Scope and methodology - Building a better working world - … · · 2017-04-25Scope and...

How will your actions speak louder than words? Ninety-six percent of business leaders say they need greater diversity of thought and experience to navigate change but few are actioning it. What bold action will you take to drive diversity and ignite inclusion?

April 2017

EY is very grateful to all those who participated in this inaugural Diversity & Inclusion survey of the Irish market. In particular, we would like to thank those who shared their insights and personal reflections in a series of interviews:

Scope and methodologyConducted between December 2016 and January 2017, EY’s first comprehensive Diversity & Inclusion survey of the Irish market reflects the views of 108 C-suite leaders (Chief Executive, Chief Financial Officer etc), Human Resources Directors and Diversity & Inclusion Leads.

These were drawn from recognised and respected groups of every size across numerous sectors. In addition to indigenous Irish organisations, global companies headquartered in EMEIA and the US are also included in the survey. For a breakdown of respondents by specific sector and industry, see page 31.

We also held one-to-one interviews with senior personnel listed across.

Andrea DermodyGlobal I&D LeadState Street EMEA

Adrienne GormleyGlobal Head of Customer ExperienceDropbox

Brendan MooneyCEOKainos

Rachel IzzardCFOAer Lingus

Ed SibleyDirector – Credit Institutions SupervisorCentral Bank of Ireland

A Diversity & Inclusion survey of the Irish market.

i

A Diversity & Inclusion survey of the Irish market

Foreword

EY is delighted to publish the first survey report of Diversity and Inclusion in the Irish market. The survey is designed to provide an overview of the Diversity and Inclusion landscape in Ireland so that organisations can recognise where they are at on the journey, and critically, what they need to do to advance further down the road.

The survey reveals a near universal acceptance that Diversity & Inclusion is vital to innovation and performance as well as talent attraction and retention. However, actual progress and embedding D&I as a strategic part of how we conduct business still requires considerable attention. The survey offers insight into why this is the case with hugely limited investment and know-how certainly a factor. There is also much reason to be hopeful. The remarkable response to the survey alone suggests a business community aware of the importance of and keen to do more on the agenda. In addition, some Irish-based organisations are already leading the way in the key pillars required for a successful Diversity and Inclusion programme; diagnostics and data analytics, sustainable strategy and good governance as well as informed, enabled and accountable leadership.

Given the size of the business community in Ireland, if we work and excel collectively on the Diversity and Inclusion agenda, we can reap extensive business benefits and gain competitive advantage as a nation. Indeed, we can write our own post-Brexit narrative. To succeed, we need to ensure the traditional ‘Ireland of the welcomes’ extends into the modern workplace. We need to truly value, champion and celebrate diversity where different perspectives are encouraged from a workforce diverse in ability, age,

ethnicity, gender, race and sexual orientation, as well as in thinking style and personality type. We need to create work places that are inclusive and foster a sense of belonging and community where our people are happy to be our brand ambassadors. With the right strategic approach, leadership support and marriage with data analytics, Ireland can leverage Diversity & Inclusion to grow sustainably, innovate into the future and ensure risk excellence.

EY is committed to playing a leading role in making this vision a reality, conducting regular ‘state of the nation’ checks to assess our progress and building a Diversity & Inclusion business community to work collectively to progress the agenda.

Diversity and Inclusion is a key driver of the future of business. Together we can build a better working world and enhance our reputation in the talent and consumer markets. It’s time to get InMotion and drive diversity and ignite inclusion.

Welcome aboard.

Olivia leads a dedicated consultancy team in EY to help clients achieve their Diversity & Inclusion ambitions as a key driver of talent acquisition, employee engagement and ultimately, success and growth in the marketplace. Marrying D&I with data analytics, the team helps clients understand their D&I activity through diagnostics, sustainable strategies and roadmaps and an informed and enabled leadership.

Olivia McEvoyDirectorDiversity & Inclusion Advisory ServicesEY Ireland

ii


What is Diversity & Inclusion?Diversity is about differences, seen and unseen. Inclusion is about creating an environment in which people are valued, feel valued and are able to achieve and contribute their full potential. Creating an inclusive environment improves the way we interact with our people, our clients and our communities. Inclusion is also about leveraging our differences to deliver to better business results.

“The only way to be our best is to include our best. That means we need to include the whole world, not just pieces of it. That all starts with Diversity and Inclusion. It’s the smart thing. It’s the right thing. And it’s the only way to succeed in today’s global economy.”

Mark Weinberger Global Chairman and CEO EY

Employee engagement has never been more important and needs to be front and centre of any business strategy. A major driving force behind an engaged workforce is embracing Diversity and Inclusion (D&I). For me, one measure of engagement is how people feel when they walk through the door, at the beginning and end of their day.

At EY having a diverse and inclusive culture is at the heart of what we do and a cornerstone of driving engagement. If our people feel they can bring their true selves to work and that their different perspectives are valued, they are more engaged. We not only monitor this, we also invest in developing the skills to deliver it.

Embedding D&I practices throughout all aspects of our business helps us to drive innovation, build stronger relationships with our clients, attract and retain the best talent and most importantly, deliver exceptional client service. In addition, research now proves that companies with greater diversity outperform their peers by a significant margin.

