Diversity 101: The Building Blocks of a Diversity Program

Transcription

1 Thursday, Sept. 20 1:00 pm Room 306AB Concurrent Session: Next Generation Topic Diversity 101: The Building Blocks of a Diversity Program Moderator: Dawn McCartney, Director, Contingent Workforce Strategies & Research, Staffing Industry Analysts Panelists: Chris Michel, Director, Supplier Diversity and Environmental Sustainability, Global Sourcing & Procurement Services, AIG Effie Hayes, HR Operations and Governance, Cigna Talent Optimization, Cigna Margie Durham, Director, HR Talent Services, Dell Inc. Barry Olson, President, HireGenics Inc., an American CyberSystems Company Sponsored by:

2 Diversity Supplier In North America, this refers to a minority or women owned (WMBE) staffing supplier. Organizations often find that using diversity suppliers as part of their staffing supplier base is a good way to meet their diversity recruitment goals.

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4 SUPPLIER MANAGEMENT STRATEGIES IN PLACE AND BEING CONSIDERED Supplier management strategies VMS* Approved list Consolidate existing suppliers Increase use of WMBE suppliers CW in corporate strategic planning Use of SOW workers in CW program MSP* Supplier tiering list Vendor for IC screening, compliance Significant use of domestic outsourcing Trying out new suppliers Global CW management Significant use of offshoring Recruitment process outsourcing (RPO) Master supplier Human resources outsourcing (HRO) 75% 24% 88% 6% 66% 27% 65% 24% 43% 47% 56% 31% 69% 18% 59% 23% 49% 33% 68% 12% 35% 43% 25% 50% 61% 13% 30% 23% 44% 9% 28% 14% In place today Likely to be seriously explored within two years

5 Usage of diversity/woman/minority staffing suppliers by industry Industry In use 2 years No plans Energy/chemical 74% 21% 5% Finance/insurance 71% 22% 7% Manufacturing 53% 29% 18% Pharma/biotech/med 65% 26% 9% Retail/consumer 45% 9% 45% Tech/telecom 70% 21% 9%

6 Barry Olson President

7 Diversity Categories in the U.S. In the United States the operative diversity categories include: gender, race/ethnicity, national origin, and religion, disability, age, marital status, immigration/citizenship status, armed forces veteran status and sexual orientation. Minority Business Enterprises (MBE) A business that is at least 51 percent owned and controlled by minority persons. Minority is defined as a U.S. citizen who is African American, Hispanic American, Native American, Asian-Pacific or Asian-Indian Americans. Women Business Enterprises (WBE) A business that is at least 51 percent owned and controlled by a woman. Small Business Enterprises (SBE) A small business that is unconditionally owned and controlled by one or more socially and economically disadvantaged individuals who are of good character and a citizen(s) of the United States and who demonstrate a potential for success (as defined by the Small Business Administration). Lesbian, Gay, Bisexual, Transgender Business Enterprise (LGBTBE) A business that is at least 51% owned or operated by a LGBT person or persons. Minority Certifying Diversity Boards NMSDC National Minority Supplier Development Council includes 36 Regional Offices Women's Business Enterprise National Council (WBENC) (USBLN/DSDP) US Business Leadership Network Supplier Disability Diversity Supplier Program NGLCC National Gay & Lesbian Chamber of Commerce (GDIF) The Global Diversity and Inclusion Foundation

8 Effie Hayes HR Operations and Governance

9 Cigna at a glace Cigna is a global health service company, dedicated to helping the people we serve improve their health, well-being and sense of security. We make this happen through a broad range of integrated health care and related plans and services, and proven health and well-being programs that are targeted to the unique needs of our customers, clients and partners. - Key product lines include: - Health care products and services - Group disability, life and accident insurance - International insurance coverage Other facts: - $22.0 billion in revenue - 31,000 employees worldwide - 71 million customer relationships around the world - Active in 30 countries - $11.3 million financial impact in charitable contributions

10 Supplier Diversity at Cigna Diversity is who we are and inclusion lets us leverage a world of insights, perspectives and experiences to make a difference for both our customers and employees No-formal corporate requirements from Procurement Diversity is cornerstone in overall business strategy 19% of supplier spend qualify as diverse Identify diverse suppliers through procurement and MSP Source: The Inclusion Paradox by Andres Tapia Copyright 2011 Diversity best Practices

11 Margie Durham Talent Services

12 Dell Global Contingent Labor Progression Beginning Maturity Expansion Fragmentation Transformation Inception 2007 US Only Enterprise wide with primary focus on manufacturing & all center Motivation was risk mitigation & savings Diversity strategy Additional focus on professional skill sets Extensive cost savings exercise EMEA UK, Ireland Americas Mexico, Columbia, Chile, Panama & Canada Asia - India 20+ acquisitions 2 VMS technologies including 9 instances 2 MSP Programs 2 pricing strategies 2 diversity strategies A global solutions 5 labor category programs 1 global VMS solution MSP optimization Services business focused & SOW 13

13 Supplier Tiering Structure Payrolling Diversity Strategy MSP Diversity SLAs Leverage Corporate Diversity Named on Diversity Inc. s Top 50 companies

14 Diversity Results Diversity Spend % Program Diversity Spend % SLA 0.0% FY07 FY08 FY09 FY10 FY11 FY12 0.0%

15 Chris Michel Director of Supplier Diversity and Environmental Sustainability

16 American International Group, Inc. (AIG) is a leading international insurance organization serving customers in more than 130 countries. AIG companies serve commercial, institutional, and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the United States. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange.

17 AIG Supplier Diversity It is AIG s policy to proactively seek out diverse-owned enterprises and ensure opportunities for these businesses to participate in the bidding and procurement process. The effective execution of our supplier diversity initiatives will allow AIG to identify and utilize the best, value-added vendors across all operating units of the firm. Top line outcomes Mitigate reputational risk Facilitate economic recovery & growth Drive cost reduction efforts Expand access to the widest selection of qualified suppliers & solutions Bottom line outcomes

18 Program Elements Updated corporate supplier diversity policy Commodity planning process Road maps Communications plan Road shows Internal/external web Metrics platform and reporting Metrics 121% YTD growth over 11 in spend with diverse suppliers Total SD spend: 4.5% Contingent Resource Management (CRM) diverse spend: 44% Tech 42% Non-tech 58%

19 Best Practices in Developing a Diversity Program Listen to the Voice of Customer What customers ask us. Many customers are asking for help in finding Veteran and Disabled Veteran owned Diversity Suppliers. Many customers are seeking help in obtaining references to diversity suppliers that specialize in difficult to find skill sets (i.e. SAP, Oracle, etc.). Compliance and mentoring support for small diverse suppliers on best practices related to documentation to establish their organization to meet the needs of the large enterprise customer. Most customers are seeking guidance on benchmarking and best practices for organizing a diversity program optimized to meet their specific goals.