How to Hire for Diversity and Reap the Benefits

Hiring struggles endure as companies try to employ and retain the talent needed to grow their businesses. The Great Resignation (or Great Reshuffle) continues in many industries as people consider new post-pandemic options. While nearly 4.3 million people in the U.S. quit their jobs in January (2022), there were also 11.3 million job openings, according to the latest report from the U.S. Department of Labor. What does this mean for hiring?

In my last blog post, I wrote about how to lead with empathy in hiring and recruitment practices. Part of leading with empathy is to make sure our workplaces are representative of the society we live in by implementing effective diversity, equity, and inclusion (DEI) hiring practices. This post will explore how companies and hiring managers can help make an impact, even when talent may be scarce.

There is much lip service given to diversity, equity, and inclusion, and some companies are making strides, but many companies are not. This quote resonated with me as a goal for DEI initiatives:

“As a society, if we begin to shape our practices around how we treat people, how our work environments are structured, the Great Reshuffle will end,” states Gina Ganesh, VP of People and Culture at Florence Healthcare. Treating all people well is the right thing to do. And hiring diverse candidates drives real progress, including bottom-line business results.

Diversity Drives Business Results

It has been proven that ethnically diverse companies perform 36% better than companies that are not. We’ll dive into that stat in a minute, but first, some important definitions and distinctions when thinking about a DEI recruiting strategy.

  • Diversity is the range of differences that make people unique, both seen and unseen. (Be mindful that diversity includes not only race and gender, but age, ethnicity, sexual orientation, physical disabilities, and neurodiversity).
  • Inclusion is an environment that engages multiple perspectives, different ideas, and individuals to define organizational policy and culture.

Remember, when you hire for diversity, you get the benefits of inclusion.

An important point according to Janet Stovall, Executive Communications Manager at UPS, in her TED talk. “Let’s be clear: diversity and inclusion are not the same things. Diversity is a numbers game. Inclusion is about impact. Companies can mandate diversity, but they have to cultivate inclusion.”  Stovall is also clear that businesses can be a key force to dismantle racism.

McKinsey has done a series of studies on the topic of DEI and the latest study encompasses 15 countries and more than 1,000 large companies. This latest report, titled Diversity Wins shows that the relationship between diversity on executive teams and the likelihood of financial outperformance has strengthened over time.

See original source for all chart footnotes.

McKinsey explored how different approaches to inclusion and diversity could have shaped the trajectories of the companies in their data set and found two critical factors: a systematic business-led approach to inclusion and diversity, and bold action on inclusion.

One Leader’s Story on Building a Diverse Organization

The business case for DEI is there, but it’s not always easy. I’d like to (anonymously) share the story of a friend of mine who was trying to increase diverse hiring his organization.

He was the head of AI software for products at a Fortune 500 company and specifically set out to hire more female engineers. He met with his managers and discussed ideas. He challenged his staff to look through LinkedIn for candidates. He spent one morning combing through LinkedIn and personally wrote 100 cold/semi-cold emails to prospects.

I think it’s important to note that he didn’t delegate it out. From this initial outreach, he received 35 responses, and he reached out personally to all.  Then he interviewed and hired several of these women.  After a period of one year, 20% of his team were women – from less than 5% – and the percentages were still climbing.  

A couple of things had to happen to make this work. He told his staff that they needed to get involved and invest in their networks – both college alumni networks and other networks of friends and past colleagues.  He made it clear that hiring for diversity is key in jobs at every level. He also made sure that candidates met a diverse group of people within the company during interviews.  His staff was taught to follow up with every candidate personally.  These may seem like small things, but they were game changers for both the new employees and the organization’s depth.

Unfortunately, there is bad news here. Two years after this initiative, there was a full reorganization and my friend parted ways with this company. The commitment to hiring for diversity was not sustained, the DEI focus faded within the organization, and progress was lost. I believe that the moral of this story is that enabling real change takes both time and commitment, and awareness is only the first step.

