extracted from the 1995 task force report on visible minorities

task force

on the advancement of visible minoritiesin the bank

REPORT TO EMPLOYEES FIRST ISSUE 1995

REISSUE NOVEMBER 2004

TASK FORCE REISSUE - ADVANCEMENT OF VISIBLE MINORITIES

table of contents

PRESIDENT & CEO’S MESSAGE page 2

EXCERPTS FROM THE 1995 TASK FORCE REPORT ON VISIBLE MINORITIES

DEFINING VISIBLE MINORITIES page 4

OVERVIEW & METHODOLOGY page 5

STATISTICS page 6

1995 ACTION PLANS & 2004 RESULTS TO DATE page 17

EXTERNAL RECOGNITION page 20

1

historical note

The language used in the original Task Force reports has changed over the last decade to reflect BMO’s evolution in creating a diverse workforce and an equitable, supportive workplace. This inclusive workplace is one where individual differences are valued and respected, while accommodating individual needs. For example, the Office of Workplace Equality is now known as the Office of Diversity & Workplace Equity.

To access the 1995 Task Force on the Advancement of Visible Minorities, please click here

president & ceo’s message


Celebrating the Differences That Bring Us Closer Together

The Task Force on the Advancement of Visible Minorities was an indispensable

step in the major self-assessment we undertook at BMO in the early 1990s,

when we publicly committed to create an equitable, barrier-free (in the

broadest sense) workplace and a workforce reflecting the communities

we serve.

As with the other three Task Force reports, this one featured a spectrum of

action plans — all generated by employees, all heartily endorsed by the

leadership and all fully attached to no-nonsense deadlines. Released in

May of 1995, the report is being reissued in November 2004, timed to focus

attention on a full-fledged diversity and workplace equity renewal process

called Above & Beyond.

Whether you were around when the original Task Force report was released,

or are one of many thousands of colleagues who have joined us in the

interim, I recommend what continues to be a good read plus an excellent

source of historical perspective. What it won’t do, of course, is tell you what

happened next. Let me treat you to a handful of excellent examples.

This task force was the farthest ranging and most insistent about the need

to embrace and champion diversity, and an inspiration for the statement of

Corporate Values that we do our vigilant best to live by today. We are committed

to an equitable workplace in which all employees have the opportunity to

pursue a full and rewarding career unimpeded by artificial barriers, and a

workforce that reflects the diverse populations in the communities where

we do business.

2


As well, this task force prompted us to get even more broadly involved in our

communities, with initiatives such as the Possibilities Youth Scholarship Program

which we operate in nine Canadian cities, available to final-year high-school

students who are members of visible minorities. We are also participants in

the Harry Jerome Scholarship Program for African-ancestry students in

Canadian universities.

We supported affinity groups for members of visible minorities and raised

the profile of executives and senior managers who are members of visible

minorities through both formal efforts and informal ones, such as “Lunch

& Learns.”

Most importantly, the advancement of visible minorities became a business

priority with the unqualified support of the leadership team, meaning that

business plans now had to include goals for hiring, retaining and supporting

members of visible minorities; and meeting these goals became a factor in

annual performance reviews.

Thus we continued to go about making ourselves what into what we are

today: an enterprise with a proud reputation for welcoming and supporting

colleagues who are members of visible minorities.

Tony Comper

President & Chief Executive Officer, BMO Financial Group

3

EXTRACTED FROM THE 1995 TASK FORCE REPORT ON VISIBLE MINORITIESDEFINING VISIBLE MINORITIES

The term “visible minorities” does not identify a uniform group. Consistent with federal government definitions, it refers to anyone, other than an Aboriginal person, who is non-Caucasian in race or non-white in colour. The term identifies individuals from the following diverse groups of people:

Black African, Caribbean, West Indian

East Asian Chinese, Fijian, Indonesian, Japanese, Korean, Pacific Islander, Polynesian

South Asian Bangladeshi, Indian [India], Pakistani, Sri Lankan

Southeast Asian Burmese, Cambodian, Filipino, Laotian, Malaysian, Thai, Vietnamese

West Asian & Arab Afghani, Armenian, Egyptian, Iranian, Iraqi, Turk, Lebanese, Jordanian, Palestinian, Syrian

Other Latin American or any non-Caucasian or non-white group not referred to above

4

EXTRACTED FROM THE 1995 TASK FORCE REPORT ON VISIBLE MINORITIESOVERVIEW & METHODOLOGY

The Task Force on the Advancement of Visible Minorities was mandated to identify barriers to advancement faced by members of visible minorities at Bank of Montreal and develop action plans to eliminate these barriers.

