A Bridge to Tomorrow 75th Annual NHRMA Conference & Tradeshow Presented by 2012 APTMetrics, Inc. Putting the "Diversity Lens" on Talent Management NHRMA October 2013 2012 APTMetrics, Inc. Learning objectives for the session • Recognize why checklists and benchmarks are not powerful approaches to managing diversity. • Identify how a “diversity lens” can be applied to the company’s talent management challenges. • Leverage current talent management processes to yield data that facilitates inclusion. • Apply the key principles of diversity measurement to identify more meaningful metrics that will drive effective talent development and staffing. 3 CONFIDENTIAL Setting the Context 4 CONFIDENTIAL Evolution to maturity: The D&I journey 5 CONFIDENTIAL D&I and TM: Where we are today • Many, individual, effective programs and initiatives • In some organizations, leadership involvement and accountability • Mentoring, sponsorship recognized as effective • Examples of leveraging employee networks for talent identification and development • Progress in some companies, for some under-represented groups, in advancement to leadership roles; retention remains a challenge • Focus shifting from diversity to “inclusion” and “cultural competence” • Greater awareness of the talent management diversity connection • Few innovations in measurement of progress 6 CONFIDENTIAL Question Where are you on your diversity and inclusion path? 7 CONFIDENTIAL Convergence of TM and D&I Globalization of Talent Management Necessity for Organizational and Individual Cultural Competence 8 Changing Workforce Profile and Employee Expectations CONFIDENTIAL Result: A requirement for talent management processes that leverage the power of all types of diversity and develop leaders capable of creating an inclusive environment that will engage, nurture and reward a multi-cultural, multi-national, and multi-generational workforce. Where to go next? We’ll consider the common talent management processes most organizations execute: • Recruiting • Selection • Development • Performance management And identify how a “diversity lens” applied to each can yield insights about an organization’s D&I posture. Talent Management 9 Diversity & Inclusion CONFIDENTIAL Recruiting • The D&I challenge: Finding pools of talent; engaging in outreach that generates a qualified and diverse applicant pool. • Talent management process: development of job specifications and descriptions/job postings 10 CONFIDENTIAL Recruiting challenges • Jobs demands are misspecified. • Job descriptions and postings are one-offs, subject to the influence of a single manager. • Assumptions regarding the skills needed are not challenged or vetted, often resulting in an overqualified and demotivated workforce. 11 CONFIDENTIAL Job analysis as a D&I intervention • Client is a national fine dining restaurant chain. • Interested in benchmarking skill requirements and finding new sources of talent. • Job analysis determined and validated skill and experience requirements. • These were then compared to DOL labor estimates in major metropolitan areas (counties) by SOC codes. 12 CONFIDENTIAL Improved diversity measurement Table 5. Estimated fine dining workforce assuming staffing levels 40% higher than restaurants in general. Geography Baltimore (county), MD Baltimore (county), MD Multnomah, OR Multnomah, OR Cook, IL Cook, IL San Francisco, CA San Francisco, CA Los Angeles, CA Los Angeles, CA King, WA King, WA Occupation Waiters and Waitresses (411) SOC 35-3031 Waiters and Waitresses (411) SOC 35-3031 Waiters and Waitresses (411) SOC 35-3031 Waiters and Waitresses (411) SOC 35-3031 Waiters and Waitresses (411) SOC 35-3031 Waiters and Waitresses (411) SOC 35-3031 Waiters and Waitresses (411) SOC 35-3031 Waiters and Waitresses (411) SOC 35-3031 Waiters and Waitresses (411) SOC 35-3031 Waiters and Waitresses (411) SOC 35-3031 Waiters and Waitresses (411) SOC 35-3031 Waiters and Waitresses (411) SOC 35-3031 Sex Male Female Male Female Male Female Male Female Male Female Male Female Black & Asian & AIAN & Balance White Asian NHOPI White White White AIAN & 2+ Races, nonBlack non- nonnonAIAN non- nonnonnonBlack