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Mercer ORC Networks and the Global Equality, Diversity & Inclusion Practice a leading global provider of consulting, outsourcing and investment services,

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Presentation on theme: "Mercer ORC Networks and the Global Equality, Diversity & Inclusion Practice a leading global provider of consulting, outsourcing and investment services,"— Presentation transcript:

0 Nita Beecher and Liz MacGillivray Thursday, August 30, 2012
WORKFORCE METRICS IN THE GLOBAL ENVIRONMENT: Best Practices for Employers Nita Beecher and Liz MacGillivray Thursday, August 30, 2012 2012 ILG National Conference Waikoloa, Hawaii

1 Mercer ORC Networks and the Global Equality, Diversity & Inclusion Practice
a leading global provider of consulting, outsourcing and investment services, with more than 25,000 clients worldwide Mercer ORC Networks meeting the needs of practitioners in a wide range of human capital disciplines, including Talent Management and Development, Diversity and Inclusion, Employee Relations, Compensation and Mobility, Occupational Safety, Health and Environment) Mercer’s Global Equality Diversity and Inclusion Practice 50 years of experience in Equality, Diversity & Inclusion Unwavering commitment to the support and development of practitioners in the field of diversity and inclusion 6 professional networks; consulting solutions; data and benchmarking Real-time pulse on the global D&I issues of the day March 25, 2017 1

2 Global Equality, Diversity & Inclusion Practice
Networks Global Global Diversity Forum Global Workplace Compliance Network In the UK Vanguard Network Breakthrough Network In the US Workforce Opportunity Network Employment Law & Litigation Group Consulting Solutions Global strategy design/ workshop facilitation Ongoing research and benchmarking March 25, 2017 2

3 Global compliance and diversity: understanding the context
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4 A Clear Starting Point: Differentiating Equality, Diversity, and Inclusion
Ensures fair and equitable treatment of all employees, based on external legislation and regulations and corresponding internal policies. Diversity: Recognizes the value of differences (e.g. gender, age, ethnicity, nationality, religion, sexual orientation and identity, disability, background, education, social caste or class, etc.) and assures they are represented in the organisation. Inclusion: Creates a work environment in which all employees feel valued because of the different attributes they bring and therefore are motivated and have opportunities to contribute their fullest toward business goals. March 25, 2017 4

5 The Global Context of Equality and Diversity
Industrialized economies focus on civil and political rights Transition and developing economies focus on economic and social rights Each country has its own unique cultural framework So what does equality and diversity mean in the global context? There is a difference between how industrialized economies perceive issues of equality and individual rights compared with developing or transitional economies. Fundamental rights in developed nations such as our own are often seen in terms of civil and political rights, such as freedom of speech and religion and freedom from discrimination, Whilst people from less developed countries list economic and social rights such as food, shelter and education as being of primary importance. A good example of this is the recent proposals in Korea to extend retirement age to 60 as a way of reducing poverty in old age, whereas the focus for European countries in extending retirement ages is a result of demographics, and the extension of rights and choice for the individual. Each country also has its own unique cultural framework, which shapes attitudes and behaviours, particularly to concepts of equality and diversity. The western concept of diversity which values difference and the individual are not well understood or tolerated in cultures that value a sense of the collective. And this creates a major challenge for companies taking their corporate values to other parts of the world March 25, 2017 5

6 Long-standing discrimination Newly recognised discrimination
Global Trends Long-standing discrimination Newly recognised discrimination Emerging discrimination Gender Race/ ethnic origin Migrant workers Religious discrimination Social origin Age Sexual orientation Disability HIV/AIDS Genetic Lifestyle (which includes weight and smoking) “Lookism” (based on physical appearance) ILO report 2007– Equality at Work: Tackling the challenges This is the second report undertaken by the ILO on the state of discrimination in the global arena (produced every four years) and they examined the prevailing as well as the newer trends in this area, as societies become more developed, rather than moving to a position where discrimination is eradicated, we just find newer ways to discriminate. March 25, 2017 6

7 The Baseline: global compliance metrics
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8 US Compliance Perspective
Statutory context for prohibiting employment discrimination enforced by Equal Employment Opportunity Commission Equal Pay Act of 1963 as amended prohibits pay discrimination based on sex by employers. Title VII of the Civil Rights Act of 1964 as amended prohibits employment discrimination based on race, sex, religion, national origin and color. Age Discrimination in Employment Act of 1967 as amended prohibits employment discrimination based on age over 40. Americans with Disabilities Act of 1991 as amended prohibits employment discrimination against qualified individuals with disabilities who can perform the essential functions with or without a reasonable accommodation. Genetic Information Nondiscrimination Act of 2008 prohibits employment discrimination against employees or applicants because of genetic information. March 25, 2017

