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- Herausgeber: John Wiley & Sons
- Kategorie: Fachliteratur
- Sprache: Englisch
Discover what business visionaries on the frontiers of diverse and equitable hiring are doing to drive change in their organizations In Innovating for Diversity: Lessons from Top Companies That are Disrupting Old Practices to Achieve Inclusivity, Equity and Business Success, renowned Diversity, Equity, and Inclusion (DEI) and tech specialists Bertina Ceccarelli and Susanne Tedrick reframe the DEI discussion and move it beyond a human resources issue. While it's well established that diverse teams help to advance innovation, the authors explain how principles of innovation can be applied to building highly effective and sustainable diversity, equity and inclusion (DEI) practices embraced by executives across an organization. You'll be inspired by leaders at top companies who identified root causes of limited DEI progress and created smart, bold solutions for increasing representation, developing future talent, and advancing the careers of people often overlooked. In the book, you'll also find: * Introductions to the people and companies who have innovated their approaches to diverse hiring, retention, and advancement, and enjoyed pronounced impact on their bottom lines * Profiles of committed leaders driving the change towards a more diverse and inclusive workforce * Strategies for breaking down the cultural and organizational barriers in companies that remain in place and prevent transformative change A critical resource for senior-level business professionals, managers, and executives, Innovating for Diversity will also prove to be invaluable for people seeking to build their careers from the ground up.
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Seitenzahl: 375
Veröffentlichungsjahr: 2023
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Table of Contents
Cover
Title Page
Foreword
Introduction: How the Concept of “Innovating for Diversity” Was Born
Why We Wrote This Book
How to Use This Book
CHAPTER 1: Why Are We (Still) Here?
A Brief History of Diversity in the U.S. Labor Workforce
Why Haven't We Made More Progress?
Why Diversity Matters
What Got Us Here Won't Get Us There: The Diversity-Innovation Paradigm
Conclusion
Summary
Notes
CHAPTER 2: Defining Diversity, Equity, and Inclusion
What Do Diversity, Equity, and Inclusion
Actually
Mean?
How Leaders Shortchange DEI
Conclusion
Summary
CHAPTER 3: The Virtuous Cycle of Innovation and Diversity
The Power of Innovation
Why Companies Get Stuck
Diversity Drives Innovation
Innovation Principles
Conclusion
Summary
CHAPTER 4: Innovating the Apprenticeship Model to Advance Diversity in Tech
The Problem: Recruiting and retaining more tech talent from diverse and military backgrounds.
Conclusion
Summary
CHAPTER 5: Creating High-Impact Mentoring Programs
Coca-Cola's Journey to DEI Success
Mentoring Innovation at Zendesk
Conclusion
Summary
Notes
CHAPTER 6: Looking Beyond Traditional Talent Sources for “Hard to Find” Roles
Northrop Grumman and Tessco: Shifting Long-Standing Perceptions of Who Can Succeed
Northrop Grumman: Focus on Novel Thinking and New Talent
Tessco: Reinstalling the First Rung of a Career Ladder
Conclusion
Summary
CHAPTER 7: Innovations for DEI in Small Business
The Challenge for Small Businesses Implementing DEI Programs
Setbacks and Progress: Online Optimism's DEI Journey
From Concept to Realization: Creating DEI for Small Businesses
Conclusion
Summary
Notes
CHAPTER 8: Rethinking Retention Through the Lens of DEI
Understanding Employee Retention and Turnover
Promoting Diverse, Mid-Career Talent
The Positive Impact of Remote Work for DEI
Compensation: Innovate with Employee Benefits Programs
Conclusion
Summary
Notes
CHAPTER 9: The Inescapable, Undeniable Role of Executive Leaders
Words and Actions: Do Behaviors Match the Script?
A Focus on Systems Thinking
National Hockey League: DEI as a Movement, Not a Moment
World Wide Technology: The Power of Successfully Scaling Culture
Conclusion
Summary
CHAPTER 10: Final Thoughts and Next Steps
Lessons in Innovating for Diversity
Revisiting the Virtuous Cycle of Innovation and Diversity
Applying Innovation Principles in Your Organization
Note
Index
Copyright
Dedication
About the Authors
Acknowledgments
End User License Agreement
List of Tables
Chapter 1
Table 1.1: United States labor workforce in 2000, 2010, 2020, and 2022
Table 1.2: Fixed Practices
Table 1.3: Fixed Attitudes
Chapter 5
Table 5.1: Aligning Mentoring Programs with Innovation Principles
Table 5.2: Innovation Threats and Preventative Actions
Chapter 6
Table 6.1: Aligning Talent Sourcing Strategies with Principles of Innovation...