Business leaders have evolved their thinking about diversity over the last number of years. It’s no longer simply about levelling the playing field and providing equal opportunities. A successful Diversity & Inclusion programme is and will continue to be a commercial imperative and a business differentiator. Rather than a ‘nice to have’ it must be on boardroom agendas and central to any business strategy, now more than ever.

Thank you to all of you who participated in this important research.

Mike McKerrManaging PartnerEY Ireland

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Diversity is being invited to the party.Inclusion is being asked to dance.™

Vernā Myers

Contents

01Executive Summary

03State of the nation: Diversity & Inclusion in the Irish market

05Leadership

11Business Strategy and Governance

17Data and Metrics

23Resourcing and Responsibility

27Ways to improve Diversity & Inclusion performance

29EY Diversity & Inclusion Advisory Services

31Appendix

PART 1

PART 2

PART 3

PART 4

PART 5

v


Executive summary

1. Business Strategy & Governance

2. Leadership

3. Data & Metrics

4. Resourcing & Responsibility

State of the nation and leadership profile

The survey reveals an overwhelming consensus that promoting Diversity & Inclusion is vital to accelerating business performance. However, despite good intentions - and while almost half of respondents have experienced a change in diversity profile in the last five years – actual work practices or progress do not reflect this view.

The leadership profile of boards also demonstrates limited diversity, being predominantly comprised of white men. Although it varies hugely by sector, the gender composition of Irish senior management offers considerable reason for hope; with 33% women overall, it is some 8% higher than the current global average.

Business strategy and governance

The importance of Diversity & Inclusion is clearly understood. However, this has not yet been accompanied by a general commitment to strategy and governance in the area, particularly by indigenous Irish organisations.

The survey results demonstrate that strategy and governance are unambiguously linked to goal-setting, the monitoring of progress plus C-suite support and leadership by example. A direct connection to talent acquisition and retention is also revealed. Critically, a quarter of organisations with a D&I strategy attribute higher sales and revenue and profit margins to it.

It is undeniable, therefore, that developing and implementing such a strategy is essential to success.

Data and metrics

Over half of those surveyed say they collect gender and age data about their staff. Fewer than a third, however, gather specific Diversity & Inclusion data.

With access to Diversity & Inclusion data, it’s easier to diagnose, evaluate issues and measure progress across key strategic areas. Such areas include business processes, talent management and retention plus performance management and progression. In addition, other areas worth monitoring include leadership competence and accountability as well as learning and development.

High-quality organisational data drives a deeper understanding of employee experience and engagement. With it, a spotlight can be shone on areas requiring decisive action to achieve diversity goals.

Resourcing and responsibility

Survey respondents clearly support greater Diversity & Inclusion. However, a lack of investment may explain the slow rate of actual progress.

Specifically, investment is needed to diagnose issues, design and implement strategies and monitor data. Training and staff development also require resources, especially in developing inclusive leadership. Currently, under a third of senior managers and less than a fifth of employees receive any training in this field.

The survey also confirms that investment pays dividends. Improvements in talent acquisition and retention, leaders setting examples and the creation of inclusive workplaces all lead to a clear competitive advantage.

This is the first overarching survey assessing Diversity & Inclusion in the Irish market.

Rather than consider any specific ‘strand’ of diversity (such as gender or sexual minorities), the survey takes a holistic view. First, the ‘state of the nation’ and progress to date are considered. We also gauge how well Diversity & Inclusion is understood as a business imperative and driver of competitive advantage. In this respect, this survey examines:

1


White | 96%Men | 76%

BoardComposition

White | 97%Men | 67%

Senior ManagementComposition

Diversity & Inclusion contributes to talent acquisition and retention

97%

94%Diversity & Inclusion is vital for business performance

49%There’s been a change in our diversity profile in the last five years

34%Diversity & Inclusion is a core component of business activity

We asked our respondents if they agreed with the following:

senior management have undertaken

inclusive leadership training

31%

9%

41%35%

18%

employees have undertaken

unconscious bias training

spend <€1,000 on Diversity &

Inclusion

spend >€50,000 on Diversity &

Inclusion

have someone with specific

responsibility for Diversity & Inclusion

50%

Have a Diversity & Inclusion

strategy

Diversity & Inclusion is a regular or fixed board agenda item

Organisations attributing higher

revenue and profitability to

their Diversity & Inclusion strategy

<60%

<31%

31%

16%22%

STATE OF THE NATION

BUSINESS STRATEGY AND GOVERNANCE

RESOURCING & RESPONSIBILITY

DATA & METRICS

LEADERSHIP PROFILE2


State of the nation: Diversity & Inclusion in the Irish market

PART 1

As this is the first comprehensive survey of Diversity & Inclusion of the Irish market, it is important to understand how organisations currently view and position it within their business. In addition, we examined their progress to date and how the reality of work practices measures up to aspirations.

Commentary

It is clear from the survey results the vast majority (93.8%) of the Irish market considers Diversity & Inclusion as ‘vital for business performance’. Similar majorities (94.8%) are aware that ‘Diversity & Inclusion fosters innovation, enhanced team performance and collaboration’. There is almost universal recognition (96.9%) that ‘having a diverse and inclusive workplace contributes to talent acquisition and retention’.

In light of these responses, it is not surprising that almost 80% of respondents agree that Diversity & Inclusion is an organisational priority.

However, while great importance is evidently attached to Diversity & Inclusion and its business benefits, this hasn’t translated into practice. A considerably smaller number (55.7%) agree that ‘employees in our organisation understand Diversity & Inclusion and its benefits’.

