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

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Presentation on theme: "WORKFORCE METRICS IN THE GLOBAL ENVIRONMENT: Best Practices for Employers Nita Beecher and Liz MacGillivray Thursday, August 30, 2012 2012 ILG National."— Presentation transcript:

1 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

2 MERCER 1 January 15, 2014 Mercer ORC Networks and the Global Equality, Diversity & Inclusion Practice Mercer –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) Mercers 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

3 MERCER 2 January 15, 2014 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

4 MERCER 3 January 15, 2014 Global compliance and diversity: understanding the context

5 MERCER 4 January 15, 2014 A Clear Starting Point: Differentiating Equality, Diversity, and Inclusion

6 MERCER 5 January 15, 2014 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

7 MERCER 6 January 15, 2014 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)

8 MERCER 7 January 15, 2014 The Baseline: global compliance metrics

9 MERCER 8 January 15, 2014 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.

10 MERCER 9 January 15, 2014 US Compliance Perspective Affirmative action and nondiscrimination regulations enforced by US Department of Labor, Office of Federal Contracts Compliance Programs Executive Order 11246 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.

11 MERCER 10 January 15, 2014 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.

12 MERCER 11 January 15, 2014 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

13 MERCER 12 January 15, 2014 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

14 MERCER 13 January 15, 2014 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 e-mail 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 candidates 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.

15 MERCER 14 January 15, 2014 Comparison of US and EU Legislative Framework

16 MERCER 15 January 15, 2014 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

17 MERCER 16 January 15, 2014 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.

18 MERCER 17 January 15, 2014 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

19 MERCER 18 January 15, 2014 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

20 MERCER 19 January 15, 2014 Global harassment/bullying issues Bullying –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

21 MERCER 20 January 15, 2014 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 countrys population is disabled – quota 1.5% (2007) India: estimate 2.13% of the countrys population is disabled - quota 3% Japan: estimate 5% of the countrys population is disabled – quota 1.6% private EU: estimate 22 countries with some kind of quota Source: UN Copyright © 2012, ORC Worldwide

22 MERCER 21 January 15, 2014 Global diversity developments by region

23 MERCER 22 January 15, 2014 The Starting Point Womans Rights Equal Pay Childcare Flexible Work New Developments Equal Treatment (men & women) Women on Boards Male & Female child and parent care Work Life Reconciliation Transgender Rights The Starting Point Equality of opportunity for BME groups Stop and search The Starting Point Equal Rights Medical Model New Developments Multiculturalism Racism in sport PREVENT Strategy Extremism New Developments Social Model Biopsychosocial model Hate Crime DISABILITYGENDERRACE / ETHNICITY UK

24 MERCER 23 January 15, 2014 The Starting Point Religion in N Ireland Religious dress Prayer rooms New Developments Secularism Interface with Gay Rights Accommodations Islam phobia Christian phobia The Starting Point Homophobia Gay rights Section 28 The Starting Point Older People Retirement issues New Developments GLBT Bullying (Sport; Schools) Gay marriage Transgender Rights New Developments Older workers Youth unemployment Generational diversity Human rights of older people AGERELIGIONSEXUAL ORIENTATION

25 MERCER 24 January 15, 2014 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 nots adversely impacting social mobility

26 MERCER 25 January 15, 2014 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: –Womens 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

27 MERCER 26 January 15, 2014 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 (Japans 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

28 MERCER 27 January 15, 2014 A summary status of women in the world regions ©2010 ORC Networks Copyright © 2012, ORC Worldwide Gender discrimination varies by country; Supportive family networks; Eldercare challenges Women are culturally disadvantaged in education and employment; Supportive family networks; Increasing education attainment but strong cultural, social and economic gender divisions High LFP rates; Culturally advantaged but progress slowing Increasing LFP rates; female empowerment; violence towards women; Variable LFP rates; Variable childcare support; Growing eldercare challenges Middle East Asia N. America Europe Latin America Africa

29 MERCER 28 January 15, 2014 Disability in the global context Disability – Aging – Refugees – Migrant workers –10% (650m) of the worlds 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 Copyright © 2012, ORC Worldwide

30 MERCER 29 January 15, 2014 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: Womens labour force participation –70m women joined Latin American workforce since 1980 –53% of labour force ­Up from 35% ­Mostly in services industry Latin Americas nascent feminist movement –Lagging behind LGBT movement –Across all social stratas –Programmes to empower women ­Brazils Bolsa Família and Minha Casa, Minha Vida

31 MERCER 30 January 15, 2014 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%)

32 MERCER 31 January 15, 2014 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

33 MERCER 32 January 15, 2014 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

34 MERCER 33 January 15, 2014 Global metrics: what to measure

35 MERCER 34 January 15, 2014 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

36 MERCER 35 January 15, 2014 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)?

37 MERCER 36 January 15, 2014 Measurement Tips Decide when youll 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?

38 MERCER 37 January 15, 2014 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

39 MERCER 38 January 15, 2014 Identity groups and sample global metrics

40 MERCER 39 January 15, 2014 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

41 MERCER 40 January 15, 2014 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

42 MERCER 41 January 15, 2014 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

43 MERCER 42 January 15, 2014 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

44 MERCER 43 January 15, 2014 Identity Groups: Mexico Brief discussion: What about Mexico? From your experience, what form does potential discrimination take in Mexico?

45 MERCER 44 January 15, 2014 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 Identity Groups: Mexico

46 MERCER 45 January 15, 2014 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

47 MERCER 46 January 15, 2014 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

48 MERCER 47 January 15, 2014 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

49 MERCER 48 January 15, 2014 Identity Groups: Regional Roles I consider myself to be: An EU Citizen Non-EU European Other I decline to respond I consider myself to be: A US Citizen Canadian Latin American Other I decline to respond

50 MERCER 49 January 15, 2014 Identity Groups: Regional Roles I consider myself to be: British Irish African Middle Eastern Other I decline to respond I consider myself to be: Australian or N Zealander Singaporean Other Asian Other I decline to respond

51 MERCER 50 January 15, 2014 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

52 For more information: Nita Beecher +1 314 726 1740 QUESTIONS?

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