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Part 1 - Understanding & Constructing Diversity Metrics: Basic & Beyond Part 2 - Diversity Metrics Workshop: Developing Metrics You Can Put Into Practice. Valerie J. Hoffman Seyfarth Shaw LLP. Understanding & Constructing Diversity Metrics: Basic & Beyond. Overview: Diversity Metrics.

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Valerie j hoffman seyfarth shaw llp

Part 1 - Understanding & Constructing Diversity Metrics: Basic & BeyondPart 2 - Diversity Metrics Workshop: Developing Metrics You Can Put Into Practice

Valerie J. Hoffman

Seyfarth Shaw LLP

Overview diversity metrics
Overview: Diversity Metrics Beyond

  • Diversity: what is it?

  • Diversity metrics: what are they?

  • Why should we measure diversity?

  • Aligning your diversity efforts

  • Choosing efforts to measure

  • Choosing diversity characteristics to measure

Overview diversity metrics1
Overview: Diversity Metrics Beyond

  • Qualitative and quantitative measurements

  • Conducting initial assessments

  • Setting legally defensible targets

  • Periodic measurement and progress reporting

  • Using results to fine tune additional or alternative efforts

Affirmative action diversity
Affirmative Action & Diversity Beyond

  • Affirmative Action

    • Actions taken to ensure nondiscrimination of females, minorities, veterans, and individuals with disabilities

    • Mandated by law

  • Diversity

    • A bigger picture

    • Embraces each trait that makes us unique

    • Not mandated by law

Defining diversity
Defining Diversity Beyond

  • Workforce Diversity- group and situational identities of workers by:

    • EEO characteristics: race, color, ethnicity, sex, age, religion, disability, veteran status

    • sexual orientation

    • family & marital status

    • economic background & status

    • geographical background & status

Defining diversity1
Defining Diversity Beyond

  • Behavioral Diversity-identity of the worker in his/her:

    • styles of work, thinking, learning, communication

    • aspirations

    • beliefs/value system

    • employee attitudes & expectations

Defining diversity2
Defining Diversity Beyond

  • Structural Diversity- identity of the worker or group according to:

    • worker status: full-time, part-time, temporary

    • organizational role: management, white & blue collar functions

    • division

    • parent company or subsidiary

    • strategic alliances & cooperative ventures

Defining diversity3
Defining Diversity Beyond

  • Business & Global Diversity- identity of the business in its:

    • expansion & segmentation of customer markets

    • types of products & services

    • operating environments

      • legal & regulatory

      • labor market realities

      • community & societal expectations/relationships

      • business cultures & norms

© 1996 BeyondImplementing Diversity by Marilyn Loden

Benefits of a diverse workforce
Benefits of a Diverse Workforce Beyond

  • Increase in productivity; optimizing performance

  • Reduced turnover

  • Improving teamwork

  • Attractive to talented candidates

  • Enhancing the success of acquisitions

Benefits of a diverse workforce1
Benefits of a Diverse Workforce Beyond

  • Improving global competency

  • Improving your organization’s perception in the eyes of your customers

  • Improving your organization’s reputation within the community

  • Strengthening EEO and Affirmative Action performance

Why measure diversity
Why Measure Diversity? Beyond

  • Baseline: where we begin

    • indicates strengths

    • indicates gaps

    • assists setting of priorities

    • helps drive diversity strategy

    • directs attention toward key focus areas

Why measure diversity1
Why Measure Diversity? Beyond

  • Progress reports

    • allow progress to be measured year-over-year and quarterly

    • help direct resources to areas of most need

    • reality check: are there other barriers?

    • diagnostic tool for reassigning resources

  • Consider establishing accountability measures for leadership

Aligning diversity efforts
Aligning Diversity Efforts Beyond

  • Who has a stake in the success?

    • CEO

    • Human Resources

    • Recruiting

    • Marketing

    • Community Relations

    • Communications

    • Legal

    • Everyone

Aligning diversity efforts1
Aligning Diversity Efforts Beyond

  • Marketing plans

  • Recruiting and talent identification

  • Employee development plans

  • HR & Compensation department

  • Affirmative action management

  • Diversity management

  • Public relations communications

Coordinating efforts metrics
Coordinating Efforts & Metrics Beyond

  • Agreement, if possible

    • Who measures what

    • Who shares what with whom

    • What should have limited distribution

    • Use of attorney-client privilege

Choosing efforts and characteristics to measure
Choosing Efforts and Characteristics to Measure Beyond

  • What is most important for your organization?

    • employee

    • customers

    • community

  • What data do you have?

  • What data is readily available?

  • What data is lawful to collect?

    • Limitations in non-US locations

    • Privacy concerns

Measurement pitfalls
Measurement Pitfalls Beyond

  • Lack buy-in from leadership

  • Measuring too much or not enough

  • Not aligning measures with program objectives

  • Not able to compare progress year-over-year

  • Inconsistent measurement practices

  • Low data integrity or statistical errors

  • Legal issues

  • Quotas

Keys to success
Keys to Success Beyond

  • Consider data integrity a key issue

  • Use both quantitative and qualitative measures

  • Develop measures that are aligned with your diversity strategy

  • Go slowly; less is more at first

  • Consistency

Basic quantitative metrics
Basic Quantitative Metrics Beyond

  • Workforce Demographics

    • Race, Ethnicity, Gender

  • The “Super AAP”

