From Good Intentions To Lasting Impact

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From Good Intentionsto Lasting ImpactState of Diversity Hiring Report 2021

Table of ContentsIntroduction2Methodology3Key Findings4Who Took the Self-Assessment5Barely Scratching the Surface6Extending a Warm Welcome to All10Action Items11Working Without a Plan12Setting the Strategy From the C-Suite17Action Items17Budgets Haven’t Budged18Investing in Relationships With Diverse Talent Communities23Action Items23Neglecting Opportunities for Internal Talent24Making the Most of Your People31Action Items31Bias Keeps Creeping In32Developing Holistic and Inclusive Hiring Processes40Action Items40Conclusion41SmartRecruiters Diversity Talent Advocates42About SmartRecruiters43From Good Intentions to Lasting Impact1

IntroductionBusiness leaders at the smallest startups tothe biggest global corporations have publiclycommitted to taking action against bias anddiscrimination in their own workplaces. But howmuch have they succeeded?Rather than leave them to guess, the team atSmartRecruiters worked together to create aDiversity Hiring and Success toolkit accessibleto companies of all sizes and industriesat no cost, regardless of whether they areSmartRecruiters customers. The toolkit includes: iversity Hiring Maturity Model and Standards ofDSuccess: Clear criteria by which organizations can beevaluated to assess their diversity hiring capabilities.The Model is built upon four Success Pillars. iversity Hiring Assessment: A comprehensiveDquestionnaire to understand your current level ofcompetency and identify areas of improvement. iversity Hiring Blueprint: A custom report basedDon your self-assessment that provides bespokeguidance and actionable insights based on your levelof maturity.Hundreds of business leaders have alreadycompleted the Diversity Hiring Assessment,empowering them to develop a clear,actionable plan to achieve their strategicdiversity hiring goals. Their aggregatedresponses also represent a snapshot of the stateof diversity hiring — highlighting where mostorganizations are falling short and where theycan make their biggest gains.However, this report is more than just acollection of tables and charts. We’ve alsoincluded trends and insights, our favorite D&Isuccess stories, and actionable tips to get youmoving as you attract and retain the diversetalent you need.The Diversity Hiring Maturity ModelThe Diversity Hiring Assessment evaluates your hiring capabilities across all 12 standards (and four success pillars) usingthe Diversity Hiring Maturity Model. This rubric assigns a score corresponding to the level of sophistication and rigor theorganization has invested, starting with Level 1 (Diversity Talent Aware) to Level 4 (Diversity Talent Ally).Level 1Diversity TalentAWARE2Level 2Diversity TalentINVESTEDLevel 3Diversity TalentCOMMITTEDLevel 4Diversity TalentALLYFrom Good Intentions to Lasting Impact

Methodology401The report is based on 401 self-assessments,completed Jan. 18-June 25, 2021. Respondentswere intercontinental. More than half ofrespondents (53%) work in North America, with39% in Europe, the Middle East and Africa, and8% in Asia-Pacific.The information contained in this report, as wellas sample policies and other recommendedhuman resources “best practices,” is not legaladvice. Rather, it is intended to provide guidancefor companies to achieve hiring success by usingtheir own policies, procedures, or HR programs.Self-assessments53%of respondents were in North America39%of respondents were in Europe, the Middle East and Africa8%of respondents were in Asia-PacificThis report is more than just a collectionof tables and charts. We’ve also includedtrends and insights, our favorite D&Isuccess stories, and actionable tips to getyou moving.From Good Intentions to Lasting Impact3

Key FindingsBarely Scratching the SurfaceMany organizations are missing out on the most basic opportunities to share theircommitment to building a diverse and inclusive workforce with potential applicants.Working Without a PlanMany employers’ recruitment plans are neither strategic nor specific enough to movethe needle.Budgets Haven’t BudgedEmployers aren’t adequately funding their D&I initiatives in line with their publicly statedgoals. Meaningful progress requires aligning investment with intent.Neglecting Opportunities for Internal TalentFair and competitive internal hiring plays a critical role in D&I success, yet manyorganizations are failing to engage the diverse employees they already have.Bias Keeps Creeping InFair hiring processes add perspective, consistency, and structure to the hiring process,ensuring that all hiring touch points minimize bias. However, many employers have yetto adopt known best practices for minimizing bias in recruitment and promotion.4From Good Intentions to Lasting Impact

