Turn Diversity and Inclusion into a Talent Strength: A Six-Pack Approach for Driving Measurable Improvement

Transcription

1 Turn Diversity and Inclusion into a Talent Strength: A Six-Pack Approach for Driving Measurable Improvement Peter Vermeulen, Head of HR Americas, the Linde Group 2016 RU SHRM Business Conference: The Business of HR

2 Introduction: Peter Vermeulen Head of HR Americas for The Linde Group Previous: HR management and leadership roles at Johnson & Johnson 20 years experience in the European, South and North American market zones, as well as in Healthcare Global citizen: lived and worked in five different countries HRCI board member

3 Linde, a world leading supplier of industrial, process and specialty gases Linde supplies enough oxygen to the steel industry to produce 15 million tons per year of steel and 1.5 million cars Linde plants process enough natural gas every day to generate over 50,000 MW of power Linde serves enough CO 2 to the beverage industry to carbonate 180 billion 12 ounce cans of soda Linde supplies enough oxygen to hospitals and homecare to sustain life for >1 million patients Linde supplies enough nitrogen to the food industry to freeze 25 million chicken nuggets Linde distributes enough helium to the medical imaging industry to operate 3,400 MRI machines 3 3

4 We Reach Locations Global Coverage Global Sales (2015): $19.7 bn Employees worldwide: 65,000 n Linde Coverage 4 4

5 What do we mean by Diversity and Inclusion? Diversity is any dimension that can be used to differentiate groups and people from one another Examples: ethnic and racial, gender, sexual orientation, disabled (differently abled), veterans, neurodiversity (ex: autism spectrum) Inclusion is involvement and empowerment of diverse employees in the company 5

6 Good for Business Talent attraction and Retention: Innovation: Productivity: Top Line: A diverse workforce is attractive to a larger diverse pool of talent Speed and efficiency in acquiring talent Higher quality talent Broader talent diversity helps align business to a larger diverse customer base, and improves the quality of decision making A diverse workforce that is supported as part of a diverse corporate culture is more engaged and productive Generates new business opportunity 6

7 The Challenges What gets measured, gets done What to measure? What should I focus on? Too many options: 50+ ways to measure What is actionable? Can you be predictive? How can you see the whole picture? Speak the language of the business. HOW DO YOU CONNECT THE DOTS TO REVEAL THE DIVERSITY STORY? 7

8 Addressing the Challenges: Diversity Metrics Metrics cover whole diversity and inclusion picture KEYS TO SUCCESS Measurable Reveals the Story Actionable Promotes Action Predictive Reinforces Accountability 8

9 Diversity and Inclusion SIX PACK FRAMEWORK ACQUIRE Talent WORKFORCE DEVELOP & ADVANCE Talent REPRESENTATION Mix PIPELINE Strength RETAIN Talent WORKPLACE INCLUSIVE Environment 9 9

10 1. Acquiring Talent Answers the Question: What is the mix of diverse talent you bring in to your organization? Frequency: Monthly or quarterly Examples of Measurement: Newly hired talent by diverse group at all levels of the organization Experienced hires vs. college recruiting Talent acquisition by diverse group Compensation assessment 10

11 2. Developing and Advancing Talent Answers the Question: Once you bring diverse talent through the door, how well do you support their ability to develop skills and move their careers forward? Examples of Measurement: Percentage of diverse HIPO s that are three or more years in the same role Percentage of diverse HIPOs that successfully completed leadership training and were promoted within three years Percentage of diverse employees advancing per year, compared across all groups Compensation assessment Frequency: Quarterly or annually 11

12 3. Retaining Talent (Workforce Data) Answers the Question: How well is your organization doing at keeping diverse talent? Examples of Measurement: Diverse talent turnover with root cause analysis Diverse talent regrettable losses (those who left even though the organization would prefer to retain them) Leading indicators such as employee engagement survey results (see #6), cultural competence assessment and flight risk Predictive Analytics Frequency: Quarterly 12

13 Talent Flow (Example D&I Group, Female Employees) Career Level Hires Active Laterals Voluntary Exits Involuntary Exits Promotions 22 All Levels All Hires 76 All Actives 756 All Laterals 36 All Voluntary Exits 33 All Involuntary Exits 21 LEAKY BUCKET 13

14 4. Representation Answers the Question: How does the proportion of diverse groups in your organization compare to their availability in the market? Examples of Measurement: Representation vs. Availability in the market Applicable globally and locally Frequency: Annually or Semi Annually 14