The survey asked: ‘to what extent do you agree with the following statements?’

An inclusive environment is vital for business performance

Having a diverse & inclusive workplace contributes to talent acquisition and retention

Diversity & Inclusion fosters innovation, enhanced team performance and collaboration

Diversity & Inclusion is a priority for our organisation

Employees in our organisation understand Diversity & Inclusion and it’s benefits

93.8%

94.8%

96.9%

79.4%

55.7%

Our organisation has had a noticeable change in diversity profile in the last five years

Our organisation’s policies and reputation in Diversity & Inclusion helps us acquire and retain talent

Our organisation has good awareness and intentions on Diversity & Inclusion but is making limited progress

Diversity & Inclusion is a core component of our business activity

48.6%

43.2%

39.2%

33.8%

Key findings Progress to date

3


The Irish market clearly recognises that Diversity & Inclusion is vital to innovation, performance and growth. Indeed, almost half (48.6%) of respondents report a noticeable change in their diversity profile over the last five years. However, actual progress is not as pronounced.

Over one third of those surveyed agree that Diversity & Inclusion is a ‘core component of our business activity’. However a sizeable number (39.2%) admit they are making limited progress, despite good intentions.

This appears to lead to a paradox: the link between Diversity & Inclusion and talent acquisition and retention is universally accepted. Yet only 43.2% believe their policies and reputation positively help them acquire and retain talent.

Strands under closer scrutiny

Looking at Diversity & Inclusion’s various ‘strands’ reveals that limited progress is being made. 14.4% of respondents consider they are not strong in even one of the strands.

47.4% make a positive report in the area of gender. Approximately one third also feel strong regarding age (34%) and work-life balance (33%). Relatively fewer (27.8%) mark themselves well on the issue of sexual orientation. Fewer still (24.7%) claim to be strong in relation to (dis)ability; this number further reduces to 23.7% in relation to race and ethnicity.

Overall, there is extremely limited progress on gender identity, religion and belief. It’s worth noting that progress is these areas is loosely aligned to having networks and dedicated groups driving change within organisations.

Have networks and groups driving change in D&I in the following areas

Strong in the following strands of D&I

OtherReligion & belief

Gender identity

Race & Ethnicity

None of the above

(Dis)AbilityAgeSexual orientation

Work-life balance

Gender

47.4%

39.2%

33%

25.8%

34%

14.4%

24.7%

16.5%

23.7%

12.4%14.4%13.4% 13.4%

0% 0% 0%

14.4%

25.8%27.8%

25.8%

“Networks offer support for people to discuss issues together. But they won’t help change the culture at work. Mentoring or advocacy programmes must be in place and senior staff need to understand what these entail and the role they play in bringing Diversity & Inclusion to life.”

Rachel Izzard CFO Aer Lingus

“Diverse viewpoints and ideas increase innovation and productivity within organisations. So it’s not surprising that the most talented employees are attracted to diverse workplaces. At Kainos, we aim to create network groups where employees can build important relationships across a diverse range of people. Diversity is good for our people - and good for business.”

Brendan Mooney CEO Kainos & EY Entrepreneur of the Year 2016

4


OtherWomenMen

0%

23.8%

76.2%

What is the current gender % composition of your organisation’s Board?

LeadershipPART 2

How diverse is business leadership in the Irish market? Multiple studies – and anecdotal evidence – indicate that organisations achieve diversity more successfully at junior levels. At senior management and board level, however, the picture is far less varied.

This section examines the current extent of diversity at senior levels in terms of (dis)ability, gender, LGBT status and race and ethnicity. Delving deeper, it also explores how committed senior business people in the Irish market really are to the principles and practice of Diversity & Inclusion.

Support at the highest levels is critical to the success of Diversity & Inclusion in the workplace. It is impracticable to achieve established goals in Diversity & Inclusion without executive sponsorship and buy-in from leadership. Genuine leadership requires talking about the subject with people at all levels, both inside and outside the business. Beyond this, Diversity & Inclusion needs to be put into action in thinking, recruitment policies and work practices.

1Transgender and gender minority groups 1

4.3% Other

95.7%White

10%Hispanic/Latino

10%Black

17%Other 62%

Asian

1%Irish Traveller

What is the current race/ethnicity and composition of your organisation’s Board?

11-20%1-10%0%Don't Know

4.1%4.1%

53.6%38.2%

What % of your organisation’s Board are people with disabilities?

11-15%1-10%0%Don't Know

8.3%3.1%

47.4%41.2%

What % of your organisation’s Board is LGBT?

THE BOARD

Key findings

5


30% +11-20%1-10%0%Don't Know1.1%2.1%

11.3%

47.4%38.1%

What % of ‘senior management’ in your organisation are persons with disabilities?

OtherWomenMen

66.8%

33.2%

0%

What is the current gender % composition of ‘senior management’ in your organisation?

1

3.3% Other

96.7%White

10%Black

17%Other

21%Hispanic/

Latino

39%Asian

40%Other

What is the race/ethnicity % composition of ‘senior management’ in your organisation?

30% +11-20%1-10%0%Don't Know

2%2%

18.6%

35.1%42.3%

What % of ‘senior management’ in your organisation is LGBT?

