N ATION AL URBAN LE AGUE

Diversity Practices
That Work:
The American Worker Speaks
Diversity Practices That Work:
The American Worker Speaks
For more than 40 years, corporations across the nation
have invested a great deal of energy and resources in
the area of diversity. Today diversity is not only part
of the culture of many corporations but a core business
strategy as well. Yet the business community has
struggled to develop a meaningful measure of the
effectiveness of diversity and inclusion programs.

We believe this report is the most comprehensive study

to date of employees’ attitudes regarding programs and
policies designed to foster diversity and inclusion.
By determining what employees value and appreciate,
the National Urban League hopes to provide some
frequently requested guidance to American businesses
that are looking not only to do the right thing but to
do it the right way.

Enterprise Rent-A-Car funded this study.

 Contents
Preface Effective Diversity Practices (EDP)
2 Letter From the National Urban League Companies
2 Key Concepts and Definitions 15 Highly Productive Organizations
15 Greater Diversity Commitment
Executive Summary 16 A Different World of Work
3 Why This Study? 18 Perception Gap Among Employees
3 For Whom? 19 Company Comparisons
4 How Was the Study Done?
4 Key Findings Effective Diversity Practices Shared
4 Keys to Successful Practices 20 Marketing to Diverse Customers and Consumers
21 Retaining Diverse Talent
Introduction 23 Recruiting Diverse Talent
6 What Sets This Study Apart? 24 Leadership Commitment and Involvement
26 Inclusive Culture and Values
27 Diversity Education and Training
The American Worker 28 Community Involvement
7 The American Worker Defined 29 Advancing Diverse Talent
7 The Voice of the American Worker — 30 Career Development for Diverse Talent
A Measure of Effectiveness 31 Diversity Employee Communications
7 What Does the American Worker Think 33 Employee Involvement
About Diversity? 34 Supplier Diversity
8 What’s Important? 35 Performance Accountability and Measurement
9 No Sources of Strength –– Tremendous Room 37 Recap: Themes and Tactics
for Improvement
9 What’s Up With the Boss?
10 Unfavorable Responses From Men and Women
Appendix
11 Low Marks Across Races and Ethnicities 38 Making Diversity Work in Your Company
12 Unfavorable Perceptions Across Generations 38 What’s Next?
12 Poor Marks From Coast to Coast 38 Methodology and Approach
13 Size Does Matter 40 About the National Urban League
13 What’s at Risk? 40 About the Author
14 Keys to Success 40 Acknowledgments

The American Worker Speaks PAGE 1

 Preface
Dear Reader:
Diversity. Both the word and its meaning have become It’s important to note that the companies participating in
integral to the social and business landscape of America, this study who had diversity practices that employees
redefining work force development, employee expectations, deemed more effective also boasted a productivity rate that
and corporate practices. Now more than ever, as our country exceeds that of the overall American economy by 18 percent.
becomes more culturally and ethnically diverse, we must This indicates that diversity is not only good for people, but
determine the effectiveness of corporate programs intended to also good for business. This study provides vital information
improve diversity, inclusion and, ultimately productivity in for companies seeking to forge good diversity programs that
the American workplace. The generous support of Enterprise impact the bottom line.
Rent-A-Car has made possible the new National Urban
As the country’s largest and oldest community-based
League study, Diversity Practices That Work: The American
organization devoted to ensuring opportunity and equality
Worker Speaks, which examines the current environment
for African-Americans and all people of color, the National
while featuring programs that really work.
Urban League can assist American businesses in developing
This groundbreaking study of more than 5,500 American the skills necessary to manage and cultivate diversity and
workers provides new and helpful data on the effectiveness inclusion programs that are highly regarded by the employees
of corporate diversity programs from the perspective of the they are intended to impress. The best business leaders will
frontline employee, as well as the business leader. Why are listen closely to their employees and redirect, reinvigorate,
both important? Because, when asked what they think, most and redeploy diversity programs that workers find most
workers in our study say they believe diversity is good for meaningful. We believe that Diversity Practices That Work:
business … but that their employers do not have an effective The American Worker Speaks will help American businesses
diversity initiative. Further, in those companies that have of all sizes create and support the effective recruitment,
diversity programs, there often is a notable difference retention, and career-development activities that will enable
between the diversity practices that managers believe are all people to truly feel valued and included. Such steps will
effective and those that employees value. result in a workplace that is not only more diverse, but also
more successful.
Regards,

Marc H. Morial
President and CEO
National Urban League

Key Concepts and Definitions

At the outset of this report, it is important to define a few Effective Diversity Practices Company Employees:
key terms or concepts that are used throughout. Employees who work for the Effective Diversity Practices
Companies participating in this study.
American Workers: The nationally representative and
statistically projective panel of employees working across Diversity: While there are infinite ways in which individuals
the full spectrum of the American work force. and groups of people can differ from one another, for the
purposes of this study, our emphasis will be differences in
Effective Diversity Practices (EDPs): The diversity strategies, race and ethnicity, gender, job type, and age.
initiatives, and actions that employees of participating
companies perceive most favorably. Diversity Practices: The company’s strategies, initiatives,
and actions that are intended to enhance its productivity
Effective Diversity Practices Companies: The companies and business outcomes by fostering diversity and inclusion.
participating in this study that enjoy favorable employee
responses to the company’s diversity strategies, initiatives,
and actions.

PAGE 2 Diversity Practices That Work:

 Executive Summary
Why This Study? For Whom?
Over the past 40 years, many corporations have invested a This report has been written for a wide range of readers
great deal of energy and resources in the area of diversity. including:
The efforts mainly have come under several strategic initia-
Corporate executives.
tives, including affirmative action, appreciating and valuing
Diversity or human resources practitioners.
differences, and the current managing inclusion. In fact,
many companies have established diversity as a core business
American Workers.
strategy, designed to generate success with consumers or In fact, all people associated with a company or organization
customers, employees, and the broader community. As a result — large or small, in any industry — can find value in this
of their efforts, many companies have obtained external report as long as they share our interest in increasing the
recognition of their efforts, including being listed among the effectiveness of diversity programs within their organizations.
best companies for diversity — overall, for minorities, for
women, and for other groups. While some companies receive Executives can find a framework for comparing the status
ongoing recognition for their efforts, we find that many and effectiveness of diversity initiatives at their companies
employees at these companies wonder how and why their with those in other businesses, including an understanding
employers win these honors. that their perceptions as senior managers tend to be different
and more favorable than those of employees overall.
“I know that my company is considered one of Human Resources and diversity practitioners can find a
the best places to work. I sure wish this were framework for measuring effectiveness, as well as ideas
reflected in my experience as an employee.” and potential initiatives that can be applied in their own
organizations for accelerated progress in diversity.
— An American Worker
Individual American Workers also can find ideas for making the
work environment more inclusive for themselves and others.
In fact, our research suggests that despite significant efforts
They can share these ideas with their direct managers or
among companies in total, only 32 percent of American
with their company resources charged with the responsibility
Workers believe that their company has an effective diversity
of leading diversity.
initiative. Given the significant efforts — and the passage of
40 years since the start of this journey — this low approval While we designed this report for a broad audience, we
rating should serve as a wake-up call to everyone associated believe that it will be most valuable to the executive,
with a contemporary corporation. practitioner, or individual in an organization that is
motivated to make progress on its diversity journey, but an
We implemented this study on Effective Diversity Practices
organization that has yet to establish itself in the leading
knowing that diversity is a high priority of today’s corporations
edge. That’s because the research and the identified diversity
and that there is a general interest in making diversity
practices contained in this report have demonstrated their
strategic initiatives more effective. By leveraging the
ability to enhance employee perceptions and can be easily
experience and learning from the practices of others, we
applied to accelerate progress elsewhere.
intend for this report to serve as a basis for improving current
diversity practices within companies and for encouraging
additional companies to pursue diversity as a core business
strategy. To that end, we seek to answer the following four
fundamental questions:
1. What do American Workers think about diversity?
2. How do perceptions of employees in Effective
Diversity Practices Companies compare with
American Workers overall?
3. What diversity practices drive favorable employee
perceptions?
4. How can other companies put to work these Effective
Diversity Practices?

The American Worker Speaks PAGE 3

How Was the Study Done? Keys to Successful Practices
The methodology used to identify effective diversity practices It is clear that Effective Diversity Practices Companies have
included four phases: the following characteristics in common:
1. We established a diversity framework, including 13 themes, Leadership. Leaders demonstrate a personal commitment to
to evaluate diversity practices. diversity and hold themselves and others accountable.
2. We surveyed the voices of American Workers regarding
Leadership’s involvement goes far beyond the programmatic
diversity. efforts. There is a personal commitment to diversity that
3. We surveyed the voices of employees and audited the starts at the top — with leaders setting goals and driving
diversity practices of eight participating companies. the direction of the efforts over time — in the same way that
4. We analyzed the data to identify Effective Diversity leaders drive other performance of their business units.
Practices — those that generated favorable employee
Leaders develop goals (not quotas) and business plans to
perceptions — highlighting key steps on how to make these enhance the representation at all levels of the organization.
practices work in other companies and organizations.
Management review and succession plans are forward-
looking and diversity-sensitive and undergo review by
Key Findings company leadership quarterly or semiannually.
Based on our research, we have reached the following
Leaders sponsor diversity councils and affinity groups, pro-
conclusions: moting broad employee involvement in diversity programs.

Unfavorable Views at Many Companies. Although they
consider the subject of diversity important, American Workers Training and Reinforcement. Effective diversity training
often view diversity initiatives at their own companies increases diversity awareness and provides skills that can be
unfavorably. In fact, fewer than one-third of American used to improve business results.
Workers believe their company has an effective diversity
A curriculum of diversity training and education (as
initiative. opposed to a single awareness course) begins with new-hire

No Sources of Strength. Across the 13 diversity practice orientation and continues to focus on skill development
themes, American Workers perceive that their companies throughout the employees’ career progression, up to and
have no strengths but have many opportunities for including the appointment of corporate officers.
improvement.
Employees earn rewards and recognition for their

Executives Are More Favorable. Perceptions of executives are contributions in diversity.
more favorable than those of other employees. This is an Recruiting. There is an established track record for recruiting
important reminder that executives tend to view their people of diverse backgrounds.
companies through different, perhaps rose-colored glasses.
Many successful companies establish and maintain long-
However, even among executives, perceptions are rather term partnerships with universities and other recruiting
low. In particular, few executives perceived Leadership sources and highlight the success of employees who are
Commitment and Involvement as an area of strength. alumni or active members.

Sound Diversity Investments Lead to Enhanced
Perceptions. Employees of participating Effective Diversity External Outreach. Companies succeed by extending diversity
Practices Companies view diversity far more favorably than efforts and input to outside communities.
American Workers overall — likely the result of the significant
Efforts encourage diversity among suppliers by expanding
resources that EDP Companies have invested in diversity. the pool of vendors considered for purchasing, including

Effective Diversity Programs Are Associated With Higher mandatory inclusion of diverse suppliers, directly or
Productivity. Over the past four years, the EDP Companies indirectly, in the procurement process.
participating in this study have collectively generated
Marketing targets diverse customers. Dedicated departments
18 percent greater productivity than the American economy and financial resources focus on developing business
overall. In addition, three-fourths of them have generated among targeted diverse consumers.
productivity results that are in line with or better than
External advisory councils provide perspective to companies
select competitors. This suggests, at a minimum, that in the areas of marketing and product development,
diversity progress has no cost in productivity, but instead human resources, and community relationships.
may enhance it, as effective diversity practices are simply
good leadership and management practices.

PAGE 4 Diversity Practices That Work:

Big Picture. Successful EDP Companies are committed to
diversity as a long-term business strategy.

In fact, the EDP Companies have engaged in diversity-
related efforts for more than 20 years, on average. Their
efforts are broad, strategic, and holistic in nature.

There is a realization that there is no simple, single
answer to achieve progress in diversity. Instead diversity
and inclusion are long-term business strategies that, like
other core strategies leading to business success, require
comprehensive and integrated management.
Of all the keys to success mentioned, none is more important
than commitment and involvement of leadership. In the
words of one executive of an EDP Company:

“Leadership commitment has to be real, not

ceremonial. It’s not about face time or programs.
It’s about seeing people as individuals and
providing active sponsorship of people who
have demonstrated ability. It means being an
advocate, interceding where appropriate, and
ensuring that the company’s processes work for
and are inclusive of all people. Most important,
we as leaders must do this work ourselves.
Diversity can’t be delegated.”
— Executive at an Effective Diversity
Practices Company

We hope this report will lead to:

Increased ownership and commitment to diversity and
inclusion by corporate executives.

Establishment of common practices and a methodology for
measuring effectiveness of diversity initiatives among
human resources and diversity practitioners.

Development of new ideas and greater involvement of
individual employees to create more diverse and inclusive
cultures within their companies.

Evaluation by job seekers of a company’s diversity efforts,
making diversity progress a criterion for qualified applicants
to join (or not join) a company.

The American Worker Speaks PAGE 5

 Introduction
What Sets This Study Apart? Employee Opinion as Measure of Effectiveness. This study
focused on the perceptions of employees, as opposed to
Several characteristics make this study unique, including practitioners, to measure the effectiveness of diversity
the following: initiatives.
Number of Persons Surveyed. This study leverages the broad Emphasis on Practices vs. the Practicing Company. This
and inclusive perspectives of the American Worker. The study study focuses on the company practices that have generated
compiled more than 5,500 surveys among American Workers, favorable employee responses, as opposed to the practicing
including those who are representative of the American company. This allows us to place a greater emphasis on
Worker nationally, as well as those representing employees identifying and sharing the Effective Diversity Practices
at eight Effective Diversity Practices Companies. We believe that can be put to work in other organizations.
that this is a far more comprehensive sample than other
surveys in this field. Extensive Diversity Survey. This study uses a comprehensive
95-item survey (six times as many items as the average survey)
Nationally Representative Subsegments. This study has across 13 theme areas, all focused on the subject of diversity.
nationally and statistically representative samples of the This provides for a deeper understanding of what’s working
several segments of the American Worker population, and why.
including race and ethnicity, gender, and job level. In
particular, we have collected a nationally representative
database of the Native American Worker — a first in the
area of diversity research.

