Diversity Whitepaper - Drake International NZ

DIVERSITY WHITEPAPER Diversity landscape in New Zealand

DIVERSITY [dʌɪˈvəːsɪti, dɪˈvəːsɪti] noun.

Diversity in a workforce can include age, gender, ethnicity, disability, part-time and remote workers, encompassing much more than what people may initially consider.

OBSERVATIONS SUMMARY Drake New Zealand conducted a survey to better understand how businesses across New Zealand currently measure, monitor and create their diversity goals, and the future trends for building more diverse work places across the country.

Data was collected in an online survey with a nearly equal split in gender of respondents, along with a variety of age brackets, ethnicities and locations across the country. There was a wide range of roles and company sizes, giving the report a broad range of opinions from many different organisations and roles within.

Overall Employee Diversity and Inclusion The current employee landscape in organisations is most diverse in employing people in a wide range of ages (63%) and ethnicities (49%). It is least diverse in hiring people with disabilities (22%), and over 65% of respondents commented on gender imbalance in their organisation.

Currently, the majority of respondents believe that their organisation has a diverse workforce (67%), and that the company is committed to becoming a diverse workforce (63%) and creating an inclusive environment (71%).

42% of respondents believe that their company lack a clear diversity strategy when attracting new employees.

However, presently, 62% of respondents do not, or do not know of diversity awareness and education programmes in their organisation.

Employee Attraction Currently, 62% of respondents believe that their organisation recruits from a diverse candidate pool, and uses non-bias imagery and wording in its job advertisements and descriptions (64%). However, 42% believe that their company lacks a clear diversity strategy when attracting new employees.

Employee Selection 62% agree that their company uses fair and unbiased selection measures to employ a diverse workforce, but only 53% say that their HR and line managers are trained to reduce any potential hiring bias. 61% feel that their organisation could improve on their current selection process when it comes to diversity.

Employee Development and Retention Currently, only 50% of respondents state that their company has a mentoring program, and 56% say there is a clear advancement pathway for everyone. Similarly, only 50% of organisations monitor promotion, compensation and development

41% of respondents believe that having diversity and inclusion policies is good for attracting and retaining staff.

opportunities to ensure there is no bias against diversity.

65% of respondents believe that diversity and inclusion are important values in their business, yet only 53% report having diversity and inclusion programmes and policies and only 49% have a clear understanding of the diversity policies of their company.

51% say that their company communicates their diversity goals internally and 45% state these are communicated externally, however 62% feel that their organisation could improve on their diversity programmes and policies, including communication.

Policies focused on creating a diverse and inclusive environment received the highest response rate, with 47% saying that this was the focus of the diversity policies in their organisations.

41% of respondents also stated that the rationale behind having diversity and inclusion policies was to attract and retain staff.

More than half of respondents said that the benefits of diversity in an organisation include greater productivity, creativity and innovation, as well as an improved culture and allowing for personal and professional growth.

65% of respondents comment on gender imbalance in their organisation.

THE FUTURE OF DIVERSITY WHERE TO FROM HERE?

THEME 1 -

The Importance of Diversity The majority of respondents (over 60%) noted the fact that the subject of Diversity, and practice of creating a diverse work environment, was important to their organisations, and was a priority.

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There are THREE NOTABLE THEMES found in the diversity survey results, being the Importance of Diversity, Diversity in Hiring and Retention Trends and Communication.

without bias, and that more organisations should have, and practice, hiring with a diversity strategy.

The majority of respondents also felt that there was a gap in the availability of a mentoring programme within their company, and one that ensures no bias against diversity.

Diversity in a workforce can include age, gender, ethnicity, disability, part-time and remote workers, encompassing much more than what people may initially consider.

Creating a diversity strategy usually starts at the top by making it a core value of the business, but buy-in must occur at every level in the organisation in order to roll it out successfully company-wide.

There are many noted benefits to both employees and employers of working in a diverse organisation, including enhanced decision making skills with a multitude of cultures and experiences and increased productivity and engagement amongst staff when people feel valued and part of a team. Having a more diverse workforce also allows you to get involved in different opportunities, and provide access to new markets, giving you a competitive edge.

Promoting diversity and inclusion also enhances your reputation as a great place to work, and serves as a retention tool.

The HR department at most organisations is traditionally involved in developing internal training programmes, but for smaller organisations, this could be outsourced to a HR solutions company to draft and even deliver. These on-boarding and on-going training programmes should include a section on why diversity matters to the company, outlining the benefits discussed in the previous section, and how to hire without bias which encourages a more diverse workforce. Some examples of this could include structuring interview questions to be open to diverse candidates, and focusing on the skill sets and behavioural characteristics to find the best candidate for the role.

All of these benefits can lead to improvements in overall business productivity, performance, and ultimately profits.

THEME 2 -

Diversity in Hiring and Retention Trends The majority of respondents state that their company provides a hiring process from a diverse candidate pool, however 50% state that training should be implemented that focuses on hiring

Mentoring programmes can be developed in any sized organisation, and there are numerous benefits, including knowledge and experience sharing, improving confidence, building relationships and providing learning and development opportunities that traditional training programmes do not offer.