SENIOR MANAGEMENT

Commentary

Moderate diversity characterises the boards and senior management of companies and organisations operating in Ireland. However, there is a striking lack of diversity in the race and ethnicity profile of both tiers, more than 95% of which are ‘white’.

The gender composition of boards is also considerably lacking in diversity. Here, women hold fewer than a quarter of the places. However, the news is better in relation to senior management where women fill approximately 33% of positions.

This compares very well to reported global, EU and US averages (25%, 24% and 23% respectively). However, our survey demonstrates the presence of women in senior management in Ireland varies significantly by industry. In particular, this falls to 27.4% in the ‘information and communications technology’ sector.

Conversely, the average is greatly boosted by the women who constitute 46.5% of senior management in ‘recruitment, outsourcing and business services’. The 40% in ‘entertainment and media’ also contribute to the positive trend.

Breakdown by sector

53.5%46.5%

Recruitment, outsourcing &

business services

0%

60%

40%

Entertainment & media

0%0%

72.6%

27.4%

Information & communication

technology

Men

Women

Other

6


An incomplete picture

As many Irish organisations do not collect comprehensive Diversity & Inclusion data, less is known about persons with disabilities and sexual minorities. Using what information is available, the picture is still stark: currently just 8.3% of boards have members with disabilities.

This is somewhat less acute in the case of senior management. In this instance, under 15% of companies have senior managers who are people with disabilities.

The picture changes in companies or organisations that feature Diversity & Inclusion on their board agenda and have a strategy in place. In these cases, the number of senior managers who are people with disabilities increases to 23.8%.

There is also a direct correlation between the leadership composition of boards and that of senior management.

Senior ManagementBoard

Current gender % composition Men

Women

Other

23.8%

76.2%

33.2%

66.8%

4.8%

30% +

4.8%

11-20%

14.2%

1-10%

28.6%

0%

47.6%

Don't Know


Senior ManagementBoard

Current race/ethnicity % composition

White

Other

4.3% 3.3%

95.7% 96.7%

WITH DIVERSITY & INCLUSION ON THEIR BOARD AGENDA AND A STRATEGY IN PLACE.

Comparing the (dis)ability, gender, LGBT, race and ethnicity profiles of senior management and board members:

7


Current disability % composition

30%+

11-20%

1-10%

0%

Don’t know

Senior MangementBoard

38.2% 38.2%

53.6% 47.3%

11.3%

1%0%

2.2%4.1%4.1%

0%2.4%11.9%

66.7%

19%

30%+11-20%1-10%0%Don't Know


“We must show we value inclusivity, not just through words but through our actions; recruitment, promotion, role model creation, goal-setting and so on. This starts at the top, at the Board level, where behaviours, values and actions need to role model, prioritise and be consistent with the building of a Diverse & Inclusive culture. These behaviours and attitudes should filter down throughout the organisation and those we regulate.”

Ed Sibley Director, Credit Institutions Supervision and Diversity & Inclusion Lead Central Bank of Ireland

Current LGBT % composition

30%+

11-20%

1-10%

0%

Don’t know

Senior MangementBoard

41.3% 42.4%

47.4% 35%

18.6%

2%0% 2%

3%8.3%

WITH NO DIVERSITY & INCLUSION ON THEIR BOARD AGENDA AND NO STRATEGY IN PLACE.

8


Leading by example

The survey reveals impressive visible support from C-suite leadership teams. Currently 60.8% of leaders ‘model inclusivity’. However, employees remain concerned about management’s ability to deal with issues relating to Diversity & Inclusion.

60.8% of leadersmodel inclusivity, according to their employees.

Our C-suite leadership team visibly support Diversity & Inclusion within our organisation

71.1%Agree

20.6%Neutral

8.3%Disagree

9


“Creating a clear owner of Diversity is a great and valuable step towards increased Diversity & Inclusion within an organisation - but it will be futile if the position receives no executive support and is viewed merely as a token gesture to please investors or shareholders. We need leadership, openness and a willingness to learn.”Adrienne GormleyGlobal Head of Customer ExperienceDropbox

10


Business Strategy and Governance

PART 3

For Diversity & Inclusion to be embedded in an organisation’s culture, it must first become a core component of business strategy and named as an organisational value. Any Diversity & Inclusion strategy must be aligned with corporate strategy; doing so will embed it in a company or organisation’s overall culture and governance.

This also allows a strategic review and gap analysis to be undertaken. Both these lead to shortfalls being diagnosed, priorities being established, goals set and progress monitored. If all this is to be achieved, two things are essential. Firstly, the strategy and its key principles must be communicated to, and understood by everyone involved. Also, the board must consistently remain committed to its success and take responsibility for the governance of Diversity & Inclusion.

Commentary

Under half of survey respondents (49.5%) have a Diversity & Inclusion strategy with fewer still (22%) saying that it is a standard fixture on their board meeting agenda.

There is a notable difference between organisations whose corporate headquarters are in Ireland and those in the US. 64.7% of those headquartered in America (or their subsidiaries) operate a diversity strategy while 35% discuss the subject at board level – 19% more than Irish-based companies.

Key findings

47.4%No

3.1% | Don’t know

49.5%Yes

Do you have a Diversity & Inclusion strategy in your firm?

63%No

22%Yes

15%Don’t know

Is Diversity & Inclusion a regular/fixed item on your Board Agenda?

11


A new EU non-financial directive makes developing a Diversity & Inclusion strategy even more necessary.