In the process, the task force examined how well visible minority employees are faring in our workplace-not just in terms of representation but also in terms of impressions, attitudes and experiences.

In addition to census figures and population projections, the numbers were acquired from two main sources:

• The Bank of Montreal Workforce Survey in which employees identifiedthemselves by ethnicity.

• The Human Resources Information System, which provided statistical data for purposes of comparison.

As well, investigative interviews with visible minority employees were randomly selected to be representative geographically and by level, ethnicity and Bank group.

To assure confidentiality, these interviews were conducted by Towers Perrin, an independent consulting firm.

The task force was able to draw on the resources of the Workplace Equality network that was established in 1992 and has been growing ever since.

This network included the National Advisory Council on the Equitable Workplace, a team composed of President Tony Comper as well as all Bank group heads.

This network also included the Bank’s 11 Divisional Advisory Councils on the Equitable Workplace, teams composed of diverse employees from all levels and all parts of the Bank.

The task force also sought guidance outside the Bank from demographers and equality and diversity experts as well as from leaders and other insightful members of the various visible minority communities.

5

EXTRACTED FROM THE 1995 TASK FORCE REPORT ON VISIBLE MINORITIESSTATISTICS

the perceptionWe are already a diverse workforce.

the findings We are a diverse workforce overall, but diversity is less evident in senior positions.

As of October 31,1994, there were 3,754 self-identified visible minority individuals working as permanent employees at Bank of Montreal – 14% of our total permanent workforce of 26,795 in Canada.

According to the latest statistics available (the 1991 Census), visible minorities comprised 9.1% of the Canadian workforce in 1991. According to population projections: visible minorities will comprise 17.7% of the Canadian workforce by 2001.

Our Workforce Keeps Pace with Canada’s Workforce

1986

1987

1991

2001

6.3%

10.3%

9.1%

12.5%

14%

17.7%

percentage of visible minorities available in Canadian workforce Source: Canadian Census

percentage of visible minorities in Bank of Montreal’s workforce Source: Bank of Montreal Workforce Survey

projected percentage of visible minorities to be available in Canada’s workforce Source: Visible Minorities in Canada A Projection: Dr. John Samuel, Carleton University, Ottawa Provided by Madison Avenue Group

6


As the chart below shows, representation of visible minorities in non-management (levels 21-26), junior management (levels 27-30) and middle management (levels 31-35) is consistent with overall workforce availability of visible minorities (see facing page).

Representation at the senior level (6.8%) is below overall workforce availability of 9.1%. But it is important to note that no comparable statistics exist to determine how close 6.8% is to the goal of proportional representation (employing the same percentage of employees at this level within the Bank as are available at this level in the general workforce). Since census figures are compiled using definitions suitable for all industries and jobs, there is no “senior manager” category in census data. Instead, workers are defined as management or professional.

Representation of Visible Minorities by Level at Bank of Montreal

ALL LEVELS

LEVELS 21-26

LEVELS 27-30

LEVELS 31-35

LEVELS 36-40

EXECUTIVE

14%

15.2%

15.1%

13%

6.8%

5.6%

percentage of visible minorities available in Canadian workforce Source: Canadian Census

percentage of visible minorities in Bank of Montreal’s workforce Source: Bank of Montreal Workforce Survey

7

EXTRACTED FROM THE 1995 TASK FORCE REPORT ON VISIBLE MINORITIES STATISTICS

the perceptionVisible minorities are underrepresented in leadership positions.

EMPLOYEES WHO ARE VISIBLE MINORITY

the findings Visible minorities have higher representation in professional positions than in management positions.

It is widely believed by visible minority and non-visible minority employees alike that visible minorities are under-represented in leadership positions within Bank of Montreal.

