Introduction
How Diversity Can be a Part of The System Action I: Hiring Process 3 6 7 9 12
Introduction: Why Diversity Benefits of Diversity
Action II: Retention and Progression
Action III: Representation
Action IV: Creating Space for Inclusion
Dear friends,
We have always been working towards the same goal of strengthening and empowering our heritage and cultural spectrum that creates diversity that brings us together. This year has been a challenging year for us as we have passed the critical times of the pandemic in which things have changed regarding how people see the diverse society. More people have become more conscious of diversity and there were changing movements to bring injustices to light. These conditions make us work harder toward the virtues that have connected us.
For the past fiscal year, we’ve been saddened with the number of cases that happened to our fellows under certain circumstances that were driven by hate. We’ve been working to create safe spaces and facilitations for people to alleviate those matters. As we’ve served the community through our steadfast commitment to continue striving for the betterment of our community.
After reflecting what we have achived this year, we have been working relentlessly to redesign our system to accomodate and facilitate everyone especially during and post the pandemic times. This annual report is created to look back on our past efforts and look forward on our future implementations to have every person’s voice get heard.
Sincerely,
Gabriele BasaWhy is diveristy important in this days and era?
The U.S. is projected to become a majorityminority nation for the first time in 2043 and by 2060, 57 percent of the U.S. population will consist of racially ethnic minorities, according to data from the U.S. Census Bureau. This means that companies, business leaders and organizations must create effective solutions to recruit, support and retain a more diverse workforce. While many business leaders may already realize the importance of these population changes, certain companies still struggle to understand the best methods to achieve diversity, how to properly define diversity in the workplace or why diversity is so important.
Diversity gives you access to a greater range of talent, not just the talent that belongs to a particular world-view or ethnicity or some other restricting definition. It helps provide insight into the needs and motivations of all of your client or customer base, rather than just a small part of it. And, potentially, as McKinsey & Co and a host of other highly credible researchers have shown, it makes your organization more effective, more successful, more profitable. Beyond demographic shifts, diversity directly impacts the financial future of a company, says Meredith Morales, Senior Program Manager of Inclusion Recruiting, Innovation and Solutions at LinkedIn.
As a diversity and inclusion consultant, Morales has advised many well-intended leaders who often wish to improve diversity in the workplace but may not fully comprehend the value diversity adds to their organizations. A McKinsey & Company report echoes similar findings stating that of the companies surveyed, those with more ethnically diverse executive teams are 33 percent more likely to outperform their peers on profitability. Similarly, companies with greater gender diversity among executive teams generated more profitability and value creation than companies with fewer women in executive positions.
“Diversity significantly improves financial performance on measures such as profitable investments at the individual portfolio-company level and overall fund returns,” Paul Gompers, an economist and professor at Harvard Business School, and writer Silpa Kovvali explained in an article published by Harvard Business Review. “In this era of globalization, diversity in the business environment is about more than gender, race and ethnicity,” he wrote in an article for the World Economic Forum.
“Companies are discovering that, by supporting and promoting a diverse and inclusive workplace, they are gaining benefits that go beyond the optics. The case for establishing a truly diverse workforce, at all organizational levels, grows more compelling each year. The moral argument is weighty enough, but the financial impact—as proven by multiple studies—makes this a no-brainer.”
“Sometimes we are separated by differences, and sometimes
Diversity in the workplace means employing people of different ages, genders, ethnicities, sexual orientations, cultural backgrounds, and education levels. Not only is diversity crucial for creativity and social justice, but also research shows that a diverse workplace is good for the bottom line. In fact, companies with a diverse workforce are 35% more likely to experience greater financial returns than their respective non-diverse counterparts.
Race
Ethnicity
Age
National origin
Sexual orientation
Cultural identity
Assigned sex
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Physical ability
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Roughly 57% of employees feel their company can be doing more. And 41% of managers admit to being “too busy” to implement diversity inclusion programs.
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A team that has a variety of worldview perspectives can educate employees and clients, and reach untapped customer demographics. This opens the conversation to new, unexplored, and different ideas. In fact, companies with greater diversity are 70% more likely to capture more markets. And with more markets comes a bigger audience which equals more profit. This can be a gamechanger in the professional world.
And yet, employers still do not embrace diversity.
we are united by common ideals of respect and compassion.”
Diversity has been shown to boost creativity, and it’s no secret that companies are always looking for the next big thing. In my experience, that dynamite idea usually comes from thinking outside-the-box. When people come from different backgrounds, have a variety of life experiences, and see the world in unique ways, multiple perspectives are brought to the table. People from a variety of backgrounds offer a handful of solutions, rather than one uninspired solution which is based on the same cultural voice. Diverse teams naturally eliminate the standard approach to problem solving.