Public Interest Entities (PIEs) with an average of 500 employees or more and a minimum of €40m turnover, or €20m on their balance sheets, must now disclose information relating to environmental and social matters. This includes the levels of diversity within their board of directors. The directive also requires that key performance indicators relating to Diversity & Inclusion are set.

Currently, our survey reveals that a large majority do not refer to Diversity & Inclusion in their reporting. With the arrival of the new EU directive, PIEs will need to amend their reporting practices to comply with these changes.

DISCLOSING DIVERSITY & INCLUSION: THE EU’S NEW DIRECTIVE

19.6% 19.6%

60.8%

NoYesDon't Know

Do you refer to Diversity & Inclusion in your financial statement?

64.7% | Yes

29.4% | No

5.9% | Don’t know

35% | Yes

35% | No

30% | Don’t know

39.7% | Yes

58.7% | No

1.6% | Don’t know

16% | Yes

75% | No

9% | Don’t know

SUBSIDIARIES OF ORGANISATIONS OR COMPANIES HEADQUARTERED IN AMERICAS

SUBSIDIARIES OF ORGANISATION OR COMPANIES HEADQUARTERED IN IRELAND

SUBSIDIARIES OF ORGANISATIONS OR COMPANIES HEADQUARTERED IN AMERICAS

SUBSIDIARIES OF ORGANISATION OR COMPANIES HEADQUARTERED IN IRELAND

12


NO TO D&I STRATEGY

Does your organisation measure Diversity & Inclusion progress and success?

9%13%

78%

NoYesDon't Know

“We need to have clear outcomes in mind. We need to analyse where we are today, gauge what our implicit and explicit barriers are and what we need to change. A strategy will help provide the rigour and discipline we need to achieve our Diversity & Inclusion goals.”


Does your organisation have specificDiversity & Inclusion goals and targets?

13%Yes

76.1%No

10.9%Don’t know

Measuring and monitoring

Unsurprisingly, there’s a direct correlation between having a concrete strategy and Diversity & Inclusion becoming a core component of business activity. A strategy also tends to trigger the endorsement of an inclusive agenda by corporate leaders, goal-setting and the subsequent monitoring of progress.

These steps lead to a domino effect in terms of dividends: 62.9% say their enhanced reputation for inclusivity helps acquire and retain talent. This is a dramatic contrast to the 24.4% of those without a strategy who make the same claim.

25.7% with a Diversity & Inclusion strategy in place also say they can point to higher sales revenue and profit margins. This too is in stark contrast to the 8.1% without such a strategy.

13


NO TO D&I STRATEGYYES TO D&I STRATEGY

No to D&I strategy & fixed board agenda

Yes to D&I strategy & fixed board agenda

Our C-suite leadership team visibly support Diversity & Inclusion within our organisation

Disagree

Neutral

Agree

95.2%

4.8% 7.2%

59.5%

33.3%

Our policies and reputation in D&I helps us acquire and retain talent

Diversity & Inclusion is a core component of our business activity

We attribute higher sales revenue and profit margins to our D&I strategy and implementation

Disagree Neutral Agree

74.3%

37.1% 48.6%14.3%

25.7%25.7% 48.6%

20%

5.7%

62.9%25.7%

11.4%

24.4% 27% 48.6%

27% 48.6% 24.4%

43.2% 37.8% 19%

40.5% 51.4%

8.1%

Our organisation has visible leaders modelling inclusivity

“The most important thing is to have a meaningful, committed, long-term plan or strategy with support from leadership to initiate and measure progress. If we have a clear plan in place which outlines landmarks and targets we need to hit, there is a better chance that Diversity & Inclusion can form an inherent part of our working culture.”

Brendan Mooney CEO Kainos & EY Entrepreneur of the Year 2016

14


“It is vital that Diversity & Inclusion strategies are embedded in all aspects of our business.”Rachel IzzardCFOAer Lingus

15


The impact at board level

Operating a strategy and regularly discussing it at board level can also have a profound effect on the board itself.

A third of such organisations reported a female presence at board level; only a fifth of organisations who don’t cover it at board level have women on those boards. Similarly, the visibility figure associated with C-suite leadership support jumps significantly from under 60% to over 95% whenever a Diversity & Inclusion strategy is place and discussed at the board.

>95% of people agreethat their C-suite leadership team visibly support Diversity & Inclusion within their organisation, among those organisations who have a Diversity & Inclusion Strategy and include it on their Board Agenda.

OtherWomenMen

Current gender % composition of the Board

Yes to D&I strategy& board agenda

No to D&I strategy & board agenda

66.2%

79.5%

33.8%

20.5%

0% 0%

“Our Inclusion & Diversity strategy is embedded in, and informed by, our business strategy. ‘Risk excellence’ is a top priority for State Street and having an inclusive culture is vital to this being a success. We recognise how important it is that employees collectively have the broadest range of perspectives possible and a willingness to speak up in order to achieve Risk Excellence.”

Andrea Dermody Global Inclusion & Diversity Lead EMEA State Street

16


Data and MetricsPART 4

For any Diversity & Inclusion strategy to make a positive difference, it must be measureable and goal-orientated.

To build a sustainable strategy that incorporates specific goals, benchmarks and targets, evidence-based Diversity & Inclusion data first needs to be collected. As employee engagement is central to this, it is important to be transparent about exactly why and how data is being collected.