This perception is only partly supported by the facts. As the chart below illustrates, 15% of all professional jobs in the Bank (1,962 of a total of 13,078 positions) are held by visible minorities, and 7.8% of all management jobs (381 of a total of 4,900 positions) are held by visible minorities.

This compares to overall workforce availability of 9.1% in 1991 (the latest census figure available). In addition, 11 out of 198 executives (5.6%) are members of visible minorities.

Representation of Visible Minorities in Professional and Management Jobs

16%

7.8%

professional employees management employees

8

14.3%

14.8%

6.4%

13.4%

34.9%

16.8%

12.9%

7.3%

9.4%

20.2%

34.4%

15.7%


Within the Bank, many of the high-profile leadership positions tend to be in the management job stream. Since there is a tendency for visible minorities to advance within the Bank through the professional stream rather than the management stream, they tend to hold jobs that provide fewer opportunities to be seen as role models by large numbers of employees.

The charts below and on the facing page were compiled using the following equations:

• Management – all employees in levels 27-40 who supervise others ormanage units.

• Professional – all specialists or sole contributors in levels 27-40 including, but not limited to, analysts, data processors, computer programmers, lawyers, accountants, auditors, economists and human resources specialists.

Representation of Visible Minorities Identified by Background

Professional Job Stream (P):

SOUTH ASIAN

WEST ASIAN

OTHER

SOUTHEAST ASIAN

EAST ASIAN

BLACK

Management Job Stream (M):

SOUTH ASIAN

WEST ASIAN

OTHER

SOUTHEAST ASIAN EAST ASIAN

BLACK

9

EXTRACTED FROM THE 1995 TASK FORCE REPORT ON VISIBLE MINORITIES

the perception Visible minorities have not been a part of the Bank’s Workplace Equality goals and programs.

TOTAL

LEVELS 21-26

LEVELS 27-30

LEVELS 31-35

LEVELS 36-40

EXECUTIVE

STATISTICS

the findings Visible minority advancement is keeping pace with representation and participation in programs has been proportional.

It is important to note that, since its creation in 1992, the Workplace Equality team has tracked hiring, retention and promotion rates for members of visible minorities, along with women, Aboriginal peoples and people with disabilities. The Performance Planning and Review (PPR), Figure of Merit and Business Planning processes include objectives for hiring, retaining and promoting members of all four groups based on the demographics of the community.

In addition, many of the initiatives Workplace Equality has implemented – including Flexible Work Arrangements, the Career Information Network (CIN) and the Executive Advisor Program – have removed barriers to advancement for all employees. Recent promotion statistics tell the story: Consistent with visible minority representation of 14% at Bank of Montreal, 14.1% of all promotions went to visible minorities in 1994, up from 12.5% in 1993. As the chart below illustrates, promotions by job level are also keeping pace with representation.

Promotions Keep Pace with Representation

14%

14.1%

15.2% 13.8%

15.1% 16.3%

13%

15%

6.8%

6.2%

5.6%

10%

percentage of representation of minorities by level at Bank of Montreal

percentage of promotions that went to visible minorities in 1994

10


the perception Visible minorities are not qualified for senior positions.

TOTAL

LEVELS 21-26

LEVELS 27-30

LEVELS 31-35

LEVELS 36-40

EXECUTIVE

the findings Visible minorities have above-average performance reviews and education qualifications.

Task force discussions with Bank of Montreal employees uncovered concerns that the Bank’s diversity and equality initiatives will result in the hiring and promotion of unqualified workers at the expense of both customers and qualified employees.

To determine whether these concerns are supported or refuted by the facts, the task force analyzed data stored in the Human Resources Information System about the Bank’s 26,795 full-time and part-time permanent employees in Canada. Using the criteria commonly associated with success in a corporate environment – performance and education – the task force learned that the qualifications of visible minority employees compare favourably with the qualifications of Bank employees as a whole.

In other words, there is no basis in fact for any concern that unqualified visible minority employees are being hired or promoted at Bank of Montreal. The performance chart below illustrates that the percentage of visible minority employees who were rated in the top performance tier in 1994 exceeds exceptional performance ratings in the overall Bank workforce at all levels except 21-26, where the difference is only 1%.

