Lisa Annese - Diversity Council Australia - Reducing barriers to workforce participation and...

SKILLED AUSTRALIA

Reducing the Barriers to Workforce Participation & Diversity

1 July 2014

Lisa Annese Chief Executive Officer

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CREATING & ENGAGING DIVERSITY AN AGENDA

1. Setting the Scene for Diversity 1. What do we mean?

2. The Business Case

2. Moving beyond ‘The Usual Suspects’ ! What to do and what not to do

! Case studies

DCA’s evidence base

! DCA research and latest global research

! Our expert panel of business and academic leaders

Copyright © 2014 Diversity Council Australia Ltd

WHAT IS DIVERSITY? DIMENSIONS OF DIVERSITY


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My Identity

Gender Ethnicity, culture &

faith

Caring responsibility

Flexible work

Person with a Disability Indigeneity

Sexual orientation

Age & Generation

Skills & experiences

SETTING THE SCENE DIVERSITY INTEREST FUELLED BY: ! Workplace flexibility: Paid parental leave, Right to Request

! Women in leadership: ASX, international interest in/move to quotas

! Pay equity: little improvement in past 20 years

! Mature-age workers: Age Disc.Comissioner, retirement, superannuation

! Disability: National Disability Insurance Scheme

! LGBT: Public debate re same-sex marriage, High profile work (Stonewall)

! Indigenous: Closing the gap, Employment covenant, Constitutional reform

! Cultural Diversity: Debate about racism & multiculturalism, increased global diversification, Copyright © 2014 Diversity

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THE BUSINESS CASE FROM COMPLIANCE TO COMPETITIVE ADVANTAGE


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! Australian unit of Autoliv: Introduced flexible work and reduced staff turnover to under 2%, saved $3.6M/year

! AMP: $400M ROI on work-life initiatives over 5 years. Increased return to work rate from 50% to 90%, saving $50,000 to $150,000 per woman returned.

! Top 50 diversity companies in US outperformed S&P 500 by 25% and NASDAQ by 28% (Baue)

! In Australia, ASX 500 companies with Board gender diversity delivered average ROE over 5 years 9% higher than those with no female directors (Reibey Institute, 2011)


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SETTING THE SCENE WOMEN IN LEADERSHIP

– Positive trends ASX 200 boards…

AICD, 2014


WOMEN IN LEADERSHIP WGEA CENSUS 2012

! Women hold 9.7% of executive key management personnel (executive KMP) positions in the ASX 200, up from 8.0% in 2010.

! Women hold 9.2% of executive KMP positions in the ASX 500.

! Percentage of ASX 200 companies with at least one female executive KMP increased to 39.4% in 2012, up from 38.1% in 2010 (3.4% increase on 2010).

! There are seven female CEOs in the ASX 200 (compared to six in 2010).


MOVING BEYOND THE USUAL SUSPECTS:

Your Top 3 do’s & don’ts



DCA’s Top 4 don’ts


WOMEN IN LEADERSHIP: DCA TOP 4 DON’TS

1. Pipeline theory…“Just give it time. Not yet, but soon.”

– Pipeline is slow

! At current rates of change, it will take till 2173 to reach gender balance (Hede & O’Brien, 1996)

‒ Pipeline works better for men

! Tracking high potential MBA graduates, from first role onwards, women lag men in promotion, pay & career satisfaction (Carter & Silva, 2010)


WOMEN IN LEADERSHIP: DCA TOP 4 DON’TS 2. Gender blind initiatives

! Formal talent management initiatives that ignore gender

– e.g. recruitment policy, leadership development program etc.

! Linked to lower representation of women in workforce

(French, 2001; Konrad & Linnehan, 1999)


WOMEN IN LEADERSHIP: DCA TOP 4 DON’TS 3. Promoting meritocracy

! Results in gender biased decisions, and more negative performance ratings and pay outcomes for women (Castilla & Benard, 2010)

! Managers favour male employees over equally qualified female employees

! Ironically women have to demonstrate relatively greater performance


WOMEN IN LEADERSHIP: DCA TOP 4 DON’TS

4. Getting women to ‘lean in’

! Women need to ‘lean in’, ambitiously look for and grab new opportunities!



