2016 Working Mother Best Companies for Multicultural Women EXECUTIVE SUMMARY
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1 2016 Working Mother Best Companies for Multicultural Women EXECUTIVE SUMMARY
2 Mission Since 2003, the Best Companies for has recognized American corporations that create and use best practices in hiring, retaining and promoting women of color to ensure that a variety of perspectives are represented at every level of management and decision-making. Photograph: istock workingmother.com/wmri 2
3 Research Methodology Each organization completed a detailed application covering both internal and external programs and activities that benefit women of color. The 2016 application included sections on the following: Representation of Hiring, Attrition and Promotions Recruitment, Retention and Advancement Programs Company Culture To qualify for this application, companies must employ at least 500 U.S. employees. Completed applications for the 2016 were collected online from August 24, 2015, to November 6, Winning companies are selected from the pool of applicant companies and ranked based on the data they provided in their applications. Winners are announced in the June/July 2016 issue of magazine and on workingmother.com/wmri. Statistics reported are aggregated based on the data from the 25 winning companies. workingmother.com/wmri 3
4 Summary of 2016 Findings Multicultural women at the Best Companies represent 17% of the top fifth of earners, which is quadruple their representation from last year (4%). Women hold 28% of the board of directors seats at the Best Companies the highest proportion attained over the past eight years of the initiative. However, multicultural women hold only 6% of the seats, down by two percentage points from last year. All 2016 Best Companies offer mentoring to multicultural women, and all also target mentoring specifically to serve younger multicultural women or those early in their careers. This year also saw 76% of Best Companies offer a sponsorship program, up from 68% a year ago. At 96% of the Best Companies, CEOs show their commitment to advancing multicultural women by requiring a diversity executive to report back to him/her on diversity metrics, meeting regularly with a diversity executive to review goals and performance and providing an annual update on diversity to the board of directors. At the Best Companies, multicultural women participate in network/affinity groups at higher rates than any other employee group; however, fewer multicultural women participate in career counseling than men or white women. workingmother.com/wmri 4
5 Congratulations to the 2016! Top 5 Company Accenture ADP Allstate Insurance American Express Bon Secours Health System CA Technologies Cisco Citi Colgate-Palmolive Deloitte General Mills General Motors Horizon Blue Cross Blue Shield of New Jersey IBM JPMorgan Chase & Co. KPMG Morgan Stanley New York Life Insurance Procter & Gamble Prudential Financial PwC Sodexo State Farm Verizon Wal-Mart Stores workingmother.com/wmri 5
6 By the Numbers The 2016 employ more than 2.5 million workers in 11 industries with more than 28,500 worksites across 50 states. Automotive Consumer Products (including Cosmetics, Food and Beverages) Financial Services Hospitality Hospitals and Health Care Insurance Manufacturing Professional Services, Management Consulting and Accounting Retail and Apparel Science, Technology, Engineering, Aerospace and Medical Devices Telecommunications workingmother.com/wmri 6
7 Total Workforce Multicultural women make up 21% of all employees at the Best Companies, while multicultural men represent 18% of the total workforce figures that have held firm since last year. REPRESENTATION OF WORKFORCE Women represent 52% of total employees at the Best Companies MULTICULTURAL WOMEN 21% WHITE WOMEN 31% MULTICULTURAL MEN 18% WHITE MEN 30% Men represent 48% of total employees at the Best Companies workingmother.com/wmri 7