9 US Compliance Perspective
Affirmative action and nondiscrimination regulations enforced by US Department of Labor, Office of Federal Contracts Compliance Programs Executive Order prohibits employment discrimination based on same factors as Title VII and requires federal contractors with contracts over $100,000 to create affirmative action plans. The affirmative action plans must create goals and timetables based on underutilized job groups. Vietnam Era Veterans Readjustment Assistance Act of 1974 as amended by Jobs for Veterans Acts prohibits employment discrimination against certain various groups of US veterans and requires federal contractors with contracts in excess of $25,000 to create affirmative action plans for veterans without goals. Section 503 of the Rehabilitation Act of 1973 as amended prohibits employment discrimination against qualified individuals with a disability and requires federal contractors to create affirmative action plans for individuals with disabilities without goals. March 25, 2017

10 US Compliance Perspective
Trends in US compliance Paycheck Fairness Act proposed to revise Equal Pay Act to allow compensatory and punitive damages and to narrow affirmative defense. Employment Nondiscrimination Act proposed to revise Title VII to prohibit discrimination based on sexual orientation and gender identity. OFCCP has proposed to substantially revise both VEVRAA and Section 503 for federal contractors Section 503 would require federal contractors to use 7% goal for each job group and to do substantially outreach as well as individuals with disabilities VEVRAA would be renamed Section 4212 and would require federal contractors to gather data on veteran applicants and employees from which to create goals for each job group. Like Section 503 new Section 4212 would require substantially more outreach by federal contractors. March 25, 2017

11 EU compliance framework
Gender Directive 2006/54/EC (recast ) Goods; Facilities; Services and Employment The Race and Ethnic Origin Directive 2000/43/EC Goods; Facilities; Services and Employment The Framework Employment Directive 2000/78/EC Employment only, covering: Age; Disability; Religion & Belief; Sexual Orientation Data and metrics in the EU The anti discrimination legislative framework The EU currently comprises 27 member states all of which are subject to a common legislative framework comprising Directives which are agreed by the European Parliament and implemented in each member state. However a Directive aims to harmonize the legal system of member states, insofar as possible, so that the same material conditions are in force throughout. The key element is that a Directive is binding on the member states as regards the overall objective to be achieved – it does not mean it says the same in each member state . Each member state also has its own additional laws and regulations, they cannot be less than the requirements of the Directives, but they can be more. The Directives establish a floor of rights, not a ceiling of rights. In the field of equality and discrimination, the EU has longstanding legislation in the area of equal treatment of men and women: Equal treatment is a founding principle of the EU but it is only in more recent times that protection against discrimination has been broadened to include other strands; March 25, 2017

12 UK Compliance Perspective
Sex (1975) Women are entitled to enjoy contractual terms that are as favourable as those of a male comparator in the “same employment “ provided the women and the man are employed on equal work. Genuine material factor must not be tainted by sex discrimination unless objectively justified. Race and ethnic origin (1976) Disability (1996) Religion & Belief ( 2003) Sexual Orientation (2003) Age (2006) No ceiling on compensation payments in discrimination cases Just show briefly---if you want more info on this UK legislation we can provide it. March 25, 2017

13 EU Data protection issues
EU data protection rules cover sensitive personal data such as health, beliefs, race, sex life, trade union membership, criminal offenses Employers must when practical obtain consent from employees to have or use protected personal data usually in employment contract or in polices on or internet use. Personal questions not unlawful necessarily but can lead to discrimination in UK but in France no personal information can be requested concerning candidate’s private life unless necessary for position. Transfer of personal data such as ethnicity or race can create criminal liability if not properly handled in and out of EU countries especially France. March 25, 2017

14 Comparison of US and EU Legislative Framework
Europe Age – over 40 years Age – applies for the duration of working life (generally from age 16 ) Color Race National origin Race and Ethnicity  Disability Gender Including pregnancy Wage discrimination – based on sex Gender including: pregnancy; marital or family status; equal pay  Religion Religion & Belief Genetic information [not presently covered] Sexual Orientation March 25, 2017

15 South American Compliance Framework
All countries prohibit discrimination based on sex, race, nationality, religion, politics, trade union or age. Marital status discrimination prohibited in Brazil and Chile. Brazil requires employers to hire and employ certain percentage of individuals with disabilities based on number of employees. Basis of employment is employment contract and all countries allow employers to pay severance for no cause termination based on mutual consent Contract nature of the employment limits issues of discrimination March 25, 2017