An increase in creativity within the workplace also helps to inspire unique marketing strategies. Research shows that companies that embrace diversity are 1.7 times more innovative. Customers feel more connected to and are more apt to buy from companies that use advertising that depicts culturally and ethnically diverse people. Diversity in advertising creates a positive reputation, increases marketplace awareness, and leads to a more diverse, and consequently, larger client-base.
According to Gallup’s report, “How Millennials Want To Work and Live,” 87% of participants said career and professional growth opportunities were important to them. Companies that embrace ideas and practices from different perspectives create an inclusive culture where the employees become ambassadors for the company. Internal company advocacy attracts talented, ambitious, and diverse professionals. Roughly 64% of candidates research a company online before applying for an opening. An integral part of this research is what makes the company an attractive place to work.. And 1 in 3 will not apply for a position at a company that lacks diversity.
Diverse teams can be professionally enriching as teammates are exposed to new skills and approaches to work. Additionally, colleagues have the opportunity to develop international networks. Naturally, teammates will learn about each other’s cultures. This leads to a broader understanding of the world on a much deeper level, which in turn, filters different perspectives into their own thinking, creating new thoughts and ideas. Unique ways of thinking and ideologies aid in decisionmaking, brainstorming, and boost workplace etiquette.
Research showed that diverse teams are better at making decisions 87% of the time over non-diverse teams. Diverse teams offer broader perspectives and bring more information to the table. Teams outperform individuals when making decisions and that improves as diversity increases. Our hardwired biases are mitigated by voices from diverse teams. Diversity in decisionmaking equates to profitability in the global economy as evidenced by a 70% likelihood of capturing new markets by companies with a diverse workforce. Companies with diverse teams are better able to meet the needs of a diverse customer base.
Understanding the difference between which decisions are the big ones that may need a more creative approach and the ones that we can decide on auto-pilot, can set a team apart from its competitors. A team made up of diverse individuals makes it easier to break down cultural walls and take an inside look at what’s actually relevant and true to a specific demographic. Through diversity businesses can create a better understanding of other cultures and become “insiders” rather than “outsiders.”
Achieving the goals in practice has turned out to be far more difficult than anticipated. So what is going wrong and how can it be put right?
Acknowledge the lack of diversity in the first place.
IN
Firstly, it seems that too many organizations make the fundamental error of failing to align their diversity practices with their organizational goals. And in such situations, no matter how much good will there is towards the concept of diversity, the harsh realities of running the business on a day-to-day basis, of keeping customers satisfied, of selling and delivering the product or service will keep undermining it. And secondly, there is often a mismatch between how organizations design diversity policies and how they implement them. Or to put it another way, what looks good on paper too often falls apart in practice. There are four clear steps towards making workplace diversity a reality:
Taking the cultural-blindness approach and choosing not to notice differences isn’t helping anyone. For many people, it may feel like walking on eggshells, unsure of what to say or how to react, but, the way of the future is to acknowledge a change that needs to happen in the first place.
The truth is, microaggressions are committed by even the most wellintentioned people and staffers should have access to decompress and share resources within a company-sanctioned safe space.”
When employees feel respected and understood, they are more likely to be engaged in their work. In a workforce where 70% of employees are not engaged, improving the cultural respect and racial diversity may lend towards greater engagement and job satisfaction. Lamar Perry advises to “develop affinity groups within your company which allows participants to speak with other staff of color, at various levels within the organization.
Diversity has been shown to boost creativity, and it’s no secret that companies are always looking for the next big thing. In my experience, that dynamite idea usually comes from thinking outside-the-box. When people come from different backgrounds, have a variety of life experiences, and see the world in unique ways, multiple perspectives are brought to the table.
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Clearly identify what you are trying to achieve.
Many organizations aim to realize the performance potential of diverse teams, by then implement diversity policies primarily designed to impact the representation of certain social groups in leadership positions. Only by understanding what the ultimate goal is can you have a chance of reaching it.
Don’t ‘copy and paste.’
Every organization is unique, so every diversity initiative needs to be too. Simply borrowing one from somewhere else is unlikely to work. Which is perhaps why, for example, efforts to duplicate Norway’s approach to boardroom diversity in other places have largely proven unsuccessful, mainly because
“We Keep on Thriving”
those other places don’t have the Norwegian history nor the Norwegian social infrastructure and gender norms behind them. Every program needs to take into account the specific culture and context of its host organization if it is going to do the required job.
Good design is important but good implementation is vital.
