SHRM Survey Findings: An Examination of Organizational Commitment to Diversity and Inclusion

October 2011

SHRM Survey Findings: An Examination of Organizational Commitment to

Diversity and Inclusion

An Examination of Organizational Commitment to Diversity & Inclusion | ©SHRM 2011 2

• Who is responsible for implementing and leading diversity initiatives in the workplace? The majority of companies reported human resources (HR) is responsible for implementing and leading their diversity initiatives. Overall, 65% of companies reported HR is responsible for implementing diversity initiatives, and 62% reported HR is responsible for leading these efforts. A much smaller percentage of companies reported president/CEO (21%) and senior management (20%) are implementing and leading diversity initiatives. An equal percentage (22%) of companies indicated that no one is responsible for implementing or for leading diversity initiatives.

• Are companies using internal diversity groups (e.g., diversity committees, diversity councils, diversity advisory boards)? They do, though not at high rates. Overall, 21% of companies reported using these internal groups. Even though internal diversity groups are not widespread in the workplace, they are providing value to businesses. Among organizations that have internal diversity groups, 72% reported these groups were used to help augment their organization’s business efforts.

• What percentage of organizations have staff dedicated exclusively to diversity? Over the last six years, fewer organizations reported having staff exclusively dedicated to diversity. This percentage dropped from 21% in 2005 to 13% in 2011. Organizations with 2,500 to 24,999 employees (39%), those with 25,000 or more employees (48%), publicly owned for-profit companies (23%) and government agencies (20%) were more likely to have dedicated staff.

Key Findings


• Are companies slashing diversity training budgets in these uncertain times? No; among the small percentage of companies that provided a diversity training budget in the previous year, the vast majority reported the 2011 budget either increased (14%) or remained the same (75%). Ten percent of companies indicated the budget decreased, and only 1% reported the budget was completely eliminated in 2011.

• What percentage of companies have sexual orientation discrimination and gender identity/expression policies? Overall, 55% of companies reported having a formal (written) policy that addresses sexual orientation discrimination in the workplace. Organizations with 2,500 to 24,999 employees (60%), those with 25,000 or more employees (79%) and firms with multinational operations locations (65%) were more were more likely to have a formal policy.

A much smaller percentage of companies reported having a written policy that addresses gender identity and/or gender expression. Only 21% of companies reported having such written policy in place.

Key Findings (continued)


Who is responsible for implementing diversity initiatives at your organization?

No one is responsible

Other

Outside consultants

Board of directors

Chief financial officer (CFO)

Chief operating officer (COO)

Diversity committee/council/advisory board

Chief diversity officer

Senior management team

President/CEO

Human resources (HR)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

22%

1%

1%

3%

4%

7%

8%

9%

20%

21%

65%

Note: n = 674. Totals do not equal 100% because respondents were able to select multiple response options.


Who is responsible for leading diversity initiatives at your organization?

No one is responsible

Other

Outside consultants

Board of directors

Chief financial officer (CFO)


Diversity committee/council/advisory board

Chief diversity officer

Senior management team

President/CEO

Human resources (HR)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

22%

1%

1%

3%

4%

5%

9%

9%

20%

21%

62%



Please indicate ways in which your CEO has demonstrated support for diversity initiatives. Comparison by Organization Staff Size


Overall (n = 674)

25,000+ employees

(n = 29)

2,500-24,999 employees(n = 134)

500-2,499 employees(n = 136)

100-499 employees(n = 222)

1-99 employees(n = 153)

Ensures the corporate vision statement incorporates diversity 29% 76% 44% 26% 20% 24%

Takes responsibility for signing off on diversity metrics and programs 15% 41% 27% 16% 8% 10%

Regularly meets with various employee/affinity groups 14% 28% 19% 12% 14% 7%

Has diversity-related personal quote on the corporate website 11% 34% 25% 11% 4% 5%

Assigns individuals to be members of the diversity council 11% 21% 23% 13% 6% 3%

Takes responsibility for signing off on supplier diversity goals 9% 31% 18% 8% 4% 8%

Takes responsibility for signing off on executive compensation targets that are tied to diversity

7% 31% 12% 12% 2% 3%

Formally heads up the diversity council 3% 7% 5% 2% 2% 3%

Larger organizations > Smaller organizations

None of the above 53% 17% 31% 53% 64% 62%

Larger organizations < Smaller organizations


Yes 13%

No 87%

In 2005, 21% of organizations reported having staff dedi-cated exclusively to diversity.

