THE BALANCING ACT CREATING A DIVERSE WORKFORCE. Kathy Kostyrko Director 2014

Transcription

1 THE BALANCING ACT CREATING A DIVERSE WORKFORCE Kathy Kostyrko Director 2014

2 AN INTRODUCTION: DIVERSITY IN THE WORKFORCE A diverse workplace is created by treating people equitably and not discriminating on the basis of an individual s: Race Gender National origin Physical appearance Marital status Sexual preference Age Disability Pregnancy Carers responsibilities Industrial activity Religious or political conviction Spent criminal conviction 2

3 TOPICS Key findings The business case for diversity The current situation Why we fall short Six strategies to create a diverse workforce

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5 KEY FINDINGS 67% 71% 53% 57% 66% 49% 30% 26% 40% of employees want greater diversity in their workplace of employers said women are supported and encouraged to reach their career goals, however... of employees said there is not a balance of male and female representation at the senior executive level of their organisation of employees said their organisation values mature age workers of employers say their organisation has a culturally diverse workforce, however... of employees said immigrants face discrimination in gaining employment of employees say their organisation has a workforce that includes Aboriginal and Torres Strait Islanders of employees say their organisation s workforce includes people with a disability, and only... of organisations can accommodate staff with a physical or mental disability 5

6 Many employers have invested time and effort to create diversity, but in reality have failed to achieve their desired outcomes, in fact, statistics say we re going backwards. 6

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8 THE BUSINESS CASE FOR DIVERSITY Improved attraction and retention Is reflective of your customer base Improves productivity Stimulates innovation A variety of views creates new approaches Improved financial performance Compliance with procurement processes and tenders Reduces litigation risk

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10 IS YOUR COMPANY TAKING STEPS TO CREATE A DIVERSE WORKFORCE? 68.8% Yes Unsure 19.2% No 13% 10

11 DOES YOUR CURRENT ORGANISATION HAVE A DIVERSE WORKFORCE? How diverse is your workforce? 11

12 GENDER Our survey: 66% say their organisation is gender diverse 49% of employers said women are equally represented in leadership positions 60% said women are developed into leadership roles Statistics say: In 2012, women held only 9.2% of directorships in ASX500 In August 2014, we had18.6% of women on ASX200 boards up from 13.4% in 2011 Norway has exceeded its target of 40% of women on boards In March 2014, the UK had 20.7% women on FTSE100 boards target of 25% by ASX200 boards have no women at all WGEA says pipeline to senior leadership is shrinking for women There has been little increase in the number of female executives over the past decade Gender pay gap August 2014 was18.2% (last year 17.6%) this has increased 1.6% over past 18 years Women are under-represented in Australia s highest paying industries (Mining, Engineering, Construction, Law, IT) 12

13 GENDER DIVERSITY Hays/Insync Survey WHY AREN T WE GETTING IT RIGHT? 13

14 GENDER DIVERSITY Hays/Insync Survey WHY AREN T WE GETTING IT RIGHT? In partnership with Insync we surveyed 1029 people in June this year 507 females & 505 males They were sent the CV of a Regional Sales Manager - half received Susan s CV, half Simon s the identical CV They were then asked to rank them against 20 attributes (10 associated with the stereotypical female gender and 10 the stereotypical male gender) Female attributes: committed, cooperative, democratic leader, develops others, high level of empathy, interpersonal skills, mature, professional, supportive, team builder Male attributes: Ambitious, assertive, business sense, competitive, confident, decisive, determined, directive, self reliant, works well under pressure 14

15 GENDER DIVERSITY WHY AREN T WE GETTING IT RIGHT? Results show that hiring managers possess affinity bias highly rating someone most like them. ie a preference for more Female respondents who received the CV of Susan said she matched 14 of the 20 attributes extremely well in comparison female respondents who received Simon s CV said he matched only 6 of the 20 attributes extremely well. Male hiring managers demonstrated the same kind of bias men said Simon matched 14 of the 20 attributes extremely well but Susan only matched 6 of the 20. Affinity bias affects our perceptions when we re rating candidates but when it comes to making a hiring decision it is gender bias that affects the outcome our survey found both genders were significantly more likely to interview and hire Simon rather than Susan. So while men prefer male candidates and women prefer female candidates, both men and women are more likely to hire a man for the job. 15