non- nonTotal Hispanic Hispanic Hispanic Hispanic Hispanic Hispanic Hispanic Hispanic Hispanic Hispanic Hispanic 104.3623 72.3135 6.4505 11.543 8.827 0 0.679 1.0185 0.2716 0.2716 0.2716 2.716 197.7927 173.824 4.4135 12.5615 5.7715 0 0.679 0 0 0.2716 0 0.2716 116.4485 91.3255 11.543 2.037 5.7715 1.0185 1.358 0.679 0 1.0185 0 1.6975 268.1371 214.564 15.9565 4.753 17.3145 1.0185 0.679 0.2716 2.037 4.074 0 7.469 727.888 309.9635 251.23 85.2145 53.641 0 2.037 2.037 3.0555 0.679 0 20.0305 1248.545 800.8805 210.8295 147.343 65.184 0.2716 2.716 1.358 3.395 4.074 0.2716 12.222 244.44 109.6585 34.629 7.1295 83.517 2.037 1.0185 0.679 2.037 0.679 0 3.0555 229.7736 99.813 25.802 4.753 89.9675 1.0185 1.6975 0.2716 1.0185 0 0 5.432 1267.014 456.6275 534.7125 45.493 185.0275 1.0185 3.7345 2.3765 7.8085 1.6975 0.679 27.839 2061.105 877.268 696.3145 70.9555 335.426 2.037 8.4875 6.111 16.296 9.506 1.0185 37.6845 267.4581 171.108 33.6105 7.469 38.3635 2.3765 0.2716 3.0555 5.0925 1.6975 0 4.4135 501.102 347.3085 39.382 10.5245 67.5605 1.0185 8.4875 3.7345 6.79 6.111 0 10.185 • Allowed us to model for the client the impact of various skill demands on diversity metrics. • Gave the client a more insight into their true diversity posture. 13 CONFIDENTIAL Job analysis for internal talent mobility • Jobs that previously were considered very different were found to have the same underlying skills sets; markedly opened an internal talent pool, increased career options, and improved diversity representation. 14 CONFIDENTIAL Selection • The D&I challenge: using valid selection tools that don’t product adverse impact while casting as wide a net as possible. • Talent management process: implement interviews and assessment tools to facilitate hiring. 15 CONFIDENTIAL Selection challenges • Selection processes are often unvalidated and prone to subjective biases. • The most predictive tools also produce adverse impact. • There is a good deal of misinformation regarding proper selection tools; bad money drives out good money. • Good assessment tools have traditionally been expensive. 16 CONFIDENTIAL PepsiCo’s response Enterprise and regional HR/OMD will collaborate to identify talent to be assessed as well as target development activities post-assessment; program participants will have a suite of development options available to them Participant Identification • Enterprise & Regional HR/OMD identifies participant • Communicate to key stakeholders Orientation & Prework • Explanation of process and expectations • Arrangements of schedule/logistics • Prework provided Assessment • Components vary with level: •Simulations •Interviews •Psychometrics Evaluation & Integration • Vendor evaluates components and integrates findings Strategic Talent Review Facilitated talent review session with senior leaders to review bench Participant Feedback • One-on-one session with participant, coach, and internal sponsor • Initial action plan established Coaching 17 Stretch Assignments Online Learning CONFIDENTIAL Executive MBA Programs PepsiCo University Programs Online, realistic assessment 18 CONFIDENTIAL True to life cognitive challenges 19 CONFIDENTIAL Development • The D&I challenge: Fielding development interventions that prepare diverse talent for future roles and improve the inclusion climate in the organization. • Talent management process: design courses based on competencies; get butts in seats 20 CONFIDENTIAL Development challenges • As it is typically implemented, development often doesn’t work. Measurement is generally poor. • Little attention paid to the ROI of development or measurement of its affect on diversity and inclusion goals. • Training is the primary mode of delivery; getting butts in seats is expensive. 