So what does work?

DCA’s Top 3 do’s


WOMEN IN LEADERSHIP: DCA TOP 3 DO’S

1. Gender conscious initiatives

! Talent management initiatives which acknowledge gender:

‒ Targeted recruitment, women’s leadership development programs, ERGs, sponsorship programs etc.

! Linked to better women’s representation in organisations (French, 2001; Konrad & French, 1999)



2. Sponsorship (gender conscious)

! Sponsorship predicts women’s advancement, having mentors doesn’t

‒ High potential women are “mentored to death,” over-mentored and under-sponsored relative to male peers (Carter & Silva, 2010)

‒ Beyond giving feedback and advice, to using their influence with senior executives to advocate for mentee

! Sponsorship works because:

‒ Women can be penalized for self-promoting behaviour, considered acceptable in men

‒ Sponsors speak up for talented employees, helping women subvert this double bind



3. Address bias (gender conscious)

! Gender bias in recruitment, network access, career development, promotion, remuneration well established (Kulik & Bainbridge, 2006)

! Conscious & unconscious bias

! Individual & organisational bias

‒ Individual: Attitudes, Behaviours, Interactions, Decisions

‒ Organisational: Culture, Talent Management Policy & Practice


BEST PRACTICE CASE STUDY - CBA

! Winner of prestigious Catalyst Award in March 2012

! “Opening the Door for Gender Diversity” Initiative

! CBA was first Australian financial services organisation to set public targets for women in leadership

! Target to increase proportion of Executive Manager & above roles held by women to 35% by 2014

! CBA has 52,000 employees – 61% are women


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BEST PRACTICE CASE STUDY – Why is it best practice? ! Diversity strategy integrated with business strategy

! CEO & Exec Committee commitment and leadership

! Transparent & measureable targets

! Culture of flexibility

! Unconscious bias training for all senior leaders

! Embedded into talent management & talent development

! Sponsorship of women & mentoring

! Cross-cultural and broader community activities Copyright © 2011 Diversity Council Australia Ltd

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BEST PRACTICE CASE STUDY – MEASUREABLE IMPACT

! Increase in employees working flexibly from 35% (2008) to 41% (2011)

! 36% of employees working flexibly are men (2011)

! Increase in proportion of Executive Manager & above roles held by women from 21% (2005) to 30% (2011)

! Increase in percentage of women on the board from 20% to 27% (2011)

! Women’s engagement scores were above world’s best practice levels in 3 out of last 4 years


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WHERE TO BEGIN? TIPS FOR LEADERS – DCA experience about leading diversity practice:

! Initiatives aligned with business and people priorities

! Executive and line manager engagement (active vs ‘cheque book’ involvement)

! Leveraging off pockets of ‘good will’

! Evaluation, benchmarking, high-level scorecard reporting

! Identity conscious’ (vs identity blind) initiatives

! Talent decisions need to be driven by workforce data and analytics or organisations risk falling behind the curve and losing their competitive edge (Deloitte 2011, Human capital trends 2011: Revolution/evolution).

! Familiarise yourself with Australian diversity research and thought leadership


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THANKS FOR YOUR TIME: ANY QUESTIONS?

– Diversity Council Australia: Your partner in creating the workplace of the future

! www.dca.org.au

! Advice and strategy

! Web-site info (e.g. case studies, tools, leading practice)

! E-bulletins, newsletters, research

! Networks, briefings, knowledge sharing amongst leading employers

! Membership representation

Diversity Council Australia Ltd 2014 ©

Lisa Annese - Diversity Council Australia - Reducing barriers to workforce participation and...

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