Source: 2005 Workplace Practices: A Research Report by SHRM

Does your organization have staff dedicated exclusively to diversity?

Note: n = 674.


Organization Sector Differences Based on Organization Sector

Publicly owned for-profits (23%)Government agencies (20%)

Privately owned for-profits (5%)Nonprofit organizations (14%)

Publicly owned for-profits Government agencies >

Privately owned for-profitsNonprofit organizations

Does your organization have staff dedicated exclusively to diversity?

Comparison by Organization SectorPublicly owned for-profit organizations, government agencies and nonprofit organizations are more likely than privately owned and nonprofit organizations to have staff dedicated exclusively to diversity.

Smaller Organizations Larger Organizations Differences Based on Organization Staff Size

1 to 99 employees (3%)100 to 499 employees (4%)

500 to 2,499 employees (8%)

2,500 to 24,999 employees (39%)25,000+ employees (48%) Larger organizations > smaller organizations

Larger organizations (2,500 or more employees) are more likely than smaller organizations (fewer than 2,500 employees) to have staff dedicated exclusively to diversity.

Comparison by Organization Staff Size


What is the job title of the person who leads your organization’s diversity initiatives?

Other

Head of HR

Diversity manager

Diversity director

Diversity officer

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

16%

9%

13%

26%

36%

Note: n = 87. Organizations that did not have staff dedicated exclusively to diversity were excluded from this analysis.


To whom does your head of diversity report?

Other

Board of directors


President/CEO

Head of HR (e.g., CHRO)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

13%

1%

8%

29%

48%

Note: n = 89. Organizations that did not have staff dedicated exclusively to diversity were excluded from this analysis. Percentages may not total 100% because of rounding.


Yes 21%

No 79%

Does your organization have an internal group (e.g., diversity committee, diversity council, diversity advisory board) that focuses on diversity in your organization?

Note: n = 674.




Nonprofit organizations (22%)

Privately owned for-profits (10%) Publicly owned for-profits Government agencies

Nonprofit organizations> Privately owned for-profits

Does your organization have an internal group (e.g., diversity committee, diversity council, diversity advisory board) that focuses on diversity in your organization?

Comparison by Organization SectorPublicly owned for-profit organizations, government agencies and nonprofit organizations are more likely than privately owned organizations to have an internal group that focuses on diversity.



500 to 2,499 employees (23%)


Larger organizations (2,500 or more employees) are more likely than smaller organizations (fewer than 2,500 employees) to have an internal group that focuses on diversity.


Comparison by Operations LocationMultinational organizations are more likely than organizations with U.S.-only operations to have an internal group that focuses on diversity.

Operations Location Differences Based on Operations Location

Multinational organizations (27%) U.S.-only operations (19%) Multinational organizations > U.S.-only operations


How does this internal group (e.g., diversity committee, diversity council, diversity advisory board) focus on diversity in your organization?

This group augments (e.g., directly influences) the business efforts within your organization (n = 138)

A senior executive, CEO and/or direct report is a member of this group (n = 137)

This group is funded by the organization (n = 138)

72%

79%

89%

Note: Organizations that did not have an internal group that focuses on diversity were excluded from this analysis. Totals do not equal 100% because respondents were able to select multiple response options.


How often did this internal group meet in calendar year 2010?

Other

Once a year

Twice a year

Quarterly

Once a month

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

3%

4%

9%

45%

39%

Note: n = 128. Organizations that did not have an internal group that focuses on diversity were excluded from this analysis.


Yes 16%

No 84%

Did your organization have a diversity training budget in fiscal year 2010?

Note: n = 674.




Nonprofit organizations (17%)

Privately owned for-profits (8%) Publicly owned for-profitsGovernment agencies

Nonprofit organizations> Privately owned for-profits

Did your organization have a diversity training budget in fiscal year 2010?

Comparison by Organization SectorPublicly owned for-profit organizations, government agencies and nonprofit organizations are more likely than privately owned organizations to have a diversity training budget.