16 Canada and Mexico Compliance Framework
In Canada must comply with both federal and individual provincial law. In both Canada and Mexico the employment relationship is generally governed by statute and by employment contract. If employer wishes to terminate an employee generally will have to negotiate some type of severance In Canada employers have an obligation to accommodate disability under Quebec law unless can show impossibility to accommodate. Generally if discrimination which is prohibited is alleged allegations relate to severance in Mexico. March 25, 2017

17 Asian Compliance Framework
Australia Race and Religious Tolerance Act Anti-Discrimination Act 1991 (QLD) Anti-Discrimination Act 1977 (NSW) Australian Human Rights Commission Act 1986 Disability Discrimination Act 1992 Racial and Religious Tolerance Act 2001 (Victoria) Racial Discrimination Act 1975 Sex Discrimination Act 1984 Hong Kong Disability Discrimination Ordinance Family Status Discrimination Ordinance Hong Kong Bill of Rights Ordinance Race Discrimination Ordinance Sex Discrimination Ordinance Australia Race and Religious Tolerance Act The explicit purposes of the Act are: To promote racial and religious tolerance by prohibiting certain conduct involving the vilification of persons on the ground of race or religious belief or activity; To provide a means of redress for the victims of racial or religious vilification; To make consequential amendments to the Equal Opportunity Act 1995. The expressed objects of the Act are: To promote the full and equal participation of every person in a society that values freedom of expression and is an open and multicultural democracy; To maintain the right of all Victorians to engage in robust discussion of any matter of public interest or to engage in, or comment on, any form of artistic expression, discussion of religious issues or academic debate where such discussion, expression, debate or comment does not vilify or marginalise any person or class of persons; To promote conciliation and resolve tensions between persons who (as a result of their ignorance of the attributes of others and the effect that their conduct may have on others) vilify others on the ground of race or religious belief or activity and those who are vilified.[1] Hong Kong Disability Discrimination Ordinance Family Status Discrimination Ordinance Hong Kong Bill of Rights Ordinance Race Discrimination Ordinance Sex Discrimination Ordinance March 25, 2017

18 Focus of Race/Ethnicity Discrimination Globally
Immigration + poor economy = racism  Asia: caste, ethnicity, immigration status Latin America: culture, caste, color Indo- and Afro- groups Africa: tribe/ethnicity South Asians Europe: Minorities report discrimination Roma (education and employment) Australia/New Zealand: Aborigines and indigenous people Asian immigrants March 25, 2017

19 Global harassment/bullying issues
Equal opportunity harassment a.k.a. psychosocial harassment, mobbing Much broader; addresses all abusive behavior Belgium prohibits workplace pestering France criminalized psychological violence Brazil emerging doctrine imposes damages for moral harassment Harassment mandates require going beyond a negative prohibition Employer duties may include: Written sexual harassment policies (Chile, Costa Rica, India, Japan) Periodic training (South Korea, California) Reporting Costa Rica requires employers to report each claim to Ministry of Labor Inspection March 25, 2017

20 Asian disability quota and levy systems
2007 China and Rep of Korea adopted disability legislation prohibiting discrimination Other countries have adopted specific laws on the rights of persons with disabilities 2007: Thailand; Jordan; Spain 2008 Ethiopia; Malaysia; 2009 Cambodia 2012 Vietnam Quotas: China: estimate 6.3% of the country’s population is disabled – quota 1.5% (2007) India: estimate 2.13% of the country’s population is disabled - quota 3% Japan: estimate 5% of the country’s population is disabled – quota 1.6% private EU: estimate 22 countries with some kind of quota Source: UN China : estimate 6.3% of the country’s population is disabled The government requires all public and private sector employers to reserve 1.5% of jobs for people with disabilities. Those who fail to meet the quota have to pay a fee to the Disabled Persons Security Fund India : estimate 5/6% of the country’s population is disabled - the Indian government has reserved a number of vacancies (3%) for disabled people: 1% each for blind; deaf; and orthopedically handicapped people Some kind of quota system: Austria, Belgium, Bulgaria, Cyprus, Czech Republic, France, Germany, Greece, Hungary, Ireland, Italy, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain No quotas: Denmark, Estonia, Finland, Latvia, Sweden, UK China - State organs, nongovernmental organizations, enterprises, institutions and private non-profit organizations (hereinafter all referred to as employing units) shall observe their responsibilities and obligations of supporting the employment of disabled persons, in accordance with relevant laws, the present regulations and other administrative rules and regulations. HOWEVER GLOBAL UPDATE consideration being given to introduce mandatory quotas for hiring people with disabilities (National Human Rights Plan China 09-10) voluntary quotas at moment India – note that according to the 2001 census, 21.9 million people or 2.13% of the country’s population are persons with disabilities – this is markedly different to the UN info which estimates 5/6% and which I would think is nearer the mark . ‘The disabled trip up on Job Street’, The Economic Times, 19 August 20 JAPAN I couldn’t find a fig for the number of disabled people, but given it is an aging society and disability increases with age, it is likely to be high (but probably around 4/5%, based on 2001 census ILO fig). Law for Employment Promotion for Disabled Persons -The employment quota system is complemented by a `levy and grant system', the purpose of which is to redress the financial inequality of employers who provide job opportunities for physically disabled people. A certain amount of levy, which is at present 50,000 yen per person per month, is collected from those employing over 300 full - time employees and who do not reach the mandated quota percentage (1.6 for private sector employers), and this amount is redistributed in the form of various grants, for the provision of job adaptation for persons with severe disabilities, for the provision of facilities for workers with post - employment disabilities, and to employers who hire persons with physical disabilities. The operation of the levy and grant system is entrusted to Japan Association for Employment of the Disabled, which is a semi-governmental organisation under the Ministry of Labour. Copyright © 2012, ORC Worldwide March 25, 2017 20