Table 6.2: Potential Threats and Preventative Measures
Chapter 7
Table 7.1: Aligning Small Business DEI Strategies with Innovation Principles...
Table 7.2: Innovation Threats and Preventative Actions
Chapter 8
Table 8.1: Aligning Retention Practices with Innovation Principles
Table 8.2: Innovation Threats and Preventative Actions
Chapter 9
Table 10.1: Evaluating Systems-Level Change Strategies against Innovation Pr...
List of Illustrations
Chapter 1
Figure 1.1: United States employment and income disparity by race
Figure 1.2: United States employment and income disparity by gender
Figure 1.3: United States highest educational attainment by race
Figure 1.4: United States highest educational attainment by gender
Figure 1.5: U.S. Census Bureau Diversity Index
Figure 1.6: Age distribution of U.S. population, 0–74 years old...
Figure 1.7: LGBT identification
Figure 1.8: Fixed Attitudes, Illustrated
Chapter 2
Figure 2.1 Illustrating the difference between equality and equity
Figure 2.2 Comparing separation, exclusion, integration, and inclusion
Chapter 3
Figure 3.1 Comparison of innovation revenue between less vs. more diverse co...
Figure 3.2 Effectiveness of the partnership in relation to the level of mutu...
Figure 3.3 The Virtuous Cycle of Innovation and Diversity, Illustrated
Chapter 8
Figure 8.1 Differences between benefits employers and employees' value, 2022...
Chapter 10
Figure 10.1 The virtuous cycle of diversity
Guide
Cover
Table of Contents
Title Page
Copyright
Dedication
About the Authors
Acknowledgments
Foreword
Introduction: How the Concept of “Innovating for Diversity” Was Born
Begin Reading
Index
End User License Agreement
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Advance Praise for Innovating for Diversity
“DEI is top of mind for virtually all executives regardless of the sector that they are leading in. This book highlights the key principles that are critical to success in any change effort: courage, leadership, collaboration, and trust. With compelling and detailed case studies, readers will learn how to put these principles into action.”
—Jane Wei-Skillern
Senior Fellow, Center for Social Sector Leadership
UC Berkeley Haas School of Business
“The ultimate reward for truly innovating to form more diverse teams is a culture of belonging, which is absolutely necessary for any company that wants dazzling performance. I was excited and inspired by the case studies that show how great leaders are shifting from just a compliance view of DE&I to building teams where everyone is motivated to be exponential.”
—Earl Newsome
Vice President & Chief Information Officer, Cummins
Founder, TechPACT
“This book dispels the notion that innovation and diversity are incompatible. It shatters the long-held belief that change must be slow. It demonstrates in tangible ways using present-day examples how companies large and small can radically improve their diversity efforts and in so doing enhance the bottom line.”
—Larry Quinlan
Board Director and Former Global Chief Information Officer
Deloitte
“When it comes to DEI, saying the right thing is easier than doing the right thing. Through eye-opening stories and data, this book specifies the mindsets, metrics, and methods to realize growth pathways for people and businesses of all sizes. The authors provide perceptive questions to discern root causes of deleterious fixed practices and principles. Equally important, they illustrate the leadership behaviors plus organizational tools, which create conditions for the maximum number of diverse people to flourish and collectively accelerate innovation.”
—Roselinde Torres
Leadership Expert and TED Speaker
“The authors of Innovating for Diversity bring us inspiring examples of corporate leaders courageous enough to question established practices and make substantive changes in the way they recruit, hire, develop, and advance employees. In doing so, these innovators teach us a valuable lesson: Creating truly diverse, inclusive, and innovative workplaces is good for people—and good for business.”
—Maria Flynn
President and CEO
Jobs for the Future
“Meaningful diversity and equity practices are essential to the success of any organization, and I can think of no better guides through this complex process than Bertina and Susanne. Innovating for Diversity should be on the bookshelf of every manager and business leader in this country. The case studies are unique and illuminating, the advice is practical and adaptable, and readers will no doubt walk away inspired and committed to create work cultures grounded in inclusion.”
—Dr. Tarika Barrett
CEO
Girls Who Code
“Having been on my own journey through life and career as a leader who happens to be Latino, I have my own stories to tell. Often, we get so caught up in the emotion and the cause, that data and facts are overlooked. I was moved and inspired by this book that brings the business cases, the stories, and for me the cultural root causes to life. We can keep talking DEIB, but this is a timely read of real wisdom and data that will impact the future of life and work in America.”