15 5. Succession Planning Pipeline Strength Answers the Question: Do you have diverse talent in your succession planning pipeline for critical roles? Are they ready now, or will they be ready in the future? Frequency: Annually or semi-annually Examples of Measurement: Percent of ready-now diverse workers in pipeline for critical roles Percent of future-ready diverse workers in pipeline for critical roles 15

16 6. Engagement (Workplace Data) Answers the Question: Examples of Measurement: What is the level of participation, commitment and acceptance of diverse talent within your workforce? Frequency: Annually or periodic pulse checks 16 Overall engagement index Engagement index for diverse groups Inclusion index Pulse checks Cultural competence assessment

17 A Dashboard Approach

18 Diversity and Inclusion SIX PACK FRAMEWORK ACQUIRE Talent WORKFORCE DEVELOP & ADVANCE Talent REPRESENTATION Mix PIPELINE Strength RETAIN Talent WORKPLACE INCLUSIVE Environment 18 18

19 Diversity and Inclusion SIX PACK FRAMEWORK ACQUIRE Talent WORKFORCE DEVELOP & ADVANCE Talent REPRESENTATION Mix PIPELINE Strength RETAIN Talent WORKPLACE INCLUSIVE Environment 19 19

20 Talent Acquisition Q4/15 SLA Descriptive Goal Q Time-to-Fill Time-to-Fill Requisition Aging Customer Satisfaction Offer Acceptance Submit-to-Interview Ratio Banded Non-driver 55 days 57 Unbanded Non-driver 50 days 45 Bulk Driver 50 days 49 Medical Driver 45 days 45 Banded Unbanded 85% of requisitions filled win 85 days 85% of requisitions filled w/in75 days 85% 81% Hiring Manager Survey 4 out of out of 5 New Hire Survey 4 out of out of 5 Band 3 & below 90% 92.66% (202 out of 218) Band 4 & above 90% N/A All positions 75% 77.18% (612 out of 793) Interview-to-Hire Ratio All positions 33% 31.21% (191 out of 612) Ethnicity 40% 46.91% Diversity Gender 20% 18.33% Veteran 8% 9.08% *Diversity data is based on candidates who have applied to a requisition AND have self identified. 20

21 Diversity and Inclusion SIX PACK FRAMEWORK ACQUIRE Talent WORKFORCE DEVELOP & ADVANCE Talent REPRESENTATION Mix PIPELINE Strength RETAIN Talent WORKPLACE INCLUSIVE Environment 21 21

22 Inclusive Environment 2014 Engagement Survey 3 rd Linde Global Employee Survey RBU Americas Organization Report 4. Results by Question Valid Returns Percent Favorable Culture 60. I am appropriately involved in decisions that affect my work. Percent Neutral Percent Unfavorable Mean Score Percent Favorable 2012 Percent Favorable Linde Most Engaged Units IBM Benchmark The Linde Group 38, % 60% 74% 65% Americas, GHC & BMP 4, % 58% 74% 65% RBU Americas 4, % 58% 74% 65% 61. In my team, diverse perspectives are valued. The Linde Group 38, % 66% 79% 73% Americas, GHC & BMP 4, % 63% 79% 73% RBU Americas 4, % 62% 79% 73% 62. The behavior of the people I work with is consistent with the Linde Spirit. The Linde Group 38, % 65% 81% 73% Americas, GHC & BMP 4, % 59% 81% 73% RBU Americas 4, % 58% 81% 73% 22

23 Inclusive Environment 2014 Engagement Survey (continued) 3 rd Linde Global Employee Survey RBU Americas Organization Report 4. Results by Question Valid Returns Percent Favorable Percent Neutral Percent Unfavorable Mean Score Percent Favorable 2012 Percent Favorable Linde Most Engaged Units IBM Benchmark Culture (continued) 63. In my organization, there is open, honest, two-way communication. The Linde Group 38, % 57% 75% 59% Americas, GHC & BMP 4, % 54% 75% 59% RBU Americas 4, % 54% 75% 59% 64. My organization is committed to providing equal opportunities for all employees. The Linde Group 38, % 59% 74% 68% Americas, GHC & BMP 4, % 58% 74% 68% RBU Americas 4, % 58% 74% 68% 23

24 2016 Mid-year Progress Diversity Inflow Outflow Upward Movement Diversity and Inclusion (Leader Name) Terminations Employee Movements Talent Reports/Dashboards Status Sector progress against last year s action plan Inclusion Data Inclusion Business Function/ Specific Goals Goals University program goals (if applicable) For all regions - insert local D&I goals and any results from University program goals, etc. On track At risk Behind target 24

25 Final Thoughts Turning data into insights Measuring is knowing Drives change Drives leadership accountability Partner with legal 25 25

26 Thank You