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    Shrm poll diversity_final Shrm poll diversity_final Presentation Transcript

    • Workplace Diversity Practices: How Has Diversity and Inclusion Changed Over Time? A Comparative Examination: 2010 and 2005 October 12, 2010
    • Introduction Workplace Diversity Practices: How Has Diversity and Inclusion Changed Over Time? • In 2005, SHRM released the Workplace Diversity Practices research report, which addressed diversity practices in organizations from the perspective of HR professionals. Several of the survey questions from this report were included in a recent 2010 study to determine how diversity and inclusion in the workplace has changed over the last five years. • When possible, analyses of the 2010 survey results by organizations’ staff size, sector and operations locations are presented. • For the purpose of this research, workplace diversity is broadly defined as an inclusive corporate culture that strives to respect variations in employee personality, work style, age, ethnicity, gender, religion, socioeconomics, education and other dimensions in the workplace. Workplace Diversity Practices: How Has Diversity and Inclusion Changed Over Time? | ©SHRM 2010 2
    • Summary This SHRM study provides mostly encouraging news about the state of diversity in the workplace. The study shows increases in the percentage of companies that provide training on diversity issues, the number of organizations that have a diverse board of directors and the percentage of organizations reporting that their diversity practices were effective in achieving their organization’s desired outcomes. However, over the last five years, there has been a slight decrease in the percentage of organizations with practices that address workplace diversity. This slight decline is not surprising, as it is likely attributable to the unprecedented global economic downturn that began in late 2007. Other research conducted by SHRM has revealed that the downturn resulted in across-the-board cuts to many HR initiatives and practices.[1] [1] Society for Human Resource Management. (2010, June). SHRM Poll: Financial Challenges to the U.S. and Global Economy and Their Impact on Organizations. Retrieved from www.shrm.org/surveys. Society for Human Resource Management. (2010, October). The Post-Recession Workplace Competitive Strategies for Recovery and Beyond. Alexandria, VA: SHRM. Workplace Diversity Practices: How Has Diversity and Inclusion Changed Over Time? | ©SHRM 2010 3
    • Key Findings • The prevalence of diversity practices in the workplace has decreased slightly in some organization size ranges. In 2010, 68% of organizations indicated that they have practices in place that address workplace diversity, compared with 76% of organizations surveyed in 2005. Larger organizations (those with 2,500 or more employees), government agencies, publicly owned for-profit companies, nonprofit organizations and those with multinational operations were more likely to address workplace diversity. • Are companies still leveraging diversity training opportunities? Yes; among companies with diversity practices in place, the percentage offering training opportunities increased slightly from 67% in 2005 to 71% in 2010. The percentage of companies providing mandatory training for top-level executives and nonmanagerial-level employees increased over the last five years, while mandatory training for nonexecutive managerial-level employees was unchanged. • Most organizations report their diversity practices were effective. Eighty-four percent of businesses believed their diversity practices were either “very effective” or “somewhat effective” in achieving their organization’s desired outcomes. This percentage increased slightly from 83% in 2005. Workplace Diversity Practices: How Has Diversity and Inclusion Changed Over Time? | ©SHRM 2010 4