PAGE 6 Diversity Practices That Work:

 The American Worker
The American Worker Defined Building on the work of Wiley and others, we presuppose that
a company’s diversity practices directly impact the perceptions
The American Worker profile comes from a randomly selected
of employees. This makes the American Worker’s voice critical
panel of employees who are statistically representative of the
not only in evaluating the effectiveness of diversity initiatives
American work force. The panel includes representative sub-
but also in reinforcing the business case for adopting diversity
segments of a variety of diversity dimensions including:
leadership and business practices that positively enhance the

Gender: men and women. perceptions of employees’ and, ultimately, the organization’s

Race and Ethnicity: African-Americans, Asians, performance outcomes. Our focus in this study is on the link
Caucasians, Hispanics/Latinos, and Native Americans. between diversity practices and employee perceptions.

Job Level: executives, managers, salaried employees, and
hourly employees. Customer

Age: 18 – 34, 35 – 54, and 55-plus. Diversity Employee
Practices Perceptions and Business

Company Size: <20 employees, 20 – 99 employees, Outcomes
100 – 499 employees, 500 – 4,999 employees,
5,000-plus employees.

Region: Northeast, South, Midwest, and West. What Does the American Worker
The voice of the American Worker includes persons from
Think About Diversity?
a wide variety of companies, ranging in size from large American Workers recognize the value of diversity for them-
Fortune 500s to small businesses. selves and for the companies in which they work. American
Workers also indicate that they are aware of the expectations
The Voice of the American Worker — their companies have of them relating to diversity and are
comfortable in meeting the expressed expectations. Each of
A Measure of Effectiveness the following questions received high favorable comments and
Central to this study is the importance of the American low unfavorable comments.
Worker’s voice in evaluating the effectiveness of diversity
initiatives and efforts. We believe that the voice of the Base Favorable Unfavorable
American Worker is critical in the evaluation of diversity Size Responses Responses
initiatives because the employee is one of the most important
stakeholders. This is supported by a body of research that I am comfortable 2,019 80% 4%
links leadership practices, employee results, customer results, working in diverse teams.
and ultimately business performance. This High Performance I am expected to 2,030 77% 5%
Model, as published by Jack Wiley, Ph.D., in 1996, grew out positively interact with
of experience and extensive research with more than people who are different
from me.
7,500 business units over the course of more than a decade.
It demonstrates the link between employee perceptions and I have a good and 2,025 72% 12%
business performance. positive relationship
with my direct supervisor.
A diverse work force 1,998 65% 10%
Leadership improves creativity and
Practices innovation in the
workplace.
Business Employee
Performance Results

Customer
Results
© 1996 Gantz Wiley Research

The American Worker Speaks PAGE 7

While American Workers provide quite favorable responses American Workers aged 55-plus, and people in companies
when referring to themselves and their ability to work effec- with 5,000-plus employees.
tively in diverse teams and with others, the perceived impact
of company-led diversity initiatives is far less favorable, as Base Favorable Unfavorable
demonstrated by the lack of favorable responses and the Size Responses Responses
increased unfavorable responses. This reflects the American I believe that I will 1,988 49% 18%
Workers’ lack of confidence in the effectiveness and potential personally benefit from
benefit of any diversity initiatives within their organizations my company’s effort to
today. This suggests that despite a great deal of effort by improve diversity.
corporations in America, a significant gap exists in making Diversity is very much a 1,970 45% 23%
diversity a core part of the overall culture of corporations. part of my company’s
culture.
The fact that only 32 percent of employees believe that their
My company has an 1,927 32% 26%
company has an effective diversity initiative should serve as a
effective diversity
wake-up call to every board-level director, corporate executive, initiative.
and human resources or diversity practitioner. What’s more,
My company has an 1,790 22% 40%
American Workers share this unfavorable perception of
effective diversity
diversity effectiveness across demographic subsegments. council or team.
The most favorable responses come from executives,

My company has an effective diversity initiative.

% Favorable (% Unfavorable)
American African Hispanic Asian Native
Worker Men Women White American American American American
32 (26) 31 (26) 32 (27) 29 (29) 34 (26) 34 (25) 34 (23) 34 (30)

American
Worker Executives Managers Salaried Hourly 18 – 34 35 – 54 55-plus
32 (26) 47 (23) 34 (27) 32 (28) 28 (26) 29 (24) 31 (28) 38 (21)

American < 20 20 – 99 100 – 499 500 – 4,999 5,000-plus

Worker Employees Employees Employees Employees Employees
32 (26) 28 (24) 28 (30) 24 (33) 31 (26) 43 (23)

What’s Important? EDP themes as very or extremely important. The perceived

importance among employees of EDP Companies is
As shown in the chart below, the surveyed employees consider
significantly higher, demonstrating that employees have
each of the 13 Effective Diversity Practices themes important.
increased expectations when their companies have active
At least 47 percent of American Workers view each of the
and effective diversity initiatives.

Effective Diversity Practices Theme % Extremely or Very Important

American Worker Rank EDP Company Employees Rank
1. Marketing to Diverse Customers and Consumers 63% 1 88% 1
2. Retaining Diverse Talent 59% 2 84% 3
3. Recruiting Diverse Talent 57% 3 85% 2
4. Leadership Commitment and Involvement 57% 4 84% 4
5. Inclusive Culture and Values 57% 5 79% 9
6. Diversity Education and Training 56% 6 81% 5
7. Community Involvement 55% 7 77% 11
8. Advancing Diverse Talent 55% 8 80% 6
9. Career Development for Diverse Talent 54% 9 80% 7
10. Diversity Employee Communications 52% 10 80% 8
11. Employee Involvement 52% 11 78% 10
12. Supplier Diversity 49% 12 70% 13
13. Performance Accountability and Measurement 47% 13 72% 12

PAGE 8 Diversity Practices That Work:

No Sources of Strength — As illustrated below, the American Worker’s voice
suggests that none of the 13 themes is a perceived
Tremendous Room for Improvement strength. Four themes have mixed perceptions, and nine
Aggregate views of the American Worker suggest that there’s rank as opportunities for improvement. This is an especially
much room for improvement across the 13 themes. To facilitate unfavorable view of diversity in the American work force,
evaluations across key diversity themes, we have classified particularly considering that efforts in this area have been
the opinions of the American Worker in three categories. under way for nearly 40 years. Not only are the favorable

Strength (S) — Themes with 65 percent or more favorable scores low, but unfavorable comments reach high levels
responses and fewer than 20 percent unfavorable comments. across the diversity practice themes. In some cases,

Opportunities for Improvement (O) — Themes with fewer unfavorable reactions outweigh the favorable reactions.
than 50 percent favorable comments and more than This is a sobering report card, particularly for organizations
20 percent unfavorable comments. that dedicate a significant amount of time, energy, and

Mixed (M) — Themes with 50 percent to 65 percent resources every day to the advancement of diversity and
favorable comments and 35 percent to 50 percent neutral inclusion. It is important to keep in mind the breadth of the
or unfavorable comments. American Worker surveys, which included companies of all
sizes (everything from mom-and-pop grocers to Fortune 500
companies), as well as varying approaches to and investments
in diversity initiatives.

Effective Diversity Practices Theme Strength (S)

American Workers’ View Mixed (M)
Opportunity (O) % Favorable % Unfavorable
1. Inclusive Culture and Values M 56 18
2. Retaining Diverse Talent M 55 27
3. Marketing to Diverse Customers and Consumers M 50 15
4. Supplier Diversity M 45 17
5. Recruiting Diverse Talent O 49 21
6. Advancing Diverse Talent O 45 33
7. Diversity Education and Training O 44 28
8. Leadership Commitment and Involvement O 41 23
9. Community Involvement O 41 24
10. Career Development for Diverse Talent O 40 31
11. Diversity Employee Communications O 38 28
12. Employee Involvement O 28 33
13. Performance Accountability and Measurement O 27 35
Average Diversity Theme O 43 26
Themes with 65% or more favorable responses and fewer than 20% unfavorable comments are considered strengths (S). Themes with fewer than 50% favorable
comments and more than 20% unfavorable comments are considered opportunities for improvement (O). Themes with 50% to 65% favorable comments and/or
35% to 50% neutral or negative comments are considered Mixed (M).

What’s Up With the Boss? points to a mandate to ensure that the awareness and
involvement of senior executives trickle down to all levels of
Nationally, executives’ perceptions are 28 percent more
the organization to help make diversity an integral part of a
favorable than perceptions of the American work force over-
company’s culture.
all. In fact, executives perceive strengths in three of the
13 areas: Inclusive Culture and Values, Supplier Diversity, However, the overall perceptions of executives are also
and Retaining Diverse Talent. One of several factors may relatively poor, particularly when weighed against what
be driving the differences in perception here. executives say they are doing in this area. What’s disturbing
about this information is that even executives give
First, it is common that executives tend to have more favorable
themselves a failing grade, with only 59 percent of executives
perspectives of their companies than other employees do.
offering favorable comments in the area of Leadership
Second, company leaders are likely to have a greater awareness
Commitment and Involvement — a glaring opportunity.
of diversity initiatives and their progress. In either case, this

The American Worker Speaks PAGE 9

 Effective Diversity Practices Theme Strength (S); Mixed (M); Opportunity (O)
View by Employee Position (% Favorable/Unfavorable Comments)
Overall Executive Manager Salaried Hourly
Base Size 2,082 170 588 499 805
1. Inclusive Culture and Values M (56/18) S (65/15) M (59/16) M (56/19) M (52/19)
2. Retaining Diverse Talent M (55/27) S (67/18) M (59/25) M (53/29) M (51/29)
3. Marketing to Diverse Customers and Consumers M (50/15) M (63/12) M (52/14) M (49/15) M (46/15)
4. Supplier Diversity M (45/17) S (68/12) M (51/15) M (44/19) M (37/19)
5. Recruiting Diverse Talent O (49/21) M (56/18) M (51/20) O (50/23) O (47/20)
6. Advancing Diverse Talent O (45/33) M (64/20) O (50/29) O (40/36) O (40/36)
7. Diversity Education and Training O (44/28) M (51/24) O (46/27) O (42/31) O (42/29)
8. Leadership Commitment and Involvement O (41/23) M (59/16) O (46/22) O (40/25) O (36/24)
9. Community Involvement O (41/24) M (52/19) O (41/25) O (40/24) O (39/25)
10. Career Development for Diverse Talent O (40/31) M (52/22) O (43/30) O (38/34) O (36/33)
11. Corporate Communications Reflective of Diversity O (38/28) O (46/23) O (41/27) O (40/28) O (33/29)
12. Employee Involvement O (28/33) O (37/29) O (32/32) O (30/33) O (24/33)
13. Performance Accountability and Measurement O (27/35) O (35/31) O (28/36) O (25/39) O (27/32)
Average Diversity Theme O (43/26) M (55/20) O (46/24) O (42/27) O (39/26)
Index vs. Overall 100 128 107 98 91

Unfavorable Responses and they agree that nine of the 13 diversity themes are
opportunities for improvement. Four themes ranked as mixed
From Men and Women perceptions by both men and women. One exception is the
The 13 theme scores are unfavorable among both men and area of Recruiting Diverse Talent, where women have slightly
women, with average theme scores of only 42 percent favorable more favorable perceptions than men; however, neither gender
for men and only 44 percent favorable for women. Neither views this as an area of strength.
men nor women perceived strengths in any of the areas,

Effective Diversity Practices Theme Strength (S); Mixed (M); Opportunity (O)
Men vs. Women (% Favorable/Unfavorable Comments)
Overall Men Women
Base Size 2,082 832 1,195
1. Inclusive Culture and Values M (56/18) M (54/18) M (57/18)
2. Retaining Diverse Talent M (55/27) M (54/27) M (56/28)
3. Marketing to Diverse Customers and Consumers M (50/15) M (48/13) M (51/16)
4. Supplier Diversity M (45/17) M (47/16) M (44/18)
5. Recruiting Diverse Talent O (49/21) O (47/20) M (51/21)
6. Advancing Diverse Talent O (45/33) O (45/32) O (45/34)
7. Diversity Education and Training O (44/28) O (41/30) O (45/28)
8. Leadership Commitment and Involvement O (41/23) O (40/22) O (43/24)
9. Community Involvement O (41/24) O (38/26) O (43/23)
10. Career Development for Diverse Talent O (40/31) O (38/31) O (41/31)
11. Diversity Employee Communications O (38/28) O (36/29) O (40/27)
12. Employee Involvement O (28/33) O (26/34) O (30/32)
13. Performance Accountability and Measurement O (27/35) O (26/35) O (28/34)
Average Diversity Theme O (43/26) O (42/26) O (44/26)
Index vs. Overall 100 98 102

PAGE 10 Diversity Practices That Work:

The largest gaps in the level of favorable comments between favorable responses among women vs. men, the lion’s share of
men and women came in the areas of perceived personal benefit, the responses is consistently unfavorable among both male
effectiveness of diversity training, career development, and and female American Workers.
recruiting, as shown below:

I believe that I will personally benefit from my company’s Low Marks Across Races and Ethnicities
efforts to improve diversity (52 percent for women vs. The 13 theme scores are also similar and consistently low
46 percent for men). across race and ethnic lines, with no perceived strengths and

Diversity training and education teach how to effectively a number of areas of opportunities. In a couple of themes —
interact with people who are different (42 percent for Recruiting Diverse Talent, and Retaining Diverse Talent —
women vs. 33 percent for men). perceptions vary slightly by ethnicity. With respect to recruiting,
the perceptions of Hispanic, African-American and Asian

My company is committed to developing people who are
respondents are slightly more favorable than other ethnic or
diverse (39 percent for women vs. 34 percent for men). racial subsegments. With respect to retaining, the perceptions

My company actively recruits people from diverse back- of Native American respondents are slightly less favorable
grounds (52 percent for women vs. 48 percent for men). than other subsegments. Similarly, in the area of Supplier
The more favorable responses among women may reflect more Diversity, the perceptions of African-Americans are slightly less
direct involvement and understanding of their respective favorable than other groups. While there are slight variations,
company’s diversity efforts. While these responses show more it is important to note the low level of favorable comments
across the board.