Beyond the Rooney Rule

The “Rooney Rule” – a diversity initiative started by the National Football League that calls for interviewing minority candidates for top jobs – has been adopted by corporate America, but experts believe it hasn’t made much of an impact.

As companies release detailed information about the diversity of their workforces, the data shows that women and people of color are well-represented in the lowest rungs of many company workforces, but there’s often little representation in leadership roles and board positions. When companies adopt a Rooney Rule, they’re pledging to add at least one candidate to their interview pool to increase gender and racial diversity, but that’s usually not enough to foster real change.

To make a meaningful impact, hiring managers should aim to interview a slate of candidates that’s 30% diverse, according to Alina Polonskaia, global leader of the D&I practice at executive recruiter Korn Ferry. Companies could also set a standard of having their executive ranks mirror the gender and race breakdown of the usually much-more-diverse entry-level workforce. In addition, employers should also use the same diversity standards they are applying for new hires to people being considered for promotions.

How Diversity can be Your Superpower

Let’s take a look at a study focused on hiring for B2B sales roles. This study by Forrester, commissioned by Outreach, confirms it is time for us all to commit to diversity, equity, and inclusion. Since sellers are the first point of contact for a company, sales reps must represent the world around them, and organizations must commit to DEI or risk losing revenue and talent.

Sales leaders understand the need for diverse teams; 67% of respondents say it’s important for their team to represent the world around them. However, although sales respondents in North America say DEI is important, they are not ranking DEI efforts over other priorities. Respondents ranked almost every other sales leadership skill before DEI. Yet, customers are demanding diversity now.

A separate Forrester Study on Diversity Drives Sales Success, reports the following metrics:

  • 60% of respondents stated that diversity within their sales team has contributed to their teams’ success.
  • 82% predict that the racial or ethnic diversity of their sales team will be equally or more important in the next two years.
  • 72% believe that DEI will play an equally important or more important role in business decisions in the next two years.

They conclude that companies with strong DEI practices have better-performing sales teams, including higher forecasts, higher conversion rates, and higher sales attainment.

How to Walk the Walk

The Inclusion Solution blog points out, “it’s not just about introducing shiny new initiatives and hiring the first head of DEIBJ (diversity, equity, inclusion, belonging, and justice) — it’s about displaying a real, sustainable commitment to these efforts through financial and human resources deployed over time… not just when the cameras are rolling and the topic is trending.” 

To that end, here are some strategies and ideas on how to walk the walk and incorporated diversity in your hiring to reap the benefits of inclusivity. Some are tactical tips, others are broader, more strategic initiatives gathered from the reports, experts, and sources mentioned in this blog.

  • Focus on developing an equitable talent process, purposely create diverse and inclusive teams, and create development programs for under-represented groups. (Korn Ferry)
  • When conducting campus recruiting, think beyond Ivy League schools and schools you may be personally connected to, and consider Minority-Serving Institutions (MSIs) (Excelencia in Education)
  • A “work from anywhere” environment can foster diversity hires. In an all-virtual environment, there are very few limitations in terms of where to find talent. (Bloomberg)
  • Challenge your definitions of “professionalism” and “leadership” within your organization – and then hire and promote diverse leaders. (Mac’s List)
  • Broaden your lens on DE&I, including embracing neurodiversity. One big benefit of an inclusive work culture is that it fosters diversity of thought, different approaches to work, innovation, and creativity. (Deloitte)
  • Provide education around and try to use inclusive language. (Mac’s List)
  • Training is a good start, but mature organizations do more. Leaders need to model inclusive behavior, and the organization as a whole needs to value and measure progress toward DEI goals. (Forrester)
  • Strengthen leadership accountability and capabilities for inclusion and diversity (I&D). Companies should place their core-business leaders and managers at the heart of the I&D effort—beyond the HR function or employee resource-group leaders. (McKinsey)
  • Enable equality of opportunity through fairness and transparency. Deploy analytics tools to show that promotions, pay processes, and the criteria behind them, are transparent and fair. (McKinsey)
  • If companies want to do a better job of retaining diverse talent, they can’t go back to “business as usual.” It’s time to make work more equitable, and while flexibility is not the panacea, it is a step in the right direction. (Harvard Business Review)
  • Workers overall want to feel like their boss cares about them. Gen Z wants a culture built on mental health and wellness. (LinkedIn)
  • Flexibility is increasingly prized, particularly by underrepresented groups. Leaders who hope to retain top talent and maintain diversity must act swiftly and deliberately to counter the forces of proximity bias. (i.e., if managers spend most of their time working in the office, that is likely to lead to a double standard of valuing employees who also come into the office). (Future Forum)
  • Continue pushing the conversation forward, even if you don’t have all the answers. DEI strategy is an essential element of building a strong business that is able to attract and retain great talent and connect with a diverse customer base. (Forrester)

