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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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
benefits of a diverse workforce
Benefits of a Diverse Workforce
  • 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
  • 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?
  • 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?
  • 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
  • Who has a stake in the success?
    • CEO
    • Human Resources
    • Recruiting
    • Marketing
    • Community Relations
    • Communications
    • Legal
    • Everyone
aligning diversity efforts1
Aligning Diversity Efforts
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • Diversity council participation, efforts
  • Executives’ diversity activity involvement
  • Board of Directors composition
  • Customer composition
  • Community composition
generational composition studies
Generational Composition Studies

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

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

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
  • 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
  • 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

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
  • 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
  • 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
  • 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
  • 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