Performance Review Ratings: Exceptional

15.4%

16.2%

12.4%

11.4%

16.7%

17.6%

20.9% 24.8%

25.7% 34.4%

28.1% 41.7%

percentage of all employees with exceptional performance ratings

percentage of visible minorities with exceptional performance ratings

11

47%

66%



TOTAL

LEVELS 21-26

LEVELS 27-30

LEVELS 31-35

LEVELS 35-40

EXECUTIVE

the findings Visible minorities have above-average performance reviews and education qualifications.

At every level, visible minority employees have significantly more formal education than the overall Bank of Montreal workforce. The following two charts compare the percentage of visible minority employees who have earned an under-graduate or post-graduate degree with degrees obtained by the overall Bank workforce.

Education: Unquestionably Qualified

7.9%

18.1%

7.9%

18.1%

12.5%

26.1%

35.5%

52.2%

59% 77.9%

66% 100%

percentage of all Bank of Montreal employees

percentage of Bank of Montreal visible minority employees

12


Under-Graduate and Post-Graduate Degrees: A Closer Look

LEVELS 21-26

7.9%

18.1%

LEVELS 27-30

12.5%

26.1%

LEVELS 31-35

35.5%

52.2%

LEVELS 36-40

59.0%

77.9%

EXECUTIVE

66.0%

100.0%

TOTAL BANK

TOTAL VISIBLE MINORITIES

BLACK 7.0% 5.1 28.0% 53.0% 100.0%

16.0% 8.0% 61.0% 80.0% 100.0%EAST ASIAN

SOUTH ASIAN 22.0% 29.9% 49.0% 74.0% 100.0%

36.0% 49.0% 68.0% 93.0% N/ASOUTHEAST ASIAN

WEST ASIAN 21.0% 34.4% 57.0% 86.0% 100.0%

7.0% 13.8% 27.0% 59.0% N/AOTHER

NON-VISIBLE 5.6% 9.4% 32.4% 57.1% 64.1% MINORITIES

13

66%



TOTAL

LEVELS 21-26

LEVELS 27-30

LEVELS 31-35

LEVELS 36-40

EXECUTIVE

The task force analyzed data on two other factors: age and length of service.As illustrated by the chart below, there is no significant difference between theaverage age of the total Bank workforce and the average age of visible minorityemployees.

The chart on the facing page shows that, on average, visible minority employeeshave worked at Bank of Montreal for about three years less than the total workforce.

Average Age: No Significant Difference

39

38

38

35

40 39

41

40

43 44

48 45

average age of all employees at Bank of Montreal

average age of visible minority employees at Bank of Montreal

14

47%

66%

163


Length of Service: Three Years Less

TOTAL

LEVELS 21-26

LEVELS 27-30

LEVELS 31-35

LEVELS 36-40

EXECUTIVE

125

132

102

179 148

188

162

223 175

150

average number of months all Bank employees have worked at Bank of Montreal

average number of months visible minority employees have worked at Bank of Montreal

15

245


the perception Despite the representational statistics, visible minorities do not feel recognized as part of the team.

the findings We need to focus on the benefits of valuing diversity.

The task force found that visible minority employees, while well represented in numbers, generally feel that their capabilities and resources are not fully utilized by the Bank.

They feel that their capacity to contribute fully in the workplace is affected by the tendency, common among people from all backgrounds, to collaborate with, select and support those who look, sound, think and behave in similar ways.

There was a very high level of awareness that racial discrimination is both illegal in Canada and contrary to the Bank’s policy of zero tolerance toward discrimination and harassment.

There was also a high level of awareness that discriminatory behaviour of any kind can be dealt with through the Harassment Policy (045-02) or by contacting the HRC to address the issue or ask for confidential advice and assistance.

Repeatedly, employees commented that, regardless of skin tone or accent or culture or heritage, we all need to focus on valuing diversity. We all need to develop the interpersonal skills and perspectives necessary for us to maximize our ability to collaborate with people who look, sound or behave differently than we do.

16

refine the workforce planning process

increase visible minority participation in leadership roles

1995 ACTION PLANS & 2004 RESULTS TO DATE

GOAL Continue to decentralize accountability for creating a diverse workforce and an equitable workplace by requesting that executives and managers ensure adoption of best practices.