Commentary

58.8% and 50.5% of respondents collect data on age and gender respectively, while a third collect data on (dis)ability. The numbers decrease considerably for the collection of data on other Diversity & Inclusion strands including race and ethnicity, sexual orientation and religion.

30.9% of organisationshave specific Diversity & Inclusion goals and targets

Are you collecting data on any of the following from your employees?

58.8%

OtherReligion& Belief

Sexualorientation

Don't knowRaceEthnicityNone ofthe above

(Dis)AbilityGender/Genderidentity

Age

50.5%

30.9%

23.7%19.6%

13.4% 11.3%7.2% 6.2% 4.1%

Key findings

17


Under one third (30.9%) of organisations and companies have specific Diversity & Inclusion goals and targets. A higher number (36%) say they measure progress and success in the area.

Of those who do set specific goals and targets, 80% measure progress and success compared to just 18% of those who do not engage in goal-setting. Unsurprisingly, organisations that measure progress and success were more likely to collect Diversity & Inclusion data in the first instance.

Respondents who measure progress and success were also 35% more likely to collect data on ethnicity and 20% more likely to collect data on sexual orientation.

YES TO MEASURING PROGRESS AND SUCCESS

NO TO MEASURING PROGRESS AND SUCCESS

Does your organisation have specific Diversity & Inclusion goals and targets?

30.9%Yes

57.8%No

11.3%Don’t know


7%

80%

13%

NoYesDon't Know


2%18%

80%

NoYesDon't Know


54.9%

43.1%

31.4%

23.5%

11.8%7.8%

3.9% 3.9% 2% 0%

Other (please specify)

Religion & Belief

RaceEthnicityDon't know

(Dis)Ability

None of the above

Gender identity

Age Sexualorien-tation

20%

Sexualorien-tation


77.1% 77.1%

11.4%

48.6%

5.7%

42.9%

31.4%

11.4% 11.3%

Other (please specify)

Religion & Belief

RaceEthnicityDon't know

(Dis)Ability

None of the above

Gender identity

Age

18


It is obvious that having a specific Diversity & Inclusion strategy has a clear and positive impact on goal-setting and measuring success.

Of those survey respondents with a strategy, almost half (47.9%) also have specific goals and targets. Some 60% measure their progress and success rates too. This compares very favourably to organisations that do not have a strategy. In their case, only 13% have set goals and targets and measure progress and success.

“The Central Bank is a data-driven and analytic institution. So we need to consider what data is important and why it is important, how it relates to where we want to be on the Diversity & Inclusion journey in a number of months and years and start working on that. We must analyse what data we have currently, what the gaps are, what we need to collect, and what the barriers might be.“


49.5%Yes

47.4%No

3.1%Don’t know

Do you have a Diversity & Inclusion strategy in your firm?

19


D&I STRATEGY IN PLACE

NO D&I STRATEGY IN PLACE


9% 13%

78%

NoYesDon't Know


13%

60%

27%

NoYesDon't Know

Is Diversity & Inclusion a regular/fixed itemon your Board agenda?

17%

39%44%

NoYesDon't Know

Is Diversity & Inclusion a regular/fixed itemon your Board agenda?

9%

91%

NoYesDon't Know

Do you refer to Diversity & Inclusionin your financial statement?

22.9%29.2%

47.9%

NoYesDon't Know


10.4%

47.9%41.7%

NoYesDon't Know

Do you refer to Diversity & Inclusionin your financial statement?

10.9% 11%

78.1%

NoYesDon't Know


10.9% 13%

76.1%

NoYesDon't Know

20


In addition to collecting Diversity & Inclusion data, more than half of respondents also monitor employee concerns on related issues.

Gender-based concerns such as the lack of women in senior management, plus their promotion and overall visibility, were the most frequently cited issues. Monitoring such concerns can help organisations gauge how positive changes can be made.

“It’s important that our employees feel comfortable and work in an environment where they can be themselves. However, if these avenues aren’t transparent then issues or concerns can get lost. We want to improve accountability and transparency so there are clear processes in place when employees raise Diversity & Inclusion concerns.”

Brendan Mooney CEO Kainos and EY Entrepreneur of the Year 2016

Do you monitor inputs or concerns raised by your employees about Diversity & Inclusion related issues?

16.5%

57.7%

25.8%

NoYesDon't Know

21


1 11001110110101100110011000 0

0

11

11

1

“Data only gets you halfway, it does tell you what questions to ask and where to focus your activity. You also need to enrich your data by tracking and monitoring progress and holding the business accountable for change, otherwise the conversation won’t go any further. You can also read the story behind the data; answers can even be found in those people who don’t answer self-identifying questions – perhaps this indicates that your culture is not such that people feel they can share that information with you. Whilst we set targets to understand cultural variance in our different countries of operation, we equally don’t want to dishearten those businesses at the beginning of the journey.”Andrea DermodyGlobal Inclusion & Diversity Lead EMEAState Street

22


Resourcing and Responsibility

PART 5

Numerous global studies have confirmed the value of Diversity & Inclusion as a way to gain competitive advantage. Leading businesses in Ireland have also endorsed this. However, it is also clear that investment is needed to unlock these benefits. In particular, this means specific budgets being allocated to resource key areas: development of strategy design and implementation, diagnostic assessment, data collection and analysis plus learning and leadership development.

