This presentation was delivered in April 2008 to the CSR Certification program at St. Michael's College at the Univeristy of Toronto - on the importance of Diveristy within Corporate Social Responsibility.
As you all know, employee relations is one of the pillars of CSR. Inclusion is essential to good employee relations. Every organization has diversity, but many organizations struggle with inclusion.
Chocolate milk demonstration. Must be cold milk! Hold up glass, pour milk into glass, say "this represents corporate Canada". Hold up chocolate. Say “This represents visible diversity. It covers all areas of diversity – people of colour, aboriginals, lesbian gay bisexual and transgendered, religious diversity, disability, and so on". Pour chocolate into cold milk - “Here's what corporate Canada looks like with diversity; it's almost all at the bottom.” Stir the milk. “Our philosophy is Diversity is the mix, Inclusion is making the mix work. When you stir it up, and do it well, it works. And, really, it’s more appealing. Isn’t that a nice colour? And it tastes good too.”
All these terms are problematic in some way
PLAY VIDEO FROM ANDRES We’re going to watch a 4 minute video featuring Andres Tapia, Hewitt’s Global Chief Diversity Office and Emerging Workforce Solutions Leader. (and I thought I had a long title!) Andres has led the charge in embedding Diversity & inclusion at Hewitt for more than a decade and has been instrumental in developing many of the concepts I will discuss today. Andres is going to provide some framing around terminology and the evolution of diversity and inclusion programs. Please excuse the Hewitt-specific references. This video was made for an internal audience, but he explains things well, I thought it would be useful to frame our discsussion. When he mentions Lincolnshire, that is Hewitt’s Corporate Headquarters. It’s a suburb of Chicago.
G-Force & HRPAO study of more than 800 Canadian companies. Thus, only 26% have staff responsible for diversity issues. Only 28% of companies monitor the makeup of their workforce. Only 18% set objectives for workforce diversity.
Yellow squares are global trends shaping our workforce. Most of the world, except Latin America, we don’t have enough people to replace the retiring baby boomers. Europe, Asia & North America is impacted. Economic and Political volatility both at the national level and at the level of social systems. We have wars, we have impending economic crises. In many areas there are not enough workers to put into the system. Fewer government and corporate guarantees – less guarantee in pensions, more expectations that employees will save for own retirement. Layoffs, mergers & acquisitions. Outsourcing to India and China. Rapidly advancing tech – plug in anywhere – blackberries, constantly connected to work. Increased Productivity of individuals, but at what cost? Globalization – that one goes without saying. Seismic Demographic Shifts 4 generations in the workforce Baby Boomer retirement bubble Tripling of the Hispanic and Asian populations over the next 50 years By 2008, 70% of all new hires are women and minorities Economic & Political Volatility Volatile stock markets Rising price of oil Immigration Reduced public funds for education Middle East conflict Global terrorism Fewer Government & Corporate Guarantees M&As RIFs Pensions fading Social security benefits diminishing Healthcare costs increase; less coverage Rapidly Advancing Technology Internet Broadband wireless PDAs Laptops Globalization Travel More college educated in developing countries Outsourcing/off shoring work
Each one of these trends creates a new workforce with new characteristics. Diverse Workforce More diverse in ALL areas: Age/generational; Race/ethnicity; Gender; Faith; Disability; LGBT One in 10 in developed world is a migrant; migration to U.S. tripled since 1970 More generations in the workforce - Boomers 43%; Xers 10%; Yers 10%; Veterans 5% (Benefits Quarterly) One-quarter of people age 65 to 74 are working (Bureau of Labor Statistics) More gender-balanced workforce, including women of all ages Issues of faith and sexual preference are increasingly prevalent, but increasingly muddy, in the workplace The range of disabilities is more complex, with learning disabilities and disabilities related to aging added to the mix Current U.S. mix: 240 million whites, 44 million Hispanics, 38 million blacks and 13 million Asians (Time, Oct. 30, 2006). Only Hispanics are having enough children to replace themselves in the population For every 1,000 Americans, 173 speak a language other than English at home. In 1950, 90% of U.S. was white. By 2040, only half will