IMMEDIATE OUTCOME • Asked managers to set goals and devise Action Plans for the development, promotion and hiring of designated groups.

• Measured, on a quarterly basis, BMO’s systematic progress in achieving diversity representation goals.

• Established accountability at senior levels and through management by updating the Performance Planning and Review process.

• “Managing for Inclusion” competency was developed for coaching purposes.

MOST RECENTLY • In the initial task force (1995), BMO stated that 12.5% of its employees were visible minorities. As at Q4 2003, visible minorities make up 20% of BMO’s population.

• As at Q4 2003, 8.4% of executives are visible minorities, up from 5.6% in 1995.

• In 2003, Harris Bankcorp joined 64 other companies in filing an amicus, or “friend of the court” brief in support of the University of Michigan’s policy to take race into account when making admissions decisions. The brief stated that removing affirmative action policies would diminish the pool of minority applicants from which businesses recruit. On June 23, 2003, the Supreme Court ruled in favour of the university, marking a major triumph for diversity, an area in which Harris and BMO are seen as trailblazers.

GOAL Highlight the need to select high-potential individuals who reflect the diversity of our employees and customers in the selection planning process for key senior management, executive and other leadership positions.

IMMEDIATE OUTCOME • The CEO’s Council on the Equitable Workplace established qualitative and quantitative workplace equity goals at the beginning of each fiscal year.

• Workshops, seminars, and courses were developed on the business case for diversity for employees through the Institute for Learning.

MOST RECENTLY • The Annual Employee Survey now contains a Diversity Index (a compilation of questions that enables BMO to measure how well employees think we are doing in the area of diversity and workplace equity). A demographic analysis of AES results is also provided to executives which helps BMO monitor the advancement of visible minorities into leadership roles.

• Diversity Councils frequently host “Lunch & Learns” for employees featuring high profile executives who are representatives of our diverse workforce.

17

clarify our commitment to equity and diversity

improve the career planning and candidate selection processes


GOAL Demonstrate our commitment to timely and successful implementation of the task force action plans by providing all employees with a copy of this report.

IMMEDIATE OUTCOME • Copies of the report were distributed across the bank to all employees. • Appointed a Vice-President, Diversity & Workplace Equity (now Vice-President, Equity and Employee Engagement).

• Employees are made aware of the various services that the HR Centre and the Employee Assistance Program offer through BMO’s intranet and other employee communication vehicles.

MOST RECENTLY • BMO developed and communicated a harassment policy that details that harassment on any of the following grounds is prohibited: race, ancestry, place of origin, colour, ethnic origin, citizenship, disability, creed, sex, sexual orientation, marital status, family status, age or record of offences.

• The BMO’s intranet, e-mail messages, @work and Forging the Link newsletter are all communication vehicles used to communicate the importance of diversity and workplace equity.

GOAL Continue to improve the candidate selection process by distributing a generic Behaviour-Focused Interviewing Guide. Ensure that all internal and external job applicants are assessed using this objective tool.

IMMEDIATE OUTCOME • Behaviour-Focused Interviewing was introduced into BMO for which all line managers received training.

• The Institute for Learning (IFL) offers a Behaviour Focused Interviewing course and hiring guides have been created to facilitate the hiring of diverse groups.

MOST RECENTLY • BMO has an award-winning website, Career Discovery, which offers tools and resources to help us discover employee talents and engage in meaningful career conversations.

• Several areas within BMO have set up an informal “buddy system” for new employees with a language barrier or disability.

• BMO developed an award-winning, flagship Possibilities Youth Internship Scholarship Program. The program, which was originally designed to target visible minority youth in Montreal, was expanded to include Toronto, Halifax, Winnipeg, Calgary, Edmonton, Vancouver, Saskatoon and Lethbridge and was extended to Aboriginal students and students with disabilities. Students in their final year of high school were selected for internships at BMO and received a $1,000 scholarship towards their post-secondary education. These exceptional young people worked as interns at BMO one day per week during the school year and, depending on the availability of jobs and the student's ability and interest, obtained summer employment with BMO. Today, the $1,000 scholarship program is still underway.

18

promote the development of diversity skills and behaviours


GOAL Develop and promote a diversity awareness learning vehicle.

