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Strategies for Managing a Diverse WorkforceCrystal Spraggins, SPHR
Workplace Consultant
Mykkah Herner, MA, CCP
Director of ISX Services
PayScale, Inc.
www.payscale.com
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14,000 Positions 3000 Customers 11 Countries
250 Compensable Factors40 Million Salary Profiles
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AgendaDefining the IssuesWhat is Diversity
Diversity and compensationEnsuring Fair Pay
Addressing manager favoritism
A note about negotiation
Diversity beyond compensationDiversity vs Inclusion
Employee Relations
Training & Development
Immediate Actions
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Defining the Issues
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Why Are We Talking about Diversity?
Who needs to hear about diversity in 2015?
Haven’t we “been there/done that” already?
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Defining the Issues Diversity presents challenges.
Bias is a universal human trait, and each of us is limited by our own perceptions and life experiences.
In the workplace, our bias both FOR and AGAINST certain differences can create trying situations.
Like most other aspects of your business, diversity must be managed to realize the benefits and avoid the pitfalls.
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What Do We Mean By “Diversity”?
When we talk about diversity in the 21st
century, we’re covering a wide range of differences:
• Protected classes under Title VII and amendments
• Protected classes under other federal laws
• Protected classes under state and local law
• Anything we identify as “other.”
• Generation
• Personality/Style (e.g., Scrappy vs Country Club, Introvert vs. Extrovert)
• Socioeconomic Status/Class
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The Workforce Is Becoming Larger and More Diverse
• According to the DOL, the workforce is becoming both larger and more diverse.
• In 1995, the U.S. was estimated to be 83 percent white; 13 percent black, 10 percent Hispanic; 1 percent American Indian, Eskimo, and Aleut; and 4 percent Asian and Pacific Islander (Bureau of the Census).
• In 2050, those numbers are estimated to be 53 percent white; 25 percent Hispanic; 14 percent black; 8 percent Asian and Pacific Islander; and 0.9 percent American Indian (Bureau of the Census).
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But even if the workforce isn’t becoming more diverse
… our customers certainly are.
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Bias and Workplace “Currency”
Types of workplace currency
• Cash
• Work assignments
• Development opportunities
• Promotions
• Perks (e.g., working from home)
• Favor
Currency greases all the workplace wheels
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Diversity and Compensation
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To ensure fair pay:
• Develop a plan (philosophy, strategy, structure, policies/guidelines, and processes)
• Identify and resolve biases in compensation
Ensuring Fair Pay
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Develop Your Plan
Philosophy – What are we trying to accomplish?
Strategy – How can we carry out the philosophy?
Structure – Pay grades and ranges support the strategy.
Guidelines – Keep us aligned with our overall aims for compensation.
Processes – Give step-by-step instructions.
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Identifying and Resolving Inequities
• Evaluate your Comp Plan Annually*o Current Pay Structure – Range Adjustmentso Hot jobs – Market Adjustmentso Employee concerns – Equity Adjustments
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Equity Pay Self Audits – Pros and Cons
• An internal equity pay audit is an excellent way for a company to determine whether pay inequities exist and if so to correct those inequities on the company’s own terms and in its own time.
• Conduct pay audits with the assistance of a qualified attorney, and be prepared to act on whatever you find.
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Hirable Like Me
• Lauren Rivera of the Kellogg School of Management decided to study hiring practices because she considers hiring “one of those critical gate-keeping moments whereby the judgments we make about people have enduring effects.”
• In a 2-year period, Rivera conducted 120 interviews with hiring professionals at elite firms, 40 each from the fields of banking, consulting, and Big Law. Her big takeaway? Similarity matters.
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Manager Favoritism
Favoritism affects:
• Hiring
• Pay increases
• Promotions
• Training and Development opportunities
• Work assignments/projects
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A Note on Negotiation
• Numerous studies have found that women are much less comfortable and much less likely to negotiate pay than men.
• However, the law does not recognize “superior negotiating skills” as a valid explanation for pay inequities. You shouldn’t either.
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Diversity beyond Compensation
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Diversity without inclusion is a lose-lose proposition that negatively impacts both ENGAGEMENT and RETENTION.
Diversity vs. Inclusion
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Employee Relations
• Employee relations issues will intensify and magnify when conflict surrounding differences go unaddressed.
• To mitigate sticky employee relations issues, develop clear antidiscrimination policies and enforce them consistently and fairly; promptly investigate complaints; and learn the art of de-escalation.
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Training and Development
• PayScale’s 2015 Compensation Best Practices Report found that 18 percent of workers left their jobs last year in search of advancement opportunities and that 60 percent of employers expect to offer development opportunities as a means of retaining employees.
• In other words, training and development is valuable workplace currency that should be treated with care.
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Immediate Actions
Examine your workforce – who works at your organization? What types of diversity do you already celebrate? Where is there room for improvement?
Assess your managers’ skillsets – do they have the capacity to effectively create an inclusive environment?
Review your comp plan – is it set up in a way to minimize or eliminate discrimination concerns?
Explore the forms of workplace “currency” in place at your organization – are they set up for success?
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Visit our blog: www.payscale.com/compensation-today
Join our Group on LinkedIn: Compensation Today: HR Best Practices
Crystal Spraggins, SPHR
Workplace Consultant
Mykkah Herner, MA, CCP
Director of ISX Services
www.payscale.com