    • Key Findings • What are the most important diversity practice outcomes? In 2010, the top reported outcomes were: 1) improved public image of the organization, 2) reduced costs associated with turnover, absenteeism and low productivity, 3) improved financial bottom line (profits), 4) increased organizational competitiveness, 5) decrease in complaints and litigation, and 6) retention of a diverse workforce. Improved public image went from the fourth most important outcome in 2005 to the most important outcome for companies in 2010. • Measuring the ROI of diversity practices is still a challenge. Over the last five years, fewer organizations reported collecting diversity return-on-investment data. This percentage dropped from 14% in 2005 to 8% in 2010. The top measures organizations use to gauge their efforts has remained unchanged over the past five years: 1) the number of diverse employees recruited, 2) the number of diverse employees retained, and 3) evidence of diversity at all levels of the workforce (e.g., rank-and-file to senior management). • Most organizations reported having a diverse board of directors. Sixty-six percent of respondents said that their organization’s board of directors was diverse in terms of age, ethnicity, gender, religion, socioeconomics, education, etc. This percentage increased from 53% in 2005. Workplace Diversity Practices: How Has Diversity and Inclusion Changed Over Time? | ©SHRM 2010 5
    • Does your organization have in place any practices that address workplace diversity? 2010 (n = 367) 68% 32% 2005 (n = 361) 76% 24% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Yes No Note: “Not sure” responses were excluded from this analysis. Workplace Diversity Practices: How Has Diversity and Inclusion Changed Over Time? | ©SHRM 2010 6
    • Does your organization have in place any practices that address workplace diversity? Comparison of the 2010 results by Organization Staff Size, Organization Sector and Operations Location • Practices that address workplace diversity (by staff size): Larger organizations (those with 500 or more employees) were more likely than organizations with fewer than 100 employees to report having in place practices that address workplace diversity. Smaller Organizations Larger Organizations Differences Based on Organization Staff Size •1 to 99 employees (55%) •500 or more employees Larger organizations > (90%) smaller organizations • Practices that address workplace diversity (by organization sector): Government agencies (83%) , publicly owned for-profit companies (78%) and nonprofit organizations (71%) were more likely than privately owned for-profit companies (59%) to have practices that address workplace diversity. • Practices that address workplace diversity (by operations location): Organizations with multinational operations (83%) were more likely than organizations with U.S.-only operations (65%) to address workplace diversity. Workplace Diversity Practices: How Has Diversity and Inclusion Changed Over Time? | ©SHRM 2010 7
    • Please indicate which of the following diversity practices your organization participates in 2010 2005 Employ recruiting strategies designed to help increase diversity within the organization 79% 79% Engage in community outreach related to diversity (e.g., links between organization and 71% 74% educational institutions, government) Align diversity with business goals and objectives 68% - Tailor career development opportunities specifically for diverse employees 59% 28% Provide career development opportunities designed to increase diversity in higher-level 56% 63% positions within the organization (e.g., mentoring, coaching) Collect measurements/metrics on diversity-related practices 52% 56% Demonstrate diversity awareness in the form of celebrating different cultural events 48% 47% (e.g., Black History Month, Hispanic Heritage Month) Employ retention strategies designed to help retain a diverse workforce 47% 52% Employ strategies to ensure diversity in the organization’s suppliers, contractors, etc. 47% 51% Hold people managers accountable for diversity-related tasks or outcomes in the 47% - performance management process Ensure diversity is a consideration in every business initiative and policy 45% 73% Support employee affinity groups (employee networks, which are groups formed 30% 29% around an aspect of diversity) Offer training in English as a second language 22% 20% Provide incentive pay for management linked to the achievement of organizational 10% 12% diversity goals Note: Percentages do not total 100% due to multiple response options. Excludes respondents who indicated that their organizations did not have diversity practices in place. A dash (--) indicates that this particular question was not asked in 2005. Workplace Diversity Practices: How Has Diversity and Inclusion Changed Over Time? | ©SHRM 2010 8