Who Took the Self-AssessmentParticipants typically represented small to midsize companies. Nearly half came from the U.S. and nearlya quarter from the U.K. Almost a quarter work in the technology sector.By RegionBy Company Size8%17%1-2,999 employeesNorth America53%39%10%Europe, the Middle Eastand Africa3,000-4,999 employees5,000-9,999 employees7%Asia-Pacific66%More than 10,000 employeesBy IndustryTransportationInsuranceMediaGovernmentNot for ProfitConsumer Packaged GoodsTelecommunicationsElectronicsAgricultureFrom Good Intentions to Lasting tionsUtilities5

Barely Scratching the SurfaceAnd yet, many organizations are missing outon the most basic opportunities to share theircommitment to building a diverse and inclusiveworkforce with potential applicants throughthese public-facing channels. For example,15% of people who completed the assessmentreported that they featured underrepresentedgroups on their company website, careerchannels and other recruiting collateral lessthan 10% of the time.The first step to attracting diverse talent is tofoster Diversity Brand Equity, or the abilityto allow underrepresented candidates tosee themselves working for you throughvarious brand interactions. By investing inyour Diversity Brand Equity, you do more thanprotect your overall brand reputation. You alsogive your organization a powerful competitiverecruitment advantage, one that improves yourorganization’s ability to prioritize attraction,accessibility, and positive interactions, creatinga better candidate experience for the talent youneed.In some industries, the gap is even more acute— Energy, Food, Technology and Financeparticipants were far more likely than theirpeers in other industries to report featuringunderrepresented groups less than 10% ofthe time. Perhaps most surprisingly, so wereConsumer Packaged Goods respondents — anindustry that absolutely depends on diverseperspectives to serve its customers well.This encompasses the language and imageryyou use in your job advertisements, yourinterview processes, and the many momentsthat make up the candidate experience. Themore inclusive these touch points are, the easierit is for historically excluded candidates to seethemselves thriving at your organization.What percentage of the time does your company website, career pages, blogs, social media channelsand other collateral contain images of underrepresented groups?Less than 10% of the time10% to 19% of the timeOverallMore than 30% of the timeBy Region15%48%19%EuropeAsia & Pacific18%Africa33%67%South/Latin AmericaNorth America620% to 29% of the 0%From Good Intentions to Lasting Impact

What percentage of the time does your company website, career pages, blogs, social media channelsand other collateral contain images of underrepresented groups?10% to 19% of the timeLess than 10% of the time20% to 29% of the timeMore than 30% of the timeBy 8%20%Consumer Packaged r-Profit18%25%UtilitiesFrom Good Intentions to Lasting Impact75%100%7

What percentage of the time does your company website, career pages, blogs, social media channelsand other collateral contain images of underrepresented groups?10% to 19% of the timeLess than 10% of the time20% to 29% of the timeMore than 30% of the timeBy Company Size3,000-4,999 employees5,000-9,999 employeesMore than 10,000 employees18%19%27%38%27%8%16%47%16%20%1-2,999 employeesYet, we found that only about one-quarterreported that their organizations have thesefunctions working closely together more thanhalf of the time.3%61%16%Building Diversity Brand Equity isn’t a task thatcan be left to the D&I team alone. Attractingdiverse talent requires a deliberate, highlystrategic partnership between your D&I, talentacquisition, and marketing teams.18%43%23%How often do your company’s D&I, talentacquisition and marketing functions worktogether to create content?10%10%N/A15%Less than 25% of the time26% to 50% of the time41%24%51% to 75% of the timeMore than 75% of the timePeople are well-intentioned. Theyreally want diversity. But nothing’schanged in the last decade. Why?The reality is that companies are notdoing the simple things.— Jerome TernynckFounder & CEO of SmartRecruiters,the Hiring Success Company8From Good Intentions to Lasting Impact