8 Representation by Job Level As multicultural women move up the corporate ladder, their representation shrinks significantly, even compared with that of their male multicultural peers. White men are the only employee group to gain representation as they advance in their careers. 100% REPRESENTATION OF WORKFORCE BY JOB LEVEL TOTAL EMPLOYEES MANAGERS SENIOR MANAGERS CORPORATE EXECUTIVES 65% 52% 40% 0% 30% 18% 18% 15% 11% 31% 28% 25% 20% 21% 14% 8% 4% White Men Multicultural Men White Women Multicultural Women workingmother.com/wmri 8
9 Representation of Representation of multicultural women at the manager (14%), senior manager (8%) and corporate executive (4%) levels continue to hold steady at the Best Companies. 20% REPRESENTATION OF WORKFORCE BY JOB LEVEL 12 % 12 % 13 % 14 % 14 % 14 % 14 % 14 % Percentage of Managers who are 6 % 4 % 7 % 3 % 7 % 3 % 7 % 3 % 7 % 3 % 8 % 8 % 8 % 4 % 4 % 4 % Percentage of Senior Managers who are Multicultural Women Percentage of Corporate Executives who are Source: % workingmother.com/wmri 9
10 Representation of Multicultural Men Representation of multicultural men at the manager, senior manager and corporate executive levels is slowly creeping upward. At each job level, the representation of multicultural men increased one percentage point, year over year. 20% REPRESENTATION OF WORKFORCE BY JOB LEVEL 17 % 14 % 15 % 15 % 13 % 12 % 12 % 12 % 12 % 11 % 11 % 9 % 9 % 9 % 10 % 10 % 18 % 15 % 11 % Percentage of Managers who are Multicultural Men Percentage of Senior Managers who are Multicultural Men Percentage of Corporate Executives who are Multicultural Men 4 % Source: % workingmother.com/wmri 10
11 Board of Directors Membership At the Best Companies, representation of multicultural women on boards of directors fell by 2 percentage points, to 6%. However, representation of white men on boards of directors at the Best Companies is at its lowest point (54%) in eight years, driven by increased representation among multicultural men and white women. REPRESENTATION ON BOARD OF DIRECTORS WHITE MEN MULTICULTURAL MEN WHITE WOMEN MULTICULTURAL WOMEN % 15% 18% 4% % 16% 17% 5% % 16% 17% 6% % 16% 19% 4% % 16% 22% 4% % 16% 20% 4% % 15% 15% 8% Source: % 18% 22% 6% workingmother.com/wmri 11
12 Top-Tier Representation None of the Best Companies have a multicultural woman as CEO; however, four Best Companies are led by white women. Multicultural women represent 5% of executives who report directly to the CEO as well as 3% of those with profit-and-loss responsibilities. REPRESENTATION OF CEOS, DIRECT REPORTS, AND EXECUTIVES WITH P&L RESPONSIBILITIES WHITE MEN MULTICULTURAL MEN WHITE WOMEN MULTICULTURAL WOMEN CEOs 76% 8% 16% 0% Executives with P&L Responsibilities 67% 10% 20% 3% Direct Reports to CEO 61% 12% 22% 5% workingmother.com/wmri 12
13 CEO Commitment At the Best Companies, CEOs demonstrate a commitment to diversity and inclusion in a number of public ways. IN WHICH OF THE FOLLOWING WAYS HAS YOUR CEO DEMONSTRATED A COMMITMENT TO DIVERSITY & INCLUSION? Provides annual update on diversity to board of directors Requires diversity executive to report back to him/her on diversity metrics Meets regularly with diversity executive to review diversity goals and performance Embeds diversity & inclusion into the business growth strategy Makes CEO diversity statement available on corporate website and in other corporate materials 96% 96% 96% 92% 88% Oversees and/or reviews metrics on supplier diversity Oversees or approves management compensation plans that are tied to diversity 68% 72% Is a board member of a diversity organization 56% Includes an update on diversity during annual updates with employees 48% Chairs or oversees Diversity Council 48% 0% 100% workingmother.com/wmri 13
14 Top Earners Multicultural women at the Best Companies represent 17% of the top fifth of earners, which is quadruple their representation from last year (4%). 100% TOP 20% EARNERS BY REPRESENTATION 44% 44% 35% 31% 17% 17% 0% White Men 8% Multicultural Men White Women 4% Multicultural Women workingmother.com/wmri 14