    • How important are the following outcomes of diversity practices to your organization? Improved public image of the organization (n = 249) 4% 20% 76% Reduced costs associated with turnover, absenteeism and low productivity (n = 249) 6% 21% 73% Improved financial bottom line (profits) (n = 248) 11% 17% 72% Increased organizational competitiveness (n = 245) 9% 20% 71% Decrease in complaints and litigation (n = 250) 12% 20% 69% Retention of a diverse workforce (n = 249) 6% 25% 69% Diversity of thought and decision-making in the organization (n = 250) 6% 26% 67% Recruitment of a diverse workforce (n = 249) 4% 30% 66% Diversity at all levels of the workforce (n = 250) 9% 32% 60% A diverse client/customer base (n = 250) 12% 28% 59% Improved employee opinion survey results/diversity audit results (n = 250) 15% 35% 50% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Not very important Somewhat important Very important Note: “Not sure” responses were excluded from this analysis. Percentages may not total 100% due to rounding. The figure is sorted by "very important" responses. Workplace Diversity Practices: How Has Diversity and Inclusion Changed Over Time? | ©SHRM 2010 9
    • How important are the following outcomes of diversity practices to your organization? 2010 2005 Improved public image of the organization 76% 73% Reduced costs associated with turnover, absenteeism and low productivity 73% 78% Improved financial bottom line (profits) 72% 74% Increased organizational competitiveness 71% 70% Decrease in complaints and litigation 69% 74% Retention of a diverse workforce 69% 66% Diversity of thought and decision-making in the organization 67% 66% Recruitment of a diverse workforce 66% 66% Diversity at all levels of the workforce 60% 71% A diverse client/customer base 59% 58% Improved employee opinion survey results/diversity audit results 50% 51% Note: Table represents "very important" responses. Workplace Diversity Practices: How Has Diversity and Inclusion Changed Over Time? | ©SHRM 2010 10
    • Does your organization provide any training on diversity issues? 2010 (n = 250) 71% 29% 2005 (n = 301) 67% 33% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Yes No Workplace Diversity Practices: How Has Diversity and Inclusion Changed Over Time? | ©SHRM 2010 11
    • Does your organization provide any training on diversity issues? Comparison of the 2010 results by Organization Staff Size and Organization Sector • Training on diversity issues (by staff size): Larger organizations (those with 500 or more employees) were more likely than organizations with fewer than 100 employees to report having training on diversity issues. Smaller Organizations Larger Organizations Differences Based on Organization Staff Size •1 to 99 employees (52%) •500 or more employees Larger organizations > (88%) smaller organizations • Training on diversity issues (by organization sector): Government agencies (90%) and nonprofit organizations (85%) were more likely than privately owned for-profit companies (58%) to provide training on diversity issues. Workplace Diversity Practices: How Has Diversity and Inclusion Changed Over Time? | ©SHRM 2010 12
    • Please indicate whether top-level executives (e.g., CEO, president, CFO) have the opportunity to receive diversity training and whether the training is voluntary or mandatory 2010 (n = 177) 68% 27% 6% 2005 (n = 198) 60% 36% 4% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Mandatory training Voluntary training No training available Note: Excludes respondents who indicated that that their organizations did not provide diversity training. Percentages may not total 100% due to rounding. Workplace Diversity Practices: How Has Diversity and Inclusion Changed Over Time? | ©SHRM 2010 13
    • Please indicate whether top-level executives (e.g., CEO, president, CFO) have the opportunity to receive diversity training and whether the training is voluntary or mandatory Comparison of the 2010 results by Organization Sector and Operations Location • Mandatory training for top-level executives (by organization sector): Publicly owned for-profit companies (86%) were more likely than government agencies (44%) to have mandatory training on diversity for their top -level executives. • Mandatory training for top-level executives (by operations location): Organizations with multinational operations (80%) were more likely than organizations with U.S.-only operations (61%) to have mandatory training for their top -level executives. Workplace Diversity Practices: How Has Diversity and Inclusion Changed Over Time? | ©SHRM 2010 14