Our understanding of diversity has grownmore inclusive. In many cases, however,external recruiting collateral hasn’t keptpace. Participants reported higher rates ofrepresenting gender, race and ethnicity, andage in their employer branding collateral.However, they reported underrepresentingsexual orientation, parental status, disability,and religion.Each of those gaps represents a chance to makemeaningful progress.Are the following categories represented onyour company website, career pages, blogs,social media channels and other collateral?NoYesRace15% 85%Religion84%16%Age39%61%Disability82%18%Gender9% 91%Parental Status78%From Good Intentions to Lasting Impact22%9

Extending a Warm Welcome to AllCielo has a shared commitment to providing opportunity for all, regardless of what they look like, wherethey come from, how they worship, or who they love. They are committed to being an organization thatencourages employees to be their authentic selves.We are working to create a frameworkthat supports the unique challengesthat each of our regions experienceswhile also accounting for globalcommonalities that we can addressmore broadly.— Molly ThielChief HR Officer at CieloThis vision is brought to life at Cielo throughstrengthening the role all of Cielo’s leadersplay in shaping a culture of diversity, equity,inclusion, and belonging (DEI&B), supportingteams in going beyond awareness andempowering them to take action, expandingglobal employee resource groups (ERG), andimproving the overall hiring experience andprocess.One of the most successful programs at Cielo has been its global “Inclusion Infusion” sessions. “Theseare peer-led conversations that happen within all of our regions,” explains Molly Thiel, Cielo’s Chief HROfficer, “pulling together employees at every level to discuss impactful topics such as microaggressionsand neurodiversity.”Cielo is now focusing on ERGs and other resources to support the areas of disability and neurodiversity,race, ethnicity, culture, heritage, and religion after experiencing success with one of their first anchor ERGgroups for the LGBTQIA community, as well as first responders.“As a global organization, we realize there are both global and local systems that use factors like race andethnicity to both discriminate or disenfranchise. We are working to create a framework that supports theunique challenges that each of our regions experiences while also accounting for global commonalitiesthat we can address more broadly,” Thiel says.10From Good Intentions to Lasting Impact

Cielo is taking what they’ve learned with their own strategy-building and journey to help their clientsimprove their DEI efforts. Cielo’s consultants help audit their clients’ DEI candidate journeys fromattraction to onboarding.“We help TA leaders map where they are and where they want to be on their DEI journey to uncovertheir biggest opportunities,” says Jacquese Brown, Cielo’s Senior Diversity, Equity, and InclusionProgram Leader. Often, recommendations include strategies to magnify diversity messaging as part of anorganization’s employment brand, build segmented recruitment marketing campaigns, and identify keypartnerships for diverse talent pipelines.To support their clients in developing and executing a fair, equitable hiring process, Cielo requires alltheir recruitment teams to complete a diversity certification to mitigate the effects of unconscious biason hiring funnels.Action ItemsA lot of people think of DEI in termsof racial and gender statistics only.Representation is important, but onlyone piece of a broader puzzle. Wehelp clients move beyond checkingboxes to an all-inclusive, equitable,and strategic hiring experience.— Jacquese BrownSenior Diversity, Equity and InclusionProgram Leader at CieloFrom Good Intentions to Lasting ImpactMake sure your commitment to diversity issupported publicly by multiple organizationleaders, starting with your CEO.Develop a partnership between TA,marketing, and D&I to create content thathighlights values, culture, and diversity.Promote benefits that might appealto individuals who represent variousdimensions of diversity (partner benefits,EAP, maternity leave).11

Working Without a PlanThe more intentional and deliberate yourdiversity hiring plan is, the better yourchances of increasing workforce diversity.Concrete processes, oversight, and metricsprovide a sense of direction and accountabilityfor your diversity hiring efforts, and tangiblemetrics enable you to track your progressover time. By setting goals that are specific,actionable, and measurable, you increase thelikelihood that your diversity hiring plan willcreate an impact.However, half of those who completed theassessment reported that they don’t havea process for setting diversity hiring goals.All participants working in the Agriculture,Chemicals, and Machinery industries reportedhaving no defined strategies or processes forsetting or achieving diversity hiring goals.Companies in Europe and North America areless likely to have strategies and processesin place for setting diversity hiring goals thantheir peers in South/Latin America, Asia andPacific, and Africa. The European region consistsof several markets, and some don’t react asquickly on issues of diversity and inclusion asothers do. The connection between awarenessand action can vary dramatically, says RobertSymons, Senior Vice President of Europe, MiddleEast, and Africa at SmartRecruiters. Symonsspecifically notes that issues in diversity andinclusion can be polarizing in North America.Company politics and bureaucracy could stifleprogress toward a solid plan.Does your company have defined strategiesand processes on setting and calibrating yourdiversity hiring goals?21%No50%SomeYes29%12From Good Intentions to Lasting Impact