—Guillermo Diaz Jr
Founder and CEO Conectado, Chair HITEC,
Board Member, Former CIO Cisco Systems
“I was so moved by the candid conversations of the executives featured in this book, and by how the authors captured their authentic, vulnerable emotions. The reflections offered in these pages should serve as a roadmap for companies who are striving to develop meaningful, measurable, and impactful DEI strategies.”
—Viola Maxwell-Thompson
CEO and Board Director
“This timely, inspiring book holds a mirror to the business world, lifting the lid on poorly implemented DEI strategies and showing the pitfalls before guiding the way to success through examples, hard data, and fresh ideas. The result is a powerful case for the courage and humility to lean into our humanity so we can reap the full benefits of more genuinely diverse, kinder, safer, more creative, and more exciting workplaces.”
—Peter Mousaferiadis
Founder and CEO
Cultural Infusion
“In Innovating for Diversity [the authors] explore the humble but crucial role that diversity plays in driving innovation and vice versa. Through a series of case studies of large enterprises and small businesses, the authors provide a roadmap for organisations looking to foster a more diverse culture while identifying and dismantling systemic barriers to innovation. With its timely and relevant insights, Innovating for Diversity is a must-read for business leaders focused on increasing retention and driving competitive advantage in today's world.”
—Rajesh Jethwa
Chief Technology Officer
Digiterre
“The authors offer a unique presentation, which makes inclusion initiatives more relevant to those across the professional spectrum, not solely those in the C-Suite, based on one key tenet: that acknowledging the existence of imperfections is the first step to allowing real innovation to flourish. This book allows readers the opportunity to challenge existing presuppositions and think critically about future initiatives.”
—Richard Gardner
CEO
Modulus
“As [the authors] state early in the book, ‘diversity drives innovation.’ Innovation is how we compete in an increasingly global economy. This is just one of many reasons that DEI has finally gotten the attention it deserves over the past few years, and this is one of the most timely and pivotal books I think has been released on the topic yet! Throughout these pages, these two women break down time and again the cutting edge of this rapidly expanding and crucial piece of business. With this book, how DEI works, and how to maximize it for your business (small or large) will make sense! It is well worth the read.”
—Stephanie Scheller
Founder
Grow Disrupt
“[The authors] have successfully presented a framework for DEI and not simply a checklist of things to do. [The] book helps executive leaders to see the fundamental reasons why DEI is imperative beyond the monetary benefits…This book is a beautiful symbiosis of diversity in action.”
—Meiko S. Patton
Author
“Innovating for Diversity blesses us with powerfully well-thought-out and practical strategies that explore the deepest issues confronting organizations across individuals of all sizes in the area of Diversity and Inclusion. More importantly it helps us put several issues that occur in our organizations into perspective. This book has fundamental and empowering information that we all need.”
—Omu Obilor
CEO
Thrive with Omu
Innovating for Diversity
Lessons from Top Companies Achieving Business Success through Inclusivity
Bertina Ceccarelli
Susanne Tedrick
Foreword
“If it's not personal, you will never achieve your purpose”
The fact that you are reading this makes me hopeful. You are either one of the committed or one of the curious. You are an ally, or you are curious about being an ally. Your journey has begun. Your reward will be a more equitable world where businesses and communities will gain a new untapped competitive advantage and source of positive global contribution. I am confident that Innovating for Diversity will be a cornerstone of your journey and the path that you are about to create within your organization.
Reality
A few days ago, I had an “off the record” conversation with DEIB leaders from some of the biggest and most powerful brands on earth. They were tired, and confused, yet committed to changing their organizations. They talked about the need to change jobs or take a break every three years to continue this work. They talked about the fact that burnout was inevitable and coached each other regarding what to do when it occurs, not if it occurs. I don't know of any other Fortune 1000 C-Suite role where leaders talk this way. They also talked about not wanting to be a DEIB leader who was smiling and “happy to be here,” while a quick Google scan of the top 500 leaders showed that their organizations had made very little progress outside of starting a few ERGs and hosting monthly celebrations. We gathered to collaborate, support each other, and double down on our efforts and committed to real change, not marketing change.
Does Your Organization Have the Best Talent?
Organizations do a poor job of measuring performance and therefore can't really know that they have the best people. In fact, the data says that they do not because they are overweighted in a demographic group or two and are underrepresented in many others. This math statistically leads to a normal distribution that yields a suboptimal talent level. As I watch the World Cup soccer matches, I am struck by the brown-skinned people on teams in Europe that were born in their country, speak the language of their country, and are thriving on the soccer field. Their talent is fully embraced. Yet, they look very different from the majority population in their country, and when I do business in their country, I do not see ANYONE who looks like them. I have also yet to see a brown-skinned manager or coach on the pitch.
Are brown-skinned people only good at athletics but not in business or leadership roles?