Undertaking inclusive leadership training also heightens business leaders’ awareness of any conscious or unconscious biases they may hold and equips them to lead by example.

Finally, the impact and success of introducing a tangible Diversity & Inclusion strategy will not be known without adequate measurement and reporting tools being resourced.

Commentary

Only one third of senior management have completed Inclusive leadership or unconscious bias training. Employees also express concerns about senior management’s ability to deal with Diversity & Inclusion-related issues. Furthermore, only 17.5% of employees have been given the opportunity to undertake unconscious bias training.

The picture changes when organisations prioritise the need to embrace diversity. In such cases, roughly 12% more senior managers undertake training. However, in organisations that do not agree that Diversity & Inclusion is a priority, no employees had the opportunity to undertake unconscious bias training.

Have employees been given an opportunity to undertake unconsious bias training?

Has senior management undertaken unconcious bias training?

Has senior management undertaken Inclusive Leadership training?

No YesDon't Know

17.5% 15.5% 14.5%

31%28.8%

17.5%

51.5%55.7%

68%

“We need to equip people with a language so they can have open conversations about the issues related to Inclusion and Diversity. It is vital that Inclusion & Diversity pervades the company culture and becomes part of how we do our business everyday.”


23


Diversity & Inclusion is a priority for our organisation

5.1%Disagree

79.4%Agree

15.5%Neutral

No YesDon't Know

14.3%11.7% 13%

32.5% 31.2%

19.5%

53.2%57.1%

67.5%

Have employees been given an opportunity to undertake unconsious bias training?

Has senior management undertaken unconcious bias training?

Has senior management undertaken Inclusive Leadership training?

No YesDon't Know

40% 40% 40%

20% 20%

0%

40% 40%

60%

24


Financial investment in Diversity & Inclusion appears to vary widely. 35.6% of organisations spend under €1,000 annually while just under 10% invest more than €50,000 – a figure that rises to 26.6% for companies with more than 1,000 employees.

When they have ‘visible leaders modelling inclusivity’, 15.3% of organisations say they invest over €50,000. However, the biggest investors are those whose policies and reputation in Diversity & Inclusion help acquire and retain talent. Here, 18.2% spend more than €50,000 annually.

What is your organisation’s total spend on D&I in Ireland?

33.3%35.6%

1.1% 1.1%

6.7%7.8%

4.4% 4.4%5.6%

<€1K€1K-€5K

€5K -€10K

€10K-€25K

€25K -€50K

€50K -€100K

€100K -€200K

€200K+Don't know

What is your organisation’s* total spend on D&I in Ireland?

35%

50%

0% 0% 0%3.3% 1.7% 3.3%

6.7%

<€1K€1K-€5K

€5K -€10K

€10K-€25K

€25K -€50K

€50K -€100K

€100K -€200K

€200K+Don't know

*organisations under 1001 employees

“Leadership ownership and involvement is the only way to ensure that Diversity & Inclusion is kept at the forefront of our business strategy. Creating a clear owner of a Diversity is a valuable step - but if Diversity & Inclusion is not valued and monitored by c-suite/top leadership it will fall between the gaps.”

Adrienne GormleyGlobal Head of Customer Experience Dropbox

25


Considerably more than half of respondents do not have a specific person responsible for Diversity & Inclusion. Having such an individual increases the likelihood that concerns raised by employees will be monitored. The survey shows that having both a named person and an implemented strategy increases the percentage of organisations that monitor their employees’ concerns to 73.3%.


34.8%

26%

2.2% 2.2%

10.9%8.7% 8.7%

0%

6.5%

<€1K€1K-€5K

€5K -€10K

€10K-€25K

€25K -€50K

€50K -€100K

€100K -€200K

€200K+Don't know


36.4%

12.1%

0% 0%

18.2%15.2%

9.1%

3%6%

<€1K€1K-€5K

€5K -€10K

€10K-€25K

€25K -€50K

€50K -€100K

€100K -€200K

€200K+Don't know

Is there a specific person responsible for D&I?

41.4%Named person 58.6%

No named person

Our organisation has visible leaders modelling inclusivity

60.5%Agree

Our organisation's policies and reputation in Diversity & Inclusion helps us acquire and retain talent

43.4%Agree

26


Ways to improve Diversity & Inclusion performance

Interviewees were also asked to identify the key components to success in Diversity & Inclusion and what, if any, advice they had for organisations getting started. Here’s what they had to say:

“Understand your organisation! Collect and examine data to gauge where you are. Then build it into the business case you present to your business leads. Also, look at your customer pool; do your employees reflect the changing demographic of your customers? Finally don’t try to do everything at once – but do get started. The easiest things are always the hardest to achieve, but we need to start to make progress. I don’t think there’s any one thing, I think you need to do a myriad of things and be hellishly persistent. GET STARTED!”


“Unless you are proactively planning, you won’t attract diverse talent. Diversity & Inclusion needs to be integrated within recruitment and talent management at all levels.”

Rachel Izzard CFO Aer Lingus

27


“Smaller steps are key; don’t try to boil the ocean. You can’t fix everything overnight, and attempting to do so is when Diversity & Inclusion efforts fail. Narrow your focus. Set goals to achieve and then decide on what indicators will help you measure progress.”

Adrienne Gormley Global Head of Customer Experience Dropbox

“Organisations need to look at their recruitment processes. They must examine what they are putting in adverts, how they attract people and the selection process for hiring the applicants they attract.”