Does your company have defined strategies and processes on setting and calibrating your diversityhiring goals?NoSomeYesBy s83%Construction17%29%50%ConsultingConsumer Packaged %50%Staffing13%40%TechnologyUtilitiesFrom Good Intentions to Lasting 4%25%25%33%13

Does your company have defined strategies and processes on setting and calibrating your diversityhiring goals?NoSomeYesBy Region33%South/Latin America67%51%North America30%58%Europe28%Asia & Pacific28%22%14%50%25%Africa19%75%More than half of participants said their companies have either set specific goals or are in the process ofsetting their diversity targets. But even companies that have set goals don’t always conduct research toensure that their targets are realistic based on their region and industry.Has your company determined whatunderrepresented candidate populations youwant to target?30%39%NoHas your company determined what percentageincrease you’d like to achieve in regards to thespecific underrepresented candidate populations?29%42%In ProgressYesNoIn ProgressYes29%31%Has your company conducted market researchto ensure your targets are realistic?21%NoIn Progress23%1456%YesFrom Good Intentions to Lasting Impact

Participants were slightly more likely to have at least some mechanisms in place for governing andmeasuring progress toward diversity hiring goals than for setting those goals.Does your company have a way to measure/assess your activities and progress as it relatesto your diversity hiring goals?26%45%NoSomeYes29%The data suggests that organizations arebuilding the right infrastructure to create andsustain progress toward diversity hiring goals,but they may not have an overarching strategicplan in place yet.Companies that have an infrastructure forgovernance and metrics in place can make biggains just by adding specific diversity hiringgoals.Does your company have a way to govern your activitiesand progress as it relates to your diversity hiring goals?24%47%NoSomeYes29%From Good Intentions to Lasting Impact15

Do your company’s TA leaders have specificgoals and targets for hiring diverse talent?Without the right sponsorship, D&Ileaders struggle to effect change inthe organizations they’re operating in.24%46%— Robert SymonsSVP of Europe, Middle East,and Africa at SmartRecruitersParticipants did report making progress towardconcrete diversity hiring plans. When askedwhether they have specific goals and targets forhiring diverse talent, nearly a third noted being“in progress” toward incorporating specificdiversity hiring goals for talent acquisitionleaders, hiring managers, and senior leaders andexecutives.Senior-level sponsorship for diversityhiring strategies and processes elevates theresponsibility for fostering a diverse andinclusive workforce at all levels. “It needs tohave senior-level sponsorship,” Symons says.“Without the right sponsorship, D&I leadersstruggle to effect change in the organizationsthey’re operating in — despite doing a reallygood job in terms of quality, focus, and buildingawareness.”The data demonstrate opportunities to developbetter processes, governance, and metrics tokeep your diversity hiring goals moving forward.16NoIn ProgressYes30%Do your company’s hiring managers havespecific goals for interviewing and hiringdiverse talent?15%No27%58%In ProgressYesDo your company’s senior leaders andexecutives have specific goals for interviewingand hiring diverse talent?22%No51%In ProgressYes27%From Good Intentions to Lasting Impact