Mentoring programmes also act as a retention tool, as studies have shown that lack of professional development is one of the top reasons for leaving a job.

THEME 3 -

Communication The subject of communication, and specifically the need for increased communication, was a common theme with the survey respondents. While the majority of respondents believe that diversity is an important value to their organisation, over 60% also believe that communication can be improved on their diversity goals.

There are numerous ways to promote your workplace diversity goals, and it starts from within.

If your employees are positive and passionate about your business and the diversity goals and benefits offered, they are more likely to be engaged. Research has shown that engaged employees lead to higher customer satisfaction, but importantly, engaged employees create word of mouth marketing that leads to being known of as a company where people want to work.

Businesses can communicate their diversity goals through updating their policies and procedures to adopt a diversity hiring and growth strategy. There should be policies in place which outline how what the diversity strategy entails – be it hiring against bias, increasing any minority groups at work, encouraging a flexible work environment, and being an accessible workplace.

Similarly, companies can and should advertise their diversity strategy externally as well as internally, which will showcase why you are a great place to work and therefore a great company to do business with. This promotion can occur on your website, in job advertisements, through social media, and so on.

Add a diversity strategy to the other benefits offered by your business, such as company vision, competitive salary, training, development and growth opportunities and others, and that is a very compelling overall value proposition for any existing employee to say ‘I work for a great company’ and any potential employee to say ‘I want to work for that company’. And in a candidate-tight market, that matters.

61% of respondents feel that their organisation could improve on their current selection process when it comes to diversity and should conduct training to reduce potential hiring bias.

65% of respondents believe that diversity and inclusion are important values to their organisation.

62% of respondents believe that communication can be improved on their diversity programmes and goals.

RESPONDENT DEMOGRAPHICS 5% Northland

34% Auckland 13% Bay of Plenty 1% Gisborne 5% Manawatu

7% Waikato 1% Hawke’s Bay 8% Wellington

2% Nelson-Tasman

1% West Coast

1% Marlborough LOCATION

5% Canterbury

1% Otago

AGE

11%

There is a wide range in age of the respondents.

60+ years old

The largest percentage of respondents live in Auckland, but there is a wide variety of locations where respondents live and work.

26%

18-29 years old

25%

50-59 years old

25%

30-39 years old

13%

40-49 years old

4%

JOB

6%

Director

15% of respondents are senior managers or above, while 21% are managers, and 38% are junior staff members.

General Manager

21%

Manager / Team Leader

21%

Entry Level / Junior

4%

Senior / National Manager

17%

Coordinator

26%

1%

Other

C-suite

ORGANISATION SIZE The largest respondent groups work in organisations with either more than 100, or between 1-9 employees.

23%

1-9 employees

15% 10 - 20 employees

8% 21 - 50 employees

15% 51 - 100 employees

39%

100+ employees

DETAILED DATA SECTION 1 - ORGANISATION GOALS AND VALUES

42% 36% 33%

The majority of respondents believe that diversity and inclusion are important values to their organisation, yet only half report having diversity and inclusion programmes and policies and less than half have a clear understanding of the diversity policies of their company.

28%

26%

24%

21%

18%

17% 14%

6%

7%

7%

5%

Diversity and inclusion are important values to my org.

16%

My org has a diversity and inclusion I understand my org’s diversity & inclusion policies. programme and policies.

Strongly disagree

Disagree

Neutral

Agree

Strongly agree

44% 37%

22%

35%

25% 24%

21% 20%

18%

14% 11%

10% 7%

7%

4%

My org could improve on their overall diversity and inclusion policies.

My org communicates its diversity goals internally

Strongly disagree

Disagree

Neutral

Agree

My org communicates its diversity goals externally Strongly agree

Only half of respondents companies communicate their diversity goals internally, and the majority feel that their organisation could improve on their diversity programmes and policies, including communication.

There was a wide range of responses for the rationale behind having diversity and inclusion policies.

36.7%

31.6%

Improve our external reputation

Meet internal expectations

25.5%

20.4%

We don’t have a diversity and inclusion programme or policy

Meet external expectations

37.8%

Meet legal requirements

More than half of respondents found that the benefits of diversity to an organisation include greater productivity, creativity and innovation, as well as an improved culture and allowing for personal and professional growth.

Improv ement in the bottom line

24.5%

Greater agility

Personal & professional growth

60.2%

Improved culture

59.2% 49%

Greater innovation Other - Write In

7.1%

Access to more markets

30.6% 39.8% 35.7%

Greater creativity Greater productivity

56.1% 51%

DETAILED DATA SECTION 2 - OVERALL EMPLOYEE DIVERSITY & INCLUSION A breakdown of the current employee landscape in organisations shows that it they are most diverse in employing people in a wide range of ages (63%), and is least diverse in equal gender diversity (14%) and employing people with disabilities (22%).