Not long ago, the NBA (National Basketball Association) was all white. Things have changed drastically and have continued to change. The league was integrated, the level of play increased (they didn't have the best talent with one dominant demographic group), and now it is 30 percent made of players born outside of the U.S. (the U.S. didn't have a monopoly on the best talent after all) and the four MVP candidates in 2021 were all born outside of the U.S. Half of the teams now have Black coaches and I predict half of them will have owners from underrepresented groups by 2025. By the way, teams that were worth hundreds of millions are now worth multiple billions.
So, I believe it is impossible to say that an organization with one or two dominant demographic groups has the best talent. Sure, businesses can do fine with one or two dominant demographic groups. Tons of data support that. But can they be Great? Not much evidence here when we think about our communities, equality, equity, and the environment.
Courage
You have it. You opened the book. You are not afraid. You are an ally. The leaders interviewed for Innovating for Diversity have the courage to focus relentlessly on their North Star—that DEIB matters and taking fresh approaches and risks are necessary. They are fearless and unapologetic. They understand that the time to improve DEIB is now—not someday or eventually. They are willing to put in the hard work and cash in on their social capital to make that happen. Now.
Hope
This book gives me hope. Its timing is right globally and impeccably right in the U.S. It is written by two analytical, high-achieving mavericks who have a track record of innovation against all odds. They have been chosen to help implement the change the world needs now. The world needs increased productivity, performance, and innovation while reversing climate change. The challenge should excite you. Collaborators interviewed in this book have a few things in common. They have embraced these challenges by unapologetically applying the growth mindset of Diversity, Equity, Inclusion, and Belonging as the answer. They are also connected by the divine knowledge that the time is now and innovation without execution leads back to the present. The fact is the greatest companies and organizations on earth could be so much greater, and I have the data to prove it.
I will be filled with hope when I see this book on people's bookshelves over their shoulders on video cams. I hope to see a worn or torn cover showing it is well-used. I hope to see two or three copies on the bookshelf because the ally keeps a few extra copies available to give to a curious ally.
Michael C. Bush
Global CEO
Great Place to Work
Introduction: How the Concept of “Innovating for Diversity” Was Born
The origins of this book date back to March 12, 2020, exactly one week prior to the first Stay at Home Order issued in the U.S. as a measure to prevent the spread of COVID-19. It was March 12th that then-Governor Cuomo proclaimed as “Women of Color in Tech Day” across New York State. To commemorate the day, staff from NPower, the sponsoring nonprofit for the proclamation, as well as numerous community and corporate partners gathered to ring the closing bell at NASDAQ in Times Square.
One of the guests invited to celebrate the day, Dawn Michelle Hardy, just happened to be the publicist of the author and technologist, Susanne Tedrick. During the event, Dawn introduced herself to NPower CEO Bertina Ceccarelli, and mentioned, “I know the woman who literally wrote the book, Women of Color in Tech!”.
Susanne's first book had just been published by Wiley earlier that month. Bertina knew then she couldn't pass up the opportunity to meet Susanne and learn about her work and experiences, especially since NPower was seeking expertise on new ways to increase the number of minority women in the organization's IT skills training and job placement program. At the time, less than 4 percent of those working in U.S. tech jobs were Black, Brown, or Indigenous women.
Our first meeting led to numerous reflective and candid conversations about the state of diversity across U.S. businesses, large and small. While we come from two different perspectives, set of lived experiences, and career journeys, we both share common concerns as well as a similar sense of optimism as more inclusive talent management practices take hold in a wide range of industry sectors. Our concerns, like those of some of the leaders we interviewed for this book, stem from a belief that successful efforts to increase diversity, equity, inclusion (DEI), belonging, and accessibility require unwavering commitment and senior executive focus. As economic cycles and labor market supply and demand ebb and flow, history suggests that sustained efforts to improve diversity can slip down the priority list.
Our optimism, however, is fueled by numerous observations, interactions, and interviews with leaders who, frankly, give a damn. That statement may not be common corporate DEI-speak, but we have uncovered that some of the most powerful and effective DEI strategies are instigated by individuals who are fearless about tapping into their own experiences and tackling the root problems preventing inclusive practices in a division or entire company from thriving. They are leaders—sometimes middle managers and sometimes CEOs—who are willing to be creative, take risks, galvanize colleagues, engage human resource counterparts, and pilot new approaches to diversity and inclusion that often inform changes to underlying systems and processes. They are doing anything but simply “checking the box” to advance diversity principles. In short, they are leaders who are innovating for diversity.