15 Promotions Multicultural women received 15% of promotions to manager and 10% of promotions to senior manager across the Best Companies; both rates match those of a year ago. Multicultural women received 7% of promotions to corporate executive this year (down from 8% in 2015). 100% PERCENTAGE OF PROMOTIONS RECEIVED BY EACH GROUP TO MANAGER POSITIONS AND ABOVE TO MANAGER POSITIONS TO SENIOR MANAGER POSITIONS TO CORPORATE EXECUTIVE POSITIONS 56% 39% 38% 45% 0% 18% 18% 17% 15% 29% 29% 27% 22% 14% 15% 10% 7% White Men Multicultural Men White Women Multicultural Women workingmother.com/wmri 15
16 Hiring At the Best Companies, multicultural women represent 15% of employees hired into manager positions, 9% of those hired as senior managers and 4% of those hired as corporate executives last year. By comparison, multicultural women represented 14% of manager hires, 9% of senior manager hires and 5% of corporate executive hires a year ago. 100% HIRING BY JOB LEVEL MANAGERS SENIOR MANAGERS CORPORATE EXECUTIVES 65% 49% 37% 0% 26% 23% 19% 22% 20% 12% 15% 9% 4% White Men Multicultural Men White Women Multicultural Women workingmother.com/wmri 16
17 Attrition Multicultural women represent 14% of managers who left the 2016 Best Companies, 8% of senior managers who left and 3% of corporate executives who left. These numbers all held steady from a year ago. 100% ATTRITION BY JOB LEVEL MANAGERS SENIOR MANAGERS CORPORATE EXECUTIVES 65% 54% 39% 0% 19% 17% 12% 27% 22% 20% 14% 8% 3% White Men Multicultural Men White Women Multicultural Women workingmother.com/wmri 17
18 Hiring, Attrition and Promotions At the Best Companies, multicultural women represent more than a quarter of all new hires as well as a quarter of all employees who left the company last year. However, they only make up 14% of the employees promoted to positions at the manager level or higher. 100% PERCENTAGE OF HIRES, DEPARTURES AND PROMOTIONS TOTAL WORKFORCE HIRING ATTRITION PROMOTIONS TO MANAGER AND ABOVE 39% 30% 25% 27% 23% 22% 18% 18% 31% 25% 27% 29% 21% 27% 25% 14% 0% White Men Multicultural Men White Women Multicultural Women workingmother.com/wmri 18
19 Recruitment & Retention Best Companies support myriad initiatives specifically designed to recruit and retain multicultural women. PERCENTAGE OF BEST COMPANIES OFFERING EACH PROGRAM SPECIFICALLY FOR MULTICULTURAL WOMEN Professional associations 92% Special retention programs 92% Specific recruitment initiatives (not including outside recruiters) 88% Professional development programs or classes 88% Forums and events 84% Outside recruiter or staffing company targeting multicultural female candidates 80% Active task force or committee 76% 0% 100% workingmother.com/wmri 19
20 Advancement Programs All Best Companies offer mentoring to multicultural women, and all also target mentoring specifically to serve younger multicultural women or those early in their careers. This year also saw 76% of Best Companies offer a sponsorship program, up from 68% a year ago. ADVANCEMENT PROGRAMS OFFERED AND USAGE RATES PERCENTAGE OF BEST COMPANIES OFFERING EACH PROGRAM PERCENTAGE OF MULTICULTURAL WOMEN WHO PARTICIPATED IN EACH PROGRAM 100% 100% 100% 92% 77% 76% 56% 30% 29% 0% 2% 10% Mentoring Succession Planning Career Counseling Sponsorship Program Network/ Affinity Groups workingmother.com/wmri 20
21 Advancement Programs At the Best Companies, multicultural women participate in network/affinity groups at higher rates than any other employee group; however, fewer multicultural women participate in career counseling than men and white women. PERCENTAGE OF EMPLOYEES WHO PARTICIPATED IN THE FOLLOWING PROGRAMS 100% WHITE MEN MULTICULTURAL MEN WHITE WOMEN MULTICULTURAL WOMEN 84% 81% 79% 77% 33% 31% 30% 30% 29% 23% 0% 9% 3% 2% 2% 12% 10% 11% 10% 14% 18% Mentoring Considered in Succession Planning Career Counseling Sponsorship Program Network/ Affinity Groups workingmother.com/wmri 21