In the corporate few diversity initiatives survive contact with operational management. Simply handing over even the best designed program to individuals who may not have the tools, the capability or perhaps the motivation to implement it is likely to be a recipe for disaster.
Win ‘hearts and minds.’
UNITY IN DIVERSITY UNITY IN DIVERSITY
Successful initiatives answer the basic question, “Why should I do this?” If individuals within the organization cannot see the benefits of a program (or even worse if they identify disadvantages) then it will ultimately fail. It’s a cliché to say that nothing worth achieving comes easily. But it’s also true. And the benefits of true workplace diversity are so obviously attractive that the challenges inherent in it simply have to be addressed.
UNITY IN DIVERSITY UNITY IN DIVERSITY
Since the start of the global pandemic in 2020, there’s been a collective reassessment of the role that work plays in people’s lives. We’ve taken this moment as an opportunity to reexamine how we support Googlers while they’re here. As everyone navigates changing attitudes towards what it means to build a meaningful career in a sustainable work environment, our dedication to helping our employees succeed is deeper than ever.
Traditionally, the way organizations arrange recruitment teams requires one recruiter to focus entirely on networking and building relationships for diversity recruitment on their own. But this isn’t the most effective strategy to spur company-wide change, explains Morales. Traditionally, the way organizations arrange recruitment teams requires one recruiter to focus entirely on networking and building relationships for diversity recruitment on their own. But this isn’t the most effective strategy to spur company-wide change, explains Morales.
“Every recruiter should be a diversity recruiter.”
- Meredith Morales
In 2020, we began a concerted and proactive effort to help end the systemic racism experienced by Black communities for generations. Research shows that from healthcare to everyday interactions with colleagues, racism and bias exist across experiences of Black people around the world. So for our Black employees, we focused on creating more support across their entire experience. For example, we piloted a new onboarding program for Black employees. The program is tailored to each employee’s experience level and provides mentorship and resources tailored to guide them through the first few months. So far, 80% of pilot participants say they’d recommend the program to other Black employees.
Instead of assigning diversity recruitment to only one recruiter in your department, take a creative spin: “Every recruiter should be a diversity recruiter,” Morales recommends. Supporting diversity in the workplace starts with collaborative, team-based thinking—a mindset Morales has refined through 12 years of consulting with organizations on diversity and recruitment strategies. To make diversity recruitment more inclusive, she encourages companies to strengthen the cultural capital and skill of their teams.
When considering employment, 67% of job seekers deem workplace diversity as an important factor in their decision process, especially for Millennials who make up the majority of the workforce. According to a Deloitte survey, 75% of millennials believe an organization is more innovative when it fosters a culture of diversity and inclusion, and are thus more likely to leave if the company doesn’t meet their standards of diversity. If you want strong talent, you need diversity. It is time for organizations to use their curiosity to shift their culture and help everyone win.
35%
Diverse teams outperform non-diverse ones by of job seekers factor in workplace diversity when considering applying to a company.
67%
We improve retention by studying attrition rates and designing programs based on that data to help employees stay and thrive. In 2021, we improved retention for women globally and Black+ and Latinx+ employees in the U.S. This milestone is a reflection of our commitment across the entire company, from the community support forums developed by the Inclusion Programs team to the signature 1:1 support provided to employees by the Stay and Thrive team.
We’re heartened by this progress and will continue to grow our efforts to help Googlers feel a deep sense of belonging. For 2021, we changed how we measure attrition to more accurately reflect workforce trends. More details about our methodology can be found in the Data Methodology section of this report. We will use this methodology going forward, however, you can view data from our previous method in BigQuery at https://console. cloud.google.com/marketplace/product/bigquerypublic-datasets/google-diversity-annual-report
Weave inclusion into the fundamentals of your recruitment processes, from recruitment fairs at universities to internship programs, so that you are collecting a diverse pool of recruits for your openings. The reality is that only about 15% of firms have special college recruitment programs for women and minorities, and only 10% have mentorship programs, yet, the firms that do emphasize these types of programs have a 9-24% increase in minority representation in management.
In order to increase the recruitment of diversity, begin by visiting campuses who successfully embody and bolster diversity. (Here is a source that outlines Universities’ diversity index ratio.) Walking onto campus, you will already have an increased chance of reaching a broader demographic. The more establishments and institutions support one another for their diversity, the more valuable and accepted it can become.
White Americans create the majority of the workforce. Studies have shown that the nation’s labor force is 78 percent white, 13 percent Black, 6 percent Asian, 2 percent Biracial, and 1 percent American Indian.