As you search out new talent, there are a lot of nuances that you need to consider. Your HR team may have guidelines, and you may want to “go with your gut” in terms of what is right, but there are many factors and issues involved. Educate yourself and become an agent for change, dedicating the time and commitment necessary to foster inclusivity for all.

Leading with Empathy – A New Outlook on Hiring and Retention

As we enter the new year, HR managers and CEOs face a wake-up call. Employee recruitment and retention are major priorities for so many businesses this year, with companies unable to fill positions as we face continued uncertainty with COVID and the Great Resignation – now also being termed the Great Reshuffle.

The most recent statistics from the U.S. labor department said there were 10.6 million job openings at the end of November 2021 and 6.9 million unemployed people – 1.5 jobs per unemployed person. The number of “quits” hit a new high of 4.5 million in November. An article in The Guardian explains, “Quitting, most economists will tell you, is usually an expression of optimism. And yet, 2021’s quits happened against a larger economic picture that remains difficult to interpret with confidence.”

Some of the reasons people are quitting their jobs, according to USA Today and The Guardian, include:

  • Retirement – Most of the 5 million people who have left the labor force since the start of the pandemic are over 55 and have retired – early or naturally.
  • Career or industry switching – Others are switching careers or industries, for example, from restaurants and hotels to technology and warehousing, leaving some sectors with lots of openings and fewer candidates to fill them. Not surprisingly, given the stress on educators over the past two years, teachers are most likely to leave the labor force as compared to their counterparts in other industries.
  • Work-life balance – Thirteen percent of workers said they quit because their jobs didn’t provide work-life balance.
  • Care insecurity – Related to work-life balance, mothers with college degrees and telework-compatible jobs were more likely to exit the labor force and more likely to be on leave than women without children. One of the underlying reasons is an unequal distribution of labor at home and a critical degree of burnout contributing to “care insecurity.” Care insecurity is defined as uncertainty about daycare and school schedules that are unpredictably interrupted by periods of quarantine prompted by exposure to COVID.
  • Entrepreneurship – One-third of workers quit jobs to launch businesses. This may be either necessity- or innovation-based entrepreneurs.

The short-term outlook for the labor market suggests workers are likely to continue to have considerable bargaining power in 2022, says Indeed in its 2022 Labor Market Outlook report. But interestingly, job seekers remain hesitant. Active job search – that is, people taking specific steps to land work, like responding to job ads – hasn’t budged since the summer.

Where does all of this leave employers as they seek to recruit solid candidates to fill open positions?

Recruiting During a Time of Resentment

From the conversations I’ve had with friends, family, and colleagues recently, businesses that are hiring aren’t doing themselves any favors. Too many companies are approaching recruiting without empathy making it difficult to recruit good people. At the same time, prospective employees are hesitant and may have negative experiences with previous employers. Maybe it’s time for HR Managers to take a step back and look at their hiring processes.

You’re essentially recruiting during a time of resentment. People are disheartened, they’re tired, they’re sick of COVID, and at times sick from COVID. They may be working in an industry, such as healthcare, teaching, hospitality, or retail, where they are on the front lines every day and are looking for something different and less stressful. On the other hand, many office workers have the advantage of being able to work remotely, but that has its challenges as well. Are they being supported and mentored? Are they learning and growing? If this is going to be the new normal – rather than just a phase to get through – are you fully invested in making it successful?

