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Turn Diversity and Inclusion into a Talent Strength: A Six-Pack Approach for Driving Measurable Improvement Peter Vermeulen, Head of HR Americas, the Linde Group 2016 RU SHRM Business Conference: The Business of HR

Turn Diversity and Inclusion into a Talent Strength: A Six-Pack

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Page 1: Turn Diversity and Inclusion into a Talent Strength: A Six-Pack

Turn Diversity and Inclusion into a Talent Strength:A Six-Pack Approach for Driving Measurable ImprovementPeter Vermeulen, Head of HR Americas, the Linde Group2016 RU SHRM Business Conference: The Business of HR

Page 2: Turn Diversity and Inclusion into a Talent Strength: A Six-Pack

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Introduction: Peter Vermeulen• Head of HR Americas for The Linde Group• Previous: HR management and leadership roles at Johnson

& Johnson• 20 years’ experience in the European, South and North

American market zones, as well as in Healthcare• Global citizen: lived and worked in five different countries• HRCI board member

@pvermeul_peter

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Linde, a world leading supplier of industrial, process and specialty gases

Linde supplies enough oxygen to the steel industry

to produce 15 million tons per

year of steel and 1.5 million cars

Linde supplies enough nitrogen to the food industry to

freeze 25 million chicken nuggets

Linde plants process enough natural gas every day to generate over 50,000 MW of power

Linde serves enough CO2 to the beverage industry to carbonate 180 billion 12 ounce cans of soda

Linde distributes enough helium to the medical imaging industry to operate 3,400 MRI machines

Linde supplies enough oxygen to hospitals and homecare to sustain life for >1 million patients

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We Reach Locations | Global Coverage

n Linde Coverage

4

§ Global Sales (2015): $19.7 bn

§ Employees worldwide: 65,000

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What do we mean by Diversity and Inclusion?§ Diversity is any dimension that can be used to differentiate groups

and people from one another• Examples: ethnic and racial, gender, sexual orientation, disabled

(differently abled), veterans, neurodiversity (ex: autism spectrum)§ Inclusion is involvement and empowerment of diverse employees in

the company

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Good for Business

Talent attraction and Retention:A diverse workforce is attractive to a larger diverse pool of talent§ Speed and

efficiency in acquiring talent

§ Higher quality talent

Innovation: Broader talent diversity helps align business to a larger diverse customer base, and improves the quality of decision making

Productivity:

A diverse workforce that is supported as part of a diverse corporate culture is more engaged and productive

Top Line:Generates new business opportunity

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The Challenges

§ “What gets measured, gets done”§ What to measure? What should I focus on?

• Too many options: 50+ ways to measure• What is actionable?• Can you be predictive?• How can you see the whole picture?• Speak the language of the business.

HOW DO YOU CONNECT THE DOTS TO REVEAL THE DIVERSITY STORY?

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Addressing the Challenges: Diversity Metrics

Metrics cover whole diversity and inclusion picture

KEYS TO SUCCESSMeasurable

Actionable

Predictive

Reveals the Story

Promotes Action

Reinforces Accountability

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Diversity and Inclusion “SIX PACK FRAMEWORK”

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WORKFORCE

WORKPLACE

REPRESENTATIONMix

PIPELINEStrength

INCLUSIVEEnvironment

ACQUIRETalent

DEVELOP &ADVANCE

TalentRETAINTalent

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1. Acquiring Talent

“What is the mix of diverse talent you bring in to your organization?”

Answers the Question: Examples of Measurement:

§ Newly hired talent by diverse group at all levels of the organization

§ Experienced hires vs. college recruiting§ Talent acquisition by diverse group§ Compensation assessment

Frequency:Monthly or quarterly

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2. Developing and Advancing Talent

“Once you bring diverse talent through the door, how well do you support their ability to develop skills and move their careers forward?”

§ Percentage of diverse HIPO’s that are three or more years in the same role

§ Percentage of diverse HIPOs that successfully completed leadership training and were promoted within three years

§ Percentage of diverse employees advancing per year, compared across all groups

§ Compensation assessment

Quarterly or annually

Answers the Question:

Examples of Measurement:

Frequency:

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“How well is your organization doing at keeping diverse talent?”

§ Diverse talent turnover with root cause analysis

§ Diverse talent “regrettable losses” (those who left even though the organization would prefer to retain them)

§ Leading indicators such as employee engagement survey results (see #6), cultural competence assessment and flight risk

§ Predictive Analytics

Quarterly

3. Retaining Talent (Workforce Data)

Answers the Question:

Examples of Measurement:

Frequency:

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Career Level Hires Active Laterals

VoluntaryExits

InvoluntaryExits

5 0 3 0 0

4 5 4 2 1

3 14 12 10 8

2 23 9 4 4

1 34 8 17 8

Promotions22

All Levels All Hires76

All Actives756

All Laterals36

All Voluntary Exits33

All Involuntary Exits21

18

621

1725

2423 2

26213 8

Talent Flow(Example D&I Group, Female Employees)

“LEAKY BUCKET”

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4. Representation

“How does the proportion of diverse groups in your organization compare to their availability in the market?”

Answers the Question: Examples of Measurement:

Frequency:

§ Representation vs. Availability in the market

§ Applicable globally and locally

Annually or Semi–Annually

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5. Succession Planning Pipeline Strength

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Annually or semi-annually“Do you have diverse talent in your succession planning pipeline for critical roles? Are they ready now, or will they be ready in the future?”