Moreover, people of Hispanic or Latino ethnicity, who are of any race, represented 17% of the workforce. Moreover, 95.8 percent of Fortune 500 CEOs identify as white, non-Hispanic individuals. About 1.2 percent of Fortune 500 CEOs are Hispanic, 0.8 percent are Black, and 1.8 percent are Asian.
“Having leaders who reflect what the company values means so much for building workplace diversity,” says Awwad. “That’s why I take my role as a leader very seriously in this organization. I know other women within are looking to me as an example.”
A 2018 Diversity and Inclusion report from Deloitte strengthens Awwad’s point, demonstrating how inclusive leaders play an integral role in shaping the perceptions of employees and their productivity. Authors of the report found that “the behaviors of leaders can drive up to 70 percentage points of difference between the proportion of employees who feel highly included and the proportion [of employees] who do not. This effect is even stronger for minority groups,” according to Deloitte.
Companies with greater than 30% female executives were more likely to outperform those with 10% – 30% women executives.
Companies with above-average diversity achieved
19% Companies with above-average diversity
After over two years of working remotely, we recognize that the future of work is flexible—and that it’s our responsibility to make every workplace even more inclusive and accessible. Now that we’re moving closer to a hybrid working world, we know our policies and strategies can’t be one-size-fits-all. So this year, we took action to make all our offices inclusive, with new global guidance on best practices, office design experiments, and more.
Instead of making diversity training mandatory, implement voluntary training opportunities on diversity. This shifts the mindset from, “I am forced to learn about this” to, “I am making the choice to show up, therefore, I must be prodiversity”.
The training can’t be a one-and-done event. According to Christina Blacken, “becoming anti-racist and creating an anti-bias lens is like the gym. It’s a lifetime commitment of training and dedication which builds your strength, endurance, and changes your body and mind.”
Make diversity training an available option for managers, without being forceful.
People don’t like being told what to do and having opinions forced upon you often can backfire. Forcing choice upon your staff will create followers, giving them a free choice (based on your recommendation) will create leaders. A study from the University of Toronto observed White participants who read a brochure about prejudice towards Blacks. When the participants were pressured to agree with the content, it actually strengthened their bias against Black people, whereas when given the freedom to choose their opinion, their bias was reduced.
Instead of planning an annual one-time workshop or day of training, implement a series of events, celebrations, and programs for continued learning and awareness. Create organization-wide awareness of culturally diverse events. Leverage online diversity calendars to be shared with staff to keep them informed of every religious, cultural, or racial holiday. The more informed and aware your staff becomes, the easier it is to support and celebrate differences while planning business schedules to accommodate everyone. This practice will help shift diversity training from a lecture into a culture.
Create a culture that embraces diversity so much so that employees feel strange when a meeting is filled with a single demographic or gender.
The national GDP would increase $25 billion if just 1% more disabled people were hired.
Companies in the top 25% for ethnic and cultural diversity were 36% more profitable than those in the bottom 25%.
“Diversity is having a seat at the table, inclusion is having a voice, and belonging is having that voice be heard.”- Liz Fosslien
To understand the challenges diverse employees are grappling with in the COVID-19 environment, we recently conducted surveys and interviews and examined data across 11 developed and developing countries (see sidebar, “Our survey methodology”). We discovered that workers across demographic groups and geographies reported a remarkably similar set of challenges related to mental health, work–life balance, workplace health and safety, a missing sense of connectivity and belonging with colleagues, and concerns about job opportunities.
Employees who identify as lesbian, gay, bisexual, transgender, queer, or gender nonbinary (LGBTQ+) disproportionately fear losing ground at work and report feeling isolated. They report more acute work-related challenges than their straight and cisgender peers, including workload increases and stress over performance reviews, as well as a heightened loss of connectivity and belonging. This may contribute to the fact that LGBTQ+ employees are more likely to report challenges with mental-health issues.
McKinsey research shows that companies in the top quartile for diverse leadership teams outperformed less diverse peers on profitability. Stalled progress on diversity will make a long and challenging road even tougher. It may also result in negative perception among customers, current employees, and potential talent who increasingly view diversity as a priority. And this may only increase going forward—our 2019 Women in the Workplace research finds that younger generations in particular are twice as likely to raise the need for DEI than older employees. Finally, the qualities that characterize diverse and inclusive companies—notably innovation and resilience— will be crucial as companies recover and transition to the next normal.