New recruits will be precious resources in your company. Do you understand how to communicate effectively and listen to their thoughts and ideas?

5 Tips for Hiring and Retaining Employees with Empathy

Here’s a collection of tips for hiring with empathy. I believe that companies who approach their hiring process this way demonstrate to recruits that they support their employees and provide a positive work environment. Empathy then needs to be reflected in the workplace to retain your talent.

  1. Stop Ghosting Prospects

Maybe this should be common sense, but it’s not. If a candidate has taken the time to interview with you, they at least deserve a response – positive or negative. And a candidate who may not be right for a specific position today may be worth connecting with in the future, so keep that door open. Although many companies are using recruiting technology to automate the hiring process, we need to remember that there are real people behind each resume.

Fifty-two percent of job hunters say a lack of response from employers is their biggest frustration, according to Websolutions. In the current hiring environment, candidates have higher expectations for proactive, transparent, and frequent communications from employers. This needs to be communicated from the heads of HR to all the hiring managers involved in the process. If your current screening process is handled by a bot, you could be losing out to great people including referrals from current employees.

2. Prioritize Soft Skills

LinkedIn’s Global Talent Trends survey shows that bad hires are almost never a matter of hard skills alone. Prioritize soft skills – such as creativity, persuasion, collaboration, adaptability, and time management – in your hiring process. Although hard skills certainly matter, most hiring and firing decisions come down to soft skills.

 Part of the issue is that soft skills are more difficult to evaluate than hard skills. You can reasonably determine if a programmer has the right coding skills, or a translator has the right language skills, to perform adequately in their jobs. However, identifying poor soft skills is much harder, which is why this is often discovered too late, after a hire has been made.


Source: LinkedIn

3. Fully support Flexibility and Remote Work

Pre-pandemic, businesses expected that in five years 38% of their remote workforce would be fully remote, while today they expect 58% to be fully remote in five years, says Upwork in its Future Workforce report.

Career Builder adds that 35% of job seekers say they will turn down an offer if the employer does not offer a remote work option. The pandemic has forced the issue of remote work and flexible work schedules, making it a priority for employees. As companies consider return-to-the-office policies, they must realize there has been a mindset shift for many employees, and flexibility is now valued more than ever. It may be better for business too.

An Airtasker survey shows on average, remote employees work 1.4 more days every month, or 16.8 more days every year, than those who work in an office – and on workdays, they spend more time getting things done. Many workers are more productive and less stressed in a work-from-home environment since there is no commute, less water cooler talk, and more opportunity to fit exercise into their daily routine.


Source: Airtasker

4. Hire People You want to Coach

As a certified, professional coach, I spend time coaching people on energy leadership, and how you “show up” truly matters. Are you hiring people who will show up with an positive attitude and a mindset to think out of the box, bring all their creative skills, and work as a team?

Companies need to look at their interviewing process in a couple of ways. Are they looking to find the perfect candidate, or can they hire for aptitude and attitude? If they can identify the right aptitude and attitude, will the company culture embrace that and provide the training to help them grow? You may want to map out your hiring process from the humanistic viewpoint.

5. Listen to People to Retain Them

Once you’ve hired good people, you need to work hard to keep them. According to a recent Fast Company article, 2022 will be a key year for companies to live up to their promises to employees, or risk losing them. The best way to retain workers includes listening to their needs, accommodating their different work styles, and addressing inequities.

One member of the Fast Company Impact Council, Angie Klein, CEO of Visible, predicts, “We’re going to see a pretty big shift from talking about The Great Resignation to ‘The Great Retention,’ with [companies] focused on doing what it takes to keep talent. Employees aren’t really leaving because they’re unsatisfied—some are—but because they want to see what’s out there at a time when it seems far less risky to do so. Putting in proactive-retention measures while ensuring that we manage to drive meaning and purpose—there will be a heavy focus in retention like we have never seen before in corporate America.”