Why We Wrote This Book
Throughout our own careers over the past three decades in technology and business, we have both witnessed the power of innovation to transform entire industries. We have read the research and seen first-hand how diverse teams catalyze new lines of inquiry and inspire invention. But in recent years, we have met remarkable leaders who are addressing business challenges through innovative solutions that build, develop, and retain diverse teams.
In other words, just as diverse teams drive innovation, innovation principles can be applied to advancing practices that build diverse teams.
We wrote this book to tell the stories of the leaders and companies that are succeeding by applying an innovation lens to diversity. Few of the leaders we interviewed would readily call themselves “DEI innovators.” In fact, most would say they were simply doing what they do in their businesses every day: solving problems by addressing root causes. When we deconstructed their solutions—whether apprenticeships or reinventing mentorship—we found they used tools and principles characteristic of innovation. Each set of leaders we profile had the courage to question established practices and put their reputations on the line for what they believed would be dramatic improvements to the status quo.
Something else emerged from our interviews that struck us as worthy of exploration: personal, intrinsic motivation. The individuals at the center of our case studies often shared deeply personal experiences that shaped their own values and beliefs about the need for diverse, inclusive work environments. They exemplify leaders comfortable with vulnerability, humility, and the acknowledgment of others who believed in them and supported their own career objectives. Some define their personal motivation as “paying it forward,” others by a sense of purpose or moral imperative. All unquestionably believe richly diverse teams and equitable cultures are, at the core, a business imperative, and produce superior outcomes. None expressed the sentiment that DEI was somehow “someone else's job,” primarily an ESG or charitable endeavor, or that it was something that could be “solved” in the short term without persistent commitment. Each was unafraid of accountability.
We also take care to present interviews of those who emerged as full partners following the implementation of practices described in the case studies. In some instances, these are individuals who may not have been hired under prior practices, or who may not have been considered candidates for promotional opportunities. Their voices and stories are essential to the notion of a virtuous cycle between innovation and diversity, and for continual improvement.
We think the focus on individual stories, case studies, and the achievements of dedicated leaders across an organization is especially important in the context of the myriad corporate CEO proclamations in support of diversity announced after the May 2020 murder of George Floyd. As we discuss in Chapter 9, C-suite commitment is necessary, but not sufficient, for DEI principles to become integral to both culture and business operations. What cannot be overlooked is the importance of mid-level managers, in human resources and in business units, to the successful operationalization of specific actions and processes that make DEI a part of everyday practice. And, as we will see in the case studies, the innovations that lead to broadscale adoption are often fueled by the leadership of those mid-level managers.
This is not to say the leaders and companies we profile are perfect. Arguably, it is the willingness to confront imperfections and, as you will learn in Chapter 1, the readiness to challenge Fixed Practices and Fixed Attitudes that fuels breakthroughs in measurably improving recruitment, talent development, and options for career mobility that in turn yields better DEI outcomes. Possessing enough humility to acknowledge the imperfections of any system, product, or business practice is, in fact, a prerequisite for real innovation to flourish.
What we learned from our research and the dozens of interviews with leaders across industries and functions is that the cultural conditions required for innovation to thrive are not unlike those that support diversity, equity, inclusion, and belonging. Values such as courage, risk-taking, collaboration, and trust create an environment where employees are motivated to invent and drive continual improvement. When supported by the right culture and leadership this motivation extends to innovating for diversity. What that culture and leadership looks like is at the heart of the case studies we share.
How to Use This Book
Our objective is to provide inspiration and direction for business leaders reviewing their own DEI practices, perhaps feeling stuck, or just looking for a way to begin. The case studies are structured to present issues and problems that are frequently confronted by companies across industries and organizations of all sizes. While the solutions are specific to each company profiled, we believe they serve as approaches that can be tailored and applied more broadly. Importantly, how each team landed at their respective solution through inquiry, testing, iteration, and expansion is especially worth considering.
You will find we intentionally do not offer up an easy checklist of recommended activities. Rather, we lay out an innovation framework that will challenge readers to take a fresh look at their current DEI efforts and help guide the development of new initiatives that can be embedded across an enterprise. At the conclusion of each case study, we assess how both the process and solution were advanced by tapping into components of the innovation framework. We believe the framework and generalizable case studies will be far more useful tools, rather than a checklist with limited utility, for truly tackling DEI as a business imperative.
Because our own experiences and networks are closely connected to the technology sector, many of the examples we share highlight tech companies or divisions, or technology job functions. However, especially given that representation is historically weak in the tech sector, we believe leaders in other industries can readily borrow from the lessons presented.
