Best Practices in Achieving Workforce Diversity
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BEST PRACTICES IN ACHIEVING WORKFORCE DIVERSITY U.S. DEPARTMENT OF COMMERCE AND VICE PRESIDENT AL GORE’S NATIONAL PARTNERSHIP FOR REINVENTING GOVERNMENT BENCHMARKING STUDY TABLE OF CONTENTS BENCHMARKING STUDY PARTNERS . iv ACKNOWLEDGMENTS . v EXECUTIVE SUMMARY . 1 CHAPTER 1: INTRODUCTION . 3 CHAPTER 2: LEADERSHIP COMMITMENT . 5 CHAPTER 3: STRATEGIC PLANNING . 7 CHAPTER 4: EMPLOYEE INVOLVEMENT . 11 APPENDICES A. BENCHMARKING AGENCY PARTICIPANTS . A1 B. TELEPHONE SURVEY . .B1 C. SCORE CARD . C1 D. SITE VISIT GUIDE . D1 BENCHMARKING STUDY PARTNERS Coors Brewing Company Golden, Colorado DaimlerChrysler Auburn Hills, Michigan Eastman Kodak Rochester, New York Fannie Mae Washington, DC The Prudential Insurance Company of America Newark, New Jersey The Seattle Times Seattle, Washington Sempra Energy San Diego, California United States Coast Guard Washington, DC Xerox Rochester, New York ACKNOWLEDGMENTS STUDY SPONSORS MORLEY WINOGRAD ROBERT L. MALLETT SENIOR POLICY ADVISOR TO THE VICE PRESIDENT DEPUTY SECRETARY DIRECTOR, NATIONAL PARTNERSHIP FOR REINVENTING U. S. DEPARTMENT OF COMMERCE GOVERNMENT (NPR) STUDY DIRECTOR WILETT BUNTON DIRECTOR NPR DIVERSITY TASK FORCE U.S. DEPARTMENT OF THE ARMY STUDY ADVISORS CAROL HAYASHIDA DEPUTY DIRECTOR NPR DIVERSITY TASK FORCE U.S. DEPARTMENT OF COMMERCE ROB SADLER RAJ K. GUPTA ATTORNEY ATTORNEY NPR DIVERSITY TASK FORCE NPR DIVERSITY TASK FORCE U.S. DEPARTMENT OF COMMERCE U.S. EQUAL EMPLOYMENT OPPORTUNITY COMMISSION STUDY TEAM LEADERS ORELIOUS WALKER, PRINCIPAL DAVID BENTON U.S. DEPARTMENT OF TREASURY U.S. DEPARTMENT OF TRANSPORTATION The Benchmarking Team thanks the corporate and government partners who willingly shared their experiences and best practices with us. Special thanks to Linda J. Bilmes, Chief Financial Officer and Assistant Secretary for Administration, United States Department of Commerce; John J. Phelan III, Director, Office of Management and Organization, United States Department of Commerce; Lisa Mallory, Deputy Director, National Partnership for Reinventing Government; and, Tom Kowalczyk, Senior Engineer, Naval Undersea Warfare Center Division Newport. Executive Summary Best Practices in Achieving Workforce Diversity Executive Summary Diversity Affects the World diversity within their organizations. These practices reflect our partners’ understanding Our success as a Advances in technology and the advent of a that valuing and recognizing diversity is global economy bring the people of the world imperative in order to maintain a competitive closer together than ever before. Given this fact, advantage. They know that using these global company businesses, educational systems and other entities practices enhances productivity, effectiveness, are investigating ways to better serve their and sustained competitiveness. is a direct result constituents. This includes being able to attract and retain the best and most qualified workers. How is this different? of our diverse Organizations that can develop and employ the necessary policies and procedures to do this will Frequently, diversity is viewed in a limited and talented maintain a competitive advantage among their fashion, primarily addressing issues of race, counterparts and increase their effectiveness. The ethnic or gender differences, and linked to the workforce. Our private sector competitive model may not laws providing protected status to certain squarely fit Federal departments and agencies, groups. We have used a very broad definition ability to develop given the lack of profit motive as the reason for of diversity, to encompass most characteristics their existence. Yet, Federal organizations must that individuals possess that affect the way they compete to recruit and retain the best talent if think and do things. This is critical. This new consumer they hope to achieve their bottom line, their study describes tested ways to draw on all the statutory missions. varied skills of our workforce. insights and The changing demographics of our nation also What did we learn? ideas and to affect the nation’s businesses and in turn the This study emphasizes the most valuable nation’s economy. For our government and execute in a information that the best practices organizations businesses to continue to be effective and motivate have to offer. Our critical findings focus on the citizens to contribute to building these following information because we can use it to superior way institutions, our leaders must recognize and further and strengthen the U.S. government’s capitalize upon the diversity of the nation. efforts to achieve diversity in the workplace. across the world Why is this important? • Organizations Benefit from Diversity is the best To achieve success and