21 Global diversity developments by region
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22 UK GENDER RACE / ETHNICITY DISABILITY New Developments
The Starting Point Woman’s Rights Equal Pay Childcare Flexible Work The Starting Point Equality of opportunity for BME groups Stop and search The Starting Point Equal Rights Medical Model New Developments Equal Treatment (men & women) Women on Board’s Male & Female child and parent care Work Life Reconciliation Transgender Rights New Developments Multiculturalism Racism in sport PREVENT Strategy Extremism New Developments Social Model Biopsychosocial model Hate Crime March 25, 2017

23 RELIGION SEXUAL ORIENTATION AGE New Developments New Developments
The Starting Point Religion in N Ireland Religious dress Prayer rooms The Starting Point Homophobia Gay rights Section 28 The Starting Point Older People Retirement issues New Developments Secularism Interface with Gay Rights Accommodations Islam phobia Christian phobia New Developments GLBT Bullying (Sport; Schools) Gay marriage Transgender Rights New Developments Older workers Youth unemployment Generational diversity Human rights of older people RELIGION Main area of tension used to be in N Ireland, between Protestant and Catholics, and when the R/B legislation came into force the initial focus for organisations was on religious dress, and prayer rooms, however religion has now moved squarely into the public arena. Religion being challenged by a new ‘radical secularism’ which aims to remove what is perceived as a negative and restraining force on society. High profile clashes with gay rights, and the focus is now on accommodating differences but which descend into perceptions that one set of rights trumps another. GLBT - Move from focus on gay rights/homophobia to a more nuanced understanding and approach to gay rights, encompassing gay women, bisexual and transgendered people. Stonewall produced research on health issues of gay women. Drive to repeal Section 28 of the Local Government Act 1988, which forbids the promotion of homosexuality by local authorities. Repealed in 2003 by Labour, and David Cameron apologised for it in High profile focus on bullying – homophobia in schools and sports. FA launched a new strategy on 20 Feb to engage the lesbian and gay community- but Only 16 of 160 UK clubs are actively supporting international Football v Homophobia campaign. Transgender rights - Trans (or Transgender) is an umbrella term used by people whose gender identity and/or gender expression differs from their birth sex GAY MARRIAGE –The government has said it is committed to changing the law in England and Wales to allow gay marriage by 2015. Ministers are to launch a consultation in March on how to open up civil marriage to same-sex couples ahead of the next general election. (civil partnerships 2005), and 10 countries in world have gay marriage. Same sex marriage in 10 countries in the world: Netherlands; Belgium; Spain; Norway; Sweden; Portugal; Iceland; Argentina; Canada; South Africa – 6 in Europe, possibly France in 2012 Christianphobia – A report published by a cross party group of MPs and Peers claims that equality law have disadvantaged Christian and increased community tensions. It claims that the Equality Act has failed to protect religion but enable the rights of others AGE – Shift from focus on older people, and retirement issues/pensions, to older workers and younger workers, and how they interact in the workplace (generational diversity). Growth of the concept of human rights for older people as they are perceived negatively in British society March 25, 2017