500 to 2,499 employees (19%)


Larger organizations (2,500 or more employees) are more likely than smaller organizations (fewer than 2,500 employees) to have a diversity training budget.


Comparison by Operations LocationMultinational organizations are more likely than organizations with U.S.-only operations to have a diversity training budget.




In fiscal year 2010, was your diversity training budget a stand-alone budget or part of the organization’s overall training budget?

Its own separate stand-alone budget

Within the organization’s overall training budget

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

29%

71%

Note: n = 107. Organizations without a diversity training budget in fiscal year 2010 were excluded from this analysis.


Did your organization’s fiscal year 2011 diversity training budget increase, decrease or remain the same when compared with the fiscal year 2010 diversity training budget?

There is no budget in 2011

Remained the same in 2011

Decreased in 2011

Increased in 2011

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

1%

75%

10%

14%

Note: n = 92. Organizations without a diversity training budget in fiscal year 2010 were excluded from this analysis.


Yes, we have a formal (written) pol-

icy; 55%

Yes, we have an informal pol-

icy; 9%

No, we do not have a formal (written) or

informal policy; 36%

Does your organization have a formal (written) or an informal policy that addresses sexual orientation discrimination in your workplace?

Note: n = 654. “Not sure” responses were excluded from this analysis.




Does your organization have a formal (written) or an informal policy that addresses sexual orientation discrimination in your workplace?

Comparison by Operations LocationMultinational organizations are more likely than organizations with U.S.-only operations to have a formal policy that addresses sexual orientation discrimination in the workplace.



500 to 2,499 employees (53%)


Larger organizations (2,500 or more employees) are more likely than smaller organizations (fewer than 2,500 employees) to have a formal policy that addresses sexual orientation discrimination in the workplace.



Yes 21%

No 79%

Does your organization have a written policy that addresses gender identity and/or gender expression?

Note: n = 626. “Not sure” responses were excluded from this analysis.

An Examination of Organizational Commitment to Diversity & Inclusion | ©SHRM 2011

Demographics: Organization Industry

Industry PercentageManufacturing 19%

Professional, scientific and technical services 14%Health care and social assistance 12%Information 11%

Finance and insurance 8%

Public administration 8%

Educational services 7%

Retail trade 5%

Accommodation and food services 4%

Utilities 4%

Construction 3%

Transportation and warehousing 3%

Administrative and support and waste management and remediation services

2%

Religious, grantmaking, civic, professional and similar organizations 2%

22

n = 674. Totals do not equal 100% due to multiple response options.


Demographics: Organization Industry (continued)

Industry PercentageWholesale trade 2%

Arts, entertainment and recreation 1%

Mining 1%

Real estate and rental and leasing 1%

Repair and maintenance 1%

Agriculture, forestry, fishing and hunting *

Management of companies and enterprises *

Personal and laundry services *

Other services, except public administration 9%

23

n = 674. Totals do not equal 100% due to multiple response options. * = less than 1%.


Demographics: Organization Sector

Government sector

Nonprofit organization

Publicly owned for-profit organization

Privately owned for-profit organization

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

11%

18%

21%

50%

24

n = 642.


Demographics: Organization Staff Size

1 to

99

empl

oyee

s

100

to 4

99 e

mpl

oyee

s

500

to 2

,499

em

ploy

ees

2,50

0 to

24,

999

empl

oyee

s

25,0

00 o

r mor

e em

ploy

ees

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

23%33%

20% 20%

4%

25

n = 674.


Demographics: Other

26

n = 674.

U.S.-based operations only 74%

Multinational operations 26%

Multi-unit company: A company that has more than one location

58%

Single-unit company: A company in which the location and the company are one and the same

42%

Corporate (companywide) 73%

Business unit/division 16%

Facility/location 11%

Is your organization a single-unit company or a multi-unit company?

Are HR policies and practices determined by the multi-unit corporate headquarters, by each work location or both?

Does the organization have U.S.-based operations (business units) only or does it operate multinationally?

n = 674.

n = 394.


Response rate = 13%

Sample composed of 674 randomly selected HR professionals

Margin of error is +/- 4%

Survey fielded June 1-13, 2011

27

Methodology

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SHRM Poll: An Examination of Organizational Commitment to Diversity and Inclusion

SHRM Survey Findings: An Examination of Organizational Commitment to Diversity and Inclusion

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