Effective Diversity Practices Theme Strength (S); Mixed (M); Opportunity (O)
View by Race, Ethnicity (% Favorable/Unfavorable Comments)
Hispanic African Asian Native
Overall White American American American American
Base Size 2,082 680 210 387 346 289
1. Inclusive Culture and Values M (56/18) M (56//18) M (59/18) M (58/17) M (58/16) M (54/21)
2. Retaining Diverse Talent M (55/27) M (59//25) M (56/27) M (56/27) M (53/26) O (48/32)
3. Marketing to Diverse Customers and Consumers M (50/15) M (50/14) M (54/17) M (47/17) M (52/10) M (50/15)
4. Supplier Diversity M (45/17) M (44//16) M (50/17) O (44/20) M (45/16) M (47/16)
5. Recruiting Diverse Talent O (49/21) O (48/20) M (53/19) M (51/22) M (50/17) O (47/25)
6. Advancing Diverse Talent O (45/33) O (45/33) O (48/31) O (44/34) O (46/30) O (44/34)
7. Diversity Education and Training O (44/28) O (40/31) O (50/28) O (46/29) O (44/25) O (45/30)
8. Leadership Commitment and Involvement O (41/23) O (40/22) O (48/22) O (41/25) O (44/21) O (40/27)
9. Community Involvement O (41/24) O (37/27) O (47/24) O (44/25) O (42/22) O (41/22)
10. Career Development for Diverse Talent O (40/31) O (38/32) O (43/31) O (40/31) O (41/28) O (39/33)
11. Diversity Employee Communications O (38/28) O (35/30) O (42/25) O (42/26) O (42/25) O (36/28)
12. Employee Involvement O (28/33) O (24/34) O (30/31) O (31/33) O (32/30) O (30/32)
13. Performance Accountability and Measurement O (27/35) O (23/36) O (31/33) O (28/36) O (28/32) O (31/33)
Average Diversity Theme O (43/26) O (41/26) O (47/24) O (44/26) O (44/22) O (42/26)
Index vs. Overall 100 95 109 102 102 98

While American Worker responses are similar across ethnic personal benefit as a result of company diversity efforts.
groups, there are a couple of areas where the differences in In addition, African-Americans are 23 percent less likely
perception are pronounced. They are: (1) belief in personal than others to trust their co-workers. Both the perceived
benefits to be derived from my company’s diversity efforts, benefit and level of trust of co-workers are important,
and (2) level of trust of co-workers. Specifically, white under the surface considerations. They certainly play a
employees’ perceptions are 18 percent less favorable than key role in determining an individual’s level of commitment
those of the overall work force in the question of perceived to both diversity and their respective company.

% Favorable/Unfavorable Responses Hispanic African Asian Native

Overall White American American American American
I believe I will personally benefit 49/18 40/23 58/13 57/15 55/15 48/22
from my company’s efforts to improve diversity.
I trust my co-workers. 57/16 65/15 59/13 44/24 63/11 53/16

The American Worker Speaks PAGE 11

Unfavorable Perceptions Across Generations perceptions of older workers, aged 55-plus, are the most favor-
able (19 percent higher than average). The perceptions of the
— Older Workers Slightly More Favorable workers aged 35 – 54 are the least favorable (2 percent below
Like other demographic breakouts, perceptions regarding average). While the results across age are more similar than
diversity are unfavorable across generations or age groups, dissimilar, the greatest variations come in Retaining Diverse
with no perceived areas of strength and at least seven areas of Talent, perhaps suggesting that those who have been in the work
opportunity across each age group. Among the groups, the force longest may have the greatest database for comparison.

Effective Diversity Practices Theme Strength (S); Mixed (M); Opportunity (O)
View by Age (% Favorable/Unfavorable Comments)
Overall 18 – 34 35 – 54 55-plus
Base Size 2,082 541 1,167 320
1. Inclusive Culture and Values M (56/18) M (56/17) M (56/18) M (57/17)
2. Retaining Diverse Talent M (55/27) O (50/31) M (56/34) M (62/20)
3. Marketing to Diverse Customers and Consumers M (50/15) M (49/14) M (49/16) M (54/11)
4. Supplier Diversity M (45/17) M (40/17) M (46/18) M (52/14)
5. Recruiting Diverse Talent O (49/21) M (53/18) O (47/22) M (53/18)
6. Advancing Diverse Talent O (45/33) M (51/28) O (44/34) O (41/33)
7. Diversity Education and Training O (44/28) M (45/27) O (43/29) O (48/26)
8. Leadership Commitment and Involvement O (41/23) O (43/21) O (41/24) M (46/19)
9. Community Involvement O (41/24) O (41/21) O (40/26) O (46/22)
10. Career Development for Diverse Talent O (40/31) O (43/29) O (38/33) O (41/31)
11. Diversity Employee Communications O (38/28) O (36/27) O (37/29) O (44/24)
12. Employee Involvement O (28/33) O (27/32) O (28/34) O (34/29)
13. Performance Accountability and Measurement O (27/35) O (27/32) O (26/37) O (34/31)
Average Diversity Theme O (43/26) O (43/24) O (42/27) O (47/23)
Index vs. Overall 100 100 98 109

Poor Marks From Coast to Coast — region. However, some variations are worth noting.
Perceptions are the most favorable in the West and least
North Central Trailing the Pack favorable in the North Central region. The greatest variations
When comparing across four regions of the country — exist in the area of Recruiting Diverse Talent, which likely
Northeast, North Central, South, and West — we see that the reflects the differences in talent availability by region. Many
overall perceptions of diversity effectiveness is low in each of the other diversity themes follow this trend.

Effective Diversity Practices Theme Strength (S); Mixed (M); Opportunity (O)
View by Region (% Favorable/Unfavorable Comments)
Overall Northeast North Central South West
Base Size 2,082 290 355 730 674
1. Inclusive Culture and Values M (56/18) M (57/17) M (54/18) M (55/18) M (58/17)
2. Retaining Diverse Talent M (55/27) M (54/28) M (56/26) M (52/28) M (56/27)
3. Marketing to Diverse Customers and Consumers M (50/15) M (49/14) M (49/16) M (47/16) M (54/13)
4. Supplier Diversity M (45/17) M (46/17) M (42/17) M (45/18) M (45/17)
5. Recruiting Diverse Talent O (49/21) M (48/19) O (44/23) O (48/22) M (54/18)
6. Advancing Diverse Talent O (45/33) O (43/33) O (42/37) O (45/33) O (47/31)
7. Diversity Education and Training O (44/28) O (45/28) O (42/29) O (44/29) O (44/28)
8. Leadership Commitment and Involvement O (41/23) O (42/21) O (36/26) O (42/24) O (44/22)
9. Community Involvement O (41/24) O (40/24) O (39/25) O (41/24) O (43/24)
10. Career Development for Diverse Talent O (40/31) O (39/32) O (37/33) O (40/31) O (42/31)
11. Diversity Employee Communications O (38/28) O (44/26) O (35/30) O (36/29) O (39/26)
12. Employee Involvement O (28/33) O (33/29) O (25/33) O (28/33) O (28/33)
13. Performance Accountability and Measurement O (27/35) O (27/35) O (23/37) O (30/33) O (27/35)
Average Diversity Theme O (43/26) O (44/25) O (37/26) O (43/26) O (45/25)
Index vs. Overall 100 102 86 100 105

PAGE 12 Diversity Practices That Work:

Size Does Matter Employees of larger companies tend to have slightly
more favorable responses than in smaller-sized companies.
Regardless of the company size, the American Workers’
Least favorable responses are among companies with
perceptions of diversity are unfavorable, with no
100 – 499 employees.
strengths and several opportunities for improvement.

Effective Diversity Practices Theme Strength (S); Mixed (M); Opportunity (O)
View by Company Size (% Favorable/Unfavorable Comments)
< 20 20 – 99 100 – 499 500 – 4,999 5,000-plus
Overall Employees Employees Employees Employees Employees
Base Size 2,082 230 237 245 288 256
1. Inclusive Culture and Values M (56/18) M (56/15) M (57/19) M (53/21) M (58/18) M (61/16)
2. Retaining Diverse Talent M (55/27) M (58/23) M (52/30) M (56/26) M (56/28) O (59/25)
3. Marketing to Diverse Customers and Consumers M (50/15) M (51/13) M (55/17) M (45/16) M (51/17) M (55/12)
4. Supplier Diversity M (45/17) M (50/16) O (44/21) O (41/20) M (45/18) M (53/14)
5. Recruiting Diverse Talent O (49/21) O (44/21) O (43/26) O (44/25) O (47/21) M (59/16)
6. Advancing Diverse Talent O (45/33) O (49/23) O (46/32) O (43/36) O (44/35) O (50/31)
7. Diversity Education and Training O (44/28) O (39/25) O (41/33) O (41/34) O (46/28) O (49/26)
8. Leadership Commitment and Involvement O (41/23) M (45/18) O (42/26) O (36/27) O (40/26) O (46/21)
9. Community Involvement O (41/24) M (41/19) O (42/25) O (38/29) O (42/26) O (45/24)
10. Career Development for Diverse Talent O (40/31) O (39/23) O (40/32) O (37/34) O (43/34) O (40/31)
11. Diversity Employee Communications O (38/28) O (31/23) O (33/34) O (33/32) O (41/31) O (48/22)
12. Employee Involvement O (28/33) O (21/29) O (27/37) O (22/38) O (30/37) O (38/28)
13. Performance Accountability and Measurement O (27/35) O (30/27) O (27/37) O (23/38) O (27/40) O (30/33)
Average Theme Score O (43/26) O (43/21) O (42/28) O (39/24) O (44/28) O (49/23)
Index vs. Overall 100 100 98 91 102 114

What’s at Risk? ongoing consideration of talented workers pursuing other

employment, as well as the perceived risk of diversity-related
The unfavorable perceptions among American Workers are
lawsuits. Both of these factors carry significant costs to
important in the absolute. They are also key indicators of risk
organizational productivity and effectiveness.
among companies. In particular, there is the serious and

Base % Unfavorable % Neutral/Negative

Size Responses Responses
I have seriously considered leaving my company in the past 12 months ... 1,956 44% 57%
... because of not feeling valued or appreciated. 1,954 34% 50%
... because of lack of opportunity for advancement. 1,938 28% 45%
... because of compensation. 1,947 27% 45%
... because of work/life balance. 1,936 23% 41%
... because of a problematic relationship with my supervisor. 1,935 20% 35%
My company is at risk for a diversity-related lawsuit. 1,794 12% 42%

The American Worker Speaks PAGE 13

With nearly half of employees seriously considering leaving Keys to Success
their company, the cost to organizational productivity can be
Because most organizations have limited resources to apply
substantial. Management experts estimate the average cost
in the area of diversity, we identified the factors that had the
of turnover is 150 percent of the employee’s annual salary.
greatest impact on overall perceived effectiveness of diversity
This includes assumptions for the costs of terminating the
initiatives. They include:
current employee; identifying, hiring, and on-boarding a new
employee and the administrative costs and productivity losses of 1. Establishing a track record for recruiting diverse people.
the transition. Needless to say, it’s more efficient and typically 2. Leaders holding themselves and others accountable for
more effective to retain current productive employees. diversity progress.
Similarly, the fact that 12 percent of employees believe that 3. Leaders demonstrating a commitment to diversity.
their company is at risk for a diversity-related lawsuit should 4. Rewarding people for their contributions in the area
be cause for concern. Also notable is that 42 percent of of diversity.
respondents were neutral/negative to this particular question. 5. Conducting training and education that increases awareness
Increased perceptions of being at risk of a diversity-related and helps employees understand how diversity impacts
lawsuit primarily rise from unfavorable perceptions regarding business results.
the attrition of people who are different.
These five focus areas grew out of a regression analysis to
Conversely, decreased perceptions of being at risk of a determine which of the survey items were most predictive
diversity-related lawsuit rise from favorable perceptions in of higher perceived overall effectiveness in company
the following areas: diversity initiatives. Interestingly, in each of the five focus

Recruiting people from diverse backgrounds. areas, less than half of American Workers rated their own

Valuing and appreciating the ideas and input of all companies favorably. In addition, more than 20 percent
employees. of respondents rated these items unfavorably.

Focusing diversity efforts on improving business results.
Each of these speaks to the earlier discussion regarding the
link between an organization’s leadership practices and the
perceptions of employees. Perceptions regarding the effectiveness
of diversity efforts ultimately may impact the organization’s
business performance.