Similarly, the scope of our case studies focuses primarily on diversity along the dimensions of race, gender, veteran status, and socio-economic and educational background. We acknowledge there are unique considerations for advancing equity and inclusion for those with disabilities, seen and unseen, as well as those who identify as LGBTQ+. At the time of publication, many of the companies we worked with were launching specific initiatives to support greater diversity defined broadly: working mothers and caregivers, white male allies, multi-generational teams, and those who recently immigrated to the U.S. We believe that approaching diversity and inclusion with an innovation lens is the right place to start, independent of the issue.
Before we dive into the innovation framework and the case studies, we believe it is important to first lay some groundwork. In Chapter 1, we provide a brief history of diversity advancement in the U.S. labor force, as well as a summary of demographic trends. While we consider the business case for diversity to be irrefutable, the changing composition of the U.S. population underpins a need for urgency. Real and more rapid progress requires challenging the Fixed Practices and Fixed Attitudes that today hold us back. We describe those practices and attitudes in some detail, some of which you may witness in your own organizations. Our groundwork continues into Chapter 2, where we establish definitions of common terms used throughout the book.
In Chapter 3, we introduce the innovation framework, which details a set of cultural conditions that must be in place for innovation to thrive—whether to address the challenge of improved diversity and inclusion or to tackle any other business challenge. We also present three roadblocks of those we interviewed repeatedly surfaced as “toxins to innovation”: lack of prioritization, inertia, and arrogance. Companies that innovate for diversity and, in turn, leverage diversity for greater innovation, benefit from a virtuous cycle that can help them outperform their competitors.
Chapters 4 through 8 dive into the case studies and the stories of individual leaders and teams that reflect innovating for diversity in action. We have grouped these studies by topics of keen interest to many of the leaders we interviewed: apprenticeships, mentorship, advancing diversity in resource-constrained environments, talent acquisition, partnerships, and talent development and advancement. At the end of these chapters, we provide a summation of the innovation principles that were applied within the case, as well as what steps each company took to mitigate potential threats to innovation in DEI. The case studies in Chapter 9 pay special attention to the role of C-suite leadership in prioritizing diversity and in operationalizing practices that define it as a business necessity, not a passing trend. Our final chapter summarizes lessons and takeaways.
We think you will be as inspired as we are by the leaders you will meet in this book and hope you will take away any number of ideas that are practical and actionable for your business. If after reading the following chapters, you are resolved to be more courageous, more open to risk and collaboration, more committed to building trusting partnerships, and more ready to lead fearlessly when innovating for diversity, then we will have succeeded.
CHAPTER 1Why Are We (Still) Here?
Today, our country is more richly diverse than ever before. Yet, data shows that even 70-plus years after the passage of legislation to end discriminatory employment practices and significant investment in diversity, equity, and inclusion (DEI) programs, the United States labor workforce still does not reflect the diversity of the population as a whole. In fact, for certain demographic groups, their presence in the workforce has decreased in recent years.
Why have we not moved the needle more significantly in the last seven decades? What are the causes behind this? And where should we go from here? In this chapter, we will review current labor statistics and examine where change has (or hasn't) happened. We will also examine the underlying factors contributing to this stagnation: Fixed Attitudes, Fixed Practices, and seismic global events that have left long-lasting repercussions.
Key Concept: Limiting beliefs and ineffective systems and practices have contributed to the persistent lack of diversity, equity, and inclusion across many industries.
A Brief History of Diversity in the U.S. Labor Workforce
The United States is, at the time of this writing, 245 years old, and is a nation founded and sustained by diverse populations. It's hard to remember that our labor workforce did not always reflect our population, and it required years of painstakingly hard work and sacrifice to achieve progress.
One of the very first pieces of legislation to promote diversity in the workforce was in 1948, when President Harry Truman officially desegregated the armed forces with Executive Order 9981. The order made discrimination based on “race, color, religion or national origin” illegal for all members of the armed services and was a crucial victory in the Civil Rights Movement.
The next major piece of legislation was Title VII of the Civil Rights Act of 1964, which prohibited discrimination based on race, color, religion, sex, and national origin when making decisions regarding hiring, promotion, discharge, pay, benefits, training, classification, referral, and other aspects of employment. The passing of Title VII dramatically impacted the U.S. labor workforce, sharply increasing the labor force participation of women and people of color. It was amended over time to prohibit discrimination on the basis of sexual orientation and gender identity.
In tandem with Title VII, the Equal Employment Opportunity Commission (EEOC) was also created to enforce the provisions of Title VII. At the time of its creation, the EEOC's powers were fairly limited to only investigating claims of discrimination, but not to compel employers to comply with Title VII. That changed in 1972 with the Equal Employment Opportunity Act, which gave the EEOC the authority to file lawsuits against private companies to impose compliance.