be white. Hispanic & Asian populations will triple in 50 years (U.S. Census Bureau). Minority purchasing power = $U.S. 1.7 trillion. $600 billion of this is Latino purchasing--greater than GNP of Mexico (Zelig Council of Economic Development). Smaller & Less Skilled Workforce 2010: 10M more jobs > workers in U.S. (Bureau of Labor Statistics) 16% drop in middle-aged workers More, earlier retirements Younger, less-skilled workforce; skill attainment trails demand; fewer college educated (need stats) Growing preference for non-corporate, “non-traditional” or entrepreneurial jobs 62% of HR professionals say most or some workers lack needed skills (SHRM) Reduction in corporate training Multilayered Responsibilities Sandwich generation issues (people raising children and caring for elderly parents) Elder Care Child Care Work/life imbalance Autonomous & Empowered Workforce Workers becoming more influential - have expertise, skills and desire to make more decisions Encouraged to take responsibility for own careers Layoffs created free-agents who are returning Information readily accessible via internet reducing job search costs, giving HR data on salaries Experience with multiple employers now an asset Portable benefits Pay and promotion based on performance Virtual: Co-workers in various locations and countries Remote work arrangements Consider this: $260 million in vehicle sales since 2003, product innovations and on-target ethnic marketing and advertising campaigns at Ford. 70% of all Latinos with insurance have it through Allstate. Increasing 401(k) participation 18% and contributions among savers 22% at HCA. More than $100,000 saved by a major hospital expanding in five of the most diverse cities by designing larger waiting rooms that accommodate extended families, typical for Latino and African American families, as opposed to designing around white families.
Dan One example of this reality: - Recruiters at TELUS in Calgary say they are finding it much more difficult to find qualified team members than it was five years ago. Five years ago - new team members were often over-qualified for their initial role – they were looking for an opportunity to “get their foot in the door” Today – new team members hired for entry-level positions are more difficult to find and are “just qualified” Labour Shortage – shrinking labour force aging baby boom encouragement of early retirement restrictive immigration Shortage will be mitigated somewhat by 2016 when Generation Y fully in workforce – but that is a whole new challenge. They have dramatically different expectations of their work experience. Skills Shortage Skills and experience retiring out the door decreasing levels of higher education decreased corporate funding of training Restrictive accreditation policies for immigrants (“taxi driver syndrome”) Knowledge Shortage Knowledge is being lost (i.e. not captured/passed on) as baby boomers retire Organizations are having to “re-learn” the lost knowledge (e.g. NASA) In a recent report published by Korn/Ferry International “The Board's Role in Succession Planning”, 66% of 165 Canadian companies surveyed felt their boards were not giving succession planning the time it deserves
“ Best buy is among few companies turning its own diverse workforce into a competitive advantage.” Globe & Mail – November 9, 2007
In 2006, working population is slightly over 70% of total population. In 2006, median age is 39. Natural increase is negative – in other words, there are more deaths than births Retiree dependency ratio – proportion of retirees compared to proportion of working population. In 2008 the retiree dependency ratio is approximately 22%. (to be confirmed by InfoCan)
Immigrants in Canada’s Major Urban Centres 62.9% of all recent immigrants to Canada settled in Toronto, Vancouver, and Montreal. 45.7% of the Toronto population were foreign-born 39.6% of the Vancouver population were foreign-born. These proportions surpass all major cities in the U.S. and Australia. 23.6% of the Calgary population were foreign-born 20.6% of the Montreal population were foreign-born
Over 95% of Canada’s People of Colour live in one of 30 cities. Very few live in rural areas or small towns. Most of the country's People of Colour are concentrated in the Canada's three largest cities – Toronto, Vancouver and Montreal. The total population of the Greater Toronto Area in 2006 was 5.4 million.
This is the current state in Toronto. As more of Canada’s population growth comes from immigration, this will become increasingly common in Canada’s other major cities as well. Are you communicating to your employees in ways that are impactful for them?