Ed SibleyDirector – Credit Institutions Supervision and Diversity & Inclusion LeadCentral Bank of Ireland

28


At EY, we embrace diversity as a core organisational value as it relates to our people, our clients, our communities and our society. We also recognise it as a journey and are delighted to share our Diversity & Inclusion Culture Change Continuum which has helped us map our roadmap for success.

Source: Framework adapted for EY from The Guide for Inclusive Leaders, by Joerg Schmitz and Nancy Curl.(Princeton Training Press, 2006)

EY’s D&I Culture Change Continuum Our roadmap for success | For the organisation - where to start

1 2 3 4

Establish a baseline and cascade awareness

“Do we have a clear point of view on how Diversity & Inclusion benefits our business?”

Gather data and look for inconsistencies; set the tone at the top.

Identify meaningful changes

“Have we identified gaps; are we working to close them?”

Review talent and business processes with an inclusive lens; assess and encourage flexibility.

Recognise and reward role models

“Do we recognise those who team and lead inclusively?”

Recognise everyday actions that demonstrate inclusive teaming; share stories from and about inclusive leaders.

Enable culture change

“Do all of our people feel included and able to fully contribute?”

Set specific goals, then monitor and communicate progress.

29

EY Diversity & Inclusion Advisory Services


About EY’s Advisory Services

In a world of unprecedented change, EY Advisory believes a better working world means helping clients solve big, complex industry issues and capitalise on opportunities to grow, optimise and protect their businesses.

From C-suite and functional leaders of Fortune 500 multinationals to disruptive innovators and emerging market small- and medium-sized enterprises, EY Advisory works with clients from strategy to execution to help them design better outcomes and realise wlong-lasting results.

A global mindset, diversity and collaborative culture inspires EY consultants to ask better questions. They work with their clients, as well as an ecosystem of internal and external experts, to create innovative answers. Together, EY helps clients’ businesses work better.

D&I StrategySetting out the business case for the organisation and the roadmap for their D&I ambitions, we help our

clients to develop a strategy that is integrated into the broader talent and

business strategy and focused on delivering sustainable business

growth through inclusion.

DiagnosticsUsing tried and tested

quantitative and qualitative diagnostics and

benchmarking methods, we help our clients pin

point the factors that have the most significant

impact on the employee experience, levels of engagement and the

associated career outcomes.

Change and capability

developmentWe equip leaders,

managers and teams with the tools to inspire,

manage and operate in diverse teams through

our inclusive leadership and high performing

teams training.

AnalyticsA relentless focus on delivering business benefits underpins everything

that we do. We help our clients to identify and understand the evidence base for action within their specific context and to

identify the measures and metrics that count in the performance management of the organisation towards

their D&I objectives.

D&I Transformation Programmes

The design and implementation of a programme designed to accelerate the pace of change towards a culture of inclusion and an organisation with the processes, capability and

behaviours required to achieve and sustain ambitious D&I objectives and a lasting legacy.

EY has a dedicated Diversity & Inclusion consultancy practice in Ireland and the UK. Our expert team has exceptional capability, insight and experience in helping clients achieve their Diversity & Inclusion ambitions.

For further information on Diversity & Inclusion Advisory services, please contact:

Olivia McEvoy, Director, Diversity & Inclusion Advisory T +353 1 2211895 M +353 87 648 0012E [email protected]

30


Through our Diversity & Inclusion services, EY can share this knowledge with clients. Our service offerings reflect the components of our integrated Diversity & Inclusion transformation approach designed to deliver systemic change. These services can be delivered as an integrated programme or as individual modules.

Appendix

Survey respondents by sector

Survey respondents by employee numbers

Positions held by interviewees

Survey respondents by location of headquarters

31


Engineering & constructionEntertainment & media

HealthcareMembership, representation and trade union bodies

Recruitment, Outsourcing and Business ServicesCharity & NGO

LegalOther

Food ServicesManufacturing

Accounting & consultingRetail & consumer goodsTransportation & logistics

Government & public servicesPharmaceuticals & life sciences

Energy & utilitiesEducation

Information & communication technologyFinancial services 25%

16%7%

6%5%

4%4%4%4%4%4%

3%3%3%

2%2%2%

1%1%

<100 100 - 300 301 - 500 501 - 1000 >1001

39%

16%11%

30%

4%

64%Ireland

18%Americas

11%EMEIA

1%Asia

6%Other

1%Board

Member

6%C-Suite

6%D&I Lead

25%Management

32%HR Staff

31%CEO

EY | Assurance | Tax | Transactions | Advisory

About EY

EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

EY refers to the global organisation and may refer to one or more of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organisation, please visit ey.com.

© 2017 Ernst & Young. Published in Ireland. All Rights Reserved.

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ED None

The Irish firm Ernst & Young is a member practice of Ernst & Young Global Limited. It is authorised by the Institute of Chartered Accountants in Ireland to carry on investment business in the Republic of Ireland.

Ernst & Young, Harcourt Centre, Harcourt Street, Dublin 2, Ireland.

Information in this publication is intended to provide only a general outline of the subjects covered. It should neither be regarded as comprehensive nor sufficient for making decisions, nor should it be used in place of professional advice. Ernst & Young accepts no responsibility for any loss arising from any action taken or not taken by anyone using this material.

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