The Age Discrimination Act (ADEA) passed in 1967, and prohibited discriminatory hiring practices against those aged 40 and older, while the Americans with Disabilities Act (ADA) of 1990 outlawed discrimination of disabilities. Finally, the Lilly Ledbetter Fair Pay Act of 2009 was an important piece of legislation to ensure equitable pay, regardless of gender.
The Current United States Labor Workforce
Let's now look at the current U.S. workforce. As shown in Table 1.1, in February 2020, at the start of the global COVID-19 pandemic, the total United States labor workforce was made up of approximately 164 million people, according to the Bureau of Labor Statistics.1 Due to the effects of the COVID-19 pandemic, the labor workforce experienced a sharp drop, but was on the rebound beginning in February 2022. Compared to 2000, this represented a 15 percent increase.
Table 1.1: United States labor workforce in 2000, 2010, 2020, and 2022
PERIOD
TOTAL WORKFORCE (000)
February 2022
163,991
February 2020
164,583
February 2010
153,512
February 2000
142,456
Examining Labor Workforce Dimensions
Within the context of the protections put in place to promote diversity, persistent disparities in employment representation and income are at best surprising, and at worst, alarming.
For this exercise we reviewed data in several areas from 2000, 2010, and 2020. Figure 1.1 and Figure 1.2 examine representation of the working-age population and the labor workforce by race and gender, as well as income differentials per the U.S. Bureau of Labor Statistics (BLS) and the U.S. Census Bureau.
The data reveals that the aggregate labor force continues to be overrepresented by white workers and underrepresented by Black workers over the past two decades. As of 2020, working-age Hispanics participated in the labor force at a level equivalent to their numbers in the 16–64 population group, as has been the case for Asians consistently over the past 20 years. More startling is the continued income disparity between Black and Hispanic employees and their white counterparts. While we've seen modest progress over the past 20 years, especially for Hispanic workers, both Blacks and Hispanics earn, on average, less than 80 cents for every dollar earned by white workers. This is, in part, a reflection of Black and Hispanic workers disproportionately represented in frontline, lower-wage jobs and less so in managerial positions. Women have similarly continued to lag in their wages, earning on average 82 cents for every dollar earned by all men in 2020, making slight gains in a 20-year period. For women of color, the differential is even more stark: Latinas earned on average 49 cents and Black women 58 cents for every dollar earned by white, non-Hispanic men in 2020. This compares to 73 cents earned by white women compared to white men.2
Figure 1.1: United States employment and income disparity by race
Figure 1.2: United States employment and income disparity by gender
Some of the income differentials can be explained by educational attainment. Figure 1.3 and Figure 1.4 show educational attainment by race and gender during 2003, 2010, and 2020. Overall, Asians have the highest completion rates of four-year and advanced degrees, which in part drives average income levels that are 112 percent of their white counterparts. For Blacks and Hispanics, educational trends are similar to those for income: both groups are making gains in educational attainment but still complete four-year and advanced degrees at levels between 40 percent and 70 percent of white adults.
While education is one factor contributing to unequal earning potential, persistent racial and gender discrimination impacts access to stable jobs with good wages, health benefits, and retirement plans.
Figure 1.3: United States highest educational attainment by race
Lower earning potential combined with historic discriminatory practices that have reduced access to mortgages and tax-advantaged forms of savings have widened the wealth gap between white households and Black and Hispanic households. A 2021 report by the St. Louis Federal Reserve Bank showed that the median wealth owned by the average white family was $184,000 compared to $23,000 for Black families and $38,000 for Hispanic families. The gap for Black families was largely unchanged in 30 years and only marginally improved for Hispanic families. Of note, wealth gaps persist regardless of education level. For example, Black and Hispanic households where both parents have a bachelor's degree have an average family wealth at the 40th and 49th percentile, compared to white households with the same educational background that own wealth at the 65th percentile. This wealth disparity makes it more challenging for Black and Hispanic parents to support their children in paying for higher education, buying a home, or transferring significant resources from generation to generation.
Figure 1.4: United States highest educational attainment by gender
On the major dimensions just discussed, our progress in improving representation and income across race and gender in a two-decade time frame has been slow, even with new investment and the additional awareness of the benefits and need for diversity.
It should also be noted that even the collection of diverse labor workforce data by the BLS is limited. For example, the data available on these dimensions prior to 1965 is scarce. It also doesn't account for neurodiverse populations, workers with physical disabilities, or workers who identify as part of the LGBTQ+ community.
Other statistics of note:
For management occupations, Black, Hispanic, and Asian American/Pacific Islander (AAPI) workers held 8.9 percent, 10.8 percent, and 7.1 percent, respectively of these jobs in 2019. Women held 38 percent of these professions.