Factors with Impact Importance % Favorable % Unfavorable

Rank Responses Responses
My company has a strong track record for recruiting diverse people. 1,976 48% 21%
Leadership at my company is committed to diversity. 1,992 45% 20%
Leaders hold themselves and others accountable for progress on diversity. 1,966 42% 22%
Training and education from my employer helps me to understand the 1,902 39% 28%
impact of diversity and improve business results.
People are rewarded for what they do in the area of diversity. 1,885 23% 36%

PAGE 14 Diversity Practices That Work:

 Effective Diversity Practices
Companies
The next phase of the research focused on understanding Highly Productive Organizations
perceptions of employees working in Effective Diversity
In addition to their reputations in the area of diversity, the
Practices Companies. This section focuses specifically on the
identified companies have demonstrated improvements in
EDP Companies and the voices of their employees. Where
employment and productivity over the past four years. In fact,
appropriate, the perceptions of the EDP Company Employees
as a group they are 18 percent more productive than the
will be compared with those of the American Worker overall.
United States economy overall. In addition, three-fourths of
The Effective Diversity Practices Companies include eight them are more productive than their key competitors. While
organizations that enjoy strong reputations in the area of it is not our intent to demonstrate the productivity of the
diversity. All have received external recognition for their participating companies, this certainly suggests that their
efforts in the area of diversity, and several lead the published investments in the area of diversity are by no means being
lists that rank the best places to work overall, best places for made at the expense of productivity. In fact, it is likely that
women, and best places for minorities. These companies in the effective diversity practices — exemplary leadership and
aggregate employ more than 950,000 people. Their combined management practices — also result in productivity gains.
annual revenues exceed $180 billion. They report a combined
annual net income of $24 billion. Thus, these eight companies
comprise a large and important part of our economy.

Productivity Analysis
EDP Companies in Total Average Index vs.
2003 1999 Annual Increase United States
Number of Employees 955,630 753,085 6.8% (850)
Annual Revenue (Millions) $181,195 $121,500 12.3% (267)
Productivity (Annual Revenues/Employee) $189,605 $161,340 4.5% (118)
Net Income (Millions) $ 23,510 $ 13,500 18.5% NA

U.S. Gross Domestic Product (Billions) $ 10,985 $ 9,270 4.6%

U.S. Work Force (Millions) 138,480 134,420 .8%
U.S. Gross Domestic Product/Employee $ 79,330 $ 68,950 3.8%

Greater Diversity Commitment and comfort in operating in a diverse work environment.

Even relative to American Workers at large companies with
Compared with the overall American Worker, the EDP
5,000-plus people, the perceptions of the EDP Company
Company Employees exhibit strong beliefs in diversity’s
Employees are more favorable.
intended impact and an even greater level of expectation

% Favorable Responses
(% Unfavorable Responses)
American Worker EDP Company Employees
5,000-Plus-Person
Total Companies
I am comfortable working in diverse teams. 80 (4) 86 (2) 97 (2)
I am expected to positively interact with people 77 (5) 77 (3) 93 (2)
who are different from me.
A diverse work force improves creativity and 65 (10) 70 (6) 87 (3)
innovation in the workplace.
I have a good and positive relationship with 72 (12) 77 (10) 84 (6)
my direct supervisor.

The American Worker Speaks PAGE 15

EDP Company Employees also have more favorable responses
73 percent of EDP Company Employees (vs. 49 percent
regarding the effectiveness of their respective company’s American Workers) believe they will personally benefit from
diversity initiatives. the company’s effort to improve diversity.

60 percent of EDP Company Employees believe their
The responses of EDP company employees are also more
company has an effective diversity initiative (vs. 32 percent
favorable than those of American Workers from large companies.
of American Workers).

% Favorable Responses
(% Unfavorable Responses)
American Worker EDP Company Employees
5,000-Plus-Person
Total Companies
I believe that I will personally benefit from my company’s 49 (18) 53 (18) 73 (9)
effort to improve diversity.
Diversity is very much a part of my company’s culture. 45 (23) 55 (19) 70 (9)
My company has an effective diversity initiative. 32 (26) 43 (23) 60 (11)
My company has an effective diversity council or team. 22 (40) 32 (34) 53 (13)

A Different World of Work Also, while the overall diversity report card is far more
favorable in the eyes of EDP Company Employees than
Perceptions of EDP Company Employees are significantly
with the American Worker, it also illustrates the need for
more favorable (+ 51 percent) than those of the American
ongoing effort and continuous improvement. In particular,
Worker, providing validation of their employers’ external
three themes — Performance Accountability and
diversity reputations. Specifically, the EDP Company
Measurement, Career Development for Diverse Talent,
Employees perceive their companies as having more
and Employee Involvement — show the least favorable
strengths among the 13 diversity themes (nine, as opposed to
responses among the 13. This aligns with intuitive judgment
zero for the American Worker); fewer mixed perceptions (four,
as well as the collective wisdom of the EDP Companies:
compared with eight for the American Worker); and fewer
That while significant progress has been made over the
opportunities for improvement (zero versus nine for the
past three decades, this work is far from complete — even
American Worker). This suggests that the efforts of EDP
among those organizations making the most significant
companies are translating into more favorable perceptions
advancements in diversity today.
among their employees and are likely to be driving more
favorable organizational dynamics and business outcomes. Retaining and Advancing Diverse Talent rank as
important opportunities, even for the EDP Companies,
In addition, the perceptions of the EDP Company employees
as they also have high unfavorable comments (20 percent
are also significantly more favorable than the perceptions of
and 19 percent, respectively).
the American Worker in large companies. This reinforces the
fact that the more favorable perceptions result more from the
company’s efforts in the area of diversity than from the
company’s size.

PAGE 16 Diversity Practices That Work:

 EDP Company American American Worker
Employee Worker 5,000-Plus-Person Company
Strength (S) Strength (S) Strength (S)
Mixed (M) % Favorable Mixed (M) % Favorable Mixed (M) % Favorable
Diversity Focus Area Opportunity (O) (% Unfavorable) Opportunity (O) (% Unfavorable) Opportunity (O) (% Unfavorable)
1. Marketing to Diverse S 76 (5) M 50 (15) M 55 (12)
Customers and Consumers
2. Inclusive Culture and Values S 75 (10) M 56 (18) M 61 (16)
3. Diversity Employee S 73 (12) O 38 (28) O 48 (22)
Communications
4. Recruiting Diverse Talent S 71 (8) O 49 (21) M 59 (16)
5. Supplier Diversity S 68 (5) M 45 (17) M 53 (14)
6. Community Involvement S 68 (10) O 41 (24) O 45 (24)
7. Leadership Commitment S 67 (9) O 41 (23) O 46 (21)
and Involvement
8. Retaining Diverse Talent S 66 (20) M 55 (27) M 59 (25)
9. Advancing Diverse Talent S 65 (19) O 45 (33) O 50 (31)
10. Diversity Education and Training M 63 (13) O 44 (28) O 49 (26)
11. Employee Involvement M 60 (12) O 28 (33) O 38 (28)
12. Career Development for M 59 (22) O 40 (31) O 40 (31)
Diverse Talent
13. Performance Accountability M 48 (19) O 27 (35) O 30 (33)
and Measurement
Average Diversity Theme S 65 (13) O 43 (26) O 49 (23)
Index vs. EDP Companies 100 66 75
Index vs. Overall American Worker 151 100 114

The American Worker Speaks PAGE 17

Perception Gap Among Employees white counterparts. In addition, there is a significant gap
between the perceptions of executive and hourly employees.
While perceptions among EDP Company Employees are
This reflects greater expectations among some demographic
significantly more favorable than those of the overall
groups, as well as lower perceived effectiveness across
American Worker, there are large variations in perceptions
theme areas.
by ethnicity and job level. Specifically, the perceptions of
employees of color are less favorable than those of their

Average
Average Average Average Importance Index Index
Diversity Index vs. Index vs. Theme Theme vs. vs. vs.
Theme American EDP Perceived Perceived Effectiveness American EDP
(% Favorable/ Work Force Companies Importance Effectiveness Gap Worker Companies
% Unfavorable) Overall Total (% Favorable) (% Favorable) (% Points) Overall Total
American Worker Overall 43/26 (100) (66) 55% 38% 17 (100) (81)
EDP Companies Total 65/13 (151) (100) 79% 58% 21 (124) (100)
Men 68/12 (158) (105) 78% 60% 18 (106) (86)
Women 63/14 (147) (97) 80% 56% 24 (141) (114)

Whites 70/10 (163) (108) 79% 66% 13 (76) (62)

African Americans 58/19 (135) (89) 82% 47% 35 (205) (167)
Asians 63/13 (147) (90) 81% 51% 30 (176) (143)
Hispanics 64/14 (149) (91) 80% 54% 26 (153) (124)
Total People of Color 61/16 (142) (94) 81% 50% 29 (171) (138)

Executives 70/11 (163) (108) 85% 59% 26 (153) (124)

Managers 69/12 (160) (106) 83% 61% 22 (129) (105)
Salaried Employees 59/15 (137) (91) 72% 55% 17 (100) (81)
Hourly Employees 58/14 (135) (89) 74% 55% 19 (112) (90)

18 – 34 62/15 (144) (95) 78% 55% 23 (135) (110)

35 – 54 67/12 (156) (103) 80% 58% 22 (129) (105)
55-Plus 69/9 (160) (106) 83% 67% 16 (94) (76)

PAGE 18 Diversity Practices That Work:

Company Comparisons diversity practices by studying the companies with the most
favorable employee responses in individual theme areas.
Comparisons among performances of individual EDP
Companies also establish the fact that perceptions of employees Our intention is for the effective diversity practices we identify
differ from one company to the next, reflecting variations in to be put to work in other organizations. However, it is
diversity strategies and tactics employed by individual important to emphasize that the reapplying organization
organizations. For example, organizations that have invested must review each practice and translate it for cultural
in broad-scale diversity education and training have stronger appropriateness.
employee perceptions than those that have focused on training
Theme scores by EDP Company are shown below:
for only managers and above. We will identify effective

Strength (S); Mixed (M); Opportunity (O)

(% Favorable Responses)
Effective Diversity Practices American
Company Employee Worker
Effective Diversity Practices Theme Total 1 2 3 4 5 6 7 8
1. Inclusive Culture and Values S (75) S (74) S (78) S (76) S (75) S (78) S (74) S (71) S (68) M (56)
2. Diversity Employee S (73) S (83) S (69) S (72) S (78) S (79) S (72) S (74) M (57) O (38)
Communications
3. Marketing to Diverse S (76) S (77) S (82) S (76) S (76) S (79) S (74) M (62) S (65) M (50)
Customers and Consumers
4. Recruiting Diverse Talent S (71) S (85) S (80) S (75) S (73) S (68) S (71) M (63) M (47) O (49)
5. Supplier Diversity S (68) S (83) S (77) S (70) S (77) M (60) S (65) M (61) M (43) M (45)
6. Community Involvement S (68) S (73) S (82) S (65) M (63) S (69) S (66) S (68) M (55) O (41)
7. Leadership Commitment S (67) S (75) S (73) S (70) S (72) S (67) M (64) M (57) M (48) O (41)
and Involvement
8. Retaining Diverse Talent S (66) M (67) S (76) S (68) M (61) S (71) M (62) M (59) M (57) M (55)
9. Advancing Diverse Talent S (65) M (63) S (71) S (78) M (51) S (73) M (59) O (49) M (57) O (45)
10. Diversity Education M (63) S (73) M (60) M (63) S (65) M (61) M (59) O (44) M (63) O (44)
and Training
11. Employee Involvement M (60) S (72) M (52) M (63) S (67) M (64) M (64) M (55) M (47) O (28)
12. Career Development for M (59) S (70) S (66) S (65) M (51) M (58) M (58) O (43) O (50) O (40)
Diverse Talent
13. Performance Accountability M (48) M (60) M (51) O (43) M (57) M (45) O (44) O (44) O (35) O (27)
and Measurement
Average Diversity Theme S (65) S (73) S (71) S (68) S (67) S (67) M (64) M (58) M (53) O (43)
Index vs. EDP Companies 100 112 109 105 105 105 98 89 82 66
Index vs. Overall American Worker 151 170 165 158 156 156 149 135 123 100

The American Worker Speaks PAGE 19

 Effective Diversity Practices Shared
The following snapshots represent actual experiences of the Effective Diversity Importance
EDP Companies that participated in this study. We selected Practices Theme Rank
the practices based on favorable responses in the identified
diversity theme area among employees working in the specific Marketing to Diverse Customers and Consumers 1
company. For a company’s practice to be considered an Retaining Diverse Talent 2
Effective Diversity Practice, the company’s employees must Recruiting Diverse Talent 3
perceive the corresponding theme area as a strength, with Leadership Commitment and Involvement 4
65 percent or more favorable responses and fewer than
Inclusive Culture and Values 5
20 percent unfavorable responses.
Diversity Education and Training 6
In some cases, individual practices have yet to impact the Community Involvement 7
broad employee perception but are worthy of consideration and
Advancing Diverse Talent 8
review. We refer to these practices as potential or emerging
effective practices. In keeping with the study’s intent, we have Career Development for Diverse Talent 9
chosen to emphasize the actual practice as opposed to the Diversity Employee Communications 10
practicing company. Employee Involvement 11
Below are the 13 diversity themes as ranked in importance Supplier Diversity 12
by the survey of American Workers. The following section Performance Accountability and Measurement 13
showcases each theme as practiced by qualifying EDP
Companies. For each theme, we identified a couple of practices
that were supported by the feedback of the EDP company
employees.

Marketing to Diverse Customers and Consumers

1 Extremely or Very Important to 63 Percent of American Workers

More Than Just Talk (Company A) All of this stems from this EDP Company’s recognition that
success depends on the company’s ability to effectively meet the
In the highly competitive business-to-business market, this
needs of customers, who represent every walk of life and hail
global distribution company takes an inclusive approach to
from every part of the United States, as well as from more than
marketing. Both in the case of marketing materials and the
200 countries around the world.
people who interface with customers, a focus on diversity and
inclusion is ever present. For example:
EDP Theme Area: Marketing to Diverse Customers and Consumers

Television advertising features both employees and actors
Effort: Targeted marketing efforts
in multiple languages for airing in the United States and
throughout the world. Results: • Increased customer satisfaction

Instructional materials come in a variety of languages • Increased customer diversity
including Mandarin Chinese, Korean, Spanish, and How to Make • Understand shifts in overall and specific
Russian, based on the apparent customer needs in cities It Work: market demographics for emerging groups
like San Francisco, New York, Los Angeles, and Miami. • Test the effectiveness of existing marketing

A dedicated annual budget supports marketing activity to materials among emerging groups
ensure its effectiveness. • Develop marketing materials targeted to the

Hiring and promotion of account executives depends emerging groups
on their demonstration of a variety of skills, including • Recruit associates to mirror the demographics
their ability to communicate in the preferred language of consumers
of the customer.