If you grew up in North America, you were probably taught to view the world this way.
Urban, Suburban, Rural Activity about How where you grew up formed your worldview.
Retirement – white couple walking down the beach The client looks lonely so we add a dog We want to be cross-culturally competent so we add a black couple But retirement doesn’t look like this to everyone. To a latino couple retirement is being surrounded by family and friends.
IDI is appropriate measurement tool if intercultural competence is the goal of individuals, groups or organizations.
There is significant common ground across both the engagement and work values research about what is truly important in a work environment: The engagement, quality and effectiveness of managers/supervisors make or break an organization Interesting work is important to everyone – what is critical is to make the right match – we have very different ideas about what is interesting People want to know, see and hear that they are working for one of the best – all leaders play an important role in bringing this to life Due to its importance, every organization needs to at least clearly spell out its deal regarding work / life balance – but the research suggests that this is an area that will evolve over time and organizations will likely need to change in the face of employee demands
Why Alberta? Rick Mercer report about a year ago. Signs for recruiting everywhere. $1,000 bonus for 1,000 hours work at Superstore. Data from a survey we conducted of over 200 organizations across Canada – asking HR if they are seeing challenges in both attracting and retaining people. Almost 2/3rds of respondents from AB-based orgs said they are, compared to the national average of 44%, not quite double of those in Ontario. “ The Canary in the Mine” of things to come based on the perfect storm of talent challenges Neil referred to. Good case study. How are they responding….
Increasing pay – CBC does this research, but any survey/headline on the topic you pick up in the fall sends the same message – e’ers are trying to ‘buy’ the talent, causing some spiraling of salaries, particularly with some hot skills… So what next….
Study of TOWP practices -
You need to ask yourselves, “Why is diversity important to XYZ Company , specifically, given the industry we’re in?” You’re answer cannot be: “ Because of compliance,” “ Because it’s the right thing to do,” “ Because there is a talent war and we need to find the best from as many talent pools as possible.“ These are generic answers that anyone can give. You need to find the reason XYZ Company needs diversity specifically for the company you are, for the industry in which you are.
GROUP INTERACTION Hewitt’s key stakeholders Associates Community Investors Your reason for diversity & inclusion has to tie into your stakeholders and your mission.
A key component of developing your diversity strategy is to identify who your stakeholders are and how diversity plays into the quantifiable ROI for each.
This is a specific example from a Christian Health Organization, whom we helped with a diversity strategy.
A comprehensive strategy has to be tied into the way the company does business. It is a successful combination of embedding diversity within the formal processes of the organization, along with efforts at the grass roots level to generate engagement and ownership at the employee level.
U of T CSR - Diversity Presentation Apr 22, 2008
April 22, 2008Workplace Diversity & InclusionPresentation to University of St. Michael’s College,Certificate in Corporate Social ResponsibilityCathy Gallagher-Louisy,Canadian Corporate Social Responsibility and Diversity Specialist
Diversity is the mix Inclusion is making the mix work TMApril 22, 2008 2
Agenda Diversity Terminology The Business Case for Workplace Diversity & Inclusion Programs The Power of Your Worldview Introduction to the DMIS and IDI Business Issues that Can be Addressed by Diversity & Inclusion Diversity and Inclusion in Your OrganizationApril 22, 2008 3
Diversity TerminologyArchetype - The tendency of a group of people to act a certain wayStereotype - The assumption that all people in the group act according tothe archetypeValues - Personal and group beliefs of what is right and wrong.Culture - Behavioral interpretation of how a community lives out its valuesin order to survive and thrive.April 22, 2008 5
