June 8, 2016 – Randstad Sourceright has released ‘Turn Diversity and Inclusion into a Talent Strength: A Six-Pack Strategy for Driving Measurable Improvements,’ a report providing an in-depth look at what companies can do to create a successful diversity and inclusion strategy.
While diversity and inclusion initiatives have become a ‘must-have’ for 21st century employers, successful ones are often contingent upon having a clear plan and framework that resonates with diverse talent and aligns with overall business goals says the report. Just as important is developing an effective method for measuring diversity and inclusion and tracking what can be done to further strengthen this business priority. Doing so will set organizations on a path of continuous improvement, while keeping diversity and inclusion an integral part of the workplace experience.
Six Steps to Creating a Successful Diversity & Inclusion Strategy
The new white paper offers this six-step, data-based approach to creating a successful diversity and inclusion strategy:
- Acquiring diverse talent: Simply counting the number of new hires who fit into different diverse groups isn’t enough; companies must understand which groups are underrepresented and how to reach them. Leveraging data about the workforce and its makeup will help to reveal where diversity initiatives should be focused.
- Developing and advancing talent: Once diverse talent is brought into the organization, it is important to support their ability to develop their skills and grow professionally. This involves tracking the advancement of each diverse group against the progress of others, ensuring diverse high-potential employees are given the opportunity to advance through the ranks.
- Retaining diverse talent: A company may struggle to keep its diverse talent for a number of reasons. Filtering retention data by business manager, worker type or department can reveal any disparities and identify the causes of poor retention of diverse employees, such as too few involved in development programs or not enough employees receiving opportunities to advance.
- Representation (workforce data): The representation of diverse groups within the employee population is a strategic measure that often informs goal setting for the other metrics in the six-pack. For many organizations, this may serve as the beginning of the conversation, and improvements in representation are often mentioned in corporate annual reports. It’s not difficult to achieve the metric itself. Equal Employment Opportunity reporting in the U.S. already brings this measure to light in many cases.
- Succession planning pipeline strength: Succession planning is an important driver of diversity at higher levels in every organization. It is a direct predictor of what the talent mix may look like in senior roles in the future. A continuous and focused succession planning process is acknowledged as a best practice by most companies, yet it continues to present challenges. Chief among them is a need for an objective way to identify candidates for the pipeline.
- Engagement: The first five measures relate to the diversity aspect of the workforce. They ultimately reflect the talent coming through the door, whether that door is an entry into the organization or higher levels within the company. The engagement measure is different. It is aimed at measuring how well that talent is able to work once inside and addresses the inclusion factor. The principle means to measure engagement is an employee survey. Many organizations conduct employee surveys on an annual basis. Exit interviews also add to the equation, although creating a consistent and measurable insight may be difficult. There are validated third party surveys that track an organization’s results, and it’s possible to compare results to external industry trends. Finally, a cultural competence assessment from an expert consulting or talent solutions provider can help pinpoint areas of need throughout the organization based on best practices.
“More companies today recognize the value of a strong diversity and inclusion strategy and its role in creating an effective and competitive workforce; the challenge, however, lies in applying meaningful metrics to drive performance and accountability,” said Peter Vermuelen, head of HR Americas for The Linde Group and author of the report. “To truly leverage the power of a diverse workforce, companies must not only figure out how to attract diverse talent, but also focus on the inclusion aspect – creating a high-performing team of qualified individuals who want to stay with the organization for the long term, feel a part of its culture and see the opportunity to continually grow and advance their careers.”
In-House Recruiting: Best Practices Redefining Talent Acquisition
“This report provides an excellent in-depth analysis of the changing landscape of talent acquisition.” — Jennifer Buchholtz, Global CHRO
“Improving organizational diversity has become a top priority for many organizations, but it’s important to understand that creating a more diverse and inclusive workplace doesn’t happen overnight,” said Audra Jenkins, senior director, diversity and compliance for Randstad Sourceright. “By taking the steps to identify what may be impacting diversity hiring and retention, and introducing the strategies to address these hurdles, companies can achieve a state of continuous improvement.”
One Size May Not Fit All
Despite the report’s emphasis on the importance of diversity at the upper levels of a company, it doesn’t appear to be happening at many organizations.
Across the executive ranks, five times more men than women were appointed to new positions, according to a just released report issued by TRANSEARCH International. Only one fifth of newly appointed CEOs were diverse candidates. Across all executive positions, the CEO role exhibited the lowest ratio of female appointments. Across all industries, seven times more men than women were appointed CEO.
Similarly the TRANSEARCH study found that only one fifth of newly appointed CFOs were diverse candidates. The CFO position nearly matched the CEO’s low ratio of female appointments. Across all executive positions, the CFO role exhibited the lowest ratio of newly appointed executives who were racially or ethnically diverse.
When looking into other senior roles, TRANSEARCH found more encouraging results. Nearly one third of newly appointed CIOs were diverse candidates, a higher ratio than with CEOs and CFOs. But across all industries, nearly five times more men than women were appointed CIO. Across all executive positions, the CIO role exhibited the highest ratio of newly appointed executives who were racially or ethnically diverse.
Just less than half of newly appointed CMOs were diverse candidates, one of the highest ratios of diverse appointments across all executive positions. Two thirds of newly appointed HR executives were diverse candidates. Across all executive positions, HR was the only role to experience a majority of diverse appointments. Three fifths of newly appointed HR executives were female. Despite strong overall diversity numbers, less than 10 percent of newly appointed HR executives were racially or ethnically diverse.
“An approach to diversity that fits one organization may not fit another,” said Mike Morrow, managing director with TRANSEARCH. “Many organizations have sought to increase their mix of diversity employment by implementing mentorship programs – with sponsors in the C-suite – that recruit, develop and retain minority employees.” Others, he added, have cultivated formal alliances with networking associations, professional advocacy groups, and related non-profits.
Contributed by Scott A. Scanlon, Editor-in-Chief, Hunt Scanlon Media