DIVERSITY AND ANALYTICS: HOW TO BUILD AND LEVERAGE DIVERSITY TO OUTPERFORM THE COMPETITION ·...

© 2014 MERCER. ALL RIGHTS RESERVED.

DIVERSITY AND ANALYTICS:HOW TO BUILD AND LEVERAGE DIVERSITYTO OUTPERFORM THE COMPETITION

CONFIDENTIALThis presentation contains proprietary methodologies and tools that remain the property of Mercer.© 2014, Mercer

1© 2014 MERCER. ALL RIGHTS RESERVED.

Today’s Presenters

Brian Levine, PhDPartner, WorkforceAnalytics & [email protected]

Tyronne StoudemirePrincipal, Diversity & InclusionMercer

[email protected]

QUESTIONSTo submit a question, use the floating panel on the top ofyour screen and click the Q&A button:

CLICK HERE TO ASK AQUESTION TO “ALL PANELISTS.”

Alina PolonskaiaPrincipal, Diversity NetworksMercer

[email protected]


Agenda

• Introduction: Four Challenges for D&I

• Challenge #1: Moving from Data to Insight

• Challenge #2: Understanding Cultural Impediments and Opportunities

• Challenge #3: Developing Inclusive Leadership

• Challenge #4: Bringing It Together and Sustaining Change

• Closing / Q&A


Why Diversity and Inclusion MattersThe business case

CRITICALITY OFDRIVING PERFORMANCEAND INNOVATION

• Diverse workforces and inclusive workplaces linked to innovation.• Improved culture, greater employee satisfaction and engagement, and

increased discretionary effort linked to financial performance.

INCREASINGLEGISLATION ANDREGULATORY PRESSURE

• Legislation emerging in EMEA and APAC to bolster diversity.• Increased scrutiny from enforcement agencies in the US.• Greater focus on pay equity and board diversity globally.

MANAGING RISK,AND REPUTATION

• External pressure for transparency from NGOs, governmentagencies, and watch-dog groups.

• Companies lacking D&I awareness face expensive discrimination andharassment lawsuits, lower morale, and recruiting/consumer brandrisk.

RAPIDLY CHANGINGDEMOGRAPHICS

• Global nature of workforce demands greater cultural competency.• Aging population globally; several generations in the workplace;

greater awareness of and focus on individuals with disabilities.• Increased purchasing power of diverse groups, including women,

minorities, and the LGBT community.


CHALLENGE #1:MOVING FROM DATA TO INSIGHT


Mercer’s work with the WEF in 2013 identified significant opportunity

Source: The Human Capital Report/WEF 2013


Look Inside: The Internal Labor Market (ILM) Analysis® PerspectiveAn ILM map represents the flow of people into, through, and out

CLIENT EXAMPLE


ILM map illustrating the flow of female talent (as a key talent segment) — women face a“glass ceiling” between levels 6 and 7 and leave the company in high numbers at level 6.

ILM Maps Can Target Particular Workforce SegmentsIn this case, gender

CLIENT EXAMPLE


22%

24%

26%

28%

30%

32%

34%

36%

38%

40%

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Projections Showed that this Organization Would Not AchieveIts Objectives Unless It Improved Hiring, Promotion, andRetention of Women

Projections: % Female Senior Managers 2013-2022

Year

%Fe

mal

e(S

enio

rMan

ager

s)

Baseline

With adjustedpromotion %s

With adjusted hire,promotion, andtermination %s

Aggressive target

With adjusted hire %sWith adjusted term %s


MaleFemale

Men are more likely tobe tightly “clustered” withother men.

Women are more likely to be in“connector” positions with linksto different parts of the network.

Clusters —things we know• Information travels faster

within clusters thanbetween (“old boysclubs?”).

• Networks grow “unevenly”— new members tend toattach to others already ina cluster.Connectors — things we know

• Are in a position to be “brokers” ofrelationships between distant parts ofa network.

• Can be “gatekeepers” that control theflow of information from one part of anetwork to another.

A Network of Senior Managers, by GenderCase example


1. CORRELATIONThe factors are related.

TIME (Directionality)One precedes the other.

Time 1

ISOLATION (Controls)Other factors are ruled.out.

The key is to analyzemultiple variables and thenisolate those that directlyimpact the outcome.