maintain a competitive advantage, we must be able to draw on the most Organizations that promote and achieve a possible important resource – the skills of the workforce. diverse workplace will attract and retain With the increasing richness of diversity in the quality employees and increase customer testimony to the world and in the workforce, we need to expand loyalty. For public organizations, it also our outlook and use creative strategies to be translates into effective delivery of essential power of successful. Employees can provide this services to communities with diverse needs. resource. This study identifies best practices diversity any that work in organizations that are doing just • Leaders and Managers are Responsible for that. These practices can be adopted in any Diversity organization workplace. Leaders and managers within organizations could ever have. Why should we pay attention? are primarily responsible for the success of diversity policies because they must ensure Our partners have created communities of that the policies are effective. John Pepper, CEO, practice that achieve and value workforce Procter & Gamble Executive Summary Best Practices in Achieving Workforce Diversity • Leaders and Managers must Create a Our Key Finding Strategic Plan to Develop Diversity Initiatives Throughout the Organization A key finding of this report is that diversity needs to be defined broadly and should Leaders and managers within organizations must encompass a wide range of initiatives that meet incorporate diversity policies into every aspect of the changing needs of customers and workers. the organization’s functions and purpose. Leaders and employees should take active roles in implementing these diversity processes • Employees’ Views and Involvement are Key which, in order to succeed, should be fully to the Success of Diversity Initiatives aligned with core organizational goals and objectives. The findings in this report illustrate Organizations must view employee that the benefits of diversity are for everyone. participation as a necessary part of the Diversity is more than a moral imperative; it is diversity initiative, in order to develop and a global necessity. Moreover, diversity is an maintain effective diversity policies. essential component of any civil society. The leaders of the best practices organizations understand that they must support their employees in learning how to effectively interact with and manage people in a diverse workplace. They recognize that they should encourage employees to continue to learn new skills in dealing with and managing people. They also recognize the impact that diverse clients will have upon the success or failure of an organization, as businesses must compete to satisfy these clients. Introduction Best Practices in Achieving Workforce Diversity hapter 1: Introduction Today’s managers are responsible for both organization. As one benchmarking partner leading employees and responding to the needs stated, "We view diversity as something more There were never of customers who are more ethnically and than a moral imperative or a business culturally diverse, older, and in greater need of necessity—we see it as a business opportunity." child and elder care. Leaders in both the public Aligning diversity with the mission and business in the world two and the private sectors are focusing more of the organization increases employee attention on the issue of diversity. Whether the satisfaction and retention; improves opinions alike; goal is to be an employer of choice, to provide competitiveness and productivity; increases excellent customer service, or to maintain a responsiveness; and adds value to the customer. anymore than competitive edge, diversity is increasingly recognized and utilized as an important Scope of the Study two hairs or organizational resource. The United States Department of Commerce two grains. The What is Diversity? and Vice President Al Gore’s National Partnership for Reinventing Government One of the major stumbling blocks in (NPR) sponsored this benchmarking study. most universal discussions surrounding diversity is its very The study identifies best practices used by definition. For our purposes, we use the leading organizations to achieve workforce quality is following definition of diversity: "Diversity diversity. The study team identified the includes all characteristics and experiences that following critical success factors to evaluate best diversity. define each of us as individuals."1 A common practices: misconception about diversity is that only Michel de Montaigne, certain persons or groups are included under its 1. Leadership and management French Essayist umbrella, when in fact, exactly the opposite is commitment; true. Diversity includes the entire spectrum of 2. Employee involvement;