Looking at Fortune 500 CEOs, in 2021, only 4 were Black, and only 41 were women.
Only 23 percent of women have C-suite positions. Of that, women of color account for only 4 percent of that figure.
Hispanic workers are overrepresented in lower-wage occupations such as painters, construction labor, and housekeeping cleaners, while Black workers over-index in occupations such as security guards, home health aides, and bus drivers.
A large share of employed women across all race and ethnicity groups work in lower average wage occupations connected to education and health services: Black women (41 percent), white women (37 percent), Asian women (32 percent), and Hispanic women (31 percent).
Unfortunately, there are many more statistics that point to opportunity gaps and disparities that continue to exist along the continuum between educational attainment, employment, and household wealth. At a high level, too many efforts to reverse these disparities, while well-intentioned, produce underwhelming results.
The Murder of George Floyd, the Rise of the Black Lives Matter Movement, and the Corporate Response
There have certainly been a few notable social justice movements aimed at pushing companies and other institutions to evaluate how they address pervasive societal issues. In recent years, the MeToo movement gave organizations a moment to reflect on whether they were doing enough to protect their female employees from harassment (blatant and subtle), while the Occupy Wall Street movement highlighted persistent income inequality across the U.S. But perhaps no one movement in recent history has garnered as much attention and as strong a response from companies, think tanks, and governmental entities than the Black Lives Matter (BLM) movement.
Started in 2013, after the acquittal of George Zimmerman—who killed Trayvon Martin, an unarmed Black teenager—the BLM movement is considered to be a loosely structured social movement, aimed at revealing to wider audiences the struggles and inequities Black people face on a daily basis. The movement also seeks social justice reform, including how Black people are treated by law enforcement in comparison to other racial and ethnic groups.
The movement's prominence was elevated significantly in 2020, with the murder of George Floyd at the hands of white police officers, chiefly Derek Chauvin, in Minnesota. In response, protests across the country in May 2020 gave rise to civil unrest and moral outrage.
Many employers struggled with how exactly they should respond, if at all. Within workplaces the civil unrest sparked critical discussions on what employers owe their employees of color to address social justice and stand up as a corporate citizen responsive to the moment. For most, it was walking a tightrope—don't respond and you're labeled as uncaring and an employer who perpetuates the very social inequities BLM speaks out against. Respond with the wrong message, and you risk amplification of negative perceptions.
We also witnessed many employers spending liberally on traditional and social media to decry what occurred. But for many people of color, perhaps because of a weariness stemming from years of empty promises and forgotten commitments, these proclamations did nothing but confirm their belief that the plethora of corporate statements were all for optics, with no meaningful change forthcoming.
Some employers took a step further to stake a quantitative commitment to change. This was in the form of an increased focus on diverse hiring, diversity training, forming listening spaces where people of color could share and process their experiences with others, and/or making investments in Black-owned businesses. Using the tech industry as an example, the top 42 tech companies pledged nearly $4 billion in further developing their DEI programs, investing in Black-owned companies and banks, and making bolder commitments to bringing in more diverse candidates.
Fast-forward to a year later, many wondered—and rightfully so—has corporate America made good on its promises? The honest answer: It depends on whom you ask. It cannot be denied that conversations on race and social justice within organizations were happening more frequently. Per a study from the Financial Times the term “social justice” was mentioned over 300 times and the reference to “Black Lives Matter” was used nearly 150 times during corporate earnings calls of publicly traded companies within the first calendar quarter of 2021. In a similar study by Bloomberg, the mention of terms “racism,” “equality,” and “social justice” during S&P 500 company earnings calls reached an all-time high in the third quarter of 2020.
But it also can't be denied that little progress has been made in the two years after George Floyd's murder. Workforce diversity metrics have not moved significantly, as we've discussed previously. From the previous statistic on mentions of “social justice” and “Black Lives Matter,” those terms were mentioned much less frequently by the start of the second quarter 2021. For perspective, there are over 2,000 companies that are publicly listed with the New York Stock Exchange, and nearly 4,000 are listed on NASDAQ. With that backdrop, the numbers of these companies having frank conversations on race and social justice remain stubbornly low.
Why Haven't We Made More Progress?
With so many companies increasingly vocal and visible in acknowledging that good DEI practices advance the bottom line—and are important legally and morally—why do we still see glaring gaps in representation in high-growth sectors of our economy? Issues underlying our collectively sluggish progress include a continuing reliance on entrenched formulas (Fixed Practices) and a pervasiveness of ingrained behaviors and resistant cultures (Fixed Attitudes) that are not responsive to social and demographic dynamics colliding in today's U.S. workplace.