One employee retention tool that is gaining popularity is the “Stay Interview,” where a manager sits down with an employee to explore what it takes them to stay at the company. Ideally, these are regularly occurring conversations, built on a foundation of trust, where the employer doesn’t only focus on the job, but the individual’s professional and life goals.

Conclusion

Recruiting and retention are always challenging, but our current environment makes it even more so. However, I don’t believe the number of jobs out there is the reason you can’t find good people. I believe the primary issue is that companies are not putting the proper emphasis on recruiting and retaining talent, including a humanistic approach.

To find the right people, you may want to look at your processes and see if you can create a more empathetic way to attract and keep the best people.

A Coach’s Insider Advice for Filling Open Positions

As a coach and a mentor, I’m often asked for advice from job seekers. We are in a unique job market right now, a recent survey by Bankrate shows that 55% of Americans anticipate looking for a new job over the next year. This phenomenon has been nicknamed the Great Resignation by media outlets.

In response to the pandemic, “there have been a lot of epiphanies and reckonings that have occurred … with respect with how we’re prioritizing ultimately our values, and of course how work fits into that,” says Mark Hamrick, senior economic analyst at Bankrate, the company that conducted the research. Americans are prioritizing flexible work arrangements, higher pay, and job security in their search.

Flexibility is now the fastest-rising job priority in the U.S., according to a poll of more than 5,000 LinkedIn members. Working parents want to adjust their hours to suit their parenting schedules, single people want the freedom to change cities, while still keeping the same employer. Freedom and personal control within a job feel like much more vital priorities.

And yet, there hasn’t been much change in the hiring and recruiting process. As companies look to fill roles, there are too few people for open positions.  Hiring managers and staff are investing more of their own time and paying recruiters, but jobs remain open. It’s time to shake up the process and hire for aptitude and then invest in training good people.

According to the Bureau of Labor Statistics, job openings surged to an all-time high of 10.1 million at the end of June, outnumbering the 8.7 million unemployed individuals. Given these stats, you would think that companies would be trying hard to connect with job seekers and make the right fit to fill these open positions. But companies and hiring managers need to think outside the box and expand their horizons. Are you actively looking to recruit women who have taken a break from the workforce with flexibility and daycare options? Are you proactively reaching out to diverse talent sourcing and recruiting associations? Have you considered making your educational requirements less stringent to open the pool of candidates to those with relevant life experience? Are you considering the value of older candidates who can bring years of knowledge and mentorship to the position?

Rather than stick to the way your company has always done things, focus on aptitude, empathy, and coachability. Here are some insightful questions that should prompt real conversations about success that can be accomplished if the company and candidate end up working together.

  1. Tell me about an achievement that you are proud of – either personal or professional – and what you did to make that happen. This is very open ended and lets the candidate demonstrate goals and success.
  2. In your research on our company, what is something you found that we could change or do differently to be more successful? This will let the candidate know you are open to their input and will may uncover some new ideas from a fresh perspective.
  3. How do you think you can make a difference in our organization? Again, it gives the candidate a chance to show big picture thinking and define what success could look like.
  4. What skills are you working on improving, and how do you plan to get there? The opposite of the “weakness” question, this is a positive spin on skill development and opportunities, and shows if someone is a lifelong learner.
  5. Do you feel that you would be a good cultural fit here? If not, what could we do differently? This can start discussions on diversity and supporting all employees. Although some candidates may not feel comfortable opening up, if the interviewer lets the candidate know they are striving to be inclusive, it may go a long way.

An interview shouldn’t be an interrogation or include tricks or puzzles to solve to make it to the next level.  Adam Grant, organizational psychologist at Wharton, recently wrote an article for The Wall Street Journal, titled, The Real Meaning of Freedom at Work, in which he states, “For several generations, we’ve organized our lives around our work. Our jobs have determined where we make our homes, when we see our families and what we can squeeze in during our downtime. It might be time to start planning our work around our lives.”

As you are recruiting to fill open roles in your organization, do so with the goal of truly assessing the fit of this person for this role and your organization – and do so with an open mind toward hiring for aptitude.