Answers the Question:

Examples of Measurement:

Frequency:

§ Percent of ready-now diverse workers in pipeline for critical roles

§ Percent of future-ready diverse workers in pipeline for critical roles

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6. Engagement(Workplace Data)

“What is the level of participation, commitment and acceptance of diverse talent within your workforce?”

Answers the Question: Examples of Measurement:

Frequency:

§ Overall engagement index§ Engagement index for diverse groups§ Inclusion index§ Pulse checks § Cultural competence assessment

Annually or periodic pulse checks

Page 17: Turn Diversity and Inclusion into a Talent Strength: A Six-Pack

A Dashboard Approach

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Diversity and Inclusion “SIX PACK FRAMEWORK”

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WORKFORCE

WORKPLACE

REPRESENTATIONMix

PIPELINEStrength

INCLUSIVEEnvironment

ACQUIRETalent

DEVELOP &ADVANCE

TalentRETAINTalent

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Diversity and Inclusion “SIX PACK FRAMEWORK”

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WORKFORCE

WORKPLACE

REPRESENTATIONMix

PIPELINEStrength

INCLUSIVEEnvironment

ACQUIRETalent

DEVELOP &ADVANCE

TalentRETAINTalent

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Talent Acquisition – Q4/15

*Diversity data is based on candidates who have applied to a requisition AND have self identified.

SLA Descriptive Goal Q4 2015

Time-to-FillBanded Non-driver 55 days 57

Unbanded Non-driver 50 days 45

Time-to-FillBulk Driver 50 days 49

Medical Driver 45 days 45

Requisition AgingBanded 85% of requisitions

filled win 85 days 85%

Unbanded 85% of requisitionsfilled w/in 75 days 81%

Customer SatisfactionHiring Manager Survey 4 out of 5 3.86 out of 5

New Hire Survey 4 out of 5 4.56 out of 5

Offer AcceptanceBand 3 & below 90% 92.66% (202 out of 218)

Band 4 & above 90% N/A

Submit-to-InterviewRatio All positions 75% 77.18% (612 out of 793)

Interview-to-Hire Ratio All positions 33% 31.21% (191 out of 612)

Diversity

Ethnicity 40% 46.91%

Gender 20% 18.33%

Veteran 8% 9.08%

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Diversity and Inclusion “SIX PACK FRAMEWORK”

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WORKFORCE

WORKPLACE

REPRESENTATIONMix

PIPELINEStrength

INCLUSIVEEnvironment

ACQUIRETalent

DEVELOP &ADVANCE

TalentRETAINTalent

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Inclusive Environment – 2014 Engagement Survey

ValidReturns

MeanScore

PercentFavorable

2012 Percent Favorable

Linde MostEngaged

UnitsIBM

Benchmark

5 4 3 2 1Percent

FavorablePercentNeutral

PercentUnfavorable

Culture60. I am appropriately involved in decisions that affect my work.

The Linde Group 38,661 3.55 61% 60% 74% 65%Americas, GHC & BMP 4,917 3.52 60% 58% 74% 65%RBU Americas 4,483 3.51 60% 58% 74% 65%

61. In my team, diverse perspectives are valued.The Linde Group 38,591 3.74 68% 66% 79% 73%Americas, GHC & BMP 4,916 3.69 65% 63% 79% 73%RBU Americas 4,483 3.67 65% 62% 79% 73%

62. The behavior of the people I work with is consistent with the Linde Spirit.The Linde Group 38,480 3.73 68% 65% 81% 73%Americas, GHC & BMP 4,916 3.66 64% 59% 81% 73%RBU Americas 4,484 3.64 63% 58% 81% 73%

16 45 22 12 5

17 43 20 15 5

17 43 20 15 5

20 48 21 8

20 45 22 10

19 45 22 10

18 49 23 7

18 47 23 9

17 45 23 10

3rd Linde Global Employee SurveyRBU Americas – Organization Report4. Results by Question

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Inclusive Environment – 2014 Engagement Survey(continued)

ValidReturns

MeanScore

PercentFavorable

2012 Percent Favorable

Linde MostEngaged

UnitsIBM

Benchmark

5 4 3 2 1Percent

FavorablePercentNeutral

PercentUnfavorable

Culture (continued)63. In my organization, there is open, honest, two-way communication.

The Linde Group 38,373 3.53 58% 57% 75% 59%Americas, GHC & BMP 4,919 3.47 56% 54% 75% 59%RBU Americas 4,485 3.46 56% 54% 75% 59%

64. My organization is committed to providing equal opportunities for all employees.The Linde Group 38,249 3.55 59% 59% 74% 68%Americas, GHC & BMP 4,896 3.52 58% 58% 74% 68%RBU Americas 4,475 3.51 58% 58% 74% 68%

14 41 26 14 5

14 41 25 14 5

15 44 26 11

20 38 24 12 7

20 38 23 12 7

17 42 25 10 6

3rd Linde Global Employee SurveyRBU Americas – Organization Report4. Results by Question

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Diversity and Inclusion(Leader Name)

Diversity

Inclusion

Business Function/SpecificGoals

2016 Mid-year Progress§ Inflow§ Outflow§ Upward Movement

§ Sector progress against last year’s action plan

§ Goals§ University program goals (if

applicable)

§ Terminations§ Employee Movements§ Talent Reports/Dashboards

§ Inclusion Data

For all regions - insert local D&I goals and any results from University program goals, etc.

Status

On track At risk Behind target

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Final Thoughts

§ Turning data into insights § Measuring is knowing § Drives change

§ Drives leadership accountability§ Partner with legal

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Page 26: Turn Diversity and Inclusion into a Talent Strength: A Six-Pack

Thank You