Women face disproportionate stress. Across geographies, women are struggling more than men across personal as well as professional fronts. Women are 1.5 times as likely as men to cite challenges pointing to a “double shift”: acute challenges with mental health and increased household responsibilities. Women are 1.2 times as likely to cite acute difficulties with workload increases, connectivity and belonging in the workplace, having a healthy and safe worksite, performance reviews, and physical health. One of the most profound differences appeared around mental-health issues in the United Kingdom and the United States, where women are 2.9 times and 2.6 times as likely to report acute challenges, respectively, compared with their male counterparts.
McKinsey research shows that companies in the top quartile for diverse leadership teams outperformed less diverse peers on profitability. Stalled progress on diversity will make a long and challenging road even tougher. It may also result in negative perception among customers, current employees, and potential talent who increasingly view diversity as a priority. And this may only increase going forward— our 2019 Women in the Workplace research finds that younger generations in particular are twice as likely to raise the need for DEI than older employees. Finally, the qualities that characterize diverse and inclusive companies—notably innovation and resilience—will be crucial as companies recover and transition to the next normal.
People of color single out work safety and career prospects. For people of color across the survey, acute challenges are more commonly felt across workplace health and safety, career progression, and household responsibilities. Concerns over workplace health and safety are perhaps unsurprising given the disproportionate health impacts experienced by people of color. These differences in experiences between POC and white people is particularly stark in the United States. While a smaller share of POC report challenges in the United States than in Brazil, for instance, the gap relative to their white counterparts is much greater. POC in the United States are more likely to cite acute challenges than white Americans.
People of color single out work safety and career prospects. For people of color across the survey, acute challenges are more commonly felt across workplace health and safety, career progression, and household responsibilities. Concerns over workplace health and safety are perhaps unsurprising given the disproportionate health impacts experienced by people of color.
These differences in experiences between POC and white people is particularly stark in the United States. While a smaller share of POC report challenges in the United States than in Brazil, for instance, the gap relative to their white counterparts is much greater. POC in the United States are more likely to cite acute challenges than white Americans.
96 percent of businesses globally have launched innovations in their HR policies and added new resources to support their employees, and they have adopted these changes quickly. Executives report that they have implemented a variety of changes, including expanded remote and flexible work, increased paid and/ or unpaid time off, additional flexibility to move from a full-time to a part-time schedule, expanded policies for how existing paid and unpaid leave can be used, and shortened workweeks
Keeping DEI high on the CEO’s agenda is critical because it means companies are significantly more likely to drive impact through action. Of businesses whose CEOs reportedly prioritize DEI, 97 percent have at least some DEI measures in place and only 3 percent lacked any DEI initiatives. However, of companies that don’t consider DEI a priority, 22 percent didn’t have DEI initiatives. Sharpen the DEI priority.
Putting DEI on the agenda and ensuring there is an empowered leader running the effort is a start, but businesses must dedicate resources—for example, budget and staff—accordingly. Setting and tracking clear aspirations (which only 50 percent of surveyed companies do) will also help to quantify progress even when there are competing attentions. They must find ways to address some of the challenges identified in our survey, including misalignment of financial incentives and a lack of accountability of senior leaders.
We want to maintain the momentum for positive, systemic change we’ve built over the last two years. We remain committed to prioritizing inclusivity and equity in everything we do, from hiring to developing talent, to building new products and services, to designing our offices. Plus, we’ll keep expanding our efforts to help every everyone feel a strong sense of belonging at work and in the world. These efforts will be tailored to regions and communities, because we know equity won’t be achieved with a one-size-fits-all approach.
We also remain focused on holding ourselves accountable for results. In addition to this report, we will continue to share regular progress with Alphabet’s board through reports covering fairness in representation, hiring, retention, performance, and promotion.Looking back at 2021, we’re proud of how we worked to meet people where they are. Our progress has energized our 2022 work—and we hope you’ll follow our journey as we help build a more equitable and inclusive future.
“Cultural differences should not separate us from each other, but rather cultural diversity brings a collective strength that can benefit all of humanity.”
Advice for Women Executives
Business Professional Women’s Foundation (BPW)
Million Women Mentors (MWM)
National Association for Female Executives (NAFE)
Women in Technology International (WITI)
Women+Tech Scholars Program
Career One Stop’s Transition Center
Common Challenges Faced During Reintegration
Resources for Transitioning Veterans
VA Employment Toolkit
LGBTQ+
Corporate Equality Index
Movement Advancement Project
National LGBT Chamber of Commerce
Individuals with Disabilities
Ability Jobs
ADA Checklist
Career Opportunities for Students with Disabilities
U.S. Department of Labor Disability Resources
Historically Underrepresented Populations
American Indian Science and Engineering Society (AISES)
Ethnic Minority Leadership
National Society of Black Engineers
Title VII of the Civil Rights Act