24 European context – macro trends
Rise of Far Right: Country defense leagues, and creation of a new Europe wide alliance, negative impact on minorities: immigrants, Roma; gay; and religious minorities Aging demographic: Low fertility rates; aging populations; serious long- term impact on social policy (pensions; welfare; health and wellbeing); generational diversity High youth unemployment: Spain 50.5%; Greece 50.4%, EU average 21.6%. Split between northern states and southern states Empowerment of women: economic, political, social sphere; at European wide level and between Europe and its partners – but discriminatory practices have increased: Gender wage gap has slowed; job losses in public sector; women in male dominated sectors first to be dismissed Social mobility/inclusion: growing gap between ‘haves and have not’s’ adversely impacting social mobility Elections act as change agents , but not always for the best Elections in Europe 2012: Slovakia; Russia; France; Greece; Austria ; Slovenia; Lithuania; Czech Republic; Romania Rise of Far Right: Poor economies, lack of jobs and growth, increasing move to far right parties and the negative focus on immigrants but also any minorities: gay; disabled; Representatives from ‘defense leagues’ based in Denmark, Sweden, Norway, US, Italy, Poland, Finland met in Denmark in March with anti Muslim groups called Stop Islamisation of Europe. An umbrella group coordinating role for right wing activities across Europe France – Marine Le Pen; Aging demographic: Low fertility rates; Aging populations, unevenly spread; Serious impact on social policy (pensions; welfare; health and wellbeing) all fuelling discontent High unemployment particularly youth unemployment for all countries, particularly Greece, Ireland, Portugal, Italy and Spain the relentless focus on austerity has led to historic levels of unemployment and worsening poverty. The unemployment rate among Spain's under-25s rose to 50.5pc in January, and to 50.4pc in Greece in December, according to the latest available data from Eurostat, the European Union's statistics office. It compared with an average eurozone youth unemployment rate of 21.6pc. History, traditions, cultural differences and language all militate against a common EU labour market. Social mobility/ inclusion: this gap has always existed but has been made worse by the on-going recession. UK first generation not to do better than previous This is a growing issue in a number of countries in the EU, UK has a key focus on it whilst we are hearing more about it, this is an old form of discrimination, and is played out in many societies in the world, not just in Europe e.g. SE Asia where it displays as caste, Latin America countries e.g. Mexico, China, where it displays as difference between rural and urban . Young people living at home longer than previously Income disparities has increased in the recession, ELECTIONS – Greece New Dawn; For countries like Greece, Ireland, Portugal, Italy and Spain the relentless focus on austerity has led to historic levels of unemployment and worsening poverty. Greeks – who look set to abandon mainstream parties in droves in Sunday's elections, the first since the crisis erupted – have seen wages drop by an average of 25% over the past two years. Pensioners are forced to survive on as little as €500 a month. WOMEN Work Inequalities in the Crisis: Evidence from Europe analyses how working conditions, wages and incomes, employment and gender equality, among other workplace issues, have been deteriorating across the continent since the start of the crisis. Despite male workers being initially more affected by the crisis than women (6 per cent more in the three Baltic states, Ireland and Spain), discriminatory practices against female workers have worsened over the past years. Women employed in male-dominated sectors were the first to be dismissed or experienced higher wage cuts than men. Gender wage gap has slowed; reduction in flexible working. Job losses in public sector impact women more./BME employees m ore likely to be affected because of their being based in sectors likely to suffer reductions March 25, 2017

25 Diversity and inclusion in Asia
Asia as a unit is a ‘Western’ concept not appreciated locally as there is extensive social, cultural, linguistic, and religious diversity across the region Diversity is a relatively new concept, not always culturally understood Key challenges: Variable demographics – huge population growth in India and China, population stagnation in Japan Differing stages of economic development, ranging from highly developed economies such as Australia and Japan, to rapidly developing India and China Key diversity challenges include: Women’s social and economic empowerment is a key driver of growth Age related issues and intergenerational diversity in the workplace Growing recognition of the impact of race and religion in the workplace Disability and workplace quotas and levies GLBT remains taboo in most countries March 25, 2017