Diversity TerminologyThe Challenge – finding the right words...Visible Minorities – Canadian Census term that refers to Blacks, Latinos, Asians, South Asians, Pacific Islanders, except aboriginals. (Limiting, since it leaves out other groups and people who are bi-racial or multi- racial.)People of Color (POC) - Refers to all nonwhite groups. Some prefer this term as it does not have the diminishing connotation of “minority”. (May be construed more as American terminology.)Minoritized – Refers to a group of people who have been collectivelyreferred to as minorities and systematically denied privileges whichappertain to the majority or dominant group in any particular society. (Oftenused in academic settings.)April 22, 2008 6
Diversity TerminologyDiversity Strategy - A business-based approach to increasing diversityand creating an inclusive environment, yielding business results.Crosscultural competence – The ability to interact effectively with peopleof different cultures. Crosscultural competence is comprised of four components: a) Awareness of ones own cultural worldview, b) Attitude towards cultural differences, c) Knowledge of different cultural practices and worldviews, and d) crosscultural skillsApril 22, 2008 7
April 22, 2008The Business Case for WorkplaceDiversity & Inclusion Initiatives
Diversity is Important to Canadian Companies?70% of Canadian companies surveyed have avision statement that reflects a commitment toworkforce diversityHowever...74% have no resources allocated towards diversityand inclusion programs No tangible measures are taken to recruit diversity groups, or to subsequently communicate with the groups and to improve employee retention by promoting workplace inclusiveness. Source: G-Force & HRPAO, Fall 2007April 22, 2008 9
These Major Trends… Seismic Globalization Demographic Shifts Rapidly Economic Advancing and Political Technology Volatility Fewer Government and Corporate GuaranteesApril 22, 2008 10
Shape an Emerging Workforce With the FollowingCharacteristics… Diverse Seismic Globalization Demographic Shifts Virtual Smaller and Emerging Less Skilled Workforce Rapidly Economic Advancing and Political Technology Volatility Multi- Autonomous layered and Fewer Responsi- Empowered Government bilities and Corporate GuaranteesApril 22, 2008 11
A Perfect Storm in the Canadian Workforce Labour Skills Shortage ShortageOnly 56% of Canadian employees Greater Industries currently feeling the believe that their employers are greatest pain in terms of skillattracting the people needed for Workforce shortages are oil, gas, energy, healthcare, and government success. Diversity —The Conference Board report— 2006 ROB Best Employer Study “Managing the Mature Workforce” The dominant factor for business in the next two decades is not going to be economics or technology; it will be demographics. — Peter Drucker: The Future Has Happened Already April 22, 2008 12
Why should Diversity and Inclusion be important toCanadian Companies? Diversity and Inclusion Strategies are Essential because: Our workforce is already extremely diverse. Canadas net labour force growth will come primarily from immigration. By 2010 the skills gap in Canada will worsen. By 2015 not enough qualified people will be available to fill all of the positions vacated by departing mature employees. The Canadian education system is not producing enough graduates in certain skill areas. In 2002, 46% of all immigrants to Canada held at least one post-secondary degree versus the Canadian average of 22%. (Source: Citizenship and Immigration Canada, Statistics Canada)April 22, 2008 13
Diversity in the Media“77 per cent of Canadians believe more diversity in work teams leads tomore innovation, and 79 per cent of those surveyed say that Canadascultural diversity will give companies a competitive advantage in a globaleconomy in the future.” Globe & Mail– September 28, 2007 “A diverse workforce is a more engaged one and that ultimately leads to profitability.” Edmonton Journal – April 5, 2008 “Creating an inclusive workplace must be a key business objective – one pursued with the same energy we invest developing new markets.” Financial Post Working – April 9, 2008April 22, 2008 14
