The Case for Emerging Diversity Talent

The ongoing increase in minority U.S. population, coupled with growth projections in the upcoming decades, present a tremendous opportunity for companies who focus their human capital on developing this quickly growing market and workforce.

This presentation provides insight to the historic changes the U.S. population is experiencing.

A New Direction

Changes in U.S. Demographics

Projected Demographic Change by Ethnicity

-28%

19%

100%

Caucasian AfricanAmerican

Hispanic

2050 U.S. Demographics 10.9%

49.5%

14.6%

25.0% CaucasianAfrican American

HispanicOther

2000 U.S. Demographics 12.5%

6.2%

12.3%69.1%

CaucasianAfrican American

HispanicOther

Data from U.S. Census Bureau

“The Multi-Cultural Economy 2008” a study by The Terry College of Business, University of Georgia, examines the dynamics of these new markets and provides a clear picture of the opportunity at hand.

The study highlights the business impact of the ongoing demographic shift and examines the projected market share and buying power increases for each ethnic group.

The results confirm Hispanics have experienced a sharp increase in buying power and market share, while African American buying power has increased at a rate substantially higher than the total buying power increase for all races.

Consumer Impact

*Selig Center for Economic Growth, Terry College of Business, University of Georgia, “The Multicultural Economy 2008”

Ethnicity 1990 2000 2008 2013

Caucasian 89.4% 86.7% 85.2% 84.2%

Hispanic 5.0% 6.8% 8.9% 9.9%

African American 7.4% 8.2% 8.5% 8.8%

U.S. Market Share by Race/Ethnicity*

Ethnicity 1990 2000 2008 2013

Caucasian 3,816.2 6,231.1 9,135.7 11,796.0

African American 318.1 590.2 913.1 1,239.5

Hispanic 211.9 489.5 951.0 1,386.2

U.S. Buying Power by Race/Ethnicity (in billions)*

Ethnicity % Increase

Caucasian 151%

Hispanic 349%

African American 187%

% Increase in Buying Power from 1990 to 2008*

Understanding the Opportunity

Impact of Diversity

• Increased community relations and consumer perception

• Status quo is more frequently challenged• Advertising campaigns become more effective• Decision making capabilities improve through

broader perspectives and experiences

• Increased exposure to a rapidly growing customer base

• Expedited product development cycles• Market penetration activities are more effective• Higher rates of attraction and retention of talent• Reduces exposure and costs associated with

lawsuits and EEOC claims.

Creating and executing a human capital strategy that delivers an impact in these emerging markets has proven to be a difficult challenge for organizations.

Geographical concentrations, limited availability of experienced talent, lack of degreed multi-cultural candidates, and historical difficulties in attracting diverse talent are some of the challenges organizations are now facing.

Challenges Ahead

Geographical Challenges

Top African American Buying Power States (in Billions): New York (87.6) Texas (72.0) Florida (62.9) Georgia (62.6) California (61.8) Maryland (52.3) Illinois (44.0) North Carolina (40.9) Virginia (38.2) New Jersey (34.8)

90% of Hispanics reside in just 16 states 90% of African-Americans reside in just 21 states

Top Hispanic Buying Power States (in Billions): California (249.0) Texas (171.1) Florida 101.3 New York (75.3) Illinois (41.0) New Jersey (35.6) Arizona (31.3) Colorado (21.0) New Mexico (17.9) Georgia (15.1)

Generational Challenges

45.3%

33.8%

15.6%

5.3%

% of U.S. Hispanic Population

Under 1818-3434-65Over 65

Median Age by Ethnicity0

10

20

30

40

50

40.631.4

26.9

CaucasianAfrican Amer-icanHispanic

21.0%

21.3%42.5%

15.2%

% of U.S. Caucasian Population

Under 1818 - 3434 - 65Over 65

Data from U.S. Census Bureau

29.5

25.3

36.8

8.4

% of U.S. African American Population

Under 1818 - 3434 -65Over 65

Educational Challenges

A 2006 U.S. Department of Education study found of all Caucasian children entering kindergarten, 36% will obtain a bachelor’s degree by the age of 29.

The same study of African American students showed 20% will obtain a bachelor’s degree.

The study also showed that of Hispanic students, only 12% will obtain a bachelor’s degree.

Solutions

Understanding the challenges and opportunities of targeting these rapidly growing market segments can create a significant advantage.

When executed properly, a diversity focused employee referral network, a multi-cultural employer branding strategy, and attending key diversity events are traditional ways companies compete for talent.

However, many experts believe the best and most cost effective way to develop a strong diverse internal talent pool is by creating a strategic university recruiting program.

Targeting multi-cultural students for internships and entry level hires, companies create a pipeline of future leaders, and tap into the largest percentage of these increasing populations.

The University Dynamic

• Cost effective way to build a diverse talent pipeline vs. experienced hiring

• Viable solution to the upcoming workforce shortage caused by retirements

• Targets the largest and most educated segment of the fastest growing consumer bases

• Provides opportunity to promote employer branding and customer development

• Bring innovative and current thinking developed through school curriculum.

• A tech savvy group who is more affordable to develop and eager to contribute

• Engages existing talent by recruiting from schools with high internal alumni populations

Struggles Recruiting Multi-cultural Emerging Talent

• Lower multi-cultural student populations impact the ability to locate and engage top talent.

Limited Resource Allocation • Limited Campus Coverage• Unable to develop strategic relationships • Over reliance on career services• Dependency on technology

Organizational Constraints• Inadequate business support • Poor workforce planning • Open headcount paralysis • Sending the wrong people• Attending the wrong events• Mismanaged internship program

Our Value to You

• Exposure to the top 10% of a highly sought after pool of candidates

• Two day conference focuses client resources and time

• Access to candidates from campuses that would otherwise be missed due to resource constraints

• Experienced and certified talent assessors completing initial screening and matching

• Opportunity to interview 100+ of the top campus

multi-cultural and student athlete candidates

• Isolated interview space, and one on one format

deliver a preferred candidate experience

• High likelihood of extending multiple offers

• Our risk -minimizing pricing structure

Further Information

For more on this presentation and our services please visit www.minnickwesley.com

Email us: info@minnickwesley.com

THANK YOU FOR YOUR TIME!