    • Quarterly progress

    • Year-over-year trends

    • By business unit and department

    • By job level

Workforce demographics
Workforce Demographics Beyond

  • Employee composition v. external availability

  • External applicants v. hiring

  • Employee composition v. external applicants v. hiring

  • External applicants v. internal applicants

  • Internal applicants v. promotions

Workforce demographics1
Workforce Demographics Beyond

  • Internal & external applicants v. placements (hires & promotions)

  • Promotions v. feeder jobs composition

  • Voluntary terminations v. employee composition

  • Involuntary terminations v. employee composition

  • Compensation (base, bonus, perks)

Advanced workforce demographics
Advanced Workforce Demographics Beyond

  • Performance ratings v. employee composition

  • Performance ratings v. employee compensation

  • Performance ratings v. performance improvement plans

  • Training opportunities v. employee composition

  • Developmental opportunities

  • High profile/visibility opportunities

  • Global assignment opportunities

Advanced workforce demographics1
Advanced Workforce Demographics Beyond

  • High potential list composition

  • High potential list v. feeder jobs

  • Comparative success of multiple year HiPo’s

  • Analysis of reasons for involuntary terminations

  • Analysis of reasons for voluntary terminations

Other advanced quantitative metrics
Other Advanced Quantitative Metrics Beyond

  • Management level composition & movement

  • Generational composition & movement

  • Sexual orientation composition & movement

  • Flexible work arrangement participation

  • Employee resource/ affinity group participation

Other advanced quantitative metrics1
Other Advanced Quantitative Metrics Beyond

  • Diversity council participation, efforts

  • Executives’ diversity activity involvement

  • Board of Directors composition

  • Customer composition

  • Community composition

Generational composition studies
Generational Composition Studies Beyond

For employee development & turnover issues

Caveat: evidence of age discrimination?

  • Traditionals: born between 1928-1945

  • Baby Boomers: born between 1946-1964

  • Generation X: born between 1965-1980

  • Generation Y: born between 1981-2000

Qualitative metrics diversity activities
Qualitative Metrics: Diversity Activities Beyond

Can evaluate (by grading or pass/fail) quality of effort & results of business unit or department:

  • Diversity strategy developed

  • Diversity message communicated

  • Diversity on meeting agendas

  • Diversity in succession planning, HiPo pool development

Qualitative metrics diversity activities1
Qualitative Metrics: Diversity Activities Beyond

May also evaluate quality of diversity activities by:

  • surveying participants and reporting areas of consensus and their comments

  • incorporation of suggestions as improvements to future activities enhance credibility of efforts

Other advanced quantitative qualitative metrics external talent
Other Advanced Quantitative & Qualitative Metrics: External Talent

  • Success in sourcing diverse candidates

    • Job boards

    • Colleges & universities

    • Employee referrals

    • Diversity activities

    • Internships

    • Agencies & search firms

    • Add return on investment analysis

Other advanced quantitative qualitative metrics customers community
Other Advanced Quantitative & Qualitative Metrics: Customers & Community

  • Community

    • diversity in charitable giving

    • increases in supplier diversity

      • number of suppliers v. total

      • dollar value v. total

      • percentage of supplier dollar value

  • Customers

    • increase in sales to/revenue from diverse communities

Establishing a process for progress
Establishing a Process for Progress & Community

  • Conduct initial assessments of chosen metrics

  • Set legally defensible targets, not quotas

    • Best practice: Inclusion, not preferences

    • Most lawyers say, “Composition goals safest at no more than 100% of availability”

    • If you adopt preferences, must have

      • “Manifest imbalance” and

      • a narrowly tailored remedy by

      • scope and a

      • limited timeframe

Establishing a process for progress1
Establishing a Process for Progress & Community

  • Periodic measurement and progress reporting on achievement of targets

    • including individual manager report

    • for business unit and department

  • Fine tune over time by adding alternative measurements or eliminating ineffective ones

    • consider metrics a “work in progress”

    • learn what is useful and motivates without being unlawful

Diversity report for managers
Diversity Report for Managers & Community

Sample of Basic Report for each VP’s business unit and each department

  • are we attracting diverse talent?

    • metric: employee composition v. external availability

  • are opportunities flowing to everyone who seeks them?

    • metric: internal & external applicants v. placements

Diversity report for managers1
Diversity Report for Managers & Community

  • do we have turnover issues?

    • metric: involuntary & voluntary terminations v. group composition

  • am I & my direct reports supporting employee diversity activities?

    • metric: internal activities report for each

  • to what improvements in diverse recruiting, or customer & community relations am I & my direct reports contributing?

    • metric: external activities report for each

Advanced diversity report for senior managers hr
Advanced Diversity Report for Senior Managers & HR & Community

  • is our performance rating system evenhanded and aligned with our compensation system?

    • metric: performance ratings v. compensation

  • are training & development opportunities & our identification of management talent inclusive?

    • metric: employees selected for training, developmental opportunities and high potential list

    • additional metric: HiPo list composition v. composition of feeder jobs

Advanced diversity report for senior managers hr1
Advanced Diversity Report for Senior Managers & HR & Community

  • is everyone on our high potential list able to succeed?

    • metric: comparative numbers of promotions of HiPo’s on list for multiple years

  • why are we losing employees?

    • metric: analysis of reasons for involuntary & voluntary terminations

    • additional metric: analysis of exit interviews for additional qualitative data

Legal issues
Legal Issues & Community

  • Goals & targets are NOT quotas

  • Measurement= Evidence; be prepared to remedy problems of unlawful discrimination found

  • Beware of bonus programs to reward diversity activities

  • Employee morale issues of those who feel excluded can cause other legal issues

  • Generation studies may be problematic