22 Manager Training on Diversity Issues All Best Companies educate managers on inclusion issues, including gender and racial/ethnic diversity. NUMBER OF BEST COMPANIES THAT OFFER MANAGER EDUCATION Gender Diversity Racial/Ethnic Diversity Sexual Orientation Generational Diversity Microinequities workingmother.com/wmri 22
23 Manager Accountability Eighty-eight percent of the Best Companies set performance appraisal objectives for managers that include how they manage diversity issues. 18 NUMBER OF BEST COMPANIES THAT APPRAISE MANAGERS IN EACH OF THE FOLLOWING WAYS Performance appraisal for managers includes employee satisfaction in regard to diversity issues as measured in employee surveys Formal compensation policies reward managers who help multicultural females advance Performance appraisal for managers includes the number of multicultural female employees advancing for whom they have supervisory responsibility Performance appraisal for managers includes feedback based on a 360-degree type process in regards to diversity issues workingmother.com/wmri 23
24 Communication The Best Companies share information related to multicultural women with both employees and the public. INTERNAL COMMUNICATIONS USED TO ADDRESS ISSUES OF SPECIAL CONCERN TO MULTICULTURAL WOMEN EXTERNAL COMMUNICATIONS USED TO ADDRESS ISSUES OF SPECIAL CONCERN TO MULTICULTURAL WOMEN 100% 96% 100% 100% 100% 92% 92% 88% 92% 96% 96% 84% 68% 72% 0% % Source: Electronic messages through , newsletters or postings Internal video broadcasts of executive speeches New employee orientation Executive speeches that express company values, philosophy and commitment Twitter feed Annual report workingmother.com/wmri 24
25 How do you rate in key areas like diversity & inclusion, women s advancement and work life programs? The Research Institute has the answer. With one of the most comprehensive databases available to corporate America, WMRI has the data you need to make the right decisions for both your employees and your bottom line. To find out how your company rates, register today for one of our initiatives: 100 Best Companies & Flex-Time Lawyers Best Law Firms for Women NAFE Top Companies for Executive Women Diversity Best Practices Benchmarking Tool Participation is free and confidential. Interested in learning more? Visit workingmother.com/surveys today! workingmother.com/wmri 25
26 Benchmarking Our benchmarking reports offer the most detailed data available, showing how your company rates, question-by-question, against all Best Companies. Custom comparisons are also available. Scorecards Each participating company receives a free top-line summary of how it compares with all applicants across essential clusters of the initiative s extensive application. Custom Assessments Let our researchers do the assessment for you. Our experienced team will turn your data into a turnkey presentation showing where your company leads and lags as compared with the Best Companies. Interested in learning more? Contact Kristen Willoughby at kristen.willoughby@workingmother.com for more information today! workingmother.com/wmri 26
27 From flexibility and child care to the recruitment, retention and advancement of women, the Research Institute is dedicated to tracking and promoting the best practices of today while creating strategies for tomorrow. WMRI s goal is to give both working mothers and their employers the information they need to make workplaces truly family friendly. Learn more at workingmother.com/surveys workingmother.com/wmri 27
28 Contact Information Jennifer Owens, Director Krista Carothers, Senior Research Editor Kristen Willoughby, Senior Manager, Editorial & Research Initiatives Michele Siegel, Director of Research Initiatives Tierney O Brien, Custom Insights Senior Analyst tierney.obrien@bonniercorp.com Aviva Rosner, Custom Insights Analyst aviva.rosner@bonniercorp.com Learn more at workingmother.com/surveys workingmother.com/wmri 28
Winning companies were selected from a pool of self-selected applicant companies and ranked on the data they provided in their applications.
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