The Impending Talent Shortage Labor force grew by 226,000 per year for last 25 years This decade will grow by 123,000 By 2010 will drop to 42,000 By 2016 growth will be near zeroApril 22, 2008 15
Emerging Workforce: Canadian Projections • Negative natural • Nearly half increase. of the • All • 1 in 5 workforce in population Canadians Canada’s 5 growth will be major cities exclusively People of will be from Colour. People of immigration • 950,000 Colour. • Seniors will vacant jobs • Baby in Canada outnumber boomers due to children in reach age exodus of Canada 65. mature • Millennial employees • People of Colour will generation outnumber enters Whites in workforce the city of en masse. Toronto.2008 2010 2011 2012 2015 2017 2020 April 22, 2008 16
Canadian Diversity Current State Percentage of Foreign-born Population by City, 2006 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% ty n r e ey l to s i a ve m to n le Ci re n dn ur ia ou ge ng ro t rk bo on M Sy To hi nc An Yo M el as Va M s ew W Lo N Source: Statistics Canada 2006 CensusApril 22, 2008 17
Canadian Diversity Current StateCanadian Ethnic Diversity Canada has over 220 distinct ethnicities. (In 1901 there were only 25). Visible minorities account for 16.2% of Canada’s total population. Between 2001 and 2006, Canada’s visible minority population increased by 27.2%, five times faster than the growth rate of the total population. The median age of visible minorities is 33 years, considerably younger than the national median of 39 years. 19.8% of the total population of Canada are foreign-born. 70.2% of new immigrants between 2001 and 2006 reported a mother tongue other than English or French (Canadas 2 official languages). Source: Statistics Canada 2006 CensusApril 22, 2008 18
Canadian Diversity Current StateToronto 42.9 % of the population identified themselves as a visible minority. 43% of the population report a mother-tongue other than English.Vancouver 41.7% of the population of Vancouver identified themselves as a visible minority.Calgary 22.2% of the population of Calgary identified themselves as a visible minority.Montreal 16.5% of the population of Montreal identified themselves as a visible minority. Source: Statistics Canada 2006 CensusApril 22, 2008 19
Canadian Diversity Current State Ethnic Diversity of Canadian Cities 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% rio au C C AB B BC ,Q ,B A a e nt in n, y, d, er al O at ar to or tre uv G on g , sf to o on a- al t m nc n bo C w M ro Ed Va tta Ab To O Percentage of visible minorities by city Source: Statistics Canada 2006 CensusApril 22, 2008 20
Canadian Diversity Current State Ethnic Diversity of Toronto16%14%12%10%8%6%4%2%0% n an al n an o ia se ab k ia in ac in As ic si ne Ar As lip ig Bl er tA E. or hi Fi Am h S. es C Ab ut e/ So W tin es La an ap /J an re Ko Visible Minorities as a percentage of total Toronto Population Source: Statistics Canada 2006 CensusApril 22, 2008 21
Canadian Diversity Current State Ethnic Diversity of Vancouver 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% n os e ia es in As n lip hi h Fi C ut So Visible minoroties as percentage of total Vancouver population Source: Statistics Canada 2006 CensusApril 22, 2008 22
Canadian Diversity Current State Language Diversity in Toronto - Mother Tongue reported on 2006 Census World Languages English French Source: Statistics Canada 2006 CensusApril 22, 2008 23
Overall Millennials and Generation X aren’t happy with today’s employment deal… Engagement by Years of Service 100% 90% 80% 70% %Engaged 60% 50% 40% 30% Less than 2 2 to 5 years 6 to 10 years 11 to 15 16 to 20 21 to 25 26 or more years years years years years Millennials Gen X Matures Boomers Source: Hewitt Associates April 22, 2008 24
April 22, 2008Introduction to the DMISDevelopmental Model of InterculturalSensitivity
DMIS – Developmental Model of Intercultural Sensitivity Defense/Denial Minimization Acceptance Adaptation Integration Polarization April 22, 2008 38