Three conditions must be met to show that one factor drives another:

drives

Span ofControl Retention Span of

Control Retention Span ofControl Retention

Time 2

Gender LOB

Tenure

Statistical Modeling Drives InsightNeed a disciplined approach to find evidence and drive strategy


-12%

-6%

-3%

5%

9%

12%

12%

15%

17%

39%

48%

-21%

-60% -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60%

Stock Option Receipt

Rating: Excellent

Stock Option Value ($60K v $50K)

Base Pay ($70K v $60K)

Tenure in Job (1 more yr)

Non-white

Hired in Yr

Promoted (Grade) in Yr

Female

Rating: Needs Improvement

Levels from Sup (+1)

Sup's Span (+10 EEs)

Percentage difference in turnover probability

CLIENT EXAMPLE

What Actions Will Drive Improved Retention of Women and Minorities?Modeling the drivers of VOLUNTARY turnover


Identifying Areas of Focus and Ensuring Program AlignmentAssessing risk at varying levels to understand systemic risk,improve diversity, reinforce desired program norms

CLIENT EXAMPLE


CLIENT EXAMPLE

Track core metrics, both lagging and leadingDiversity dashboards


CHALLENGE #2: UNDERSTANDING CULTURALIMPEDIMENTS AND OPPORTUNITIES


CulturalDynamics

Internal LaborMarket Dynamics

• Assess cultural dynamics thatpose the most significant risksand opportunities for inclusion

• Measure through interviews,focus groups, and employeesurveys

• Provide further insight onparticular practices andmanagerial strategies

• Assess the opportunity to improvediversity

• Identify the root-cause drivers ofdifferences in advancement, incompensation, in retention

• Track diversity metrics, both laggingand leading, to assess current stateand progress

What employeesand managers

SAY

What employeesand managers

DO

By combining what employees and managers SAY with what they DO, we canobtain a holistic understanding of the facts and can effectively prioritize actions

The Value of Combining Analysis of Your Internal Labor Marketwith Assessment of Cultural Dynamics


Happiness Across Career/Life Stages

Culture AssessmentQualitative research can shed light on employee experiencesand perceptions throughout the life cycle

Inclusion and retention study: Women at the mid-career point are least satisfied and are more likely to leave.

CLIENT EXAMPLE


Culture AssessmentQualitative research can be linked to “hard data analysis” tosupport robust strategies

ABC


CHALLENGE #3: BUILDINGINCLUSIVE LEADERSHIP SKILLS


First-LineSupervisor

Use data tounderstandroot causes

Build trust andmanage one-on-one relationships

Give toughfeedback and

manageperformance

Managerof Managers

Executestrategy

Coach and nurturetalent, and align

teams

Manage conflicts,allocate resources,

and take risks

Executive Createstrategy

Manage complexity,ambiguity, and risk

Make toughchoices

IndividualContributor Build self-

awareness.

Act with empathy Speak up

The Power of Inclusive LeadershipThe Head, Heart, and Guts model


CULTURALAWARENESS

“Me-Centered” AnalysisWhat are my values,beliefs, customs, traditions,styles, biases, stereotypes,and behaviors?(Who am I?)

“Other-Centered”AnalysisWhat are others’ values,beliefs, customs, traditions,styles, biases, stereotypes,and behaviors?

CULTURALKNOWLEDGE

Knowledge AnalysisWhy are my values, beliefs,customs, traditions, styles,biases, stereotypes, andbehaviors the same ordifferent from others?What additional culturalknowledge, awareness,and/understanding do Ineed?

CULTURALSENSITIVITY

Sensitivity AnalysisAm I open to accepting andrespecting differences?Why or why not? What arethe challenges for me?Can I avoid assigningjudgments (be better orworse, right or wrong) tocultural differences? Whyor why not?

CULTURALCOMPETENCY

Competency AnalysisWhat adjustments, both inthe way I think and behave,do I need to make in orderto effectively operate in adifferent cultural cortex?How do I realize the valuethat is inherent in diverseperspectives?

The Power of Inclusive LeadershipCross-cultural competence is one of the most effective toolsin inclusive leader’s toolkit

Definition: Cross-cultural competence is the ability to discern and take into account one’s own andothers’ worldviews; to be able to solve problems, make decisions, and resolve conflicts in ways thatoptimize cultural differences for better, longer-lasting, and more creative solutions


The gap shows our perceived level of intercultural sensitivity is higher than our actual level.(This is common). The goal is to close that gap by increasing our cultural navigation skills.