16 AGE MATURE AGE The Human Rights Commission survey found one in ten bosses won t hire a worker older than 50 Despite the fact that since the GFC older workers have absorbed half the net growth in jobs, the ABS says 33% of those aged are long term unemployed compared to 22% and 13% Since 2009 the FWO has received more than 80 complaints relating to age discrimination from workers as young as 40, making mature age among the top 5 types of discrimination investigated International comparison Swedish employment rate for people aged 55 to 64 in 2012 was 73% - far above the EU average of 48.9% as they have improved the ability of employees to stay at work (career planning, training, mentorships, etc). 16

17 AGE YOUTH By 2025 Gen Y will make up 75% of our global workforce The unemployment rate for 15 to 19 year olds looking for full-time work in July 2013 was 25.5%. The most significant factor is a marked reduction in the number of genuine entry-level jobs in the labour market in the past 30 years. There has been a shift by employers from being skill developers to skill buyers, with a heavy emphasis on the need for jobseekers to have had paid work experience. In the face of an ageing population, there is little doubt that a continued high rate of youth unemployment will adversely affect the future productivity and retirement of today's workforce. International comparison Germany has the lowest rate of youth unemployment in Europe (below 8%) due to its system of dual vocational training students go to school and work simultaneously rather than consecutively. 17

18 MULTICULTURAL 66% of Australian employees say their organisation has a multi-cultural workforce 66% of employers are committed to recruiting a multi-cultural workforce Some immigrant groups have higher levels of income, lower levels of unemployment and higher levels of home ownership compared to their Australian-born counterparts However, a large number are in low skilled employment with their qualifications and skills often not recognised Our survey of employees found 49% said immigrants face discrimination in gaining employment Results from the Continuous Survey of Australia s Migrants (2010) found: 34% of migrants on skilled or family visas hold a bachelor degree 21% hold masters, doctorate or other post graduate qualifications 22% hold a diploma or certificate level qualification 85% speak English as their only language, or very well or well 90% of skilled migrants were employed, 5% unemployed & 5% not in the labour force Many refugees have a higher incidence of business ownership than other migrant groups and play a critical economic role in unskilled and semi-skilled work in regional areas. 18

19 INDIGENOUS Our survey found 30% of Australian employees say their organisation has a workforce that includes Aboriginal and Torres Strait Islanders 41% of employers say they are committed to recruiting Indigenous Australians Many businesses that are successful in attracting and retaining Aboriginal employees do it through the development of Reconciliation Action Plans As of last census in 2011, 56% of Aboriginal and Torres Strait Islander working age people were in the labour force (compared to 85% for whole of Australia) with 17.2% unemployed (current Australian unemployment rate is 5.8%) COAG has a target for to halve the gap in employment outcomes between Indigenous and other Australians International comparison Canada s Aboriginal Workforce Participation Initiative is dedicated to increasing the participation of Aboriginal people in the labour market. They provide a range of resources to motivate employers and help them employ Aboriginal people highlighting the benefits and advantages of working together. 19

20 DISABILITY 26% of Australian employees say their organisation s workforce includes people with a disability ABS says that labour participation rates are only 54% for people with disabilities nearly 30% lower than for the general population Public service shows conditions are not progressing with only 3% of public servants identifying themselves as having a disability (3.3% decline since 1986) Around 20% (over 4 million) of Australia s population has a disability of working age. Almost 90% of disabilities are not visible 2.1 million are AHRI has been calling for mandatory reporting obligations and voluntary targets for employing people with a disability and their research found widespread employer reluctance in hiring them International comparison Our 2012 survey in Japan found more than two thirds of businesses in Japan employ staff with disabilities. This figure is rising due to government regulations where employers with 50 or more staff must have those with disabilities represent at least 2% of their total staff. 20

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22 SURVEY WHY DO YOU THINK ORGANISATIONS FALL SHORT ON DIVERSITY? People tend to employ people like them so if they come across someone too different they hesitate General discomfort of not understanding someone with different abilities to theirs Many small businesses do not have the capacity to be able to identify and target opportunities within their businesses Stigma is a very powerful foe if told of a disability people immediately have a set way they view you COMMENTS FROM EMPLOYEES & EMPLOYERS Employers are unable to see the longer term benefits of fostering a diverse workforce Diversity is often dealt with at a compliance level and is not a passion or value for managers On paper and in legislation workplaces are required not to discriminate in reality they discriminate Recruitment in itself fails based on age and gender prejudice even if it is subconscious Many hiring managers have no training in HR, especially diversity Good intentions get lost when any additional costs/ investments are needed Lack of measurable targets, lack of diversity on interview and selection panels and lack of commitment from the executive level Managers often need to see the benefits first hand before they become an advocate of the benefits to be gained from diversity 22