IDI AssessmentThe Intercultural Development Inventory (IDI) measures how a personor a group of people tend to think and feel about cultural difference.IDI is a crossculturally valid and reliable assessment of interculturalcompetence development equally applicable to domestic and internationaldiversity. Tested by rigorous psychometric protocols in four separate validation studies Rigorous “back translation” protocols used to translate into 12 languages Currently being used by over 1300 qualified IDI Administrators in over 20 countries.April 22, 2008 39
IDI and the DMIS D/D Scale M Scale A/A Scale Defense/Denial Minimization Acceptance Adaptation Polarization Integration April 22, 2008 40
April 22, 2008Business Issues that can beaddressed by Diversity & InclusionInitiatives
Business Issues that Can Be AddressedThrough Diversity and InclusionTalent Global sourcing issues Talent war / talent differentiator High turnover / low engagement Transparent / inspired leadershipHR Strategy Address implications of their workforce diversity to HR strategy and outsourcing Multicultural Marketing of Employee Benefits Diverse global work teamsApril 22, 2008 42
Engagement and Turnover 2007 Best Employers in Canada Study Full-time Voluntary Turnover Rate (2005) 20.0% 15.4% 15.0% 13.0% 13.4% 9.4% 10.0% 7.5% 7.3% 5.0% 0.0% Top / Bottom 50 Top / Bottom 20 Top / Bottom 10 Top Bottom Source: Hewitt AssociatesApril 22, 2008 43
Top 5 Drivers of Employee Engagement by Generation Matures Early/Mid Late Gen X Millennials Boomers Boomers Career Career Career Managing Managing Opportunities Opportunities Opportunities Performance Performance (1) (1) (1) (1) (1) Managing Managing Managing Recognition Career Opportunities Performance Performance Performance (2) (1) (1) (1) (2) Organizational Recognition Recognition Career Work Work Reputation Opportunities Tasks Tasks (2) (3) (1) (3) (2) People Organizational Organizational Organizational Recognition Practices Reputation Reputation Reputation (4) (4) (4) (4) (2) People People Work Organizational Recognition Practices Practices Processes Reputation (5) (4) (4) (4) (5) Senior Work Senior Leadership Matures – pre-1946 Processes Leadership (5) Early/Mid Boomers – 1946 to 1960 (5) Work Late Boomers – 1961 to 1965 Processes Generation X – 1966 to 1980 (5) Millennials – 1981 and later Source: Hewitt AssociatesApril 22, 2008 44
Top 5 Personal Work Values Affecting Decision to Join or Stay in Organization Matures Early/Mid Late Boomers Gen X Millennials Boomers Supportive Supportive Supportive Interesting Good Supervisor Supervisor Supervisor Work Salary (1) (1) (1) (1) (1) Access to Access to Interesting Good Interesting Information Information Work Salary Work (1) (1) (1) (1) (2) Interesting Interesting Good Supportive Advancement Advancement Work Work Salary Supervisor Opportunity (3) (1) (1) (3) Opportunity (3) Fully Use Fully Use Good Work / Life Work / Life Supportive Abilities Salary Balance Balance Supervisor Abilities (3) (4) (4) (3) (4) Work / Life Work / Life Access to Continuous Continuous Continuous Balance Balance Information Learning Learning (5) (4) (5) Learning (5) (4) Doing Work Matures – pre-1946 Doing WorkConsistent with Early/Mid Boomers – 1946 to 1960 Consistent Moral Values Late Boomers – 1961 to 1965 with Moral Generation X – 1966 to 1980 Values (5) Millennials – 1981 and later Source: Hewitt Associates April 22, 2008 45
Conclusions from generational researchSignificant common ground across engagement and work valuesresearch: Manager/supervisors make or break the organization Interesting work is important to everyone People want to work for one of the “best” Every organization needs to define its deal regarding work / life balance Source: Hewitt AssociatesApril 22, 2008 46
Conclusions from generational researchImportant differences that impact engagement Matures want to be valued as full contributors rather than people coasting toward the end of their work-life – They want to fully use their abilities – They want to do work that has integrity – They want to work for leaders who are effective, provide clear direction for the future and are trustworthy Millennials want to learn and have opportunities for advancement – and they really want to enjoy the specific work they do Source: Hewitt AssociatesApril 22, 2008 47