26 OECD – Global youth unemployment
Impact of youth unemployment Wage scarring (a wage decline of 6-7% for each percentage-point increase in the overall unemployment rate, source OECD) Youth left behind (Japan’s experience) Increase in stress/mental health issues Increased emigration Brain drain Employer responses Employer based apprenticeships Review and rebalance workforce = generational diversity Well-being programmes Unemployment of all sorts is linked with a level of unhappiness that cannot simply be explained by low income WAGE SCARRING a wage decline of 6-7% for each percentage-point increase in the overall unemployment rate. The effect diminishes over time, but is still statistically significant 15 years later. Research from the United States and Britain has found that youth unemployment leaves a “wage scar” that can persist into middle age. The longer the period of unemployment, the bigger the effect. Take two men with the same education, literacy and numeracy scores, places of residence, parents’ education and IQ. If one of them spends a year unemployed before the age of 23, ten years later he can expect to earn 23% less than the other. For women the gap is 16%. After a period of unemployment, the temptation to take any work at all can be strong. Wage scarring is one of the reasons to think this has lasting effects, and policies designed to minimise youth unemployment may sometimes exacerbate them. Spain, which has developed a scheme for rolling over temporary contracts to provide at least some chances of employment to the young, should pay heed to the experience of Japan in the early 2000s. Young people unemployed for a long time were channelled into “non-regular” jobs where pay was low and opportunities for training and career progression few. Employers seeking new recruits for quality jobs generally preferred fresh graduates (of school or university) over the unemployed or underemployed, leaving a cohort of people with declining long-term job and wage prospects: “youth left behind”, in the words of a recent OECD report. Japan’s “lost decade” workers make up a disproportionate share of depression and stress cases reported by employers. Apprenticeship schemes In Germany, seen by many as a model in this regard, a quarter of employers provide formal apprenticeship schemes and nearly two-thirds of schoolchildren undertake apprenticeships. Students in vocational schools spend around three days a week as part-time salaried apprentices of companies for two to four years. The cost is shared by the company and the government, and it is common for apprenticeships to turn into jobs at the end of the training. The youth-unemployment rate in Germany, at 9.5%, is one of the lowest in the EU. Apprentice-style approaches practised in the Netherlands and Austria have had similar results. March 25, 2017

27 A summary status of women in the world regions
Asia Middle East Gender discrimination varies by country; Supportive family networks; Eldercare challenges Increasing education attainment but strong cultural, social and economic gender divisions Africa N. America Women are culturally disadvantaged in education and employment; Supportive family networks; High LFP rates; Culturally advantaged but progress slowing Start by taking a look at the broader global context which will include observations on the socio/economic and political developments of the regions that you are operating in, and which ultimately influence the behaviour and choices of women in different countries and societies. This slide highlights some of the significant challenges we have observed in these different regions, but it is of course a generalisation – HELPFUL GUIDE The slides shows that even in regions where you assume there are less problems, e.g. in Europe, this is not the case. But by understanding these trends and challenges, your organisation can develop ideas and strategies to position JPM as an employer of choice in all the regions Asia – women feature in education and employment in most countries in Asia, but still face discrimination in workplace particularly in Japan and Korea. In China, there is a social stigma about placing parents in assisted living facilities or using professional help. Sexual harassment in India Africa – family network strong and supportive, but women are culturally disadvantaged particularly in access to education and employment Middle East – In many countries women have increasing access to education but experience strong cultural, social and economic gender divisions. Latin America – Increasing LFP rates N America – ahead in most areas, but recently overtaken by Europe and China with numbers of women on boards, so progress may be slowing Latin America - Europe – variable progress on all fronts, social and cultural barriers to women’s participation in labour force in some countries (Germany; s Mediterranean states), excellent progress in Nordic countries Europe Latin America Increasing LFP rates; female empowerment; violence towards women; Variable LFP rates; Variable childcare support; Growing eldercare challenges Copyright © 2012, ORC Worldwide March 25, 2017 ©2010 ORC Networks 27

28 Disability in the global context
Disability – Aging – Refugees – Migrant workers 10% (650m) of the world’s population live with a disability Over 470m people with disability are of working age The figure is increasing through population growth, medical advances and the aging process More disabled people in the developing world than in the developed world, due to war, famine, poor health support UN estimates that in some countries the number of disabled people is 20% and if families and relatives are included could be as high as 50% Legal protection is growing: 2008 UN Convention on the Rights of People with disability, but substantial discrimination and disadvantage exists 650 m people worldwide with disability: physical, sensory intellectual or mental impairment. 470m are of working age Organisations looking to globalise their diversity strategy often look at gender as the way to start this off, often because they want to be able to make comparisons across countries. However other areas to consider are disability and age, many of the big pharma companies are using disability as the focus of their business case for diversity . Disability is also closely linked with age, and is becoming a significant issue in countries that have an aging profile, or where government initiatives are looking to encourage more older workers to remain in the workplace. Disability is also significant amongst refugees - there are over 10 million refugees and displaced persons in the world today as a result of man-made disasters. Many of them are disabled physically and psychologically as a result of their sufferings from persecution, violence and hazards. Most are in third-world countries, where services and facilities are extremely limited. Being a refugee is in itself a handicap, and a disabled refugee is doubly handicapped. The special position of migrant workers in the country of employment exposes them and their families to health hazards and increased risk of occupational accidents which frequently lead to impairment or disability According to the US Census, People With Disabilities constitute the third biggest minority after Latinos and African Americans Copyright © 2012, ORC Worldwide March 25, 2017 28