23 WHY WE FALL SHORT ON DIVERSITY THE MAIN BARRIERS Failure to promote the business benefits of diversity Personal prejudice Unconscious bias The merit argument Myth versus reality regarding Aboriginal Australians Business culture Diversity fatigue One is enough

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25 SIX STRATEGIES TO CREATE A DIVERSE WORKFORCE THREE KEY THEMES: 1. Culture 2. Learning and development 3. Environment

26 CULTURE 1. Lead from the front Business Culture Diverse groups are more likely to have higher levels of performance in environments that emphasize a people-oriented culture Inclusion An inclusive culture values differences, supports and encourages individuals to thrive and thus the organisation benefits from improved outcomes. CEO Support With real commitment, encouragement and leading by example, an organisation s top executive can enable progress to take place by supporting all programs to encourage diversity, eg. Male Champions of Change.

27 CULTURE 2. Voluntary targets Voluntary organisation-specific gender, mature-age, disability, multi-cultural and Indigenous representation targets for each recruitment shortlist is recommended. Just 9% of employers surveyed have targets in place to ensure they create a diverse shortlist. Only 14% of employers surveyed have targets for gender representation as well as for Indigenous representation. It drops to 6% for multi-cultural and 4% for people with a disability and mature-age workers. Only 17% of employers in our survey said mandatory quotas would be effective of ensuring diversity. 66% said they would be mere tokenism. 3. Accountability. Organisations that are known for diversity regularly monitor and report on their diversity progress.. Once committed to diversity it is important to create indicators to monitor progress towards hiring and retaining a diverse workforce.. As well, an organisation s top executive should be accountable for results and support all programs to encourage diversity. 27

28 LEARNING & DEVELOPMENT 4. Education at all Levels Educate hiring managers and other business leaders on the benefits that diversity and inclusion will bring. Starting with a diverse shortlist is the key for recruitment and promotion unconscious bias is often present before interviews start. Train hiring managers to recruit based on set criteria. People managers should be trained on how to promote inclusiveness in their team. Managers should then be held accountable to ensure their training is put into practice.

29 LEARNING & DEVELOPMENT 5. Development programs Development programs aimed specifically at minority groups are important at all levels of an organisation. The program should provide support and career guidance in order to help achieve real career advancement. These trainees will become role models to those just starting their careers. Networking groups or programs are also being used to help build relationships and networks amongst employees from specific or under-represented cultural backgrounds.

30 ENVIRONMENT 6. Adapting your office environment Recognise different cultures Promoting and supporting a strong and positive view of Aboriginal and Torres Strait Islander identity and culture should be a consideration if they are part of your workforce as should supporting a positive view of all cultures. Recognising different cultures also means recognising that people for whom English is a second language may require additional assistance blending into the Australian business environment providing a staff mentor is often a great solution. Workplace flexibility Our survey of employees found that 55% say flexible working options that meet their individual needs make them feel more positive about the company they work for. However only 54% of employers surveyed by Kronos were prepared to offer flexible working arrangements. Of those unwilling to offer flexibility, half said flexibility is too disruptive and 37% said it s too complex to manage flexible workforce policies. In contrast, EY research found that women working in flexible roles (part-time, contract or casual) are the most productive members of our workforce. 30

31 ENVIRONMENT Adapting work stations To accommodate a diverse workforce some employees may require their work station to be adapted to meet their individual needs. Quiet room A growing trend is to dedicate one room in the office, often called the quiet room to the exclusive use of employees who need a quiet space during the day, eg. a place for staff to pray, etc. Our survey of employers found only 28% have a quiet room available for such purposes.

32 CONCLUSION A more diverse workforce will increase organisational effectiveness. It will lift morale, bring greater access to new segments of the marketplace and enhance productivity. In short, diversity in your workforce creates a competitive advantage and it s good for business. Let s change the conversation on diversity from it s too hard to it s too good not to do it. 32

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