Early 2008 Results – Top 10 Engagement Drivers – EmploymentEquity All Visible Persons with a Employees Females Aboriginals Minorities Disability Managing PerformanceCareer Opportunities (1) Career Opportunities (1) Career Opportunities (1) Career Opportunities (1) (1) Managing Performance Recognition (1) Recognition (1) Career Opportunities (2) Recognition (2) (2)Managing Performance Managing Performance Organizational Managing Performance Recognition (3) (1) (1) Reputation (3) (3) Organizational Organizational Organizational Recognition (3) Work Tasks (4) Reputation (4) Reputation (4) Reputation (4) Organizational Work Processes (4) Work Processes (5) Work Processes (5) People Practices (5) Reputation (5) Resources (6) Resources (5) People Practices (6) Work Processes (5) Resources (5) People Practices (6) People Practices (7) Resources (7) Pay (5) Work Processes (5) Senior Leadership (6) Work Tasks (8) Pay (8) Resources (8) Senior Leadership (8) Work Tasks (9) Senior Leadership (9) Senior Leadership (8) People Practices (9) Work Tasks (9) Pay (10) Pay (9) Work Tasks (10) Intrinsic Motivation (9) Pay (10) Senior Leadership (9) Source: Hewitt Associates April 22, 2008 48
Early 2008 Results – Top 10 Personal Work Values – Employment Equity All Visible Persons with a Disability Employees Females Aboriginals Minorities Interesting Work (1) Interesting Work (1) Interesting Work (1) Supportive Supervisor (1) Supportive Supervisor (1) Work/Life Balance (2) Work/Life Balance (1) Supportive Supervisor (2) Work/Life Balance (1) Interesting Work (2) Benefits that Meet Needs Supportive Supervisor (2) Supportive Supervisor (1) Access to Information (2) Interesting Work (3) (2) Good Salary (2) Good Salary (4) Work/Life Balance (4) Sense of Achievement (3) Work/Life Balance (4)Sense of Achievement (5) Sense of Achievement (4) Sense of Achievement (4) Continuous Learning (3) Sense of Achievement (4) Convenient Hours (6) Convenient Hours (4) Job Security (6) Access to Information (6) Access to Information (4) Continuous Learning (7) Access to Information (7) Good Salary (7) Good Salary (7) Convenient Hours (4) Access to Information (7) Continuous Learning (8) Convenient Hours (7) Convenient Hours (7) Continuous Learning (8) Intellectually Stimulating Doing Work Consistent with Doing Work Consistent Continuous Learning (7) Fully Use Abilities (8) Work (9) Moral Values (8) with Moral Values (7)Freedom to Make Decisions Intellectually Stimulating Benefits that Meet Needs Fully Use Abilities (7) Job Security (8) about Work (10) Work (10) (7) Fairly Administered Policies Doing Work Consistent Fully Use Abilities (10) (10) with Moral Values (7) Benefits that Meet Needs Benefits that Meet Needs (10) (7) Access to Training (7) Source: Hewitt Associates April 22, 2008 49
Conclusions from diversity researchEmployee engagement and decisions to join or stay with anorganization are influenced by similar factors for the most part.While factors are similar, different groups have different needs ineach of these areas, in particular Supportive supervisor Work / life balance & convenient hours Continuous learning BenefitsNeeds for education/communication and delivery also differ greatly How education/communication takes place – channels, style, content, motivation etc. How programs are delivered and who conveys key messages Source: Hewitt AssociatesApril 22, 2008 50
Competing for Talent Attraction and Retention Challenge by Region Alberta 64.5% Quebec 57.9% BC and NT 46.7% National 44.0% Atlantic Provinces 41.2% MB and SK 41.2% Ontario 35.6% 0.0% 20.0% 40.0% 60.0% 80.0% Percentage of participants indicating both attraction and retention are challenges From Hewitt’s “Attracting and Retaining the New Workforce” Survey – June 2006April 22, 2008 51
Albertan Salary Increases Outpace the Rest of Canada All Employee Groups 6%Percentage of Respondents 5.3% 5.2% 5% 4% 3.7% 3.7% 3.4% 3.4% 3.3% 3.5% 3% 2% 1% 0% Calgary Montreal Toronto Vancouver 2007 Actual 2008 Projected From Hewitt’s “Canada Salary Increase” Survey – September 2007April 22, 2008 52