    • Please indicate whether nonexecutive managerial-level employees (e.g., director, manager) have the opportunity to receive diversity training and whether the training is voluntary or mandatory 2010 (n = 176) 70% 27% 2% 2005 (n = 200) 70% 30% 1% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Mandatory training Voluntary training No training available Note: Excludes respondents who indicated that that their organizations did not provide diversity training. Percentages may not total 100% due to rounding. Workplace Diversity Practices: How Has Diversity and Inclusion Changed Over Time? | ©SHRM 2010 15
    • Please indicate whether nonexecutive managerial-level employees (e.g., director, manager) have the opportunity to receive diversity training and whether the training is voluntary or mandatory Comparison of the 2010 results by Organization Sector • Mandatory training for nonexecutive managerial-level employees (by organization sector): Publicly owned for-profits (77%) and privately owned for-profit companies (76%) were more likely than government agencies (44%) to have mandatory training on diversity for their nonexecutive managerial-level employees . Workplace Diversity Practices: How Has Diversity and Inclusion Changed Over Time? | ©SHRM 2010 16
    • Please indicate whether nonmanagerial-level employees have the opportunity to receive diversity training and whether the training is voluntary or mandatory 2010 (n = 175) 58% 35% 7% 2005 (n = 200) 53% 41% 7% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Mandatory training Voluntary training No training available Note: Excludes respondents who indicated that that their organizations did not provide diversity training. Percentages may not total 100% due to rounding. Workplace Diversity Practices: How Has Diversity and Inclusion Changed Over Time? | ©SHRM 2010 17
    • Does your organization have a method for measuring the impact of its diversity practices? 36% 2010 (n = 200) 64% 38% 2005 (n = 227) 62% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Yes No Note: “Not sure” responses were excluded from this analysis. Workplace Diversity Practices: How Has Diversity and Inclusion Changed Over Time? | ©SHRM 2010 18
    • Does your organization have a method for measuring the impact of its diversity practices? Comparison of the 2010 results by Organization Staff Size, Organization Sector and Operations Location • Method for measuring the impact of diversity practices (by staff size): Larger organizations (those with 500 or more employees) were more likely than organizations with fewer than 100 employees to report having a method for measuring the impact of their diversity practices. Smaller Organizations Larger Organizations Differences Based on Organization Staff Size •1 to 99 employees (19%) •500 or more employees Larger organizations > smaller (55%) organizations • Method for measuring the impact of diversity practices (by organization sector): Publicly owned for-profit companies (56%) were more likely than privately owned for-profit companies (26%) to have a method for measuring the impact of their diversity practices. • Method for measuring the impact of diversity practices (by operations location): Organizations with multinational operations (47%) were more likely than organizations with U.S.-only operations (28%) to have a method for measuring the impact of diversity practices. Workplace Diversity Practices: How Has Diversity and Inclusion Changed Over Time? | ©SHRM 2010 19
    • Which of the following does your organization use to measure the impact of its diversity practices? 2010 2005 (n = 70) (n = 87) Number of diverse employees recruited 77% 89% Number of diverse employees retained 63% 75% Evidence of diversity at all levels of the workforce (e.g. rank-and-file to 57% 72% senior management) Employee opinion surveys/diversity audits 51% 68% Improved corporate culture 44% 53% Improved public image 43% 52% Information gleaned from exit interviews 43% - Number of complaints and litigation 41% 52% Client/customer base diversity 39% 46% Analysis of employee performance assessments 36% 36% Reduced costs associated with turnover, absenteeism and low productivity 33% 45% Recognition/awards through published lists or diversity organizations 31% 31% Improved financial bottom line (profits) 30% 37% Increased organizational competitiveness 26% 33% Evaluation of employees’ sensitivity/knowledge of diversity 24% 35% Increased levels of innovation and creativity 23% - Note: Percentages do not total 100% due to multiple response options. Excludes respondents who indicated that their organizations did not measure the impact of their diversity practices. A dash (--) indicates that this particular question was not asked in 2005. Workplace Diversity Practices: How Has Diversity and Inclusion Changed Over Time? | ©SHRM 2010 20