Current Employee Diversity

63.2% 51.6%

49.0%

49.0%

34.8%

32.3% 22.6% 14.8% 7.1%

Wide range of Various Wide range of Various marital More male ages personal and ethnicities statuses employees familial situations

More female employees

Employee(s) with disabilities

My organisation has ongoing diversity awareness / education programmes

I don't know

26.30%

No 35.90%

Yes 37.80%

Equal gender diversity

Other

DETAILED DATA SECTION 2 - OVERALL EMPLOYEE DIVERSITY & INCLUSION Currently, the majority of respondents believe that their organisation has a diverse workforce and that the company is committed to becoming a diverse workforce. However, presently, the majority of respondents do not have, or do not know of diversity awareness and education programmes in their organisation.

43%

42% 37% 31% 26%

24%

22%

22% 17%

14%

12%

11% 7%

6%

17%16%

14%

12%

10% 6%

5%

3%

1%

3%

Diversity and inclusion are My org is committed to My org has used diversity My org provides benefits important values to my being/becoming a diverse training. for different groups (nonorganisation workforce. traditional holidays, day care, flexible hours).

Strongly disagree

46%

Disagree

Neutral

Agree

Strongly agree

N/A

46% 42% 38% 34%

35%

33%

26%

25% 21%

20% 14%

13% 7% 7%

6%

My org provides accessible office(s).

8% 3%

13%

10% 5%

5%

6%

4%

My org are My org offers support committed to for every individual. creating an inclusive environment.

Strongly disagree

Disagree

Neutral

Agree

7%

5%

4%

My org has a complaint policy.

Strongly agree

8% 7%

4%

My org has policies for resolving diversity-related complaints.

N/A

DETAILED DATA SECTION 3 - EMPLOYEE ATTRACTION

62%

64%

43%

of respondents either agree or strongly agree that their company continuously recruits from a diverse candidate pool.

of respondents either agree or strongly agree that their company uses non-bias imagery and wording in its job advertisements and descriptions.

of respondents believe that their company lacks a clear diversity strategy when attracting new employees.

47% 44%

43%

35%

28% 26%

24%

23% 18%

17%

17% 11%

8% 5%

12%

11% 8%

7% 3%

5%

3%

3%

2%

My org continuously recruits My org effectively uses non from a diverse candidate pool bias imagery and wording in its job ads and descriptions Strongly disagree

Disagree

2%

My org has clear policies to attract from a diverse candidate pool

Neutral

Agree

Strongly agree

My org lacks a clear diversity strategy to attract new employees N/A

DETAILED DATA SECTION 4 - EMPLOYEE SELECTION 48%

47% 43% 38%

38%

26%

23%

16%

15% 11% 8%

9% 5% 1%

24%

23%

20% 16%

6% 7% 2%

23%

15% 10%

5%

4% 5%

5%

6%

3%

My org uses fair and My org trains HR and My org uses My org could improve My org utilises unbiased selection Line Managers to standardised and structured interviews on their current measures to employ reduce potential consistent selection to help remove bias. selection process a diverse workforce. hiring bias. procedures. when it comes to diversity.

Strongly disagree

Disagree

Neutral

Agree

Strongly agree

N/A

63%

54%

respondents either agree or strongly agree that their company uses fair and unbiased selection measures to employ a diverse workforce.

respondents believe that their HR and line managers are trained to reduce any potential hiring bias.

DETAILED DATA SECTION 5 - EMPLOYEE DEVELOPMENT & RETENTION Currently, half of respondents say their company has a mentoring program, and that there is a clear advancement pathway for everyone. However, only 50% of organisations monitor promotion, compensation and development opportunities to ensure there is no bias against diversity.

48%

47% 43% 38%

38%

26%

23%

16%

15% 11% 8%

9% 5% 1%

24%

23%

20% 16%

6% 7% 2%

23%

15% 10%

5%

4% 5%

5%

6%

3%

My org uses fair and My org trains HR and My org utilises My org uses My org could improve unbiased selection Line Managers to standardised and structured interviews on their current measures to employ reduce potential consistent selection to help remove bias. selection process a diverse workforce. hiring bias. procedures. when it comes to diversity.

Strongly disagree

Disagree

Neutral

Agree

Strongly agree

N/A

For more information or to talk about how Drake New Zealand can help you on your diversity journey, contact us on 0800 840 940 or email us at marketing@nz.drakeintl.com

LET DRAKE NZ HELP YOU ON YOUR DIVERSITY JOURNEY 0800 840 940 | DRAKEINTL.COM

ATTRACTION Flexible staffing - white collar Flexible staffing - blue collar Permanent recruitment Healthcare, Homecare & Disability Recruitment

SELECTION Behavioural profiling Sales staff assessments Leadership profiling Online skill assessments (technical & administrative)

INDUCTION Tailored onboarding programmes

DEVELOPMENT Customised learning programmes Team building workshops Manager-to-Subordinate profiles

RETENTION Engagement surveys Performance management

SEPARATION Exit interviews Outplacement services

Drake New Zealand is a recruitment and HR solutions company, providing permanent and flexible recruitment and HR solutions across a variety of industries since 1971.

0800 840 940 nz.drakeintl.com linkedin.com/company/drakenz/