.
Whole Person Using the whole person utilization rule sets a placement goal
when availability exceeds employment by at least one whole
person.
Eighty Percent Using the eighty percent utilization rule sets a placement
goal when employment percent is less than 80% of the
availability percent.
Significant
Difference
Using the significant difference utilization rule sets a
placement goal when the difference between availability and
employment is at least two standard deviations.
MEASURE GOAL ATTAINMENT
STEP SIX
Goal Attainment Metrics
Goal attainment metrics shows progress made towards diversity
scorecard targets
Goal attainment is determined by evaluating the placement
opportunities (hires and promotions) and determining whether or
not the target was met
Summarize Personnel Activity
Jan. 2014Jan. 2013 Jan. 2015
Review
Personnel
Actions & Goal
Attainment for
2013 Goals
Set Goals for
Jan. 2013 –
Dec. 2013
Set Goals for
Jan. 2015 –
Dec. 2015
Set Goals for
Jan. 2014 –
Dec. 2014
Review
Personnel
Actions & Goal
Attainment for
2014 Goals
SELF-AUDIT TO INSURE
INCLUSION
STEP SEVEN
Adverse Impact
• An analysis of employment practices that determines if a negative
consequence occurs more often for members of a protected group
than for members of the non-protected group.
• A selection ratio of less than 80% for members of a protected group
indicates adverse impact exists in the selection process.
• A result of adverse impact does not indicate discrimination has
occurred, only that more research is needed to determine why the
protected class has been less successful than the non-protected
group.
A selection ratio of less than .80 for members of a protected group
indicates adverse impact.
Summarize Personnel Activity: Adverse Impact
Min Hires:
Min Applicants:
Non-Min Hires:
Non-Min Applicants:
5
5
100
10
=
=
.05
.50
= .10
VETERANS AND INDIVIDUALS
WITH DISABILITIES
BEYOND RACE AND GENDER
Hiring Benchmarks and Utilization Goals
National percentage of PV as
published by OFCCP (7.2%)
Benchmark is compared to new
hire activity
Utilization Goals
Goal established by OFCCP (7%)
Compared to percentage of IWDs
in total workforce (active roster)
Comparison may be by EEO code
or total workforce (depending on
size of the organization)
Hiring Benchmark
Hiring Benchmarks for Protected Veterans
Hiring Benchmark Analysis
OFCCP Annual Hiring
Benchmark7.2%
PV Hires 1
Number of Hired
Applicants19
Hiring Percentage of PV 5.26%
Utilization Goals for IWDs
Sales Workers
Total
Employees
32
Total
IWD
2
IWDs
Employment %
Utilization Goal 7.00
6.25
MEASURING OUTREACH AND
RECRUITMENT
TAKING ACTION
If Benchmark or Utilization Goal is Not Met
• Evaluate effectiveness of outreach efforts
• Document and develop criteria to be used for evaluation
• Identify alternative methods of outreach
• Develop a means to audit personnel and recruitment processes
• Mitigate any areas in personnel or selection processes that may
be unintentionally discriminatory towards PV
Targeted Outreach and Recruitment
Evaluation Criteria
1. Did the activity attract qualified applicants with a disability or PV?
2. Did the activity result in the hiring of qualified IWDs or PV?
3. Did the activity expand your organization’s outreach to IWDs or PV?
4. Did the activity increase your organization’s capacity/capability to
include IWDs or PV in its workforce?
Sample Outreach EvaluationOutreach/
Recruitment
Activity
Date of
ActivityDescription Evaluation
* Briefing of Local
Disability
Advocates (LDA)
*8/1/2014
* Briefed representatives of
LDA, a local disability
advocacy group, regarding
Acme Inc.’s services and job
opportunities for IWDs, and
provided a tour of Acme’s
facility.
* LDA will begin sending job
applicants to Acme Inc. starting in
2015 and include Acme Inc. in its
list of companies that are
undertaking affirmative action to
hire IWDs. Acme Inc. will also
participate in LDA activities and
LDA sponsored job fairs in 2015.
* Outreach event at
Local Community
College
* Participated in
Disability Job Fair*10/1/2014
* Conducted outreach event at
local community college to
attract students who are
IWDs
* Received 15 applications from
qualified IWDs. One was hired.
Résumés were retained for
consideration in future job
openings.
If Using a Diversity Scorecard…
• Ensure the goals are based on a self-analysis
• Reward managers not for simply achieving goals (and be careful not to penalize those who fail to achieve goals)
• Conduct training
• Incorporate diversity goals and objectives in the performance appraisal and compensation processes
• Include goal attainment in development plans for leaders and employees
• Perform follow-up analyses and adverse impact analyses (by manager, if possible)
What Does Success Look Like
• Workforce demographics that are reflective of the communities you serve
• Employees of color and women in leadership positions
• Established pipeline relationships with organizations that target diverse communities—HBCUs, professional women organizations, Veteran organizations, etc.
• Equal employee access to formal and informal mentoring opportunities
• Equitable processes and personnel activity—promotions, termination, compensation
• Linking diversity goals to leadership performance
• Ongoing learning
For over 30 years Berkshire has offered services and software to help overcome HR challenges.
Affirmative Action• Plan Preparation Services
• OFCCP Audit Support
• Adverse Impact Analyses
• BALANCEaap Software
• BALANCEact Software
Applicant Management• Compliance Audit
• Definition of an Applicant
• Process and Procedure
Development
• BALANCEtrak Software
Compensation• Base Compensation Planning
• Market Analysis
• Salary Equity Analyses
• Job Descriptions
• BALANCEpay Software
Training• Affirmative Action
• Applicant Tracking
• Disability & Veterans
Compliance
• Diversity & Inclusion
Beth Ronnenburg, SPHRPresident, Berkshire Associates
800.882.8904, ext. 1202
For additional compliance resources, please visit:
Info.berkshireassociates.com/beth
George Johnston, Esq.Venable LLP
410.244.7585
To find out how Berkshire Associates can help you with your
Affirmative Action needs, please contact us at 800.882.8904.
www.berkshireassociates.com