    • Does your organization conduct analysis to determine the return on investment (ROI) for its diversity practices? 8% 2010 (n = 177) 92% 14% 2005 (n = 210) 86% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Yes No Note: “Not sure” responses were excluded from this analysis. Workplace Diversity Practices: How Has Diversity and Inclusion Changed Over Time? | ©SHRM 2010 21
    • Does your organization conduct analysis to determine its return on investment (ROI) for diversity practices? Comparison of the 2010 results by Organization Staff Size and Operations Location • ROI measured by organizations (by staff size): Larger organizations (those with 500 or more employees) were more likely than organizations with fewer than 100 employees to report measuring the ROI of their diversity practices. Smaller Organizations Larger Organizations Differences Based on Organization Staff Size •1 to 99 employees (1%) • 500 or more employees Larger organizations > smaller (10%) organizations . • ROI measured by organizations (by operations location): Organizations with multinational operations (24%) were more likely than organizations with U.S.-only operations (3%) to measure the ROI of their diversity practices. Workplace Diversity Practices: How Has Diversity and Inclusion Changed Over Time? | ©SHRM 2010 22
    • Overall, how effective do you believe your organization’s diversity practices are in achieving your organization’s desired outcomes? 100% 90% 80% 70% 60% 50% 40% 66% 68% 30% 20% 10% 17% 18% 16% 16% 0% 2005 (n = 296) 2010 (n = 220) Very effective Somewhat effective Not at all effective Note: “Not sure” responses were excluded from this analysis. Percentages do not total 100% due to rounding. Workplace Diversity Practices: How Has Diversity and Inclusion Changed Over Time? | ©SHRM 2010 23
    • Please indicate how well you believe the following statements describe your organization My organization is inclusive of diverse cultures and values (n = 240) 4% 43% 53% Senior management at my organization believes that diversity is important (n = 240) 8% 40% 53% Diversity practices are primarily developed by the HR department (n = 240) 10% 40% 49% My organization promotes and advances diverse talent (n = 238) 12% 39% 49% Employees at my organization believe that diversity is important (n = 240) 7% 51% 42% My organization’s workforce is diverse at all levels (e.g., rank-and-file and senior management) (n = 239) 21% 47% 31% Employees at my organization believe that senior management is committed to workplace diversity (n = 238) 16% 55% 29% Diversity practices give my organization a competitive advantage (n = 238) 26% 46% 28% Diversity practices have positively affected my organization’s financial bottom line (n = 239) 36% 47% 16% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Does not describe at all Describes somewhat Describes very well Note: Percentages may not total 100% due to rounding. The figure is sorted by “describes very well” responses. Workplace Diversity Practices: How Has Diversity and Inclusion Changed Over Time? | ©SHRM 2010 24
    • Please indicate how well you believe the following statements describe your organization 2010 2005 My organization is inclusive of diverse cultures and values 53% 54% Senior management at my organization believes that diversity is 53% 53% important Diversity practices are primarily developed by the HR 49% 45% department My organization promotes and advances diverse talent 49% 48% Employees at my organization believe that diversity is important 42% 40% My organization’s workforce is diverse at all levels (e.g., rank- 31% 30% and-file and senior management) Employees at my organization believe that senior management is 29% 34% committed to workplace diversity Diversity practices give my organization a competitive advantage 28% 32% Diversity practices have positively affected my organization’s 16% 17% financial bottom line Note: Note: Table represents " describes very well” responses. Workplace Diversity Practices: How Has Diversity and Inclusion Changed Over Time? | ©SHRM 2010 25
    • Please indicate which of the following areas of diversity your organization’s diversity practices cover 2010 2005 Areas of Diversity Covered by Organizations (n = 236) (n = 305) Ethnicity 92% 88% Race 89% 86% Gender 88% 89% Age 83% 84% National origin 73% - Religion 70% 68% Disability 69% 73% Veteran status 64% - Sexual orientation 61% 60% Languages spoken 44% 49% Gender identity and/or expression 42% - Parental status 38% - Personality type (e.g., MBTI, FIRO-B, etc.) 23% - Note: Percentages do not total 100% due to multiple response options. A dash (--) indicates that this particular area was not asked in 2005. Workplace Diversity Practices: How Has Diversity and Inclusion Changed Over Time? | ©SHRM 2010 26