Setting the Strategy From the C-SuiteThe HR consultants at Leapgen devote their professional lives to helping enterprise organizationsincorporate technology to hire and support their workforces. But internally, the Leapgen team relies onSmartRecruiters’ platforms and Diversity Hiring Assessment to review how well they’re supporting theirown workforce. Leapgen’s executive leadership team took the assessment together to identify where theywere at in terms of the maturity of their thinking and processes.“We were very honest about where we’re at — and made sure we didn’t give ourselves too much creditin the way we answered some of the questions,” says Jess Von Bank, Leapgen’s Head of Brand Strategy.“We had some eye-opening moments as a leadership team.”We were very honest about wherewe’re at — and made sure we didn’tgive ourselves too much credit inthe way we answered some of thequestions.— Jess Von BankHead of Brand Strategy at LeapgenVon Bank and the rest of Leapgen’s leadershipteam prioritized bigger initiatives, too. But,knowing these would require more effort, theyset a realistic timeline and action items forcompleting them. One of those ongoinghigh-effort, high-impact projects is attractingand hiring a more diverse slate of candidates.“HR is a very homogeneous space,” Von Banksays. “We had a lengthy conversation around,‘How do we actually attract more diversity to ahomogenous professional function?’”Part of their ongoing diversity hiring strategy isto improve their candidate experience to makediverse candidates feel more welcome and toinvite them to participate in changing the tides.From Good Intentions to Lasting ImpactOnce the Leapgen leadership team identifiedopportunities in their diversity hiring processes,they developed a strategy for addressing them.They started with low-effort actions that wouldproduce the biggest impact. “It’s not that weweren’t wanting to put effort in,” Von Banksays. “It was, ‘What can we do now that’s easyand creates an immediate difference?’” Someof these action items included improving theirDiversity Brand Equity by adding inclusionstatements to the careers website andmaking it easier for candidates to request anaccommodation ahead of an interview.Action ItemsAssign executives and senior leadersspecific goals for building a pipeline ofdiverse talent.Report and monitor your company’sdiversity hiring goals at the executivelevel.Create and execute a dedicatedcommunication strategy to activelyengage your talent community usingcustomized content that offers value totheir overall interests.17

Budgets Haven’t BudgedYour chances for success in developing adiverse and inclusive culture are directlylinked to the focus and investment thatyou put into it. Ultimately, the company willperform better as a result of your investment,but not all organizations have connected thedots between diversity and the direct businessbenefits it generates.Making the right financial investment in diversityhiring also makes you more attractive todiverse talent. “Candidates are tired of seeingcompanies make empty promises to improvediversity and inclusion. By authorizing adequatefunding for diversity hiring initiatives, companyleaders signal their commitment to diversitywith capital — a much stronger (and moremeaningful) action than public statementsalone,” says Rocki Howard, DEI Executive.But our research suggests that companies’financial investments in their diversity hiringprograms don’t yet align with their publicintentions. Only a third believe they’ve providedCandidates are tired of seeingcompanies make empty promises toimprove diversity and inclusion.— Rocki HowardDEI Executivea sufficient budget to achieve their publicobjectives.Participants in Banking, Staffing, andConsumer Packaged Goods were most likelyto report having an adequate budget fordiversity hiring. Sadly, this approach is hardlyuniversal. Several industries showed severeunderfunding of diversity hiring programs.The Apparel, Communications, Construction,Hospitality, Machinery, and Utilities industriesall demonstrate significant gaps between theirintentions and their investment.Underfunding of diversity hiring programsappears to be consistent across companies ofvarying sizes. Although larger companies tendto have bigger budgets, they’re just as likely assmaller companies to have underfunded theirdiversity hiring objectives. Smaller companiesmay be more sensitive to the impact thatinvesting in diversity has on their employerbrand, prompting them to invest more indiversity hiring, even if they have a smalleroverall budget.Does your company have a budget for diversitysourcing that aligns with your diversity hiringobjectives?32%NoYes68%18From Good Intentions to Lasting Impact

Does your company have a budget for diversity sourcing that aligns with your diversity hiringobjectives?NoYesBy %Construction100%58%ConsultingConsumer Packaged From Good Intentions to Lasting 80%FoodStaffing13%88%Energy37%50%50%25%75%100%19

Does your company have a budget for diversity sourcing that aligns with your diversity hiringobjectives?NoYesBy Company Size1-2,999 employees66%75%3,000-4,999 employees5,000-9,999 employeesMore than 10,000 employees34%25%66%34%70%30%When it comes to candidate outreach, morethan half of participants reported investing theirbudget in job fairs. Companies have traditionallysourced talent at job fairs, but diversity sourcingrequires more intention and thoughtfulness tocreate a sustainable return.Does your company invest in job fairs?45%55%20NoYesFrom Good Intentions to Lasting Impact