PAGE 20 Diversity Practices That Work:

A Tailored Approach (Company B) EDP Theme Area: Marketing to Diverse Customers and Consumers
A national financial services company recognizes the Effort: Retail store design and targeted
importance of taking a comprehensive and tailored approach marketing
to ensure that it meets the needs of its diverse customers and Results: • Increased customer satisfaction
consumers, including: • Increased customer diversity

Tailored store design. How to Make • Understand differences in customer needs by

Direct-to-customer marketing. It Work: market or segment

Tailored educational and resource information. • Estimate the resulting business opportunity

Supplemental customer research. • Tailor product bundles and/or retail location to

reflect customer needs
Dedicated human and financial resources.
• Develop tailored educational and resource
With a strong national presence, the company realizes that information
each retail location provides an optimal environment for • Establish dedicated human and financial
articulating the company’s commitment to diverse customers. resources to develop the target market
The company tailors store designs to be more welcoming, opportunity
depending on the location, to African-American, Latino, or
Asian communities. In addition, this company produces
tailored advertising to reach specific targeted audiences. The Voice of the Employee:

Conducting research to understand unique attitudes and MARKETING TO DIVERSE CUSTOMERS AND CONSUMERS
habits of diverse customers has resulted in the creation of 100
several partnerships with third-party media and community-
based organizations (local nonprofits and churches) to enhance 82%
the understanding and the benefits of the company’s products 79%
and services, as well as other general information that potential 50
customers would deem valuable. Research has also led to 50%
changes in policy — such as accepting Consulate Identification
Cards as a primary form of identification — to be more inclu-
sive of customers from Mexico, Guatemala, and Argentina. In 0
% FAVORABLE RESPONSE
addition, the company bundles products based on the increased
understanding of diverse customer desires. American Worker Company A Company B

A newly developed department called Diverse Growth

Segments manages many of these efforts. The company Employees Say:
assigns the department to conduct specialized multicultural “We want everyone to be a customer, regardless
marketing research and implement strategies that result in of their background. We will do whatever it
improved marketing and services to its diverse customers and takes to make it easy to do business with us.”
communities. The company also allocates 20 percent of its
annual marketing budget to its diverse growth segments, and “My company understands that customers have
as a result, enjoys a customer base that similarly comprises different needs. We work to understand and
African-Americans, Latinos, and Asians. meet the needs of our customers every day.”

“Now that we have a department dedicated to

diversity marketing, our commitment is a lot clearer.
This is a business opportunity just like when we
decide to enter a new market or line of service.”

Retaining Diverse Talent

2 Extremely or Very Important to 59 Percent of American Workers

Take a Team Approach (Company A) of employees, has the charge of keeping its fingers on the pulse
of the organization to understand the issues and challenges
According to this international automotive company, retaining
facing employees overall, but especially at the local level. Once
all talent is a function of understanding the drivers of attrition
the team identifies the issues, it discusses them, identifies
and empowering employees to do something about them. That’s
potential solutions, and makes specific recommendations to the
the specific role of the diversity teams in each of the company’s
company to resolve this issue.
local divisions. The diversity team, made up of a diverse group

The American Worker Speaks PAGE 21

Local diversity teams are responsible for a variety of positive EDP Theme Area: Retaining Diverse Talent
changes including:
Effort: Establishing effective relationships with managers

Developing formal and informal mentoring programs. and across the organization

Establishing and increasing the use of flexible or alternative Results: • Increased employee satisfaction
working arrangements. • Reduced attrition

Establishing a benefit of “choice days,” which eliminates How to Make • Establish national and local diversity teams
the need to take vacation or sick time when children are It Work: • Conduct corporate and local research to identify
sick or when there are challenges with child care. the causes of attrition
A corporate diversity team also exists and focuses on • Empower employee teams to develop potential
opportunities that impact the entire company. solutions
• Engage leadership and human resources to
Recruiters, human resources generalists, and leadership
implement solutions
work closely with the diversity teams to create solutions
that lead to increased retention of employees. The company • Apply successful solutions to broader
then evaluates market leaders on their relative performance organization
in retaining people within their divisions. • Evaluate leaders on their performance to retain
people within their business units
EDP Theme Area: Retaining Diverse Talent
Effort: National and local diversity teams The Voice of the Employee:
Results: • Increased employee satisfaction
RETAINING DIVERSE TALENT
• Reduced attrition 80
How to Make • Establish national and local diversity teams
It Work: • Conduct corporate and local research to identify 60
the causes of attrition 71%
68%
• Empower employee teams to develop potential 40
solutions 55%
• Engage leadership and human resources to 20
implement solutions
0
• Apply successful solutions to broader % FAVORABLE RESPONSE
organization
American Worker Company A Company B
• Evaluate leaders on their performance to retain
people within their business units
Employees Say:
Relationships, Relationships, Relationships “We started to see a real difference when we
(Company B) involved employees in the process.”
At this national financial services company, several factors
work together to drive the retention of employees. Many of “I know that my boss is evaluated in some part
them focus on establishing strong relationships between on his ability to retain people. That makes it
managers and their direct reports, based on an assumption easier to talk about how we can make things
that relationships with managers are a key driver of retention. better. I know that he’s listening.”
Key components include:

Setting the Expectation. Managers’ development plans, “I’ve worked for several companies. The
performance ratings, and bonuses include an emphasis difference here is that managers actually care
on retention of employees. about the people. The company provides

Manager Feedback. Managers get feedback on their resources to build stronger relationships.”
effectiveness in establishing and maintaining effective
relationships with the employees that they manage. “If it weren’t for the resource group, I would

Formal Recognition. Programs formally recognize people for have left a long time ago. The group helps make
a large company seem a lot smaller.”
management excellence as well as championing diversity.

Formal and Informal Mentoring. The company works to
encourage meaningful one-on-one mentor-protégé
relationships beyond the direct reporting line.

Employee Resource Groups. The company establishes
internal communities designed to foster professional
development and networking across the organization.

PAGE 22 Diversity Practices That Work:

 Recruiting Diverse Talent
3 Extremely or Very Important to 57 Percent of American Workers

Cast a Wide Net (Company A) EDP Theme Area: Recruiting Diverse Talent
Successful recruiting is of the utmost importance, particularly Effort: Broad scale and inclusive outreach
for organizations that source candidates for promotion Results: • Successful placement of tens of thousands of
primarily from within the company’s existing talent pool. new employees each year
When a company hires more than 100,000 people every year, • New employee demographics that are inclusive
it is important to cast a wide net. Consistent and ongoing of people of all backgrounds
outreach is a critical principle for success. As this global How to Make • Cast a wide net by establishing relationships
distribution company seeks to fill thousands of open positions It Work: with a variety of organizations (national and local)
each year, its outreach efforts are remarkably broad and
• Participate in activities that allow for the early
inclusive. Outreach includes ongoing participation in a wide identification and screening of potential
range of national and local conferences and job fairs such as: candidates

The National Urban League. • Use a recruiting team that reflects the current

The National Association for the Advancement of Colored and desired diversity of the organization
People (NAACP).

National Council of La Raza. Relationships Rule (Company B)

The Organization for Chinese-Americans. Even when a company seeks to hire a smaller number of

The National Society of Black Engineers. people each year, similar principles and approaches are used.

At this global consumer products company, annual recruiting
The Society for Hispanic Engineers.
needs are fewer than 500 people. However, establishing and

The Society of Women Engineers. maintaining relationships with effective recruiting sources

The United Negro College Fund. has proved to be effective. Key strategies include:
The company also participates in internship and career
Establish goals that reflect the organizational need and
development programs such as: work force availability, overall and by demographic group.

The United Negro College Fund (UNCF).
Develop long-term partnerships with proven sources of

INROADS. talent — including universities and the military.

Enroll partners as advocates for the company in generating

The National Urban League’s Black Executive Exchange
interest among a diverse pool of candidates.
Program (BEEP).

Create multiple exposures to potential candidates —
In addition, the company maintains relationships with more internships, co-ops, classroom presentations, and company
than 20 historically black colleges and universities as another receptions to begin the relationship process early.
source of talent.
Connect potential candidates with a variety of company
Effective and inclusive outreach enables this organization to resources across levels.
successfully recruit a very diverse set of new hires — which
Involve successful employees from the targeted schools or
are inclusive of women and people of color. Even in the rare community groups.
cases when executive positions are filled externally, the
Pay personal attention to targeted candidates, constantly
company sources a diverse group of candidates, likely because
reminding them of the company’s interest and the long-
it charges a diverse team with the responsibility of recruiting
term opportunities available to them.
and is successful in delivering the results.

Promote ongoing participation in student and
professional networks — such as National Black MBA
Association (NBMBAA), National Society of Hispanic
MBAs (NSHMBA), National Society of Black Engineers
(NSBE), National Organization of Black Chemists and
Engineers (NOBChE). Beyond attending events, get
immersed in them.

Stay in touch with candidates throughout the process,
from initial contact through new-employee orientation.

Maintain recruiting relationships in places where you
have been successful.

The American Worker Speaks PAGE 23

 EDP Theme Area: Recruiting Diverse Talent Employees Say:
Effort: Establish and maintain long-term partnerships “We have the recruiting thing down to a science,
Results: • Track record of success with diverse candidates and we recruit 365 days a year.”
• Highly productive relationships with recruiting
sources “The company goes out of its way to attract
• Ongoing pipeline of diverse talent that meets women to jobs that they typically don’t
talent requirements apply for.”
How to Make • Increased attention to and more aggressive
It Work: diversity recruiting goals based on company need “We are constantly reaching out to people of all
and work force availability communities helping them understand the
• Establish partnerships with recruiting sources that benefits of a career with us.”
have a strong likelihood of successfully delivering
desired results “The company is aggressive in closing the deal.
• Use partners as company recruiters It seemed like someone called me every week
• Create a diverse pool of qualified candidates for until I said yes. The gift basket they sent to my
final consideration family let me know that I had made the right
• Highlight previous success stories in recruiting decision.”
process
• Get in touch and stay in contact with the “We have identified a series of recruiting sources
candidates that have the greatest potential until where we have been successful and built long-
they are on-board as new employees term relationships with them. They know that
• Continue to recruit in places that yield the diversity is a core strategy for us, and it shows
greatest results up on our interview schedule.”
• Maintain presence and relationship (active and
financial) regardless of fluctuations in annual “It was helpful to know that people who look
recruiting needs like me have been successful here.”

“Knowing the company is active in organizations

The Voice of the Employee:
that are important to me, like the National
RECRUITING DIVERSE TALENT Society for Black Engineers, helped make an
100
immediate connection.”

80
85% 80%
60

40
49%
20

0
% FAVORABLE RESPONSE

American Worker Company A Company B

Leadership Commitment and Involvement

4 Extremely or Very Important to 57 Percent of American Workers

Diversity Champion Inside and Out
Leaders actively sponsor diversity councils and employee
Leadership Commitment and Involvement was a perceived affinity groups.
strength area for many of the participating companies. In every
Leaders hold themselves and others accountable for
case, the chief executive has the image, both internally and achieving diversity results.
externally, as a diversity champion. But it requires more than
Leaders set aggressive goals and make them a component
the CEO. A number of leaders throughout the organization share of incentive compensation.
responsibility for promoting diversity. Diversity champions take
a variety of forms, but they have a number of characteristics People both inside and outside the company recognize
in common. effective diversity leaders, as demonstrated in the following

They make diversity a core company value. examples shared by EDP Employees.

Leaders actively develop diversity strategies and action

plans for the corporation and individual business units.

PAGE 24 Diversity Practices That Work:

Employees Say: More than any individual program, the company believes that
the commitment to diversity generated by engaging leaders
“I know that my CEO is committed to diversity using their own language and methodology is stronger today
because he talks about it in every possible than ever before.
situation. In one interview, he included
diversity as part of his response to every EDP Theme Area: Leadership Commitment and Involvement
question. It couldn’t have been planned.” Effort: Establishing “Glide Paths” for success
Results: • Increased leadership commitment and
“It is clear that leaders in my company are involvement
committed to diversity because they get
• Accelerated progress in diversity representation
involved. They make it a point to reach out at all levels, especially higher levels
and mentor people who are different. And it’s
natural, not forced.” How to Make • Identify the business methods that leaders
It Work: currently use to generate business results
“Our CEO doesn’t send representatives to • Translate the business methods to the desired
results in diversity
corporate events. He makes it a point to go
himself. He makes his commitment to diversity • Set long-term goals
visible both inside and outside of the company.” • Establish annual milestones to measure
progress
• Empower leaders to develop their own business
“Glide Paths” to Success — and operational plans
Big Carrot, No Stick (Company A) • Hold leaders accountable for progress
When leaders at this global consumer-products company talk • Reward the leaders that make the most progress
about their business plans, they typically refer to the OGSM
— Objectives, Goals, Strategies, and Measures. Introduced in
The Voice of the Employee:
the early 1990s, the OGSM guides the development and
implementation of the company and business-unit strategic LE ADERSHIP COMMITMENT AND INVOLVEMENT
plans. In the words of one employee, “If it’s in the OGSM, it
80
gets done.” As part of the OGSM process, leaders often talk
about the “glide path” to success. This refers to the year-over-
60
year progress that will ultimately lead to the desired result of 75%
marketplace leadership and increased shareholder return.
40
After decades of a program’s approach to diversity, the company 41%
finally succeeded in making diversity a core component of 20
every business unit and functional OGSM. As a result, “glide
paths” for achieving diversity goals and objectives are a 0
% FAVORABLE RESPONSE
fundamental part of how the company conducts business.
American Worker Company A
To that end, the top 35 officers have developed, along with the
Global Diversity Office and Human Resources, forward-looking
“glide paths” that will achieve full representation at all levels Employees Say:
within the organization. As part of the “glide paths,” leaders “Leaders take great pride in their diversity
are required to:
results. This is driven, not so much for the

Set long-term (five-year) goals to attract, develop, advance, financial reward, but because they want to
and retain talent so that the division is representative of help address a key company opportunity.”
the available work force at all levels.