IMMEDIATE OUTCOME • A communication strategy was prepared and packages were sent out to BMO employees. The packages contained support presentations and Frequently Asked Question sets. Extensive presentations were given across the country.

MOST RECENTLY • Presentations on the business case for diversity are continually initiated by, and presented to BMO’s lines of business.

• The Institute for Learning offers a Business by Inclusion Workshop that focuses on diversity and inclusion issues in the workplace. The workshop offers in-depth discussions which articulate the business case for inclusion and help individuals learn to take personal responsibility and accountability for creating an equitable and supportive workplace.

19

72%

EXTERNAL RECOGNITION FOR BMO FINANCIAL GROUP

2004 MicroSkills Corporate Spirit Award: The Spirit Award was presented to BMO for demonstrating a commitment to recent immigrants, members of visible minorities and women through programs, projects and initiatives that support and develop innovative opportunities.

Best 50 Corporate Citizens: BMO Financial Group placed first among financial institutions in the 2004 ranking of Canada’s 50 Best Corporate Citizens.

2003 Top 100 Employers: BMO was named one of Canada's Top 100 Employers – the only bank to make the list for the second consecutive year. (Also named in 2002) Mediacorp Canada Inc.’s 2004 edition of Canada's Top 100 Employers includes companies from a range of industries that are leaders in attracting and retaining quality employees. BMO was also recognized as one of the Top Ten Employers in Canada for Visible Minorities and for Training & Development.

Best 50 Corporate Citizens: BMO was recognized by Corporate Knights magazine as one of the “Best 50 Corporate Citizens” in its annual ranking of Canada's largest 100 publicly traded firms (TSX 100). BMO ranked in the top 10 of the Best 50, and received two other awards, a Gold Medal for our Human Resource practices and a Silver Medal in the Community category.

Ovation Award: BMO's Career Discovery intranet site was recognized by the International Association of Business Communicators (IABC) for outstanding effort and talent in the field of employee communications. The Career Discovery site was acknowledged for its creativity, imagination and innovation as an effective communication program.

Training Top 100: For the second consecutive year, in its annual survey of international corporations, U.S.-based Training magazine ranked BMO Financial Group as the only Canadian corporation on its Top 100 for BMO's dedication to learning and development.

2002

the award in 1995.)

Scholarship Program.

CHRC Employment Equity Audit: BMO was the first Canadian bank found to be in compliance with all 12 statutory requirements with no undertakings ordered.

EASNA Accreditation: BMO’s EAP became accredited by the Employee Assistance Society of North America (EASNA) and was awarded “Exemplary Employee Assistance Programming” by that organization. BMO’s EAP was the first program to have successfully met the requirements.

2000-2001 Vision Award: Human Resources Development Canada recognized BMO for achievements in employment equity. As of September 2003, BMO is the only company to receive this award twice. (BMO first won

1998-1999 The Broad Community: The Conference Board of Canada & Partnership Award Human Resources Development Canada recognized BMO for the Possibilities Youth Internship Scholarship program.

The Black Star Award: This award was given by Black Star Big Brother’s Project in recognition of BMO’s involvement with the Black Community in Montreal and for creating the Possibilities Youth Internship

Career Edge Vision Award: Career Edge is a national, not-for-profit organization whose mandate is to enhance youth employability by providing internships through host organizations. BMO received this award for its continued Employment Equity achievements and increasing diversity in the workplace.

1996-1997

1993

Whipper Watson Award: BMO was recognized by Easter Seals/March of Dimes.

Two Gold Mercury Awards for “Best in Class” in Employee Awareness and Employee Relations Campaigns: BMO was recognized by the International Academy of Communications Arts and Sciences – a U.S.-based organization that recognizes outstanding achievement in professional communications. BMO received the award for “Flexing Your Options,” a guide to flexible work arrangements.

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our corporate values

care

diversity

respect for everyone

keep our promises stand accountable

information, learn innovate

our commitment

We about our customers, shareholders, communities and each other.

We draw our strength from the of our people and our businesses.

We insist upon and encourage all to have a voice.

We and for our every action.

We share customer experiences.

and to create consistently superior

Documents

extracted from the 1995 task force report on visible minorities