Workers are demanding more than just the traditionalpackage... High prevalence of flexible hours, compressed work schedules, additional days off Growing interest in paid and unpaid sabbatical programs offered to part or all of the workforce High prevalence of prevention programs and company-paid fitness memberships Growing interest in wellness accounts Growing interest in working from home part-time and assistance with home computer purchaseAnd they are going to get it – but at what cost? Source: Hewitt AssociatesApril 22, 2008 53
April 22, 2008Diversity and Inclusion in YourOrganization
Can You Articulate . . .. . .why diversity and inclusion is important to you, in the businessthat you are in, and for the type of work that you do?April 22, 2008 55
Can You Identify . . .. . . the key stakeholders in your business and how a sustainablediversity & inclusion strategy effects your relationship with each ofthem?April 22, 2008 56
Diversity Results Tied to Business Strategy Stakeholder A Stakeholder BStakeholder Value Statement Stakeholder Value Statement xxxxxxxxx Xxxxxxx ROI for XYZ Company ROI for XYZ Company xxxxxxxx xxxxxxx XYZ Company’s Value Proposition Stakeholder C Stakeholder DStakeholder Value Statement Stakeholder Value Statement xxxxxxx xxxxxxx ROI for XYZ Company ROI for XYZ Company xxxxxxx xxxxxxxApril 22, 2008 57
We Are Increasing Stakeholder Value through Diversity and Inclusion—Hewitt Example Clients Investors Stakeholder Value Stakeholder Value Services that make clients’ environment a Valuable long-term better place to work investment ROI for Hewitt ROI for Hewitt Increased investment Market share, growth, in Hewitt and increased corporate reputation Making the World a Better Place to Work Associates Community Stakeholder Value Stakeholder Value Growth, meaning, and Equipping for future opportunity work, hope ROI for Hewitt ROI for Hewitt Enhanced attraction, Increased corporate engagement, reputation and and retention connectionsApril 22, 2008 58
The Business Case for Diversity and Inclusion From Key Stakeholders’ Perspective “I feel valued by “I feel that my unique XYZ and I’m treated with Patients beliefs and traditions dignity and Associate and are recognized by XYZ’ staff and physicians” respect” s Residents Mission:“XYZ reflects To Extend “At XYZ, we treat the whole person with anthe diversecommunities in Sponsors/ the Healing Physician understanding of ourwhich we Governance Ministry s patients’ and theiroperate” of Jesus family’s unique worldviews and Christ values” “XYZ understands the needs of and Local Business “We work with XYZ serves the diverse Community Partners to provide culturally communities in competent services” which it operates” Source: Hewitt Associates April 22, 2008 59
Embedding Diversity into the Business Market Messages Embed Into Formal Processes Rewards & Comp Benefits Performance Succession Recruit Planning Management Retain Engage Affinity Develop Special Groups Events Diversity Councils Task ForcesMeasure Create Grass Root EffortsResults Source: Hewitt Associates April 22, 2008 60
Key Aspects of Diversity & Inclusion InitiativesDiversity Strategy Build a sustainable diversity & inclusion strategy which is embedded in business goals and outcomes.Total Benefits Strategy Ensure that benefits throughout the company are designed to not only maximize employer dollars spent on benefits, but also to maximize smart employee choices regarding benefits, and tailoring communications to cultural groups.Crosscultural Competence Curriculum Skills-based training - aiming to build competency within all those who take the course--by first understanding personal views and biases, then understanding others, then building the skills necessary to bridge gaps in understanding to make the most of a work experience.April 22, 2008 61
Recap Workplace Diversity & Inclusion Initiatives bring tremendous benefits to any organization There are many business issues that can be addressed by diversity & inclusion strategy & initiatives: – Talent issues: attraction, engagement, retention/reducing turnover – Inspirational leadership – The challenges of global work teams – Communicating with internal and external stakeholders Diversity and Inclusion in Your Organization – Identify why – key drivers – Identify your key stakeholders – Do it!April 22, 2008 62