Identify the annual milestones that keep the organization “We approach diversity like any other business
on track for achieving its long-term goals. strategy. We set goals and develop plans to

Develop the detailed business plan that demonstrates achieve them.”
likelihood of success.

Develop the detailed people-development plan to achieve “I have noticed a dramatic shift in attitudes
the long-term goals. and approaches.”
Success in achieving progress against the established plan is
a source of pride as well as financial rewards. Exemplary
performance can result in a 10 percent increase in stock options
for the individual leaders and their business units. Business
unit leaders compete aggressively to establish their units as
the destination place for an inclusive and diverse culture.

The American Worker Speaks PAGE 25

 Inclusive Culture and Values
5 Extremely or Very Important to 57 Percent of American Workers

More Than Just a Book (Company A) The Voice of the Employee:

In a national financial services company, establishing clarity
INCLUSIVE CULTURE AND VALUES
and understanding of the company vision and values was so
80
important, it published and distributed to every employee a
vision and values book. With the book, necessitated by the
60
company’s rapid growth, leadership defined the core values 78%
that have made the company successful to date and will make
40
the company successful in the future. Among them:

56%
Ethics. 20

Customer satisfaction.

Leadership and personal accountability. 0
% FAVORABLE RESPONSE

Diversity.
American Worker Company A

Voice of the team.
However, documenting the core values was not enough. The Employees Say:
company works hard at reinforcing them in both formal and
informal communication so that they are alive in the daily “It’s one thing to put the company’s values in
behaviors of employees. It is the company’s intention that even a book. But I sense that the values are part
if all of the policy manuals were thrown out, these core values of how we operate every day.”
will continue to guide the behaviors and decision-making of
employees at every level. “You know the values are real when people
who don’t live by them don’t stay around.”
EDP Theme Area: Inclusive Culture and Values
Effort: Development and distribution of vision and “We talk about our values and how they
values book will help us win against competition all
Results: • Employee understanding of company of the time.”
values
• Values establish the importance of an
inclusive environment
How to Make It Work: • Define the elements that establish the
current and/or desired company culture
• Describe the importance of the values
in meeting the company’s business
objectives, today and in the future
• Promote the company’s core values in a
variety of mediums (vision and values
book, Web site, executive speeches,
signs on the walls)
• Reinforce the core values in day-to-day
interaction
• Link the core values to criteria for
selection and performance management

PAGE 26 Diversity Practices That Work:

 Diversity Education and Training
6 Extremely or Very Important to 56 Percent of American Workers

Reach Every Employee (Company A) EDP Theme Area: Diversity Education and Training
One of the keys to favorable employee perceptions regarding Effort: Broad deployment of diversity-awareness training
diversity education and training is to deliver the training Results: • Increased awareness of diversity and inclusion
broadly throughout the organization. A global packaged goods efforts
company sought not only to reach a wide spectrum of its • Enhanced perceptions of manager capability
employee population but also to deliver 1.5 days of inclusion • Culture perceived to be more inclusive
training to more than 10,000 exempt employees in less
How to Make • Develop training content that reflects organization
than two years, beginning with the company’s leadership.
It Work: philosophy on diversity and inclusion
A cross-functional divisional team developed this training
with the intention of: • Commit to broad-scale deployment of training in
specific time frame in order to establish critical

Building greater awareness of the business case for diversity mass
and inclusion. • Create alternative methods for deployment to all

Making diversity and inclusion a central part of the company’s levels of the organization
culture and core values. • Measure employee perceptions before and after

Identifying and practicing tools for diversity and inclusion training to quantify the impact of the initiative
that the company could apply in the workplace.
Beyond the training of exempt employees, the company More Than Just a Course (Company B)
designed a three-hour alternative training format called a A global consumer-products company has developed the
“learning map,” to extend the education process to all frontline expectation that diversity training and education will be an
employees. Employee surveys indicate that the broad-scale ongoing part of skill development. It begins with an awareness
implementation has resulted in positive impacts to participants course that establishes a common foundation and understanding
and to the organization overall. Success measures include: of core concepts. Once the foundation is set, diversity skill

Increased awareness of the company’s diversity and development becomes an ongoing theme of management and
inclusion efforts. leadership development. The company’s diversity and inclusion

Enhanced perceptions of managers’ ability to work with curriculum includes the following classroom or Web-based
learning opportunities:
people from different backgrounds.

Diversity I — An introduction.

More inclusive perceptions of the company’s culture.

New-Hire On-Boarding.
Offer Targeted Efforts (Company A)
Diversity in the Workplace.
Beyond the broadly applicable training and education, this
Managing Inclusion.
global packaged-goods company also offers leadership forums
Leadership and the Business of Thinking.
geared toward African-American, Latino, and Asian employees.

Global Cultural Differences.
This weeklong and powerful learning experience, delivered in
partnership with a major university, has high involvement of
People Supporting People.
senior management and assists leaders of all backgrounds in In addition to the diversity-specific curriculum, both formal and
identifying and creating strategies to address the personal informal methods reinforce the diversity concepts. The intention
and organizational barriers to success — both real and is to consistently increase the expectations of employees over
imagined. Many participants of the leadership forums say time across the following stages:
their participation has had a profound and lasting impact on

Awareness.
their careers.

Understanding and Skill Development.

Skill Integration.

Accountability.
In this final accountability stage, diversity becomes a leading
factor in the ratings and rankings of leaders. People are
rewarded for successful application of effective practices.

The American Worker Speaks PAGE 27

 EDP Theme Area: Diversity Education and Training Employees Say:
Effort: Diversity and inclusion curriculum “I know we are serious about inclusion because
Results: • Increased awareness and skills among our training was rolled out to everyone across
employees the corporation.”
• Integration of diversity and inclusion skills
in ongoing management and leadership “I wondered if the company was serious about
capabilities my success until I attended the Leadership
• Increased accountability of leaders in Forum. The company’s commitment to me
implementing skills into day-to-day was clear.”
activities
How to Make It Work: • Create an expectation that diversity skills “Every training course that I have attended
are a fundamental expectation of all has touched on the subject of diversity in
employees
some way.”
• Develop ongoing opportunities for
development of diversity awareness and
skills
“The company provides so many opportunities
to develop new skills, diversity skills included.
• Hold employees, especially leaders, It goes well beyond just awareness of the
responsible for applying skills in the
workplace issues.”

“We’ve finally gotten to the point where after

The Voice of the Employee: lots of training, if people don’t demonstrate
DIVERSITY EDUC ATION AND TRAINING diversity skills, we stop promoting them.”
80

60
73%
65%
40
44%
20

0
% FAVORABLE RESPONSE

American Worker Company A Company B

Community Involvement
7 Extremely or Very Important to 55 Percent of American Workers

A Legacy in the Community (Company A) 1,200 employees the foundation selects in a competition to
participate. The internship program was the first of the
This global distribution company established a foundation in
company’s many diversity initiatives, demonstrating the
1951 to champion innovative solutions to social problems. One
company’s overall commitment to diversity and inclusion.
result was the birth of a multidecade commitment to being
directly involved with diverse communities. A hallmark The foundation continues to build on this legacy by:
program of the foundation, the Community Internship
Contributing more than $38 million annually to deserving
Program, began in 1968 with two primary purposes: charitable organizations.

To enhance the skills of senior managers and make them
Allocating $9 million to organizations that primarily
more well-rounded individuals. benefit women and people of color.

To bridge the gap between the company and the diverse
Involving employee teams to allocate the foundation’s
communities that it serves. resources.
After 35 years, the internship program continues to operate
Allocating most resources to organizations where employees
in three locations across the United States in a manner that are actively involved.
encourages ongoing involvement in the community. It
provides awareness, understanding, and sensitivity for the

PAGE 28 Diversity Practices That Work:

 EDP Theme Area: Community Involvement The Voice of the Employee:
Effort: Community internship program
COMMUNITY INVOLVEMENT
Results: • Enhanced skills among
100
participating senior managers
• Increased connection between company and 80
surrounding diverse communities 82%
60
• Alignment around a core company value of
actively supporting the surrounding communities 40
How to Make • Clarify the company’s mission as 41%
20
It Work: a supporter of the surrounding community
• Develop breakthrough and sustainable pro- 0
% FAVORABLE RESPONSE
grams that define the company’s commitment
American Worker Company A
• Immerse company leaders in programs and
activities that create a greater connection to the
community and enhance their diversity skills
Employees Say:
• Reinforce the company’s commitment with
other programs and methods of support “Active support of the community is not done for
• Sustain efforts over time to establish the recognition; it is simply a part of who we are
practice as part of the company’s culture as a company.”

“Supporting the community is what our company

is all about. My manager talks about it like it’s
a requirement of the job.”

“The support we provide to the community makes

me proud to be part of the company family.”

Advancing Diverse Talent

8 Extremely or Very Important 55 Percent of American Workers

Look Inside for Undiscovered Talent Through these efforts, supporting the business contributions
of individual associates, the company has made significant
(Company A) progress in the advancement of people of all backgrounds.
The annual talent review enables this national financial-
services company to identify diverse talent early in the EDP Theme Area: Advancing Diverse Talent
company’s pipeline. Once identified, the company creates Effort: Annual talent review
specific action plans to ensure that each identified person can Results: • Identification of high-potential talent early in
grow to reach his or her maximum potential. Action plans their careers
include a variety of development activities that will take • Development opportunities that enable high-
place in the current assignment and prepare the individual potential individuals
for his or her next position. Supervisors formally check action
• Increased representation at higher levels of
plans semiannually to ensure adherence.
responsibility
The annual talent review is an extension of the company’s How to Make • Conduct annual review to identify people with
formal succession planning work, designed to review talent It Work: high growth potential at all levels and stages in
that is deeper in the organization. Information from the talent pipeline
annual talent review process is used to: • Develop individual action plans designed to

Develop diverse candidate slates for key openings across maximize the development of each identified
the company. high-potential person

Identify participants for corporate training programs that • Offer identified people career-development
are designed to prepare employees for greater responsibility. opportunities that will prepare them for
This ensures that developmental programs consistently increased opportunities
include the wide spectrum of talent available within the • Link identified people with mentors and
company. sponsors at higher or executive levels

Assign participants with potential mentors throughout the
organization to ensure that each has a formal connection
with an executive.

The American Worker Speaks PAGE 29

 The Voice of the Employee:
Employees Say:
“My manager told me that I have a lot of
ADVANCING DIVERSE TALENT potential and that she is committed to my
80 career and to my getting promoted. I can’t tell
you how much of a difference that made.”
60
73%
“It is critical that we identify people early in
their careers who have great potential so that
40
45%
we can put them in the pipeline for future
20
opportunities.”
0
% FAVORABLE RESPONSE

American Worker Company A

Career Development for Diverse Talent

9 Extremely or Very Important to 54 Percent of Employees

Working the Systems (Company A) The rigor and discipline established through the performance
evaluation processes — and high compliance rates — lead to
Rapid expansion — 45 percent growth in revenues and
favorable perceptions across the employee population.
34 percent in employees over the past four years — makes a
strong business case for a career-development program,
especially when the company has a policy of promoting from EDP Theme Area: Career Development
within. This automotive company reinforces its commitment Effort: Performance management process including
to career development through the day-to-day behavior of its career planning
managers, who evaluate performance objectively and based Results: • More employees receiving annual performance
on merit. Employees of this company have very positive and career plans
perceptions regarding career development. Specifically: • Enhanced employee perceptions

72 percent believe that their managers are good at managing How to Make • Develop objective performance measures for
people of all backgrounds. It Work: every employee

74 percent believe that the company is committed to • Track progress against performance measures
developing people who are diverse. • Formally post job openings

79 percent believe they know about openings for which • Conduct formal annual or semiannual
they are qualified. performance reviews

68 percent have a career plan. • Define career goals and expectations for each
employee and position
Each of these widely held perceptions is a direct result of the
transparent career-development and performance-evaluation
processes throughout the organization. These processes Focusing Where It Counts (Company B)
include: This global consumer-products company focuses its career-

Development of specific and measurable performance development efforts on employees in the five- to 10-year service
expectations for each employee. These expectations level, after determining that this a critical time for career
emphasize impact on sales and customer service. development and preparation of future leaders. This company

Individual performance score cards that report sales and pays special attention to the assignment planning for all
customer-service results as frequently as daily. employees with high potential, particularly women and minori-
ties. During this time, the company places special emphasis on:

Performance score cards that evolve with increased respon-

Partnering with individual managers to identify their
sibility to include employee retention for managers.
destination jobs.

Formal posting of all job openings, distributed to all

Assigning executive-level sponsors who personally commit
employees.
themselves to the long-term success of individual employees.

Formal annual performance reviews for all employees, and

Placing high-potential candidates in high-profile assignments
more frequent reviews for new employees.
that are deemed critical both to the company and to the

Linking career goals and expectations in the annual
individual’s growth and development in preparation for
review to objective daily, monthly, and annual measures his/her long-term or destination assignment.
of performance.

Giving great consideration to succession planning for cross-
functional and international broadening assignments that
expand an individual’s experience and growth.