Diversity hiring events, conferences and community partnerships are all effective ways to reach diversetalent pools, but they require sustained investment to develop the kind of deep, meaningful relationshipsthat will yield the greatest return.Putting funds toward these entities and events where diverse talent is more likely to be concentrated canhelp companies build lasting relationships and get a greater return on their investment.Does your company invest in conferences?28%NoYesDoes your company invest in communitypartnership?39%No61%Yes72%Does your company invest in HBCU/diversityuniversity events?32%NoYes68%From Good Intentions to Lasting Impact21

Market mapping can give you actionable insight for finding diverse candidates with the skillsyou need, but less than a quarter of participants report incorporating market mapping into theirtalent strategy.Similarly, an effective and intuitive candidate relationship management (CRM) tool is critical fordeveloping a healthy talent community — but more than half of respondents admitted that they weren’tusing their software to its full potential.“Leveraging a CRM as part of your talentacquisition toolkit allows companies to not onlybuild a candidate pipeline but to effectivelycommunicate with these passive candidates,”says Frances Ibe, Vice President of Productat SmartRecruiters. “Proactive and relevantcandidate communication is going to be criticalin attracting top talent.”There are significant gaps between publicintentions and the budgets provided to achievethem. But these gaps provide opportunities forcompanies to improve their investments — andreap a greater returnProactive and relevant candidatecommunication is going to be criticalin attracting top talent.— Frances IbeVice President of Product atSmartRecruiters22Does your company invest in marketmapping?22%NoYes78%Does your company leverage your CRM toadvertise all opportunities to your talentcommunity?35%NoYes65%From Good Intentions to Lasting Impact

Investing in Relationships With DiverseTalent CommunitiesFannie Mae’s talent acquisition team puts resources behind its commitment to diversity hiring. They’reinvesting in technology, processes, and outreach to incorporate D&I end-to-end across the recruitingprocess, says Kelly Bradshaw, Fannie Mae’s Diversity and Recruiting Programs Lead, Talent Acquisition.Fannie Mae works to advance technology to build better mortgage processes to increase access toaffordable housing. They also use technology to advance relationship-building with talent in order toattract people from a variety of sources. One of the reasons they landed on SmartRecruiters’ tools isbecause of the robust CRM. “The capability will allow us to engage talent,” Bradshaw says. “Followingour diversity and inclusion events with our partners, we invite all participants to join our CRM talentcommunity.”Following our diversity and inclusionevents with our partners, we inviteall participants to join our CRM talentcommunity.— Kelly BradshawDiversity and Recruiting ProgramsLead, Talent Acquisition at Fannie Mae“We’ve done quite a bit of work with themin building relationships and doing targetedevents through one of our campus partners,”Bradshaw says. The talent acquisition teamcaptures interest from those events using theSmartRecruiters CRM tool.After recruiting events, Fannie Mae’s teamfollows up with candidates one-on-one to invitethem to join the talent community. That humantouch, driven by better data, helps the companystand out to candidates and supports vitalrelationship-building across diverse communitypartners.From Good Intentions to Lasting ImpactAlthough they’re in the early stages ofimplementation, the team is excited about itspotential. Bradshaw and the talent acquisitionteam are working alongside the employeebranding lead and marketing team to buildout a communications plan to leverageSmartRecruiters’ CRM tool to its full potential.Fannie Mae strengthens relationships withcommunities of color through events atHistorically Black Colleges and Universities andHispanic-Serving Institutions.Action ItemsExamine your company’s budget fordiversity sourcing and make sure that italigns with your objectives.Consider investing in a CRM tool tocategorize candidates according to yourhiring objectives.Consider investing in alternative sourcingstrategies to attract diverse talent.23

Neglecting Opportunities forInternal TalentFair and

success stories, and actionable tips to get you moving as you attract and retain the diverse talent you need. The Diversity Hiring Maturity Model The Diversity Hiring Assessment evaluates your hiring capabilities across all 12 standards (and four success pil

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