21 CONFIDENTIAL What works; What doesn’t From Frank Dobbin, Evidence-Based Diversity Management: What works in Corporations, Military Leadership Diversity 2010 From Commission, Frank Dobbin,June Evidence-Based Diversity Management: What works in Corporations, Military Leadership Diversity Commission, June 2010 22 CONFIDENTIAL Mentoring Does Make a Difference Relationship 23 CONFIDENTIAL Leadership Development Programs: A source of disadvantage? • Development models assumed to be gender neutral, but • Most LD programs and informal coaching reinforce skills women are already good at (e.g., Engage Others) when… • 50% of criteria used in evaluating C-level candidates are in areas of business, strategic and financial acumen (Outcomes)– areas in which bosses rate men as outperforming women From Talent Development and Women’s Advancement: 4 Ways Gender Bias Constricts Your Talent Pipeline, a study led by Susan L. Colantuono, CEO, Leading Women. 24 CONFIDENTIAL Challenge: Barriers to Advancement Vary for Different Groups -- and in Each Organization Non HQNs Minorities Women 20% 40% Exclusion from informal networks Different leadership style Lack of visibility to senior leaders Lack of HQ or other language capability Org. unsupportive of work/life balance Managers unwilling to take risk on… Bias on part of managers Difficulty finding powerful mentors Unwillingness to promote themselves Lack of formal devel prgs at local level Unwillingness to request development Lack of credibility with clients 0% % of companies reporting 25 Source: Talent Management Practices for a Diverse Leadership Team, study conducted by Mercer (ORC Worldwide) CONFIDENTIAL for Industrial Relations Counselors, Inc., 2009 60% Measuring the impact of D&I talent interventions Example: Peer Mentoring Across Differences (Gender/Race-Ethnicity) for Sales Representatives D&I Goals: Increase cultural competency of all sales representatives, retain “diverse” reps, improve customer satisfaction for targeted diverse groups, and increase company’s % of share in diverse markets Testable ‘model’ • • D&I Intervention = Mentoring Engagement ↑ Retention ↑ • • Customer Satisfaction ↑ Customer Diversity ↑ Methodology Outcome Measures Input Measure: Assessment of cultural competency of program participants Time • • • • Cultural Competence Retention Customer Sat Customer Diversity Pre-mentoring program baseline competency assessment Re-assessment Re-assessment Re-assessment 0 1 2 3 Results Cul Competence Retention Customer Sat Time 0 26 Time 1 Time 2 CONFIDENTIAL Time 3 Customer Diversity Performance management • The D&I challenge: Ensure that performance ratings are job related and fair. • Talent management process: deliver the forms and training, ensure administrative compliance, collate the results and coordinate with Compensation. 27 CONFIDENTIAL Performance management challenges • Performance dimensions are often not validated. • Ratings are generally dependent on one manager; inconsistent calibration. • Subject to biases: leniency, strictness, halo. • Data are not analyzed from a diversity perspective. 28 CONFIDENTIAL Bias in performance assessments 2.5 2.45 2.4 Mean Rating 2.35 2.3 (d = -.30) (d =.36) African American Rater White Rater 2.25 2.2 2.15 2.1 African American White Ratee Ethnicity 29 CONFIDENTIAL African American employees were rated significantly lower by White raters than by African American raters (d = -.30, p < .05), whereas, White employees were not rated differently by White and African American raters (d = .04, ns). White raters rated White employees significantly higher than African American employees (d = .36, p < .01), whereas, African American raters did not rate White and African American employees differently (d = .06, ns). Sodexo 30 CONFIDENTIAL Summary • Applying a “diversity lens” to existing TM processes can improve diversity and inclusion metrics without burdening the organization with another program. • Data are available on what works and what doesn’t; can be gathered internally or can be found in the research literature. • A little insight and data go a long way; with forethought, the value of D&I interventions can be readily demonstrated. 31 CONFIDENTIAL For more information, contact: Robert E. (Bob) Lewis, Ph.D. Vice President APTMetrics, Inc. 704 228th Ave. NE #502 Sammamish, WA 98074 [email protected] Mary L. Martinéz Diversity & Inclusion Practice Leader APTMetrics, Inc. 4625 Highway A1A, Suite 3A Vero Beach, FL 32963 [email protected] www.APTMetrics.com Global Strategies for Talent Management 32 CONFIDENTIAL
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