The Power of Inclusive LeadershipAn example: The Intercultural Development Inventory® (IDI)


CHALLENGE #4: SUSTAINING CHANGE


Sustaining ChangeCompany-specific business case, goals, and metrics are the keyto success

Increasedorganizational capacity for

innovation and growth

Business Strategy

Workforce

Attract,develop, andretain high-

quality, diversetalent

WorkEnvironment

Create aninclusive

organizationalculture

Marketplace

Serve diversecustomers andcommunities

Business Case D&I goals Metrics

Mission and Values


WorkforcePlanning,

Talent Review, andSuccession

Culture andEngagement

Reward andRecognition

BusinessProcesses

Corporate SocialResponsibility/Sustainability

Leadership andEmployee

Development

PerformanceManagement

Talent Acquisition

Change

Sustaining ChangeEmbedding D&I in key business and HR processes and practices


Key Roles Key Attributes

• Coach

• Leader

• Change agent

• Strategic thinking• Business proficiency• Cultural proficiency• Analytical skills• Systems thinking• People management• Political astuteness• Process design• Program execution• Interpersonal insights and

influence

+

Sustaining ChangeLearn from experts and peers – the power of Networks


AN INVITATION


MERCER’S 2014 GLOBAL GENDER RESEARCH — AN INVITATIONA differentiating research framework: not just “best practices”

Our study will investigate how organizations can accelerate their own representation ofwomen and realize greater value — by linking practices to results.

From understanding how women engage in their work and move through their career to considering theirunique health and financial management needs, employers must identify and respond to the critical genderissues impacting their business.

To that end, Mercer is launching a global research effort to benchmark organizational practices in these areasand assess their impact on the representation and advancement of women in the workforce.

ESSENTIAL STRATEGIES FOR TODAY’S GENDER IMPERATIVE:TALENT, HEALTH, AND FINANCIAL WELL-BEING

We will release our research findings and collaborate around solutions atMercer’s inaugural gender conference on November 5-6, 2014, in Washington, DC.


MERCER’S 2014 GLOBAL GENDER RESEARCH — AN INVITATIONBenefits of participation

Early, no-costaccess to the fullwhite paper report,including a customInternal LaborMarket (ILM)®

map, which depictstalent flows foryour organizationand projects futurerepresentation,plus reduced-costaccess to customreports

Preferential pricingfor globalworkplace genderequalitycertificationthrough the EDGECertifiedFoundation, withwhom we arepartnering

Recognition as aprimaryparticipatingorganization inresearch reportsand at ourinaugural genderconference thisNovember 2014

We invite you to participate in this exciting research initiative by June 30, 2014.PLEASE SEND AN EMAIL TO [email protected]


CLOSING / Q&A


What’s Coming Up NextWorkforce analytics webcasts, workshops, and data

www.mercer.com/mercer-workshops

Webcast Serieswww.mercer.com/webcastseries• Cameco• Experian• John Deere• UMass Memorial Health Care• Johnson Controls• Diversity & Analytics• Value of International Assignments (June 25)

Mercer’s WorkforceMetrics Benchmark Reportswww.imercer.com/wmrs• Workforce composition and retention metrics.• 66 countries.• 6,000+ participants.• Regional and custom editions available.

Mercer’s Global D&I Country Factbookwww.imercer.com/products/2013/diversity-factbook.aspx


Questions and Answers

Brian Levine, PhDPartner, WorkforceAnalytics & [email protected]

Tyronne StoudemirePrincipal, Diversity & InclusionMercer

[email protected]

QUESTIONSTo submit a question, use the floating panel on the top ofyour screen and click the Q&A button:

CLICK HERE TO ASK AQUESTION TO “ALL PANELISTS.”

Alina PolonskaiaPrincipal, Diversity NetworksMercer

[email protected]

FEEDBACKPlease take a minute to fill out thefeedback form so we can continue toimprove. It will pop up in a newwindow when the session ends.Thank you!

DIVERSITY AND ANALYTICS: HOW TO BUILD AND LEVERAGE DIVERSITY TO OUTPERFORM THE COMPETITION ·...

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