29 Americas - Gender Research
Catalyst study of women on boards in Canada: 14% of FP 500 McKinsey: Unlocking the full potential of women at work (US) Barriers to advancement: structural, lifestyle choices, mindsets Latin America: Women’s labour force participation 70m women joined Latin American workforce since 1980 53% of labour force Up from 35% Mostly in services industry Latin America’s nascent feminist movement Lagging behind LGBT movement Across all social stratas Programmes to empower women Brazil’s Bolsa Família and Minha Casa, Minha Vida March 25, 2017

30 Americas – macro trends
Employment of people with disabilities Brazil quotas Colombia hiring preference in government contracts US proposed affirmative-action style regulations Q: disclosure of disability? LGBT equality Chile: legislation following hate crime Mexico City: same-sex marriage US corporate progress, but stalled legislation Corporate equality initiatives and ERGs Indigenous populations Latin America: “flashpoints” for highway construction, oil & gas exploration, mining Canada Migration: US Hispanic population growing faster than projected (16.4%) March 25, 2017

31 D&I in Asia Mercer research: Diversity and Inclusion in Asia Pacific
Nascent concept, especially diversity in senior leadership Most companies have global strategies, but only 20% have market-level strategy Fewest in China Diversity associated primarily with gender 2012 priorities: Women in leadership (26%), attracting more diverse talent (22%), giving local leaders global capabilities (10%), adapting Gen Y to workplace (6%) Australia: Age: engaging mature workers Indigenous rights Flexible working – mainstreaming flexibility Bamboo ceiling in Australian business Gender: Equal pay: Fair Work decision (community services sector), private sector auditing AUS Reconciliation Action Plans on Australian diversity culture March 25, 2017

32 Gender trends in Asia China: highest percentages of women in the workforce Followed by Malaysia, Hong Kong and Singapore India: lowest percentages of females employed, followed by Japan Malaysia has best representation of women at senior levels (27%); Japan is the worst Leaking pipeline In all countries except India, the greatest decrease in women takes place between middle and senior level positions (as mobility demands ) India loses most women between junior and midlevel positions Challenges for women: Work-life balance (child and elder care) Developing and expanding professional networks Increasing visibility Source: Community Business Gender Diversity Benchmark for Asia 2011 21 participating companies in: China Hong Kong India Japan Malaysia Singapore March 25, 2017

33 Global metrics: what to measure
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34 “What gets measured, gets done.” Why measure?
Metrics “What gets measured, gets done.” Why measure? To assess current state of the organization Track progress against it ID barriers to progress Hold managers accountable Maintain focus of the organization The saying “what gets measured, gets done” is often quoted by diversity professionals who understand that good intentions alone are not enough if you want to effect real progress in an organization Instead, identifying meaningful measurements and creating accountability for progress is key to any D&I effort. Why is it necessary to have metrics? To see how things are NOW in your company To see how you’re progressing (if you are!) To highlight what barriers to progress exist – pinpoint where they are Create accountability at different levels in the org Keep people focused on progress, even after the fanfare of the rollout of a new program has died down. Make sure they are walking the talk, and prove the business case. March 25, 2017 34

35 Metrics: What to Measure?
Representation/Demographics How many? Program Effectiveness How fast? How well? How much? Employee Perceptions How fair, inclusive, respectful of different views? Business Impact How much more (revenue, productivity, market share, cost savings)? At a basic level, companies should at least be looking at their representation measures, such as hiring, promotions, and turnover.[it’s not possible to do this in all jurisdictions] Process measures, such as examining the implementation of an action plan, are also used. Reports on these measures are presented to top management at least once a year, and measures are broken down by business units (and subunits if possible). More advanced companies look at employee satisfaction metrics in addition to representation data. They report on such metrics more frequently, perhaps monthly or quarterly, as part of a regular business review. Internal benchmarking is conducted so that local practices and successes can be shared. Best practice companies have taken measurement a step further, to the level of looking at return on investment for diversity initiatives. If your D&I goals are truly linked to business goals, there ought to be a way of measuring whether you’ve been successful at contributing to the business. However, it is not always easy to find a statistically significant metric. But even without definitive cause and effect, you may be able to show that since you initiated such and such an initiative, sales in an emerging market have increased or customer service complaints have decreased. Or you may be able to point to more qualitative measures, such as favorable mentions of the company in the press or testimonials from business leaders about improved collaboration on international teams. Most importantly, however, these companies report their metrics to employees and shareholders, and occasionally on the Internet or to other constituency groups. March 25, 2017 35