PAGE 30 Diversity Practices That Work:

 EDP Theme Area: Career Development Employees Say:
Effort: Career development and assignment plans for “The company sponsors interviewing workshops
high-potential candidates to make sure that I will represent myself well
Results: • Increased advancement of talented employees when applying for a promotion.”
• Career development and assignment plans that
lead to broader experience and responsibility “The career path is very clear. I believe that if
How to Make • Identify critical assignments for success I deliver results, my career will advance.”
It Work: • Develop individual career plans that include
assignments that lead to accelerated growth “Whenever a job opening is available, everyone
and development knows. If I think I am qualified, then I can
• Assign executive-level sponsors who are fully apply for it.”
committed to the long-term success of the
individual candidates “We have certain jobs that we know are critical
for testing an individual’s skills for preparing
The Voice of the Employee: them for future responsibilities. We make sure
that diverse talent has access to these jobs.”
C AREER DE VELOPMENT FOR DIVERSE TALENT
80 “I like the fact that I have an executive sponsor
that I connect with regularly. I feel like she is
60 looking out for my best interests in career
65% discussions when I am not present.
70%
40
40% “I appreciate having a corporate mentor that
20 tells it like it is, even when the message is
about where I need to do better. Having
0
% FAVORABLE RESPONSE someone to help navigate the system has
made a difference in my desire to stay.”
American Worker Company A Company B

10 Diversity Employee Communications

Extremely or Very Important to 52 Percent of American Workers

Can You Hear Me Now? (Company A) 4. We contribute to the communities in which we work, live,
and do business.
Communicating to a large, complex, and geographically
dispersed organization can be a challenge. But when you 5. Diversity is present in all of our company communications
apply proven marketing and communications techniques to (even if the word diversity is absent).
diversity and inclusion efforts, the messages come through 6. We are known as a diverse company.
loud and clear.
Got it? Apparently the employees do, as they perceive
A catchy “Got Diversity” campaign has enabled this national strength in their company’s diversity communications.
financial-services company to get the attention of virtually Diversity is present in every medium by which the company
every employee with its branded diversity message. Created communicates, including:
in 2002, the campaign includes a six-step program that has
Corporate newsletter.
resulted in broad-scale understanding and adoption of the

Annual report.
company’s diversity business case and strategy. The six steps
provide a clear picture of what the organization is striving
Shareholder communications.
toward and what success looks and feels like. The six steps are:
Board communications.
1. Our CEO and executive management team take
Letters to employees.
responsibility for diversity and hold themselves and
Company policy manuals.
others accountable.

Broadcast messages.
2. People from diverse backgrounds are in all levels of

Company Web site.
management.
3. We establish long-term relationships with diverse
communities.

The American Worker Speaks PAGE 31

 EDP Theme Area: Diversity Employee Communications EDP Theme Area: Diversity Employee Communications
Effort: Establish diversity brand and marketing campaign Effort: Diversity positioning and ongoing communications
Results: • Increased awareness and understanding of Results: • Increased alignment across company stakeholders
the diversity business case and strategy • Increased ownership and buy-in among employees
among employees
How to Make • Establish framework and key diversity messages
How to Make • Develop or confirm a diversity strategic plan It Work:
It Work: • Identify existing communications vehicles or
• Translate diversity strategy into key global develop new ones for delivering key messages
communications messages
• Implement ongoing and multilevel
• Develop the diversity communications brand communications plan
or campaign that will make messages both
meaningful and memorable
• Deliver the campaign and key messages The Voice of the Employee:
across a variety of media
DIVERSITY EMPLOYEE COMMUNIC ATIONS
100
Lead With Company Equities (Company B)
80
A global consumer-products company makes diversity an 83% 79%
important element in all of its corporate communications 60
efforts. In fact, this communications expert has invested in
40
research to determine the themes that are most relevant for
38%
employee communications overall and has effectively linked 20
diversity to them. This sets the stage for an annual diversity
communications program that emphasizes the business case 0
% FAVORABLE RESPONSE
and keeps employees engaged in the company’s diversity
initiative. Among the ongoing publications are: American Worker Company A Company B

An annual letter on diversity from the CEO, discussing

the business case and role of diversity in the company’s Employees Say:
long-term success.

A diversity section of the company’s intranet, including “We now talk about diversity in a consistent
information for building diversity leadership skills among manner, across all of our businesses. It’s on the
the company’s employees who are charged with diversity front page, so it’s top of mind.”
responsibility.

Periodic updates of diversity accomplishments, including “The company has created a language and
context for diversity. It has helped include more
celebration of external recognition.
people in the conversation.”

A recently developed tool that provides a framework of
corporate guidelines and summary of key concepts that are “Diversity is integrated into all of our company
critical for building and maintaining a diverse work force.
communications. It’s part of our DNA.”

“We’ve spelled out our vision for diversity and

what is expected of every leader. No one can
plead ignorance anymore.”

PAGE 32 Diversity Practices That Work:

 Employee Involvement
11 Extremely or Very Important for 52 Percent of American Workers

Connect People With Common Interests Realizing Efficiencies (Company B)

(Company A) A global foods company is exploring enhancements in its
Companies typically use the strategies of affinity groups and networks by generating efficiencies in how the groups operate
diversity councils to encourage ongoing involvement of employees and use company resources collectively. The concept of
in diversity and inclusion efforts. In fact, each of the eight shared vs. sacred space has enabled this company’s network
companies surveyed has diversity councils or employee affinity groups to achieve efficiencies by working closer together in
or network groups. However, the most favorable responses came addressing the challenges and opportunities they have in
from an organization that sets the bar high in this area. common. This also results in a greater opportunity to invest
more time and energy into the “sacred” areas, which are
At last count, this global consumer-products company identified unique to specific segments of the employee population.
a total of 73 employee network groups in various parts of the The concept of shared vs. sacred space increases efficiency
organization. The network groups’ missions are similar. They and effectiveness for the company as well as for individual
focus on enriching the employment experience of the network network groups.
members as well as making meaningful contributions that
benefit the company overall. Activities include: EDP Theme Area: Employee Involvement

Serving as a voice to upper management on key issues Effort: Establishing synergies across employee affinity
and concerns. groups or councils

Training and education. Results: • Increased efficiency in utilization of corporate

Mentoring. resources (time and money)

Networking. • Increased effectiveness of affinity group efforts

Supporting the company’s recruiting efforts. How to Make • Establish strategic priorities for individual
It Work: affinity groups

Sponsoring culturally relevant programs.
• Compare and contrast priorities across affinity

Providing feedback to the company’s policies and procedures. groups to identify potential areas of synergy

Serving as consumer panels for new-product development • Define principles for deployment of initiatives
and marketing efforts. that impact multiple affinity groups
The company sponsors all of the networks in part and assigns
many an executive sponsor. The return on investment comes The Voice of the Employee:
in the form of enhanced satisfaction of the participating
members, marketplace wins with contributions from feedback EMPLOYEE INVOLVEMENT
or insights from network groups, and measurable improvements 80
in employee retention.
60
72% 67%
EDP Theme Area: Employee Involvement
40
Effort: Diversity councils/affinity groups
Results: • Enhanced retention 20
• Enhanced employee satisfaction 28%
• Identification of new-product and service ideas 0
% FAVORABLE RESPONSE
for marketplace qualification
How to Make • Identify the segments of the employee American Worker Company A Company B
It Work: population that would benefit from an affinity
group or council
Employees Say:
• Establish guidelines for chartering affinity
groups or councils “The affinity groups offer needed support,
• Determine the resources that the company will especially early in your career.”
allocate to support the affinity group
• Assign a company sponsor “I couldn’t imagine what this company would be
like without affinity groups, which provide an
• Interact frequently to ensure that activities are
consistent with the company and members opportunity for everyone to get involved and
expectations make a difference.”

“Affinity groups play a key role in shaping

leadership’s thinking around diversity.”

The American Worker Speaks PAGE 33

 Supplier Diversity
12 Extremely or Very Important to 49 Percent of American Workers

Creating Wealth in Our Communities Later Start; Strong Finish (Company B)

(Company A) Entering the game later, a global distribution company has
Twenty years of effort, aggressive plans, dedicated resources, created a supplier diversity game plan that is getting lots
and a supportive infrastructure have generated superior of attention just a few years after its inception. Keys to
results in supplier diversity for this global packaged-goods success include:
company. The winning formula includes the following factors
Set a corporate goal.
identified by company resources:
Require a formal supplier diversity plan for all significant

Obtain senior leadership’s commitment, sponsorship, corporate purchases.
and advocacy.
Emphasize accountability, measuring supplier diversity

Establish the business case — enhancing the company spending at the individual buyer level.
image by creating wealth in diverse communities.
Encourage broad employee participation. The company

Set aggressive goals, both long term (10 percent of total requires that more than 200 managers across the country
spending) and short term (year-over-year increase). support the successful execution of its supplier development

Establish company-specific advisory boards, made up of process, serving as coordinators and advocates for potential
external resources, for strategic input and networking. diverse suppliers at the local level.

Make supplier diversity a critical procurement strategy
Vary contract sizes, often unbundling large contracts and
and priority. agreements to provide the opportunity for smaller companies
to participate and, ultimately, win contracts based on their

Dedicate high-level resources to the effort.
own merit.

Create synergies across divisions.
Actively mentor diverse suppliers through programs designed

Offer incentives throughout the company, especially for to enhance the supplier’s business acumen and growth.
leaders who influence spending.
As a result, goods and services are currently purchased from

Include supplier diversity in every bid (either as first or
more than 2,000 certified minority- and women-owned suppliers.
second tier).

Develop or sponsor new diverse suppliers in categories EDP Theme Area: Supplier Diversity
where they don’t exist. Effort: Increase spending among women and minority

Partner with certification organizations (Women’s Business vendors
Enterprise National Council — WBENC, National Minority Results: • Established relationships with more than
Supplier and Development Council — NMSDC) and encourage 2,000 certified vendors
company representatives to seek leadership positions at the • Year-to-year increase in spending with diverse
national and local levels of those organizations. suppliers

Seek to be world-class; establish a reputation as the How to Make • Establish a corporate goal that is stretching
preferred corporate partner. It Work: • Establish policies that drive consideration of
diverse source of vendors
EDP Theme Area: Supplier Diversity
• Assign responsibility for meeting goals
Effort: Comprehensive and integrated plan
• Enroll buyers and other resources that can
Results: • Annual increases in spending with minority and influence purchasing decisions
female businesses (despite decreases in
spending overall) • Build relationships with potential suppliers,
mentoring them where appropriate
• Ongoing progress against long-term goal
• Track progress
How to Make • Enroll senior leadership
It Work: • Establish aggressive long-term and short-term
goals
• Establish supplier diversity as a strategic priority
• Create infrastructure
• Create internal incentives
• Partner with external resources, including
establishing company-specific advisory boards
• Focus on continual improvement

PAGE 34 Diversity Practices That Work:

 The Voice of the Employee:
Employees Say:
“Supplier diversity is a definite priority for
SUPPLIER DIVERSITY
the CEO, which helps when working with
80
individual business leaders.”
77% 77%
“We don’t just join external organizations; we
60

take on leadership roles within them. This

40
45% helps enhance the company’s profile, and it
20
makes the subject more personal for the leader.”

0 “When we do it right we get a great deal of

% FAVORABLE RESPONSE recognition from the surrounding community.”
American Worker Company A Company B
“We make supplier diversity part of the job
responsibilities of each of our district managers
and vice presidents. They are responsible for
identifying minority and female vendors and
are very proud of it.”

“This hasn’t always been a priority, but it

is now. The head of procurement has set
aggressive goals and is focused on measuring
our progress.”

13 Performance Accountability and Measurement

Extremely or Very Important to 47 Percent of American Workers

No EDP Company’s employees perceived Performance and therefore makes it a significant and controlling criterion
Accountability and Measurement as an area of strength. However, for incentive compensation for functional and business unit
several EDP Companies had specific accountability actions leaders. The CEO indicates that the company approaches
that they considered central to driving success in other theme diversity as any other business imperative, with:
areas and for their diversity initiatives overall. This perception
Multiyear strategic plans.
gap suggests that this is an area for ongoing exploration and
Specific goals.
testing, as well as broader communication of efforts.

Senior executives focusing on moving the company
Establish Goals and Hold Leaders toward success.
Accountable (Company A)
EDP Theme Area: Performance Accountability and Measurement
A global packaged-goods company has a diversity and
Effort: Executive incentive compensation
inclusion score card, which establishes very specific metrics
in the areas of hiring, promotions, and turnover. The score Results: • Increased representation at all levels
card measures comparative rates in each of these areas • Executive engagement in diversity and
across business units and demographic groups to quickly inclusion efforts
identify areas of strength and areas in need of attention. How to Make • Establish long-term goals for diversity and
The expectation is that establishing metrics, particularly It Work: inclusion
in this very results-oriented culture, will help make the • Track progress against goals by major lines of
organization reflective of its consumer marketplace at all business
levels, a defined business imperative. • Create an incentive compensation formula that
In practice, the score card promotes hiring at or ahead of includes progress in the area of diversity and
current representation and assumes that turnover and inclusion
promotions should ultimately be at parity across demographic
groups. This global packaged-goods company is convinced that
the use of the scorecard alone promotes the desired behaviors

The American Worker Speaks PAGE 35

Management by Objective (Company B) The Voice of the Employee:
In a national financial-services company, all managers have
PERFORMANCE ACCOUNTABILITY AND MEASURMENT
performance objectives related to diversity and inclusion.
There is a great deal of flexibility in defining the objective in 80
a manner that is consistent with the needs and dynamics of
the business and the individual. Typically, the diversity 60
60% 57%
objective links to the corporation’s emphasis on people
development. Specific objectives often include: 40

Effort in mentoring employees within a specific work

20
group. 27%

Sponsoring or participation in a diversity council or 0
affinity group. % FAVORABLE RESPONSE

Implementation of corporatewide diversity initiatives American Worker Company A Company B
within an individual’s department or function.