    • Do you agree that your organization’s board of directors is diverse (e.g., in terms of age, ethnicity, gender, religion, socioeconomics, education)? 32% 2010 (n = 158) 34% 19% 16% 32% 21% 2005 (n = 210) 16% 30% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 110% Agree Somewhat agree Somewhat disagree Disagree Note: “Not sure” and “not applicable” responses were excluded from this analysis. Percentages do not total 100% due to rounding. Workplace Diversity Practices: How Has Diversity and Inclusion Changed Over Time? | ©SHRM 2010 27
    • 2010 Organizational Demographics Workplace Diversity Practices: How Has Diversity and Inclusion Changed Over Time? | ©SHRM 2010 28
    • Demographics: Organization Industry Industry Health care, social assistance (e.g., nursing homes, EAP providers) 17% Services—professional, scientific, technical, legal, engineering 13% Manufacturing—other 13% Educational services/education 8% Financial services (e.g., banking) 5% Other services (e.g., nonprofit, church/religious organizations) 5% Government/public administration—federal, state/local, tribal 4% Insurance 4% Retail/wholesale trade 4% Consulting 3% High-Tech 3% Arts, entertainment, recreation 2% Association—professional/trade 2% Construction, mining, oil and gas 2% Note: n = 389. Percentages do not total 100% due to rounding. Workplace Diversity Practices: How Has Diversity and Inclusion Changed Over Time? | ©SHRM 2010 29
    • Demographics: Organization Industry (continued) Industry Manufacturing—auto/auto-related 2% Publishing, broadcasting, other media 2% Services—accommodation, food and drinking places 2% Telecommunications 2% Transportation, warehousing (e.g., distribution) 2% Utilities 2% Biotech 1% Pharmaceutical 1% Real estate, rental, leasing 1% Other 1% Note: n = 389. Percentages do not total 100% due to rounding. Workplace Diversity Practices: How Has Diversity and Inclusion Changed Over Time? | ©SHRM 2010 30
    • Demographics: Organization Sector Privately owned for-profit organization 47% Nonprofit organization 27% Publicly owned for-profit organization 18% Government sector 7% 0% 10% 20% 30% 40% 50% Note: n = 388. Percentages do not total 100% due to rounding. Workplace Diversity Practices: How Has Diversity and Inclusion Changed Over Time? | ©SHRM 2010 31
    • Demographics: Organization Staff Size 40% 38% 38% 30% 23% 20% 10% 0% 1 to 99 employees 100 to 499 employees 500 or more employees Note: n = 365. Percentages do not total 100% due to rounding. Workplace Diversity Practices: How Has Diversity and Inclusion Changed Over Time? | ©SHRM 2010 32
    • Demographics: Region 40% 35% 30% 27% 23% 20% 15% 10% 0% Northeast South Midwest West Note: n = 373 Workplace Diversity Practices: How Has Diversity and Inclusion Changed Over Time? | ©SHRM 2010 33
    • Demographics: Other Does the organization have U.S.-based Is the organization a single-unit company or a multi-unit operations (business units) only or company? does it operate multinationally? Single-unit company: a company in 36% U.S.-based operations 75% which the location and the company are one and the same Multinational operations 25% Multi-unit company: a company that 64% has more than one location Note: n = 363 Note: n = 391 • 25% of organizations indicated that employees Are HR policies and practices determined by the multi- at their work location were unionized. unit corporate headquarters, by each work location or both? Note: n = 387 Multi-unit headquarters determines 48% HR policies and practices Each work location determines HR 3% policies and practices A combination of both the work 49% location and the multi-unit headquarters determine HR policies and practices Note: n = 254 Workplace Diversity Practices: How Has Diversity and Inclusion Changed Over Time? | ©SHRM 2010 34
    • SHRM Poll: Workplace Diversity Practices Methodology • Response rate = 15% • Sample comprised of 402 randomly selected HR professionals from SHRM’s membership • Margin of error is +/- 4% • Survey fielded August 9–27, 2010 For more poll findings, visit: www.shrm.org/surveys Follow us on Twitter: http://twitter.com/SHRM_Research Workplace Diversity Practices: How Has Diversity and Inclusion Changed Over Time? | ©SHRM 2010 35