36 Decide when you’ll measure behavior and when outcomes
Measurement Tips Decide when you’ll measure behavior and when outcomes Consider measures from each of the four families Measure as little as possible; distinguish between backroom and reported metrics Design reports to tell a vivid story Caution: Measures can reveal sore spots Is the organization committed to taking action on problem areas? What to do with the data? Measuring behavior v. outcomes: you may decide at the beginning of an initiative that you want to measure whether people are doing certain things. After a year or two, you may then decide that it’s time to start measuring what is actually being achieved. Some companies start by holding leaders accountable for mentoring one or more people or for holding development discussions with employees. The next step may be to measure the diversity of their promotions. Reported v. backroom metrics: reported metrics will be those that tell the story, those that tell leaders what’s working and what’s not and what changes might need to be made in strategy or investments. Backroom metrics are those you might need to track in order to better understand what produced the reported metrics or give you a more nuanced picture. For example: you might want to report the year over year change in the percentage of women in senior level positions. There might be a number of backroom metrics you will study as well, such as diversity of candidate slates; number of women high potentials; turnover of women in early, mid, and senior levels; learnings from exit interviews with female managers. Design reports for stakeholders: easy to read—include just the measures that matter to tell the story—perhaps include a real story to illustrate the point. Caution: Without good metrics, of course, it is impossible to see where you have been or whether you are making progress toward your goal. However, metrics also reveal the sore spots in the organization. Unless the company is committed to taking action once problem areas have been uncovered, it will lose credibility with stakeholders and increase, rather than decrease, its risk of conflict, maybe even litigation. The point is not to measure, but to be realistic about what the company will do with the information Can mention here For Good Measure, our best practices guide on D&I metrics which includes advice on measurement strategy and detail how-to for constructing metrics, examples from companies March 25, 2017 36

37 Demographic Measurement Tips
Beyond representation, hires, and turnover: use other measures that will help you pinpoint challenges (e.g., performance ratings, high potential pool) Globally, work with local management to understand the “differences that make a difference” (and cultural or legal limits on data collection) Communicate about why you are collecting data Be conservative about drawing conclusions from the data; dig further March 25, 2017 37

38 Identity groups and sample global metrics
March 25, 2017 38

39 US I consider myself to be: A foreign national Hispanic or Latino
White American Black or African American Native Hawaiian or Other Pacific Islanders Asian American American Indian or Alaskan Native Two or More Races I decline to respond March 25, 2017

40 Identity Groups: UK I consider myself to be: A foreign national
Asian British Black British White British Of other racial group I decline to respond March 25, 2017

41 Identity Groups: South Africa
I consider myself to be: A foreign national African (S/Africans only) Indian Coloured South African White South African Other race I decline to respond March 25, 2017

42 Identity Groups: India
I consider myself to be: A foreign national Of a minority religion Of an underrepresented social class/caste Other Minority None of the above (Indian but not of a minority group) I decline to respond March 25, 2017

43 Identity Groups: Mexico
Brief discussion: What about Mexico? From your experience, what form does potential discrimination take in Mexico? March 25, 2017

44 Identity Groups: Mexico
I consider myself to be: A foreign national From the country with public education From the country with private education From the capital with public education From the capital with private education Of other background I decline to respond March 25, 2017

45 Other countries (Nigeria, Pakistan, Malaysia, Thailand, China etc)
I consider myself to be: A foreign national Hausa Igbo Yoruba Of a minority ethnic group in Northern Nigeria Of a minority ethnic group in Southern Nigeria I decline to respond I consider myself to be: A foreign national Of a minority religion Of minority ethnic/language Group Other Minority None of the above (Not of a minority group) I decline to respond March 25, 2017

46 Other countries (Australia, New Zealand, Canada)
I consider myself to be: A foreign national Australian/New Zealander of European decent Indigenous Australian/Maori Pacific Islander Other I decline to respond I consider myself to be: A foreign national White Canadian A Visible minority An Aboriginal Other I decline to respond March 25, 2017

47 Other countries (Argentina, France, Germany, Spain)
I consider myself to be: A foreign national Of foreign origin (born in this country of foreign parents) Of a minority culture/religion Of a visible minority Other None of the above (non-minority) I decline to respond March 25, 2017

48 Identity Groups: Regional Roles
I consider myself to be: A US Citizen Canadian Latin American Other I decline to respond I consider myself to be: An EU Citizen Non-EU European Other I decline to respond March 25, 2017

49 Identity Groups: Regional Roles
I consider myself to be: Australian or N Zealander Singaporean Other Asian Other I decline to respond I consider myself to be: British Irish African Middle Eastern Other I decline to respond March 25, 2017

50 Identity Groups: Global Roles
I consider myself to be: North American Latin American British Other European African or Middle Eastern Australian or New Zealander Asian Other I decline to respond March 25, 2017

51 QUESTIONS? For more information: Nita Beecher nita.beecher@mercer.com


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