Generating incremental business among a market segment Employees Say:
that is currently underdeveloped relative to its potential.
“I know that some people pay attention to
EDP Theme Area: Performance Accountability and Measurement diversity because of its impact on compensa-
tion. That’s a good thing.”
Effort: Diversity and inclusion performance
objectives
“I’m not sure if employees realize how much
Results: • Increased ownership of diversity and inclusion
at all levels of our incentive compensation is driven by
diversity results. It’s significant.”
How to Make • Establish a corporate framework for diversity
It Work: • Link diversity to or establish diversity as a core
“It helps that diversity is included in every
competency
performance plan. It helps build greater
• Establish guidelines for setting individual ownership and involvement.”
diversity objectives for employees
• Measure progress against the objectives in the “We don’t have a single head of diversity.
context of regularly scheduled performance It’s everyone’s job, and it’s therefore in
reviews
everyone’s performance plan.”

Get a Fresh Perspective (Company A) “Our external advisers helped us remember

At a global packaged-goods company, another potential to focus on all levels of the work force. They
effective practice in the area of performance measurement reminded us that challenges exist on the front
and accountability is the establishment of external advisory line in addition to the management ranks.”
boards, serving as an objective reality check for diversity
and inclusion strategies and efforts. The sound advice “Our external advisers help keep us honest.
and experience of the company’s African-American, They bring unique experiences and perspectives
Latino/Hispanic, and the newly developed health and that we might otherwise overlook.”
wellness advisory boards have resulted in wins for the
company in the areas of marketing, supplier diversity,
community partnerships, and human resources.

EDP Theme Area: Performance Accountability and Measurement

Effort: External diversity advisory boards
Results: • Objective counsel on important business
subjects
How to Make • Determine the strategic areas that warrant
It Work: objective external counsel
• Identify external resources that offer valuable
experiences or perspectives
• Establish principles for engagement of external
resources
• Review structure periodically to identify and
implement opportunities for improvement

PAGE 36 Diversity Practices That Work:

 Research Revealed
Recap: Specific Tactics Associated with Themes or Practice Areas

1. Marketing to Diverse Customers and Consumers 8. Advancing Diverse Talent

• Dedicated resources/business unit • Executive-level sponsorship
• Emerging markets conferences • Diverse slates for open positions
• Tailored products • Posting of open jobs
• Location of retail sites • Promotion from within
• Link to customer diversity initiatives • Inclusive high-potential development pools
• Bilingual and/or targeted marketing materials • Focused development plans for advancement of
• Retaining Diverse Talent high-potential talent
2. Retaining Diverse Talent • Inclusive talent (succession planning)
• Pay for performance and competitive compensation strategies 9. Career Development for Diverse Talent
• On-boarding programs • Formal mentoring programs (including efforts for women
• Training to enhance manager and subordinate relationships and minorities)
• Manager effectiveness feedback tool • Professional-development programs
• Assignment quality review • Performance-management systems
• Formal employee recognition program • Career-development planning tools
• Individual retention plans for high-potential employees • Talent-management reviews
• Work/life balance initiatives 10. Diversity Employee Communications
3. Recruiting Diverse Talent • Diversity branded message
• Deep and inclusive penetration on college campuses • Annual diversity letter from the CEO
• Inclusive internship and tuition-reimbursement programs • CEO/executive power talks making executive leaders
• Recruiting at HBCUs and schools with large Hispanic enrollment more accessible to employees
• Employee incentives for successful referrals • Periodic report of diversity accomplishments
• External recruiting partnerships, outreach, and networking • Diversity intranet site
• Student leadership conference • Diversity update in annual report
• Diversity recruiting goals and objectives based on work force • External diversity communications initiative
availability • Diversity in all corporate communications
• Diverse pools and/or slates 11. Employee Involvement
• Scholarship programs that build future pipeline • Corporate and business line diversity councils
4. Leadership Commitment and Involvement (total number)
• Diversity business plans by division and functional unit • Distinguished speakers series
• Link to business strategies • Diversity festivals/activities
• Quarterly results and accountability reviews • Team member resource groups/affinity groups
• Sponsorship of diversity councils (total number)
• Include diversity as a required leadership competency 12. Supplier Diversity
• Engaged CEO and leadership team • Spending goals established and tracked
5. Inclusive Culture and Values • Joint ventures, alliances, and partnerships
• Vision and values written and distributed to all employees • Dedicated resources (in every business unit)
• Broad and inclusive definition of diversity • External Web site with online vendor registration
• Recruit people who exemplify the corporate values • Participation with national and local networks
• Employee surveys • Supplier mentoring program
• Training and education • Required minority/women supplier inclusion
• Accommodation policy for people with disabilities in RFP process
• Zero-tolerance policy • External reporting system
• Distinguished speakers series 13. Performance Accountability and Measurement
6. Diversity Education and Training • Diversity goals as part of performance management
• Awareness training • Internal diversity awards
• Diversity “champions” in business units • Manager feedback and profiles and tools
• Online learning modules on company intranet • Diversity score card
• Diversity training for managers • Diversity business plan/strategy with built-in
• Global training module accountabilities
• Comprehensive diversity curriculum • Confronting inappropriate behaviors
7. Community Involvement • Link to incentive compensation (% of total)
• Company foundation focused on philanthropic activities in • External advisory councils
communities where it operates
• Community internship program
• Active employee participation surrounding diverse communities
• Education/outreach programs

The American Worker Speaks PAGE 37

 Appendix
Making Diversity Work in Your Company
Expand the breadth of the study to emphasize additional
For individuals and organizations to make best use of the dimensions of diversity that are critical to understand
data discussed in this report, a few key steps are necessary: better in our evolving work force, such as physical ability,
sexual orientation, religion, age, and nationality.
1. Understand how current diversity practices impact the
Expand the breadth of the study to include Effective
perceptions of employees in your organization across
each of the 13 Effective Diversity Practices theme areas. Diversity Practices beyond the United States, including
(See Methodology and Approach.) employees and companies from all over the world.

Collect ongoing feedback from companies who have
2. Identify your sources of strength and opportunities for
improvement, using employee perception data. implemented Effective Diversity Practices in their
companies, generating enhancements in employee
3. Review the Effective Diversity Practices summarized in perceptions and business outcomes.
this report as input to your diversity strategic plan.
4. Implement Effective Diversity Practices in a manner con- Methodology and Approach
sistent with and relevant for your company and its culture. Our research included four phases designed to identify
5. Establish benchmarks at the outset and measure changes and highlight Effective Diversity Practices of leading-edge
in employee perceptions and other business outcomes at organizations. The phases are as follows:
intervals following the implementation of Effective
Phase I — Establishing the Framework. Based on decades of
Diversity Practices.
practical and applied diversity experience, we established a
framework for assessing the effectiveness of diversity within
What’s Next? corporations and other organizations. This framework
It is our intent and hope that this report will motivate and includes 13 key themes or practice areas to provide a context
inspire readers to make a difference in whatever area of the for employee perceptions as well as company-specific diversity
work force they impact. In particular, we anticipate that many initiatives. Key themes:
companies and organizations will apply the Effective Diversity
1. Marketing to Diverse Customers and Consumers
Practices highlighted here, stimulating positive and dramatic
changes in employee perceptions and business outcomes. 2. Retaining Diverse Talent
3. Recruiting Diverse Talent
In addition, we believe that an opportunity exists to
extend this research across a variety of strategic vectors, 4. Leadership Commitment and Involvement
as highlighted below: 5. Inclusive Culture and Values

Establish this Effective Diversity Practices study as a 6. Diversity Education and Training
longitudinal study, tracking employee perceptions nationally 7. Community Involvement
and among participating companies over time, isolating the
diversity practices that generate sustained improvements
8. Advancing Diverse Talent
in employee perceptions. 9. Career Development for Diverse Talent

Conduct this research — employee surveys and audits — 10. Diversity Employee Communications
among additional companies that have strong diversity 11. Employee Involvement
reputations but opted to not participate in the first 12. Supplier Diversity
Effective Diversity Practices effort.
13. Performance Accountability and Measurement

PAGE 38 Diversity Practices That Work:

Phase II — Establishing the Voice of the American Worker. Each of the eight companies participated in a survey of
We used both qualitative and quantitative survey methods to approximately 375 employees, for a total of 3,400 surveys.
establish the voice of the American Worker as it relates to In addition, each underwent an audit or interview designed
diversity and inclusion. In total, we aggregated the percep- to better understand their diversity practices and their
tions and points of view from a stratified random sample of impact. Company surveys and interviews took place over a
more than 2,100 American Workers. This sample provides nine-month period from June 2003 through March 2004.
employee opinions that are nationally predictive at 95 percent Researchers granted companies anonymity in the report of
confidence intervals (+/- 5 percent) overall, as well as among their results, in accordance with the emphasis on the practices,
key demographic segments including: Gender, Ethnicity/Race, as opposed to the practicing organizations.
Job Type, and Level of Education. Participants completed The aggregate surveys of the 3,400 employees of participating
surveys in November 2002. companies comprise a benchmark for comparisons across
Phase III — Conducting Company Employee Surveys and EDP Companies and for comparisons to the national survey
Audits. After analyzing the voice of the American Worker, of American Workers.
we compiled surveys from eight companies that shared the One additional company was surveyed, but their results were
following characteristics: not included in the Effective Diversity Practices panel based

Favorable reputations in the area of diversity. on less than favorable employee responses.

Large and dynamic organizations that make a significant
Phase IV — Analysis and Reporting. Throughout the project,
contribution to the United States and global economies. Global Lead Management Consulting, in cooperation with

Willingness to share their internal diversity practices Gantz Wiley Research, conducted detailed data analyses and
and initiatives. identified key findings. In addition, key findings underwent

Willingness to have their employees surveyed to document review by the multidisciplinary project team and, ultimately,
the perceived effectiveness of their diversity practices. with the Effective Diversity Practices Advisory Council.
This report is the culmination of the research project.

The American Worker Speaks PAGE 39

About the National Urban League Acknowledgments
The National Urban League is the nation’s oldest and largest The National Urban League would like to thank several
community-based movement empowering African-Americans organizations and people for their support and participation
to enter the economic and social mainstream. of the Effective Diversity Practices Study. These include:
The Urban League movement was founded in 1910. The

Enterprise Rent-A-Car for its financial support and active
National Urban League, with headquarters in New York City, participation in the research design and development.
spearheads nonprofit, nonpartisan, community-based movement.
The participating companies, including Enterprise
The heart of the Urban League movement is the professionally Rent-A-Car, Fifth-Third Bank, Kraft, PepsiCo,
staffed Urban League affiliates in more than 100 cities in Pitney Bowes, Procter & Gamble, United Parcel Services,
34 states and the District of Columbia. and Wells Fargo.
The mission of the Urban League movement is to enable

The Effective Diversity Practices Project team members:
African-Americans to secure economic self-reliance, parity Erin Bina (Global Lead), Alonzo Byrd (Enterprise
and power, and civil rights. Rent-A-Car), Doreen Caruth (Gantz Wiley Research),
Jim Donoho (Gantz Wiley Research), Dennis Dowdell
The National Urban League’s three-pronged strategy for (Lanyap Squared), Wanda Jackson (National Urban
pursuing the mission is: League), Kyle Lundby (Gantz Wiley Research),

Ensuring that our children are well-educated and equipped Lisa Malone (National Urban League), Kerry Moechnig
for economic self-reliance in the 21st century. (Gantz Wiley Research), Arlene Taylor (Global Lead),

Helping adults attain economic self-sufficiency through Jandie Smith-Turner (Global Lead), and Derron Watson
good jobs, homeownership, entrepreneurship, and wealth (Enterprise Rent-A-Car).
accumulation.
Our Effective Diversity Practices Sponsors team, including

Ensuring our civil rights by eradicating all barriers representatives from the National Urban League and
to equal participation in the economic and social Enterprise Rent-A-Car.
mainstream of America.
The Effective Diversity Practices Advisory Council:
As part of its mission, the National Urban League has dedicated • Ms. Paula A. Banks, senior vice president Global
itself to advancing the subject of diversity in the work force. Diversity/Inclusion and Organization Partnerships,
To that end, the National Urban League has commissioned PepsiCo.
this study on Effective Diversity Practices as a service to its • Mr. Carl Brooks, president, Executive Leadership
affiliates, members, corporate partners, and others who are Council and Foundation.
also dedicated to the mission of economic self-reliance, parity • Mr. Martin Davidson, associate professor of business
and power, and civil rights. administration, University of Virginia Darden
For additional information regarding the National School of Business.
Urban League’s Effective Diversity Practices Study, • Mr. Thomas Kochan, George Maverick Bunker
contact Wanda Jackson, vice president, Human Resources, professor of work and employee relations, MIT
at 212-558-5400 or wjackson@[Link]. Sloan School of Management.
• Ms. Marcia Kropf, chief operating officer, Girls
About the Author Incorporated.
John C. Peoples is a managing partner with Global Lead • Ms. Cheryl Mills, senior vice president Operations
Management Consulting, a full-service management consulting and Administration, New York University Office of
firm specializing in the areas of diversity and organizational Public Affairs.
transformation.
• Ms. Toni Riccardi, principal and chief diversity officer,
After a successful career in marketing with Procter & Gamble, PricewaterhouseCoopers.
Mr. Peoples has committed himself to aiding companies • Dr. William E. Spriggs, executive director, National
across a variety of industries and geographies in enhancing Urban League Institute for Opportunity and Equality.
their productivity by establishing and leveraging diversity as
a source of competitive advantage.
• Mr. Luke Visconti, founder and publisher, DiversityInc.

In partnership with the National Urban League, Mr. Peoples

led a multidisciplined and very talented team in the design,
development, and implementation of this Effective Diversity
Practices Study.
For additional information on how you can measure employee
perceptions of your company’s diversity practices, contact
John Peoples, managing partner at Global Lead Management
Consulting, at 410-332-4562 or jpeoples@[Link].

PAGE 40 Diversity Practices That Work:

[Link]